Case study: How Borusan Group creates economic value for its stakeholders
Borusan Group is a Turkish industrial group operating in 12 countries including Turkey, where the headquarters of Borusan Holding are located, and also Azerbaijan, China, England, Georgia, Germany, Italy, Kazakhstan and Russia, among others. Together with its Group companies, Borusan Group provides more than 11 thousand jobs and supports its country’s sustainable growth and economic value creation.
This case study is based on the 2019-2020 Sustainability Report by Borusan Group, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Starting as a small business, Borusan Group continues today, with its 77 years of deep-rooted history, to create added value for its country and all its stakeholders Tweet This!, including employees, the government and the community. In order to create economic value for its stakeholders Borusan Group took action to:
- create economic value for employees
- create economic value for the government
- create economic value for capital providers
- create economic value for the community
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With this case study you will see:
- Which are the most important impacts (material issues) Borusan Group has identified;
- How Borusan Group proceeded with stakeholder engagement, and
- What actions were taken by Borusan Group to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2019-2020 Sustainability Report Borusan Group identified a range of material issues, such as combatting climate change, circular economy, innovation and R&D, customer data privacy. Among these, creating economic value for its stakeholders stands out as a key material issue for Borusan Group.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Borusan Group engages with:
To identify and prioritise material topics Borusan Group engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Employees
| · CEO and General Manager memorandums (Special day celebrations, briefing on important issues) · Special Day Events (Digital) · Internal and External Reports · Social Responsibility Platforms and Clubs · Social Media, Corporate Websites and Borusan Applications · Trainings, Employee Engagement and Customer Surveys · Internal and External Meetings, Evaluations and Announcements · Ethics Principles and Ethics Line |
| Group Companies
| · Internal and External Reports · Internal and External Meetings, Evaluations and Announcements · Ethical Principles · Internal Communication Platforms · Social Media, Corporate Websites and Borusan Applications |
| Suppliers | · Internal and External Reports · Internal and External Meetings, Evaluations and Announcements · Social Media, Corporate Websites and Borusan Applications |
| Media | · Internal and External Reports · Internal and External Meetings, Evaluations and Announcements · Social Media, Corporate Websites and Borusan Applications |
| Customers | · Internal and External Reports · Trainings, Employee Engagement and Customer Surveys · Internal and External Meetings, Evaluations and Announcements · Social Media, Corporate Websites and Borusan Applications · Ethical Principles |
| Business Partners
| · Internal and External Reports · Internal and External Meetings, Evaluations and Announcements · Ethical Principles · Social Media, Corporate Websites and Borusan Applications |
| Local Community
| · Projects · Internal and External Meetings, Evaluations and Announcements · Social Media, Corporate Websites and Borusan Applications |
| Students and Academics
| · Career Days · Trainings, Employee Engagement and Customer Surveys · Coaching and Internship Programmes with Students · Social Media, Corporate Websites and Borusan Applications |
| Financial Institutions
| · Internal and External Reports · Social Media, Corporate Websites and Borusan Applications |
| Public Institutions
| · Internal and External Reports · Internal and External Meetings, Evaluations and Announcements · Social Media, Corporate Websites and Borusan Applications · Projects · Controls |
| Non-governmental Organisations (NGOs) and Professional Unions
| · Internal and External Reports · Internal and External Meetings, Evaluations and Announcements · Projects · Social Media, Corporate Websites and Borusan Applications · Memberships · Donations and Sponsorships |
| Other Stakeholders
| · Internal and External Reports · Internal and External Meetings, Evaluations and Announcements · Social Media, Corporate Websites and Borusan Applications |
What actions were taken by Borusan Group to create economic value for its stakeholders?
In its 2019-2020 Sustainability Report Borusan Group reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, Borusan Group paid TRY 1,529,500,427 in benefits to employees.
- Creating economic value for the government
- In 2020, Borusan Group paid TRY 334,561,571 in benefits provided to the government (income, property tax, etc.).
- Creating economic value for capital providers
- In 2020, Borusan Group paid TRY 217,123,812 in benefits provided to capital providers (dividends distributed to shareholders).
- Creating economic value for the community
- In 2020, Borusan Group paid TRY 34,649,237 in benefits to the community.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by Borusan Group, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://www.borusan.com/surdurulebilirlik-raporu/2019-2020/assets/surdurulebilirlikRaporuEng.pdf
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