Corporate Social Responsibility

Presentation Bucharest November 2005 Professor Tony Meehan

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Introduction

Background Corporate Social Responsibility International Overview GWA Case Study

Sources Fortune Magazine / International Public Relations Association / Yapi Kredi bank Turkey

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Background

Corporate Social Responsibility is it new?

Religious Groups Philanthropy Charitable donations Sponsorships Corporate Social Responsibility is very different from any of the above The Importance to the Public Relations Sector Natural fit
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Corporate Social Responsibility

Why do companies commit to it? Convert Long Term Risk into investment opportunities Investment / Management decisions Compliance with International Labour / Human Rights / Environmental Standards Discover and change business practices to meet societys expectations across a new international platform Profitably provide products and services that satisfy societies changing expectations and needs European Legislation
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Corporate Social Responsibility

Why is it different? Provides a different platform to get closer to your market The disciplines are tighter and focus on the companies core business values and methodology What does it mean? You are one of the good guys The image of Corporate Social Responsibility is better than PR
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Corporate Social Responsibility

Impact on / reflection of core business strategy and policies Integral part of the business Board of Management responsibility Expectations understood and audited Flexible but totally focused Probably a 3 5 year commitment with annual reviews Match funding option
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Corporate Social Responsibility

What are normal programmes

Education new schools scholarships Health new hospitals out reach treatments Community recreational / social Environment recycling Danube Project CRS V Green Strategies New energies
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Corporate Social Responsibility

What is the difference between a societal focused PR programme and a Corporate Social Responsibility programme?
Slovenia

Drugs Company promoting product Bank enabling economic / social change and societal development
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Turkey

Corporate Social Responsibility

Corporate Social = = Commercial Market access Sales / Profit

Responsibility =

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Corporate Social Responsibility

Target Audiences
Your stakeholders Natural fit for company Alternative access to market
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Corporate Social Responsibility

Management to Measure

Commitment against performance

Performance against Commitment

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Corporate Social Responsibility

Methodology - Stakeholder Engagement

Communicate with each and every sector that who have an interest in, or may be affected by the business i. Employees ii. Customers iii. Shareholders iv. Local Communities v. Global Communities vi. Government(s) vii. Media viii. The Public ix. Suppliers x. Advisors

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Corporate Social Responsibility

Methodology
Governance i. Are stakeholder issues fully considered when formulation corporate policies? Strategic Intent i. Do the core business strategies seek to achieve social and environmental targets as well as financial ones?

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Corporate Social Responsibility

Methodology Performance Management
i.

Do the management processes and business standards seek to achieve social and environmental goals? Is there a detailed published annual report of social and environmental performance?

Public Disclosure
i.

Assurance
i.

Is there an independent audit of the companys performance against objectives and commitments?
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Corporate Social Responsibility

International Overview Fortune top 100 Global Companies
i. Top 10 2005 1. BP 2. Royal Shell 3. Vodafone 4. HSBC 5. Carrefour 6. Ford Motor Company 7. Tokyo Electric Power 8. lectricit de France 9. Peugeot 10. Chevron
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2004 (1) (3) (9) (45) (5) (23) (6) (22) (10) (27)

Corporate Social Responsibility

7 European 2 American 1 Asian
ii. 5 Energy producers 2 motor vehicle manufacturers iii. 1 Bank 1 mobile phone company 1 supermarket iv. Top 50 1. 30 European Companies 2. 12 North American 3. 8 Asian vi. Top 100 1. 48 European 2. 34 North American 3. 28 Asian
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Corporate Social Responsibility GWA Case Study Saffron

Yapi Kredi Bank Turkey

Corporate Social Responsibility

This CRS project outlines societal change and sustainable redevelopment programme managed by Harran University and TEMA (a UN accredited NGO) and financed by Yapi Kredi Bank, to the benefit of a small farming community in south eastern Turkey
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Corporate Social Responsibility

Objectives of the programme were to; Implement transition from high volume low earning crops Cotton - to a low volume high revenue product - Saffron Increase income and employment opportunities in the region Provide training for the farmers to grow Saffron Encourage the education of young girls in the village Position the company as a caring member of the society
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RESEARCH
Research by the university on Saffron identified that: There is an established international market and domestic demand due to usage in medicines, cooking, cosmetics and textile colouring World Saffron production in 2002 was 210 tons US $86.8m Harvesting is labour intensive, suitable to a family farming environment
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PEOPLE and CULTURES

Harran Plateau was home to different civilisations, empires and cultures from Hittites to the Ottomans. 3 main religions have flourished at different times. Today the area is inhabited by Turkish, Arab and Kurdish peoples The village (tlk) is made of 8 families (approximately 110 persons) TMA Communications Limited
2005

ECONOMIC IMPACT

Total farming area is 1,600.000 sqm. In 2003, 400 tons of cotton from 1,000,000 sqm. and 300 tons of wheat from 600,000 sqm. are produced Total annual income was approximately US$ 220,000 from cotton and approximately US$ 80,000 from wheat 30% of the income from cotton goes to the farmer (+/- US$ 66,000) and 7% of the income from wheat goes to the farmer (+/- US$ 5,600)
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ECONOMIC IMPACT
Based on a gross income of +/- US$ 300,000, the farmers received : US$ (66,000 + 5,600)/ 1,600,000 sqm. = 4,45 cents per sqm. Approximately US$ 650 per person

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ECONOMIC IMPACT
A significant societal development was achieved due to the support given by the company, the landowner changed payment to the farmers to equal shares. Saffron pays the farmers US$ 1.12 per sqm as opposed to US$0.06 for cotton
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STRATEGY

Establish a partnership between YKB / tlk / Harran University / TEMA Communicate with the staff through intranet / newsletter Select a non commercial media plan Inform Government via TEMA Present project information and development via websites of University, TEMA and the company Respond to opportunities
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PLANNING
Detailed statement of objectives Establish the project to improve social, economic, employment and educational opportunities in the village Create a training programme for the community Attract buyers for the crop Inform and achieve support from other audiences for the project Communicate with the media / staff / public / Government Be recognised as a leading and caring member of society
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Identification of publics and action desired of them

Community of tlk and the land owner TEMA and national and regional Government departments Saffron market The media / The public / Staff / other stakeholders All publics to respond positively to the project
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Messages to tlk Community

Saffron will increase your income Plant this crop for a new and improved future Set an example for the rest of Turkey

Messages were formulated in Turkish and Arabic the traditional languages of the village
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Messages for TEMA / University

Immediate economic gains; reduce imports / soil erosion; in line with national, regional and local economic development strategies Co-operation between the partners A pilot for societal change in the farming sector across Turkey

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Message for all stakeholders

YKB is a company that cares about you and your future!

Communication channels

TEMA and university meet landowner / farmers face to face TEMA meet with National and Regional Government to present project proposals and reports to inform on progress and achievements YKB used media, internet and intranet and staff newsletter
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Communication Vehicles

Cartoon illustrations of the process and the story of Saffron Classes for the community PowerPoint presentations were used for the training programme

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Media and other Stakeholders

Media contacts were briefed by YKB. Personalised media invitations were written by YKBs CEO. Media pack included YKBs website and intranet carried information on the project

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Media Pack
The press statement detailing the importance and values of the project, the objectives, commitment and benefits to the village, the partners, history of the area, profile of Saffron Photographs and images DVD and film footage

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EVALUATION

Improvement of social, economic, employment and educational opportunities

o The first Saffron flowers were harvested in October 2003 o Plantation area will be increased to 6000 sqm. In 2004 o Landowner increased farmers share of income to 50% from 30% o TEMA uses the project as an example across Turkey
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EVALUATION

Education
o Crop management training is ongoing o More young girls attend school

Interest of buyers for the crop

o Main Turkish spice retailers purchased the crop

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EVALUATION

Media / staff / public / Government immediately after the launch of the programme o YKB achieved articles in 4 major national newspapers, 4 business, environmental and lifestyle magazines, radio and television coverage of 43 minutes on national / regional news o Future corporate materials will feature the project o TEMA and Harran University demonstrated the positive values to Government departments and other farming communities o The project was welcomed by Government and used as an example of progress and change across the country
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EVALUATION

Recognition of the company as a Corporate and responsible member of society

o Media coverage positioned YKB as a respected member of the business community, demonstrating acceptance of its responsibilities through action o YKBs support of the project, provision of medical care and communication within the project community is TMA Communications Limited 2005 established

Questions

Thank you

Corporate Social Responsibility

Presentation Bucharest November 2005 Professor Tony Meehan
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Corporate Social Responsibility

TMA Communications Limited 2005