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Investigation of Corporate Social Responsibility Projects of Participation Banks in Turkey

Essay 2018 9 Pages

Business economics - Economic and Social History

Excerpt

ABSTRACT: Nowadays, Corporate Social Responsibility (CSR) projects, which are carried out by companies that want to be a part of the solution for the problems of the society they are in, have become a pretty popular topic. At the same time, Today's consumers also expect from corporate companies to fulfill their duties toward the community. Therefore, it is seen that a large number of enterprises have carried out a large number of CSR projects in connection with one or other applications. In this study, based on the date of 1st December 2018, corporate social responsibility projects stated in the web pages of participation banks operating in Turkey will be examined by content analysis method. In the first part of this work that consists of three chapters will be focused on the concept and practice of CSR in Turkey, as to the second part will be examined participation banks operating in Turkey. In the third and final part of this study, CSR projects of participation banks will be evaluated both as resource use and activity area. Our study will end with results and suggestions. This study has been prepared in order to determine the current situation of CSR projects of participation banks and also to provide guidance for bank project managers for future projects.

Introduction

Businesses have been carrying out numerous projects to be part of the solution to the problems of the society in which they have recently been involved. These projects, called CSR projects, have recently become a very popular topic. Today's consumers also expect from their businesses to fulfill their responsibilities towards society. For this reason, it is seen that a large number of enterprises are carrying out a large number of CSR projects related to one or different applications. These projects may be social, green marketing, donation, recruitment or promotion of volunteer projects also assistance organizations.

In this study, according to 1 December 2018 data, CSR projects stated in the web pages of participation banks operating in Turkey will be examined by content analysis method. In the first part of this work that consists of three chapters, it will be focused on the concept and practice of CSR in Turkey, as to the second part will be examined participation banks operating in Turkey. In the third and final part of this study, CSR projects of participation banks will be evaluated both as resource use and activity area. Our study will end with results and suggestions. This study has been prepared in order to determine the current situation of CSR projects of participation banks and also to provide guidance for bank project managers for future projects.

1. Corporate Social Responsibility Concept and Turkey Applications

1.1. CSR Definition, History and General Framework

There is no general consensus on the concept of corporate social responsibility. Kotler and Lee (2006) refer to CSR as the whole of business and investment in social issues and policies that enhance the welfare of the society and protect the environment. According to them, concept of the society, consists of employees, distributors, suppliers and non-profit groups.

Özgener (2004), on the other hand, mentions CSR as the planning and implementation of the policies of the institutions, in accordance with their own goals and the needs of society. CSR is a set of obligations for social development. While Gül (2010) refers to CSR as an effort to use corporate resources for the benefit of society, Eren (1990) defines CSR as a company making people happy and satisfied by conducting policies appropriate to the expectations of the internal and external environment.

When Carol (1997) refers to CSR as economic, moral, legal and philanthropic dimension, according to Aydede (2007), CSR is the business and strategy that should be taken into account at all stages of voluntary business operations. These strategies and works can also positively affect the profitability of the business and the environment. Ünal (2017) mentions CSR as the communication process of the institutions and groups related to socio-environmental impacts of economic activities. In addition, he mentiones that CSR is a key benefits that include increasing customer loyalty and employee loyalty, increasing sales, creating and developing reputation, and also creating market opportunities.

1.2. Corporate Social Responsibility in Turkey

The main CSR practices in Turkey dates back until the Ottoman Empire. CSR projects are generally organized under the name of "foundation". According to the United Nations Development Program (2008) report, when we look at the political and economic structure of the last fifty-year period, we can see that there has not been a favorable environment for sustainable development in the economy of Turkey because of military interventions, high inflation and economic imbalances. After 1980, serious advances have been made in the economy, but this also has led to serious adversities. Companies have tried to protect their profits by decreasing their prices due to the increasing competition environment. This has pushed companies to postpone or cancel CSR projects. Even though the role of the state in the economy has decreased in the last 30 years, the negative effects of the instability in inflation and the periodic exchange fluctuations still do not create the appropriate environment for CSR projects. There has been an awareness of CSR due to the increasing international agreements, campaigns and activities in the country. Istanbul Habitat II congress, held in 1996, played an important role in this field. In 1999, voluntary charities, due to the inadequate efforts of the government in the Izmit earthquake, were established by many groups and companies.

Nowadays, there are CSR projects that companies continue with success. ”Dad, Send Me to School Project“ of Dogan Publishing Group, ”Eti Children Theater” of the Eti group, "People who do not recognize obstacle" of Turkcell, "Children Take Out on the Street “ of Omo, "Let's make a snowman project with you" of Turkish Airlanes, and Opet's “Clean Toilet Campaign” project are examples of these CSR (Dağdelen, 2018).

2. Participation Banking Practices in Turkey

Participation banks in Turkey, alongside conventional banks, are the institutions that continue operating according to Islamic rules. These institutions are based on the principles of profit-loss partnership instead of interest. The main purpose of participation banking is to attract people who do not work with conventional banks into the system. These people are not in the financial system due to their religious sensitivities and also they keep their savings under the pillow. However, due to the increasing competitive environment and dynamic economic structure, participation banks carry out policies targeting not only the religious sensitive segment but also all segments of society.

Founded in 1983 as the Special Finance Institution and named as Participation Banks in 2005, these banks have been operating in Turkey for nearly 35 years. As it can be seen in Table 1, the first participation bank that was founded was Albaraka Türk, the last founded is Vakıf Katılım. Participation banks have a total of 1098 branches. Kuveyt Türk takes the first place with 399 branches and 57.123 million Turkish lira total assets. Türkiye Finans is in second rank with 301 branches and 39 080 million Turkish lira total assets, Albaraka Turk Participation Bank is third rank with 229 branches and 36.229 million total assets. Vakıf Katılım Bank, one of the public participation banks of the sovereign, is fourth with 89 branches and 13.210 million TL total assets and Ziraat Participation is the fifth with 80 branches and 14.350 million TL total assets (www.tkbb.org.tr).

Table 1. Participation banks operating in Turkey (01/12/2018)

Abbildung in dieser Leseprobe nicht enthalten

Source: http://www.tkbb.org.tr, Turkey Finans Participation Bank was established by the merger of Anadolu Finance Institution (1991) and the Family Financial institutions (2001).

Participation banking sector in Turkey is expected to grow. According to the press reports, 4 new participation banks are expected to be operational soon (www.tkbb.org.tr). It was stated that the these banks will be PTT Participation, Real Estate Participation and Turkish Commercial Bank and Adabank.

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Details

Pages
9
Year
2018
ISBN (eBook)
9783668877870
ISBN (Book)
9783668877887
Language
English
Catalog Number
v454848
Institution / College
Giresun University – Institute of Social Sciences
Grade
Tags
Corporate social responsibility participation banks web pages content analysis

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Title: Investigation of Corporate Social Responsibility Projects of Participation Banks in Turkey