Corporate Social Responsibility Presentation Bucharest Novem

1. � TMA Communications Limited 2005 Corporate Social ResponsibilityPresentationBucharestNovember 2005Professor Tony Meehan

2. � TMA Communications Limited 2005 Background Corporate Social Responsibility International Overview GWA Case Study Sources � Fortune Magazine / International Public Relations Association / Yapi Kredi bank Turkey Introduction

3. � TMA Communications Limited 2005 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 Background

4. � TMA Communications Limited 2005 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 society�s expectations across a new international platform Profitably provide products and services that satisfy societies changing expectations and needs European Legislation Corporate Social Responsibility

5. � TMA Communications Limited 2005 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

6. � TMA Communications Limited 2005 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

7. � TMA Communications Limited 2005 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 Corporate Social Responsibility

8. � TMA Communications Limited 2005 Corporate Social Responsibility What is the difference between a societal focused PR programme and a Corporate Social Responsibility programme? Slovenia Drugs Company promoting product Turkey Bank enabling economic / social change and societal development

9. � TMA Communications Limited 2005 Corporate Social Responsibility Corporate = Social = Responsibility = Commercial Market access Sales / Profit

10. � TMA Communications Limited 2005 Target Audiences Your stakeholders Natural fit for company Alternative access to market Corporate Social Responsibility

11. � TMA Communications Limited 2005 Management to Measure Commitment against performance Performance against Commitment Corporate Social Responsibility

12. � TMA Communications Limited 2005 Communicate with each and every sector that who have an interest in, or may be affected by the business Employees Customers Shareholders Local Communities Global Communities Government(s) Media The Public Suppliers Advisors Corporate Social Responsibility Methodology - Stakeholder Engagement

13. � TMA Communications Limited 2005 Corporate Social Responsibility Methodology Governance Are stakeholder issues fully considered when formulation corporate policies? Strategic Intent Do the core business strategies seek to achieve social and environmental targets as well as financial ones?

14. � TMA Communications Limited 2005 Corporate Social Responsibility Methodology Performance Management Do the management processes and business standards seek to achieve social and environmental goals? Public Disclosure Is there a detailed published annual report of social and environmental performance? Assurance Is there an independent audit of the company�s performance against objectives and commitments?

15. � TMA Communications Limited 2005 Fortune top 100 Global Companies Top 10 � 2005 2004 BP (1) Royal Shell (3) Vodafone (9) HSBC (45) Carrefour (5) Ford Motor Company (23) Tokyo Electric Power (6) �lectricit� de France (22) Peugeot (10) Chevron (27) Corporate Social ResponsibilityInternational Overview

16. � TMA Communications Limited 2005 Corporate Social Responsibility 7 European � 2 American � 1 Asian 5 Energy producers � 2 motor vehicle manufacturers 1 Bank � 1 mobile phone company � 1 supermarket Top 50 30 European Companies 12 North American 8 Asian Top 100 48 European 34 North American 28 Asian

17. Corporate Social Responsibility GWA Case StudySaffron Yapi Kredi Bank Turkey

18. � TMA Communications Limited 2005 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 Corporate Social Responsibility

19. � TMA Communications Limited 2005 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 Corporate Social Responsibility

20. � TMA Communications Limited 2005 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

21. � TMA Communications Limited 2005 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 (��tl�k) is made of 8 families (approximately 110 persons)

22. � 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)

23. � TMA Communications Limited 2005 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 ECONOMIC IMPACT

24. � TMA Communications Limited 2005 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 ECONOMIC IMPACT

25. � TMA Communications Limited 2005 STRATEGY Establish a partnership between YKB / ��tl�k / 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

26. � TMA Communications Limited 2005 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

27. � TMA Communications Limited 2005 Community of ��tl�k 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 Identification of publics and action desired of them

28. � TMA Communications Limited 2005 Messages to ��tl�k 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

29. � TMA Communications Limited 2005 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  Messages for TEMA / University

30. Message for all stakeholders �YKB is a company that cares about you and your future!�

31. � TMA Communications Limited 2005 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 Communication channels

32. � TMA Communications Limited 2005 Cartoon illustrations of the process and the story of Saffron Classes for the community PowerPoint presentations were used for the training programme Communication Vehicles

33. � TMA Communications Limited 2005 Media and other Stakeholders Media contacts were briefed by YKB. Personalised media invitations were written by YKB�s CEO. Media pack included YKB�s website and intranet carried information on the project

34. � TMA Communications Limited 2005 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

35. � TMA Communications Limited 2005 EVALUATION Improvement of social, economic, employment and educational opportunities The first Saffron flowers were harvested in October 2003 Plantation area will be increased to 6000 sqm. In 2004 Landowner increased farmers share of income to 50% from 30% TEMA uses the project as an example across Turkey

36. � TMA Communications Limited 2005 Education Crop management training is ongoing More young girls attend school Interest of buyers for the crop Main Turkish spice retailers purchased the crop EVALUATION

37. � TMA Communications Limited 2005 Media / staff / public / Government immediately after the launch of the programme 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 Future corporate materials will feature the project TEMA and Harran University demonstrated the positive values to Government departments and other farming communities The project was welcomed by Government and used as an example of progress and change across the country EVALUATION

38. � TMA Communications Limited 2005 Recognition of the company as a Corporate and responsible member of society Media coverage positioned YKB as a respected member of the business community, demonstrating acceptance of its responsibilities through action YKB�s support of the project, provision of medical care and communication within the project community is established EVALUATION

39. Questions

40. Thank you

41. � TMA Communications Limited 2005 Corporate Social ResponsibilityPresentationBucharestNovember 2005Professor Tony Meehan

42. � TMA Communications Limited 2005 Corporate Social Responsibility