2014 SUSTAINABILITY REPORT
2014 Prioritization Analysis
For the preparation of its 2014 sustainability report, Ziraat Bank made changes in its prioritization analysis approach so as to make it compatible with GRI G4 reporting principles.
The focal point of this prioritization was to identify the economic, environmental, and social topics that are of the greatest concern both to the bank and to its internal and external stakeholders.
In the process of identifying the elements that would be cited in the conduct of the priority analysis, attention was given both to Ziraat Bank’s own activities and their impact and to shareholder expectations. For this purpose, GRI-published principles pertaining to the nature and content of reports were adhered to.
In the process of determining material topics, Ziraat Bank made use of:
Internal stakeholders’ views were determined by means of a comprehensive survey conducted among the Bank’s unit managers and personnel.
The views of external stakeholders (customers, suppliers, international agencies and organizations, etc) were taken up at meetings with representatives of the Bank units that are in regular communication with such groups. During these meetings, the findings of items 2 and 3 in the list above were discussed and stakeholder priorities were ascertained accordingly.
Having thus been identified based on information drawn from a variety of sources, these priorities were then considered in light of GRI G4 criteria and the bank-internal and bank-external impacts of each one were determined.
As a result of this prioritization analysis, topics that Ziraat Bank and its stakeholders deemed to have material relevance were identified and ranked in order of their significance to them. This information was then used as input for the creation of the 2014 Ziraat Bank Priority Matrix.
Validation of the prioritization analysis and subsequent processes was carried out by the sustainability project team.
All of the material topics identified as a result of the 2014 prioritization analysis have significance for and impact strongly on both Ziraat Bank and its stakeholders. These material topics may be assigned to one of three categories indicative of the degree of their significance and impact.
The topics in the first category are the most important issues affecting Ziraat Bank’s current and future performance. These consist of:
All these topics are of direct and immediate concern, without exception, to all of the bank’s business lines, to the members of the Ziraat Finance Group (even though they are not covered by this report), to Ziraat Bank employees, and to all other external stakeholders.
Ziraat Bank is a financial services provider that is also the center of the most extensive bank branch network in Turkey. According to 2014 figures, there were more than 400 towns and villages in Turkey in which Ziraat Bank was the only financial services provider with a physical presence. This unrivaled geographical reach is what determines the bank’s position in the Turkish economy; it also shows how important and influential the material topics of the first category are to the country’s economic and social development. All these topics will additionally be crucial to the added value that can be generated and shared in the short, medium, and long terms.
The topics in the second and third categories are issues whose significance and priority may vary from one stakeholder to another. Examples of these include:
While there were no changes in Ziraat Bank’s operational framework during the reporting period, this report is the first time that Ziraat Bank has formally defined a material topic framework and publicly disclosed it.
Market- and customer-focus, banking product and service range diversity, customer satisfaction, brand value and international reputation enhancement, extensive geographical reach and customer accessibility, diversified deposit base |
G4 EC, SO, FS | |
Support for agriculture, provision of services to SMEs and entrepreneurs |
G4 EC, SO, FS | |
| Safeguarding customer data | G4 SO, PR | |
Corporate governance and risk management (including sustainability management) |
G4 SO | |
| Development of IT infrastructure and alternative delivery channels | G4 EC, SO | |
Financial soundness of customers |
G4 EC, SO | |
| Renewable energy | G4 EN | |
| Ziraat Finance Group | G4 EC | |
| Access to services | G4 SO | |
Participation in legislative/regulatory development processes |
G4 SO, PR | |
Business model: Short and long-term value creation |
G4 EC | |
Employee participation, employee welfare, employee training & development, employee compensation |
G4 LA, G4 HR |
Ziraat Bank’s primary stakeholder group consists of its shareholder, employees, customers, and suppliers. The bank engages in interactive communication with the members of this group in the conduct of its activities. Because the largest part of this stakeholder communication takes place in the conduct of day-to-day operations, it provides an extremely important way for the bank to correctly understand and assess stakeholders’ wishes and expectations.
In addition to this primary stakeholder group, there is a secondary tier of stakeholders with which Ziraat Bank engages closely. The members of this group consist of regulatory authorities, international financial institutions, investors, rating agencies, media concerns, professional and industry associations and organizations and society at large.
|
Stakeholder group |
Contact frequency |
Communication channels |
Primary Stakeholders |
Employees |
Conduct of business - daily |
Recruitment processes, personnel training programs, performance evaluation meetings, internal communication channels, employee-manager meetings, information/communication meetings. |
Customers |
Conduct of business - 24/7 |
Ziraat Bank branches and alternative delivery channels (ATMs, internet banking, mobile banking, call center), customer relations managers, customer visits. |
|
Suppliers |
Conduct of business - daily |
All processes involving the procurement of materials and services from outside Ziraat Bank. |
|
Shareholder |
General meetings and on other occasions when required |
General Meeting (annual). |
|
Other Stakeholders |
Regulatory authorities |
Conduct of business - when required |
Mandatory reporting, correspondence, and meetings. |
International financial institutions & investors |
Conduct of business - daily |
Meetings and discussions with representatives of financial institutions (World Bank, European Investment Bank, etc) with which Ziraat Bank works. |
|
Professional associations & organizations |
Conduct of business - daily |
Meetings, presentations, day-to-day communication. |
|
Media concerns |
Conduct of business - when required |
Press conferences, press releases, interviews, responses to directed questions etc in order to ensure transparent and unhindered communication between the bank and the public. |
|
Society at large |
Conduct of social responsibility projects |
Corporate social responsibility projects and charitable activities. |
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For the determination of its 2014 sustainability priorities, Ziraat Bank made use of feedback and expectations gleaned from its routine interactions with the different groups (customers, employees, suppliers, shareholder) that make up its primary stakeholders and this informed the report’s material topics. (Please refer to “Identifying material topics”) |
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Ziraat Bank takes the following criteria into account when recognizing its stakeholders:
Criteria for recognizing stakeholders |
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By dependency
|
Stakeholders who depend on Ziraat Bank now and are likely to do so in the future |
Customers, employees, etc |
By impact |
Stakeholders who have an impact on Ziraat Bank’s performance now and are likely to do so in the future |
Customers, employees, suppliers, etc |
By involvement |
Stakeholders whose interactions with Ziraat Bank on any matter entail sustainability issues |
Institutions and organizations for which corporate social responsibility projects are being conducted, consultancies, etc |
By accountability |
Stakeholders towards which Ziraat Bank is financially and/or legally accountable now and is likely to be so in the future |
Shareholder, regulatory authorities, international banks and investors, etc |
By affinity |
Stakeholders who interact with Ziraat Bank the most intensively on a long-term basis |
Customers, suppliers, etc |
By representation |
Stakeholders that Ziraat Bank interacts with in the conduct of its dealings with regulatory mechanisms and with market/social groupings |
Professional and industry associations and organizations, media concerns, etc |
The material issues that emerged in the context of stakeholder engagement are considered and discussed in detail in different sections of this report.
Ziraat Bank has long-term, strong business relationships with initiatives in which it takes part or which it supports.
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BANKS ASSOCIATION OF TURKEY (TBB)
TBB plays a leading role in the Turkish financial services industry’s efforts to achieve international dimensions and clout through improvements in productivity and effectiveness. Ziraat Bank’s CEO Hüseyin AYDIN is also the chairman of the association’s board of directors.
FOREIGN ECONOMIC RELATIONS BOARD
The fundamental duty of the Foreign Economic Relations Board (DEİK) is to establish, through the business councils that make it up, relationships that the business world requires. By providing information that firms need for their business plans and strategies and by dealing with problems that adversely affect the emergence of new business collaborations, DEİK makes it possible for local firms to get together with their international interlocutors.
TURKISH NATIONAL COMMITTEE OF THE INTERNATIONAL CHAMBER OF COMMERCE
The national committees that make up the International Chamber of Commerce (ICC) form a great global network. ICC policies are shaped by its members who, through their national committees, convey the concerns of the business world to their respective governments.
http://icc.tobb.org.tr/index.php
CREDIT BUREAU OF TURKEY (KKB)
KKB was set up in 1995 with participation of eleven banks. KKB shares necessary information between financial institutions active in money- and capital markets and in insurance sector in need to monitor and control retail credit accounts.
TBB RISK CENTER
Founded under Banks Association of Turkey, The Interbank Risk Center serves as a single platform for the sharing of information about financial institutions’ exposures to customer risk as deemed appropriate by Banking Regulation and Supervision Agency (BDDK) and lenders. Under certain conditions, the center may also provide such information to individuals and organizations that are not its members.
ECONOMIC RESEARCH FOUNDATION
The Economic Research Foundation was chartered in 1962 for the purpose of conducting research into issues touching upon Turkey’s economic, social, and fiscal problems as well as more general matters and to recommend solutions for dealing with them.
INTERNET FRAUD ALARM SYSTEM (IFAS)
Internet Fraud Alarm System (IFAS) is a KKB-hosted service through which members communicate and share information about fraudulent acts performed online. IFAS also encourages and helps banks to develop new methods to counter efforts to circumvent their own security systems.
http://rapor2012.kkb.com.tr/tr/guvenlik-sistemleri.asp
ASSOCIATION OF NATIONAL DEVELOPMENT FINANCE INSTITUTIONS IN MEMBER COUNTRIES OF THE ISLAMIC DEVELOPMENT BANK (ADFIMI)
ADFIMI is an association of state-owned banks in countries that are members of the Islamic Development Bank. Ziraat Bank is one of the founding members of ADFIMI and its general manager is therefore entitled to take part in the association’s general meetings by virtue of his office.
INSTITUTE OF INTERNATIONAL FINANCE (IIF)
IIF is one of the biggest global associations of finance-industry concerns. With 500 members from 70 countries, IFF serves as an important education and information-sharing platform.
BANKALARARASI KART MERKEZİ (BKM)
The Interbank Card Center (BKM) was established in 1990 with the partnership of 13 public and private Turkish banks for the purpose of providing solutions to the common problems and developing the rules and standards of credit and debit cards in Turkey, within the card payment system.
As an internationally recognized system thanks to its efficient operations and high transaction capacity, BKM continues to provide its members, retail sector, public sector and individuals with the best payment system services through its advanced technological hardware, infrastructure and human resources.
