CORPORATE SUSTAINABILITY REPORT - DOĞUŞ OTOMOTİV 2017 - Doğuş Otomotiv

 
CORPORATE SUSTAINABILITY REPORT - DOĞUŞ OTOMOTİV 2017 - Doğuş Otomotiv
DOĞUŞ OTOMOTİV
CORPORATE SUSTAINABILITY REPORT
             2017
CORPORATE SUSTAINABILITY REPORT - DOĞUŞ OTOMOTİV 2017 - Doğuş Otomotiv
Product and Service
   Responsibility

                                     ABOUT
                                                                                                                                                 After the inclusion of vdf Servis ve     the public in a transparent
                                                                                                                                                 Ticaret A.Ş. in the 2014 report,         manner.
                                                                                                                                                 Doğuş Teknoloji and ŠKODA
                                                                                                                                                 Türkiye (Yüce Auto Motorlu Araçlar       Since 2015, Doğuş Otomotiv

                                THE REPORT
                                                                                                                                                 Tic. A.Ş.) have been added to the        includes its affiliates, authorized
                                                                                                                   GRI   102-45, 102-49          scope of the report in 2015. Since       dealers and aftersales service
     Community

                                                                                                                                                 first including the performances of      centers as well as suppliers in
                                                                                                                                                 three pilot Authorized Dealers and       limited scope in the Corporate
                                                                                                                                                 Aftersales Service Centers in the        Sustainability Reports. With this
                                                                                                                                                 Corporate Sustainability Report in       practice intended to raise
                                                                                                                                                 2012, this number has risen to 21.       awareness and building reporting
                                    Doğuş Otomotiv’s 2017 Corporate Sustainability Report is the                                                 Furthermore, with the addition of        habits regarding sustainability, the
                                   ninth report that the company has issued under this title. The                                                four more suppliers, the                 Company aims to develop its
                                              report, which provides detailed and comprehensive                                                  performances of seven suppliers in       business partners within its sphere
     Employees

                                     information about the social, environmental and economic                                                    total are now included in this           of influence.
                                   performance of key stakeholders of Doğuş Otomotiv Servis ve                                                   year’s report.
                                 Ticaret A.Ş. and Doğuş Oto Pazarlama ve Ticaret A.Ş. in material                                                                                         Doğuş Otomotiv’s 2017 Corporate
                                           issues, has been issued in accordance with the Global                                                 Doğuş Otomotiv discloses the             Sustainability Report also includes
                                  Reporting Initiative (GRI) Standards: Comprehensive option in                                                  Company's corporate sustainability       the United Nations Global
                                   Turkish and English. The Company’s financial statements and                                                   strategies, the performance              Compact Progress Reporting
                                                                                                                                                 delivered and goals set out in 2017      Index since 2010. In 2017,
                                  operational performance data have been disclosed in the 2017
                                                                                                                                                 in line with the Company’s focus         Doğuş Otomotiv added the United
                                                                 Doğuş Otomotiv Annual Report.
Environmental
Responsibility

                                                                                                                                                 areas and the developments in            Nations Sustainable Development
                                                                                                                                                 stakeholder engagement and               Goals (UN SDG) Index to the report
                                                                                                                                                 sustainable supply chain                 for the first time, disclosing to the
                                                                                                                                                 management through the                   stakeholders its performance and
                                                                                                                                                 Corporate Sustainability Report to       goals under 17 headings
                                                                                                                                                                                          of UN SDG.
Economic Development

                                                                                                                                                                  Since 2015, Doğuş Otomotiv has disclosed its
     Performance

                                                                                                                                                                  sustainability performance in a dedicated section of its
                                                                                                                FURTHER INFORMATION                               corporate website at www.dogusotomotiv.com.tr
                                                                                                                                                                  in order for the Corporate Sustainability Report to reach
                                                                                                                                                                  more stakeholders and to ensure the reported
                                                                                                                                                                  information and data are easily understood with links
                                                                                                                                                                  providing easy access to relevant headings. Further
                                                                                                                                                                  information on GRI Index, UN Global Compact Index, UN
Corporate Sustainability

                                                                                                                                                                  SDG Index or the performance of affiliates, Authorized
      Approach

                                                                                                                                                                  Dealers and Aftersales Services as well as suppliers are
                                                                                                                                                                  also available in the same section.

                           01                             DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017              DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017                                                    02
                                                                                                                                                                                                                                  01
CORPORATE SUSTAINABILITY REPORT - DOĞUŞ OTOMOTİV 2017 - Doğuş Otomotiv
Product and Service
   Responsibility

                                REPORTING
                                                                                                                                        Doğuş Otomotiv has issued its ninth                  and check the accuracy of the data
                                                                                                                                        Corporate Sustainability Report                      presented in the report and
                                                                                                                                        covering its 2017 performance                        disclosure in compliance with
                                                                                                                                        according to GRI Sustainability                      standards in a limited capacity.

                                  PROFILE
                                                                                                                                        Reporting Guidelines.                                Calculation methods recommended
                                                                                                             GRI   102-46
                                                                                                                                        Doğuş Otomotiv regularly reports its                 within the GRI Standards Reporting
     Community

                                                                                                                                        Corporate Responsibility and                         framework have been utilized to
                                                                                                                                        Sustainability performance                           calculate the data disclosed in the
                                                                                                                                        annually.    GRI   102-50, 102-52
                                                                                                                                                                                             report. Non-consolidated data have
                                                                                                                                                                                             been described in footnotes. We
                                                                                                                                        The 8th Corporate Sustainability                     continue to work toward reaching
                                       Since 2009, the contents, scope and                                                              Report was published in                              healthier data every year, and to
                                                                                                                                        June 2017.     GRI 102-51                            include all the organizations in
                                      overall structure of Doğuş Otomotiv’s                                                                                                                  Doğuş Otomotiv’s value chain within
     Employees

                                        Corporate Sustainability Report are                                                             Doğuş Otomotiv’s 2017 Corporate                      the reporting scope.   GRI   102-48

                                                                                                                                        Sustainability Report has been
                                      prepared in accordance with the GRI                                                               prepared in accordance with the
                                       Sustainability Reporting Guidelines.                                                             GRI standards “comprehensive
                                                                                                                                        reporting” option, and has not been
                                                                                                                                                                    GRI 102-56
                                                                                                                                        externally assured.                      It should
                                  Global Reporting Initiative (GRI) Standards Content Index
                                                                                                                                        be noted that Doğuş Otomotiv’s
                                            is made available online along with this report.
                                                                                                                                        Corporate Sustainability Reports are
Environmental
Responsibility

                                                                        GRI   102-54, 102-55, 102-56
                                                                                                                                        prepared by an independent
                                                                                                                                        consulting firm. The consultant
                                 http://www.dogusotomotiv.com.tr/en/sustainability/corpora
                                                                                                                                        firm’s officials, consisting of experts
                                                       te-sustainability/sustainability-home
                                                                                                                                        in their respective fields, monitor
Economic Development

                                                                                                                                                               Please send questions and comments
     Performance

                                                                                                                                 CONTACT                       about Doğuş Otomotiv’s sustainability
                                                                                                                                                               performance to:

                                                                                                                                                               Çağla Gül Şenkardeş
                                                                                                                                                               Corporate Brand Manager

                                                                                                                                                               e-posta: cgul@dogusotomotiv.com.tr
Corporate Sustainability

                                                                                                                                                               Pınar Tuncer Doğanç
      Approach

                                                                                                                                                               Assistant of Corporate Brand Manager

                                                                                                                                                               e-posta: PTuncer@dogusotomotiv.com.tr

                           02                          DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017                  DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017                                                    03
CORPORATE SUSTAINABILITY REPORT - DOĞUŞ OTOMOTİV 2017 - Doğuş Otomotiv
Product and Service
   Responsibility

                                INDEX OF SYMBOLS USED
                                        IN THIS REPORT
     Community

                                       The material issues covered in Doğuş
                                     Otomotiv 2017 Corporate Sustainability
                                 Report are indicated with different symbols
     Employees

                                  when they correspond with GRI Standards                                                               Topics where Doğuş Otomotiv’s
                                                                                                                                GRI     performance complies with GRI
                                             and United Nations Sustainable
                                                                                                                                        Standards
                                        Development Goals (UN SDG). These
                                  symbols, described below, are intended to
                                                                                                                                        Topics where Doğuş Otomotiv’s
                                  provide quick and detailed information to                                                      BM
Environmental
Responsibility

                                                                                                                                 SKH    performance complies with
                                          the reader and point to key topics.                                                           UN SDG

                                                                                                                                        Topics that link to Doğuş Otomotiv’s
                                                                                                                                        website and include detailed
Economic Development

                                                                                                                                        information
     Performance

                                                                                                                                        Information disclosed in the
                                                                                                                                 FR     Doğuş Otomotiv Annual Report
Corporate Sustainability
      Approach

                           04                       DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017   DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017                  05
CORPORATE SUSTAINABILITY REPORT - DOĞUŞ OTOMOTİV 2017 - Doğuş Otomotiv
About this report                                  01
Product and Service

                                              Reporting Profile                                  02
   Responsibility

                                              Index of Symbols Used in this Report               04
                                              Chairman’s Statement                               08               Employees
                                              CEO’s Statement                                     12
                                                                                                                  Dialogue with Employees                             62
                                              Corporate Profile                                   16
                                                                                                                  Employee Trainings                                  68
                                              Strategic Approach                                  18
                                                                                                                  Performance Management                              69
                                              Risk Management and Sustainability in                               Employee Health and Safety                          70
                                              the Operational Value Chain                         18              Diversity and Equal Opportunities                   72
     Community

                                                                                                                  Human Rights                                        73

                                                                                                                  Community
                                   CONTENTS
                                                                                                                                                                      75

                                               Corporate Sustainability                                           Community Engagement Activities
                                                                                                                  Traffic is Life!
                                                                                                                                                                      75
                                                                                                                                                                      75
                                               Approach                                          22               Supporting Vocational High Schools                  77
                                               Sustainable Risk Management                       23               New Graduate Programs                               78
     Employees

                                               Business Ethics                                   25
                                                                                                                  Product and
                                               Corporate Sustainability Strategy and
                                               Material Issues                                   26
                                                                                                                  Service Responsibility                              83

                                                                                                                  Product and Service Quality Standards and
                                               Doğuş Otomotiv Material Issues
                                                                                                                  Trainings                                           83
                                               Performance Criteria                              27
                                                                                                                  Value and Care Center (DİM)                         84
                                               Corporate Sustainability Management               36               Authorized Dealer and
Environmental
Responsibility

                                                                                                                  Aftersales Service Center Development Activities    90
                                               Economic Development
                                               Performance                                       45              Corporate Sustainability Performance by Brands       93

                                               New Authorized Dealer and
                                                                                                                 Sustainability Awareness within the Sphere of
                                               After-sales Service Investments                   46
                                                                                                                 Influence                                             97
                                               Economic Efficiency and Quality Activities        49
Economic Development

                                                                                                                 Corporate Sustainability at Affiliates                97
                                               Doğuş Otomotiv Suggestion System                  52
                                                                                                                       Doğuş Oto                                       97
     Performance

                                               Community Development                             53
                                                                                                                       Doğuş Oto General Manager’s Statement           98
                                                                                                                       Doğuş Teknoloji                                102
                                               Environmental                                                           Gebze Scania Aftersales Service                104
                                               Responsibility                                    55                    Skoda
                                                                                                                       vdf
                                                                                                                                                                      106
                                                                                                                                                                      108
                                               Energy Efficiency                                 55
                                               Water Consumption                                 55              Corporate Sustainability at Suppliers                110
Corporate Sustainability

                                               Waste Management                                  56              Corporate Sustainability at Authorized Dealers and
                                               Environmental Awareness Among Employees           59              Aftersales Service Centers                           120
      Approach

                                                                                                                 Doğuş Otomotiv 2017 Corporate Sustainability
                                                                                                                 Performance in Numbers                               136
                                                                                                                 GRI Content Index                                    149
                                                                                                                 Doğuş Otomotiv Corporate Sustainability Team         150

                           06 01                       DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017   DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017            07
                                                                                                                                                                            02
CORPORATE SUSTAINABILITY REPORT - DOĞUŞ OTOMOTİV 2017 - Doğuş Otomotiv
Product and Service
   Responsibility
     Community

                                Esteemed Stakeholders,

                                Looking back, we will most likely            and efficient sales targets in spite of
                                remember 2017 as a year of                   the drop in vehicle sales and adverse
                                uncertainties and instability                market conditions overall.
                                exacerbated by geopolitical risks for
                                the industry and economy as well as          The fact that market conditions have
     Employees

                                our company. We felt the impact of           direct impact on our industry due to
                                volatile exchange rates and interest         various reasons once again brought
                                rates on the economy throughout the          up the necessity of addressing risks
                                year as the importance of risk               from a more comprehensive angle.
                                management in terms of adapting to           Accordingly, we at Doğuş Otomotiv
                                changing global balances grew                continued to transform our strategic
                                significantly.                               sustainability management approach,
                                                                             which we have followed since 2009,
Environmental
Responsibility

                                We noted the most interesting result         into a more systematic one in 2017.
                                in the automotive industry, which has
                                been growing steadily worldwide in           Aiming to spread the sustainable
                                the recent years, in the sales of electric   management and growth approach
                                vehicles that exceeded one million           more extensively across Doğuş

                                                                                                                                          CHAIRMAN’S
                                units for the first time. The expectation    Otomotiv’s value chain, we continued                                                                   102-14, 102-15
                                that this figure might reach 1.4 million     to share important information
                                                                             particularly with our suppliers and
Economic Development

                                                                                                                                                       S TAT E M E N T
                                in 2018 was among the important
                                messages we needed about the                 authorized dealers and aftersales
     Performance

                                transformations anticipated in the           service centers throughout 2017. This
                                market.                                      year we also added key sustainability
                                                                             factors to supplier selection criteria
                                Light commercial vehicles segment            and introduced risk categorization. We
                                continued to grow despite the                organized the first Supplier Days event
                                narrowing in the Turkish market,             in 2017 as well to inform our suppliers
                                which saw 2.8% year on year decrease         about Doğuş Otomotiv's sustainability
Corporate Sustainability

                                in total vehicle sales. Even so, we at       strategy and communicate our
                                Doğuş Otomotiv attained profitable           expectations from them in this
      Approach

                           08                                                       DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017    DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017       09
CORPORATE SUSTAINABILITY REPORT - DOĞUŞ OTOMOTİV 2017 - Doğuş Otomotiv
respect. Furthermore, on this special day we awarded three       developments in line with production and sales plans of
                                suppliers that aspired to report their own performance by        OEMs, designing future strategies according to these plans.
Product and Service
   Responsibility

                                contributing to the Corporate Sustainability Report.
                                                                                                 As issues such as human rights and equality gain more
                                Doğuş Otomotiv believes that the United Nations                  prominence on the sustainability agenda, Doğuş Otomotiv
                                Sustainable Development Goals, one of the major                  kept its focus on increasing women’s participation in
                                indicators of prioritizing sustainability not only for the       economic life and enabling gender parity in the workplace.
                                private sector but also for governments and public               Doğuş Otomotiv is among the active and leading
                                institutions, can only be reached by investing in the right      members of the ‘Equality at Work’ platform formed within
                                channels through public and private sector partnerships. In      the scope of the World Economic Forum’s “Closing the
                                this respect, we at Doğuş Otomotiv were able to achieve          Gender Gap” program. Coaching and mentoring programs
     Community

                                results that added value and enabled progress; and               on this topic will continue in 2018.
                                included our performance in Sustainable Development
                                Goals in this year’s Corporate Sustainability Report.            In 2017, Doğuş Otomotiv continued to provide trainings on
                                                                                                 Code of Ethics, which makes up the building blocks of
                                Corporate governance practices have long been at the             Business Ethics while nearly 81% of our employees
                                forefront of the issues we have focused on for sustainable       completed the face-to-face trainings.
                                process management. With the activities carried out to
                                achieve development ahead of our peers every day, we             The activities we have carried out within the scope of the
     Employees

                                were able to see very valuable outcomes. In 2017, Doğuş          ‘Traffic is Life!’ platform seamlessly since 2014 continued to
                                Otomotiv’s corporate governance compliance score in              raise awareness of traffic safety significantly as we became
                                Borsa Istanbul was rated as 9.63. With best practices            one of the pioneering companies in this field. The ‘Traffic is
                                internalized and corporate governance significantly              Life!’ platform will go on with various programs in 2018,
                                complied with, the Corporate Governance Association of           reaching more children, young people and families to raise
                                Turkey ranked our Company second among the top three             awareness.
                                Companies with Highest Corporate Governance Rating
                                Scores.                                                          As always, Doğuş Otomotiv will keep investing toward
Environmental
Responsibility

                                                                                                 improving social welfare in our country, all the while
                                We continue to work in a planned and systematic manner           upholding its universal and corporate values. In 2018, we
                                with the awareness that sustainability also means reducing       will draw our roadmap by identifying the risks and
                                our impact on the ecological environment. We succeeded           opportunities associated with our new updated material
                                in reducing our water consumption 65% with the practices         issues as we continue to improve ourselves and contribute
                                implemented since 2009. With waste management                    to the community of which we are a part in line with the
                                applied since 2008, we saved around 8 million kWh in             United Nations Sustainable Development Goals and other
Economic Development

                                energy, which corresponds to the annual energy                   international frameworks.
     Performance

                                consumption of approximately 2,800 households.
                                                                                                 I would like to extend my gratitude to all of our
                                Speaking of attaining tangible results, 2017 was also a year     stakeholders, and particularly executives and employees of
                                when we saw major transformation in the global                   Doğuş Otomotiv for their efforts, valuable contribution and
                                automotive industry. With several countries declaring their      cooperation and express my heartfelt confidence that
                                vision for zero-emissions, along with the changes in             together we will continue to achieve even greater success
                                automotive technology and restrictions imposed on diesel         in the coming years.
Corporate Sustainability

                                vehicles due to environmental norms, leading to increased
                                manufacturing costs, many companies have already                 Sincerely,
      Approach

                                stopped production of diesel engines. As in the case of
                                Volkswagen’s Jetta model, the fact that diesel engine            Aclan Acar
                                options are no longer offered in some models has reflected       Chairman
                                directly on the 2017 sales figures. Doğuş Otomotiv adapts
                                to changing conditions and closely follows all the

                           10                                                                 DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017                 DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017   11
CORPORATE SUSTAINABILITY REPORT - DOĞUŞ OTOMOTİV 2017 - Doğuş Otomotiv
Product and Service
   Responsibility

                                                                                                                      Esteemed Stakeholders,

                                                                                                                      In this journey that we embarked         stakeholders expect from us to
                                                                                                                      on a decade ago with the mission         decrease our own risks and also to
     Community

                                                                                                                      of becoming the leader of                systematically contribute to social
                                                                                                                      sustainability in our industry, we       and economic development. We
                                                                                                                      have achieved significant progress.      have always valued international
                                                                                                                      We are proud and happy to                partnerships in all our business
                                                                                                                      present our 9th Corporate                processes that we have shaped
                                                                                                                      Sustainability Report, knowing           based on corporate sustainability
                                                                                                                      that we continue to fulfill our          strategies and policies. As the
                                                                                                                      mission by enhancing our                 pioneer of our industry in social
                                                                                                                      sustainability performance year on       development in Turkey, we at
                                                                                                                      year.                                    Doğuş Otomotiv continue to take
     Employees

                                                                                                                                                               action in order for the private
                                                                                                                      As well as publishing our reports in     sector to fulfill its responsibilities.
                                                                                                                      compliance with the                      Following the United Nations
                                                                                                                      internationally accepted Global          Global Compact, which we
                                                                                                                      Reporting Initiative (GRI) reporting     undersigned in 2010, we have
                                                                                                                      standards, the fact that we have         included the United Nations
                                                                                                                      established sustainability practices     Sustainable Development Goals
                                                                                                                      throughout our business processes        (UN SDG) Index for the first time in
                                                                                                                      and have built a sustainability          this year’s report, disclosing our
Environmental

                                                                                                                                                               performance and targets under a
Responsibility

                                                                                                                      management system in
                                                                                                                      international standards within our       number of UN SDG headings to
                                                                                                                      organization also demonstrates           our stakeholders.
                                                                                                                      that we are advancing with firm
                                                                                                                      and confident steps on this long         We formed the Corporate
                                                                                                                      road ahead. We also continue to          Governance and Sustainability

                                    CEO’S                                                                             include all the stakeholders within      Committee, of which I am a
                                              102-14, 102-15
                                                                                                                      our sphere of influence in our           member, reporting to our Board of
                                                                                                                      process. In addition to the three        Directors to ensure that
Economic Development

                                S TAT E M E N T
                                                                                                                      affiliates featured in our report, the   sustainability practices are
                                                                                                                                                               managed like all the other
     Performance

                                                                                                                      number of Authorized Dealers and
                                                                                                                      Aftersales Service Centers               processes within the organization
                                                                                                                      included in this year’s Corporate        and targets are monitored by all
                                                                                                                      Sustainability Report rose to 21         the Company operations. The
                                                                                                                      and suppliers to seven,                  Committee meets regularly during
                                                                                                                      respectively. We visit these             the year to follow development
                                                                                                                      stakeholders to provide corporate        areas and opportunities in the
                                                                                                                      sustainability advice and support        field of sustainability. On the other
                                                                                                                                                               hand, the Early Detection of Risk
Corporate Sustainability

                                                                                                                      them to ensure that they can
                                                                                                                      integrate sustainability into their      Committee, which also reports
                                                                                                                                                               directly to the Board of Directors,
      Approach

                                                                                                                      own business processes.
                                                                                                                                                               assesses the risks that the
                                                                                                                      We at Doğuş Otomotiv embarked            Company might face, considering
                                                                                                                      on this journey to grow together         economic, environmental and
                                                                                                                      with the community of which we           social issues.
                                                                                                                      are a part, learn what our

                           12               DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017   DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017                                                    13
CORPORATE SUSTAINABILITY REPORT - DOĞUŞ OTOMOTİV 2017 - Doğuş Otomotiv
For Doğuş Otomotiv, 2017 was a year when we                 implemented in line with the suggestions of our          and spread modern human resource                      and Supporting Vocational High Schools are
                                reached our targets in all operational areas. As the        employees, we were able to save TL 3 million in 2017.    methodologies across our Authorized Dealers and       ongoing in line with this strategy. The community
Product and Service
   Responsibility

                                brands we represent in Turkey attained all the goals        Doğuş Otomotiv and Doğuş Oto received a total of         Aftersales Service Centers as another key             investments we made for this purpose amounted
                                set at the beginning of the year, they also captured        1,849 suggestions from the employees and 604 of          stakeholder within our sphere of influence, visited   to TL 1,680,973 in 2017.
                                the forecast levels of market shares. Doğuş Otomotiv        these were implemented.                                  120 Authorized Dealers of the eight brands we
                                maintained its strong position in the industry with                                                                  represent 319 times throughout 2017.                  Doğuş Otomotiv, as a driver of the national
                                total sales of 182,199 vehicles, including heavy            Always aiming to be the best employer toward                                                                   economy, will continue to manage its processes
                                commercial vehicles and 18.9% retail market share in        higher targets every year, we strive for ultimate        As we continue to carry out activities to add value   within the framework of Sustainability strategies
                                2017. We also sold 22,009 used vehicles. Total service      employee satisfaction through health and safety          to the community through efficient and                and policies in the coming years, adding value to
                                entries totaled 1,295,626 with 280,122 by Doğuş Oto         practices in particular, as well as professional and     sustainable business strategies we also spread        all its stakeholders within its sphere of influence. I
                                and 1,015,504 by the other Authorized Dealers and           lifelong education support programs, career              them across our base and apply deepening              would like to wholeheartedly thank all of our
     Community

                                Aftersales Service Centers.                                 development and performance appraisal system and         strategies in our spheres of influence. The           stakeholders, as the builders and supporters of our
                                                                                            mother-child policy. As a result of these efforts, we    community engagement programs ‘Traffic is Life!’      success, for their continued support in 2017.
                                We believe in the importance of leveraging                  were deemed worthy of the “Best Employer” award
                                particularly the benefits of technology to ensure the       at the 2017 Aon Best Employers program.                                                                        Sincerely,
                                sustainability of the company and its resources. We
                                prioritize digital transformation to make technology        From the launch of face-to-face code of ethics                                                                 E. Ali BİLALOĞLU
                                and digital opportunities a part of our business            trainings in 2015 through 2017, a total of 2,037 Doğuş                                                         Chief Executive Officer
                                processes, to offer different services through the use      Otomotiv and Doğuş Oto employees received code
     Employees

                                of technology and to further improve our service            of ethics trainings. Doğuş Otomotiv continued to be
                                quality. To address this topic, which has been among        an active and leading member of the ‘Equality at
                                the top items on our agenda for five years, we took a       Work Platform,’ established within the scope of
                                concrete step and appointed a Chief Digital Officer         ‘Closing the Gender Gap’ project, which the World
                                (CDO) in 2017 by forming the Digital Transformation         Economic Forum launched to promote women’s
                                Department to carry out the organization’s digital          participation in economic life and to ensure gender
                                transformation more efficiently and rapidly.                parity in the work environment. The number of
                                                                                            female employees, which was 165 in 2013, rose to 261
Environmental
Responsibility

                                Furthermore, as Turkey’s leading automotive                 in 2017 through equal opportunity programs for
                                importer with a broad product portfolio consisting of       women, with female employment ratio reaching
                                approximately 85 models and the representative of           34.4% at Doğuş Otomotiv.
                                12 international brands, all leaders of their respective
                                segments, we continue to expand our indirect                We base our core business philosophy on customer
                                economic impact every day. Our suppliers are                satisfaction and carry out all activities with our
                                among the top stakeholders that benefit from this           quality-focused service approach. Responding to the
Economic Development

                                indirect economic impact. The local procurement of          expectations of OEMs, sustaining the same service
                                Doğuş Otomotiv Group amounted to TL 839.9 Million           quality as the Turkish representative of these leading
     Performance

                                TL, excluding Doğuş Group companies. Since 2014,            brands and maintaining constant dialogue are the
                                we have been carrying out activities within the             building blocks of our stakeholder engagement
                                framework of the Doğuş Otomotiv Sustainable                 strategy and corporate perspective. Annual customer
                                Automotive Supply Chain Model to improve the                satisfaction measurements are conducted by OEMs
                                sustainability performance of our suppliers. In 2017,       to assess sales, aftersales and DIM. The average
                                we took one more step to raise awareness by adding          Customer Satisfaction survey results for Doğuş
Corporate Sustainability

                                sustainability to supplier selection criteria. We also      Otomotiv were rated as 4.93 for sales and 4.73 for
                                organized a Doğuş Otomotiv Supplier Day                     aftersales. Meanwhile, DIM showed great progress in
      Approach

                                stakeholder meeting in 2017 to learn the                    2017, becoming a finalist at the Contact Center
                                expectations and suggestions of our suppliers and           World Awards and winning the Best Customer
                                improve supplier satisfaction further.                      Experience award.

                                Our nearly 2,500-strong workforce constitutes our           Our Authorized Dealer Human Resources
                                most important asset in order for us to operate more        Development Department, or Drive, which supports
                                efficiently. With 85 lean management projects               and helps to sustain the organizational processes

                           14                                                            DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017           DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017                                                          15
CORPORATE SUSTAINABILITY REPORT - DOĞUŞ OTOMOTİV 2017 - Doğuş Otomotiv
Doğuş Otomotiv Value Chain 2017
                                CORPORATE PROFILE                              GRI   102-1, 102-2, 102-3, 102-4, 102-5, 102-6, 102-7, 102-10
Product and Service
   Responsibility

                                                                                                                                                                                                          VALUE CHAIN 2017
                                     About Doğuş Otomotiv                                                                                                                                          REPLACEMENT
                                                                                                                                                      IMPORTS AND                                                                                                     OTHER
                                                                                                                                                                              RETAIL                PARTS AND         USED VEHICLES           FİNANCE
                                                                                                                                                    DISTRIBUTORSHIPS                            AFTERSALES SERVICES                                                INVESTMENTS

                                 Doğuş Otomotiv, with approximately 2,500 employees, is a                                                                                                         Replacement
                                                                                                                                                                                                Parts and Logistics

                                 major player in the Turkish automotive industry. With a                                                                                                                                                   Automotive Financing*
                                                                                                                                                                                                                                                                    TÜVTÜRK*

                                 dynamic service approach focused on ultimate customer
     Community

                                 satisfaction, which the Company has sustained without                                                                                                            Quick Fix for
                                                                                                                                                                                                   All Brands         Sales and Purchase       Insurance*
                                                                                                                                                                                                                       of Used Vehicles
                                 compromise since its founding, Doğuş Otomotiv ranks among
                                                                                                                                                                          Doğuş Otomotiv

                                 the most admired and trusted brands in Turkey according to                                                                    YÜCE
                                                                                                                                                               AUTO*
                                                                                                                                                                            Independent
                                                                                                                                                                         Authorized Resellers
                                                                                                                                                                                                                                               Insurance*
                                                                                                                                                                                                                                                                       *Affiliates

                                 corporate reputation surveys.
                                                                                                                                               Doğuş Otomotiv 2017 Authorized Dealer and Aftersales Service Network
     Employees

                                 In 2017, the 23 of its operations, Doğuş
                                               rd
                                                                                       satisfaction in all its services, operating with one
                                 Otomotiv has maintained its position as               of the largest authorized dealer and aftersales
                                 Turkey’s leading automotive importer and one          service networks in Turkey. With nearly 550
                                 of the largest automotive distributors.               points serving customers across the country,
                                 Doğuş Otomotiv prepares its business plans            Doğuş Otomotiv provides wide-ranging and
                                 with the vision of providing creative services        seamless services including sales, aftersales and
                                 beyond expectations and builds its corporate          spare parts. Meanwhile, the Value and Care                  VW
                                 strategy on the objective of working to deliver       Center (DIM) launched in 2014 to enhance                    Audi
Environmental
Responsibility

                                                                                                                                                   SEAT
                                 ultimate customer satisfaction.                       customer satisfaction provides 24/7 road                    Škoda
                                                                                       assistance.                                                 Porsche
                                                                                                                                                   Scania
                                 Doğuş Otomotiv boasts the industry’s widest                                                                       Thermo King
                                 brand portfolio and the largest service network       Doğuş Otomotiv, with approximately 2,500                    Scania Den. ve End. Motorları
                                 in Turkey. As the representative of 12                employees, is a major player in the Turkish
                                 international brands, each one a leader in its        automotive industry. With a dynamic service             Material changes in scale, organization or ownership
                                 respective segment, including passenger cars,         approach focused on ultimate customer
                                                                                                                                               The material disclosure posted to KAP on                               to take this merger off the agenda with the
Economic Development

                                 light commercial vehicles, heavy vehicles,            satisfaction, which the Company has sustained
                                                                                                                                               November 6, 2017 stated: “Our main                                     possibility of revisiting the issue at a later date.
                                 industrial and marine engines, and cooling            without compromise since its founding,
     Performance

                                                                                                                                               shareholder Doğuş Holding A.Ş. has resolved to                         Since both parties to the merger are part of the
                                 systems, Doğuş Otomotiv offers its customers          Doğuş Otomotiv ranks among the most
                                                                                                                                               merge with Doğuş Araştırma Geliştirme ve                               Doğuş Group, this cancellation will not lead to
                                 and corporate clients a wide brand portfolio          admired and trusted brands in Turkey
                                                                                                                                               Müşavirlik Hizmetleri A.Ş., another of our                             any changes in the shareholder structure and
                                 consisting of Volkswagen Passenger Cars,              according to corporate reputation surveys.              shareholders, together with all the latter’s                           management control of our Company.”
                                 Volkswagen Commercial Vehicles, Audi, SEAT,           Initially offered to the public in 2004,                assets and liabilities. Since both parties to the
                                 Škoda, Bentley, Lamborghini, Bugatti, Porsche,        Doğuş Otomotiv shares are traded on Borsa               merger are part of the Doğuş Group, there will                         Doğuş Otomotiv’s final status including 2017
                                 and Scania brands, along with a combined              Istanbul (BİST) with the “DOAS.IS” ticker code.         be no changes in management control of our                             financial indicators, ownership and legal
                                 product portfolio of over 85 models. The
Corporate Sustainability

                                                                                                                                               Company. With the finalization of the merger                           structure is explained in detail in the 2017
                                 Company operates in the marine engines                Doğuş Otomotiv is a member of Doğuş Group,              process, the direct share of our controlling                           Annual Report.1      102-5, 102-7
                                                                                                                                                                                                                                                        For Doğuş Otomotiv’s
      Approach

                                 market with Scania Engines brand, and in the          which operates in seven core industries                 shareholder Doğuş Holding A.Ş., excluding the                          vision and mission statements, strategy,
                                 cooling systems market with Thermo King               including automotive, construction, media,              floating shares of our Company, will increase                          commitments and values,              102-16
                                                                                                                                                                                                                                                                  please visit
                                 brand. Doğuş Otomotiv furthermore serves              tourism and services, real estate, energy and           from 35.21% to 65.5%.” However, a material                             the corporate website:
                                 customers in the used vehicle market with its         entertainment, growing through new                      disclosure posted to KAP on January 3, 2018
                                 DOD brand.                                            investments in the fields of technology, sports         stated: “after considering the changes in                                  www.dogusotomotiv.com.tr
                                                                                       and entertainment.                                      business conditions, it has now been resolved
                                 Doğuş Otomotiv prioritizes ultimate customer
                                                                                                                                               1
                                                                                                                                                    For further information: Doğuş Otomotiv 2017 Annual Report:
                                                                                                                                                   FR https://www.dogusotomotiv.com.tr/en/investor-relations/investor-relations/reports-and-presentations/annual-reports

                           16                                                      DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017                  DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017                                                                          17
Strategic Approach                                                                                             Sustainable Supply Chain Management
Product and Service
   Responsibility

                                  Ultimate                                         Sustainability                                                                     Doğuş Otomotiv carries out its activities within the scope of distributorship and
                                  Customer                  Digital                and Business          Employees           Stakeholder
                                                            Transformation                                                   Engagement                               aftersales services agreements with the leading brands of the world and is
                                  Satisfaction                                     Ethics                                                                             obligated to meet the sales and aftersales service standards of these brands at
                                                                                                                                                 OEM
                                                                                                                                                                      the highest level. Implementing and improving the manufacturers’ practices in
                                  Doğuş Otomotiv            Adopting the           We highly value      As an               At Doğuş             (Manufacturer)
                                                                                                                                                                      global standards across the entire value chain in the regions the Company
                                  prioritizes ultimate      operational            the importance       organization        Otomotiv, we
                                                                                                                                                                      operates is among the most important responsibilities of Doğuş Otomotiv.
                                  customer                  excellence             of integrating the   that places         build all of our
     Community

                                  satisfaction in all its   approach, Doğuş        Doğuş Otomotiv       human               activities on the
                                  services with the         Otomotiv started its   Ethical Principles   resources above     basis of ethics,                          At Doğuş Otomotiv, we act with the awareness that we are part of economic
                                  largest Authorized        organizational         and Code of          all other assets,   transparency                              development together with all of our suppliers that we procure products and
                                  Dealer and                restructuring          Ethics into all of   we consider         and                                       services from to sustain our activities in the organizational lifecycle. We assess
                                  Aftersales Service        process with the       our business         being close to      accountability       Suppliers            the direct impact of the products and services we procure from our suppliers in
                                  network in Turkey.        aim of shaping the     processes while      employees and       and act in line                           our lifecycle at each stage of our operations and for this purpose manage the
                                                            future by defining     achieving our        improving           with the same                             necessary awareness-raising, organizing and audit activities.
                                                            customer               targets. We          employee            management
                                                            expectations           address and          loyalty one of      culture in our                            Ensuring the sustainability of our Authorized Dealers and Aftersales Services
                                                            according to           manage               the Company’s       relations with                            that constitute the most important part of Doğuş Otomotiv's operational
     Employees

                                                            contemporary           sustainability       priority topics.    our                                       lifecycle is among our most important development goals in this topic.
                                                            trends and             with a holistic                          stakeholders.        Authorized           Therefore we monitor and manage the progress of our activities under the
                                                            redefining the value   approach in all of                                            Dealers and          headings of awareness, development, evaluation and transparency.
                                                            chain, and             our business                                                  Aftersales           Our Authorized Dealer Human Resources Development department (Drive),
                                                            established the        strategies and                                                Services             working to support the organizational processes at Doğuş Otomotiv Authorized
                                                            Digital                policies.                                                                          Dealers, to ensure the sustainability of their organizational success and to
                                                            Transformation                                                                                            spread modern human resource methodologies, paid a total of 319 visits to 120
                                                                                                                                                                      Authorized Dealers of the eight brands we represent in 2017.
                                                            department in 2017.
                                                                                                                                                                      At Doğuş Otomotiv, we set up, manage and monitor all the systems needed to
Environmental
Responsibility

                                                                                                                                                                      ensure that the services we provide do not fail and logistics management is
                                                                                                                                                 Logistics            achieved at global standards. We fulfill our responsibilities at every stage to
                                  Risk Management And Sustainability In The Operational                                                                               make sure that all of our products and services are delivered to our customers
                                                                                                                                                 Management
                                  Value Chain  102-15                                                                                                                 in the right and healthy manner within our logistics management, which we
                                                                                                                                                                      regard as the most important factor that provides social, environmental and
                                Doğuş Otomotiv works with a strong                         the subsequent stages after our products and                               economic efficiency in our organizational lifecycle.
                                sustainability management philosophy, aiming               services are delivered to the customer.
                                to create value across the entire value chain by           Adopting integrated risk management
Economic Development

                                managing its social, economic, ethical and                 approach, we continue to move forward by              Customer Relations Management
     Performance

                                environmental risks at every stage of                      identifying our responsibility areas within the
                                operations. Our commitment to Corporate                    lifecycle of all our operations as well as
                                Sustainability requires addressing all                     determining our approach and goals in these                                At Doğuş Otomotiv, we value the importance of digital transformation to
                                                                                                                                                                      incorporate technology and digital opportunities into our business processes,
                                stakeholder expectations in a timely manner                areas.
                                                                                                                                                                      create different services by using technology and improve our service quality.
                                from the very beginning of our operations to all                                                                 Digital              Our top priority in this topic will be to improve the quality and efficiency of
                                                                                                                                                 Transformation       services at every customer touch point and to reassess the infrastructure and
                                                                                                                                                                      processes of our Authorized Dealer and Aftersales Service network across
Corporate Sustainability

                                                                                                                                                                      Turkey from a digital transformation perspective.
                                    Sustainable Supply                    Customer Relations                  Transparency and
      Approach

                                                                                                                                                                      Meeting the needs and expectations of Doğuş Otomotiv customers is the most
                                    Chain Management                      Management                          Accountability
                                                                                                                                                                      important building block of our organizational lifecycle. DIM (Value and Care
                                                                                                                                                 DİM                  Center), which was launched for this purpose, supports our brands at every
                                    OEM                                                                       Corporate Governance and           (Vale and Care
                                                                          Digital Transformation                                                                      touch point across the customer lifecycle. The DIM operation aims to bring
                                    Suppliers                                                                 Sustainability Management
                                                                                                                                                 Center)              service and quality standards to customer touch points and provides instant
                                    Authorized Dealers and                                                    Business Ethics
                                                                                                                                                                      and transparent monitoring of consumer expectations and opinions with the
                                    Aftersales Services                   DİM                                 Compliance with Laws and                                reporting features available for our brands and Authorized Dealers and
                                                                                                              Regulations                                             Aftersales Services.
                                    Logistics Management

                           18                                                         DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017       DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017                                                        19
Transparency and Accountability
Product and Service
   Responsibility

                                Corporate         Activities are carried out, evolving every year, to manage sustainability topics in
                                Governance and    line with stakeholder expectations and strategic corporate priorities within our
                                                  operational lifecycle, to set targets and make it a way of doing business for all of
                                Sustainability
                                                  our employees.
                                Management

                                                  Implementing business ethics practices in world standards across Doğuş
                                                  Otomotiv’s entire lifecycle and ensuring that they are adopted and applied by
     Community

                                Business Ethics
                                                  all parties while awareness is raised every day along with related audit and
                                                  management processes make up an important part of risk management at
                                                  Doğuş Otomotiv.

                                Compliance with   Doğuş Otomotiv acts and continues to operate with a corporate sustainability
                                Laws and          approach within its organizational lifecycle and Code of Ethics, exceeding the
                                Regulations       requirements of laws and regulations.
     Employees
Environmental
Responsibility

                                                                                                                                               Corporate
Economic Development
     Performance

                                                                                                                                               Sustainability
                                                                                                                                               Approach
Corporate Sustainability
      Approach

                           20                                                DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017         DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017   21
CORPORATE SUSTAINABILITY APPROACH                                                                                   Sustainable Risk Management                              102-15
                                                                                                                                                                                                       GRI
Product and Service
   Responsibility

                                                                                                                                                   In its operations, Doğuş Otomotiv employs a               Finalizing the Business Continuity Plan,
                                                                                                                                                   management approach with the aim of fully                 assessing the risks as a result of the analyses
                                  Our corporate strategy is based on driving a            with all our business partners and our
                                                                                                                                                   meeting the expectations of its stakeholders              carried out on the basis of critical business
                                  strong and sustainable organization forward             contributions as a community to a healthier
                                                                                                                                                   and implementing the Company's strategies in              processes and updating the risk inventory are
                                  through world-class operations focused on               environment.
                                                                                                                                                   the most efficient manner. This approach also             among our 2018 targets.
                                  development and efficiency. We follow the
                                                                                                                                                   requires an integrated risk management
                                  values of Doğuş Otomotiv in all our activities,         Accordingly, we integrate social, environmental                                                                    Conflicts of Interest
                                                                                                                                                   perspective. For this purpose, feedback
                                  knowing that our success depends on the                 and economic risks and opportunities into all
     Community

                                                                                                                                                   mechanisms, reporting and research models                 No conflicts of interest and disputes regarding
                                  health and safety of our employees, the                 business processes across our entire operation                                                                     the companies, which provide Doğuş Otomotiv
                                                                                                                                                   are utilized along with regular internal and
                                  continuity of efficient and honest cooperation          within the following framework:                                                                                    with such services as investment consultancy,
                                                                                                                                                   external audit processes. The Doğuş Otomotiv
                                Doğuş Otomotiv Integrated Corporate Sustainability Framework                                                       Risk Management Approach is explained in                  rating and other similar topics, were identified
                                                                                                                                                   detail in the dedicated Sustainability section of         in the 01.01.2017-31.12.2017 reporting period. In
                                                                                                                                                   the website and under the relevant heading in             the agreements executed in accordance with
                                                                                                                                                   the annual report:                                        the Company’s Code of Ethics, as well as in the
                                                                                DOĞUŞ
                                                                               OTOMOTIV
                                                                                                                                                   http://www.dogusotomotiv.com.tr/en/sustainabil            internal workings of our Company, due
                                                                               PRODUCTS
     Employees

                                                                                 AND                                                               ity/corporate-sustainability/governance-risk-man          diligence is exercised to avoid conflicts of
                                                                               SERVICES
                                                                                                                                                   agement-ethics/risk-management                            interest.

                                                                                                                                                   For the sustainable Risk Management Model,                For detailed information on the Remuneration
                                                       MANAGING
                                                       ECONOMIC,
                                                                                                          CORPORATE
                                                                                                                                                   Doğuş Otomotiv's social, environmental and                Policy of the Board and the relationship
                                                                                                        STRATEGIES AND
                                                       SOCIAL AND
                                                                                                         MANAGEMENT                                economic aspects were identified as part of the           between the fees paid to senior executives and
                                                     ENVIRONMENTAL
                                                                                                          APPROACHES
                                                      EXPECTATIONS
                                                                                                                                                   material issues study carried out in 2009. Due to         directors and the performance of the
                                                                         OPPORTUNITIES                                                                                                                       organization, please see:
Environmental
Responsibility

                                                                                                                                                   the changing business dynamics, the study was
                                                                             AND                                                                   reviewed in December 2017 and material issues             http://www.dogusotomotiv.com.tr/en/investor-re
                                                                             RISKS                                                                 were updated.                                             lations/investor-relations/corporate-governance/
                                                                                                                                                                                                             policies/remuneration
                                                                                                                                                   Doğuş Otomotiv will share the results of the
                                                                                                                                                   study in which the key stakeholder expectations
                                                                                                                                                   and institutional priorities were compared and            On-the-Job Training program and
                                                               SUSTAINABLE                       POLICIES
Economic Development

                                                                   RISK                            AND                                             the AA1000SES Standard methodology was                    Government Incentives GRI 201-4
                                                               MANAGEMENT                        TARGETS
                                                                                                                                                   applied under the relevant headings in the 2018           On-the-Job Training Program, as the name
     Performance

                                                                                                                                                   Corporate Sustainability Report.                          suggests is a learning program aimed at
                                                                                                                                                                                                             improving the professional knowledge of
                                                                                                                                                   Financial Risks          102-15
                                                                                                                                                                                                             unemployed people registered with the
                                                                                                                                                   In line with market assessments and the topics
                                                                                                                                                                                                             employment institution in workplaces also
                                                                                                                                                   emphasized by the Early Detection of Risk
                                     Managing Economic, Social and Environmental Expectations                                             102-15                                                             registered with the institution through practice
                                                                                                                                                   Committee, action plans for diversifying
                                                                                                                                                                                                             and by personally seeing the business and
Corporate Sustainability

                                                                                                                                                   financial channels and securing liquidity
                                  At Doğuş Otomotiv, we strive elevate the                engagement management in international                                                                             production processes. If people, older than 18
                                                                                                                                                   strength were detailed during the year. Along
                                  quality of our customers’ lives at every touch          standards and we regularly question our                                                                            and younger than 29, complete the on-the-job
      Approach

                                                                                                                                                   with comparative studies and coverage analysis,
                                  point. In line with the requirements of doing           stakeholders' expectations on all platforms.                                                                       training programs and are employed in their
                                                                                                                                                   the insurance development reports were
                                  business by fulfilling our responsibilities for a       (For Doğuş Otomotiv Stakeholder Engagement                                                                         own profession within three months after the
                                                                                                                                                   structured considering the defined scope and
                                  modern and sustainable society, we consider             Strategy and Dialogue Platforms, please visit:                                                                     program’s completion, employer’s share in
                                                                                                                                                   priorities. The working principles of the
                                  the social, environmental and economic                  http://www.dogusotomotiv.com.tr/en/sustainab                                                                       social security premiums are covered by the
                                                                                                                                                   Information Security Steering Committee, in
                                  expectations of all our stakeholders. Therefore,        ility/corporate-sustainability/sustainability-at-d                                                                 Unemployment Insurance Fund for 30 months.
                                                                                                                                                   which the Risk Management Department is a
                                  we follow a strategy focused on stakeholder             ogus-otomotiv/stakeholder-engagement )                                                                             Furthermore, the employee must be added to
                                                                                                                                                   permanent member, were determined.
                                                                                                                                                                                                             the average number of insured people declared

                           22                                                         DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017            DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017                                                         23
in the monthly premium and service                     technologies gaining prominence today, the
                                                                                                                                                  A two-phase study was launched in 2017 to update the current Business Continuity Plan
Product and Service

                                documents filed by the employer for the year           growing volumes of data and transactions
   Responsibility

                                prior to such person’s recruitment.                    cause the sufficiency of conventional audit                (BCP) with a wider scope and better usability. In the first phase, action plans, risk escalation
                                                                                       methods to be questioned. Accordingly,                     levels, action stages and command-control-coordination structure were established and
                                In calculations, such people’s social security         continuous/computer-assisted activities, as                presented to the approval of the Early Detection of Risk Committee under the Board of
                                premium basis is taken into account. After the         electronic audit processes that allow auditors             Directors in December. Climate change and related developments were listed among the
                                application of Law No. 5510, the remaining             to give reassurance have become important.                 threats included in the scope of this study and playing a role in determining the action
                                social security premium, calculated using the          The process that was launched in 2016 for this             stages. In the second stage consisting of fieldwork, as a first step meetings were held with
                                lower limit of premium base in a ratio of the          purpose was finalized; and the 2017 reports                the owners of the works/processes and climate change along with resulting developments
                                employer’s share, is covered by the Fund. Our          were created in a manner that enables the                  were added to risk identification activities. For this purpose, 32 meetings were held until
     Community

                                company has benefited from this incentive              results to be produced over all the data in the            December 2017. The plan is to continue such meetings in 2018.
                                since April 2016 and currently 36 people are           Doğuş Otomotiv Turkuaz System instead of
                                employed within this scope. The incentives             sampling instantly or in defined periods. In
                                extended in 2017 amounted to TL 4,612.82 for           2017, the weight of continuous auditing                    Business Ethics
                                Doğuş Otomotiv and TL 85,280.27 for                    increased in regular audits.
                                Doğuş Oto.
                                                                                       The regular audits at Doğuş Otomotiv and its         Code of Ethics Trainings                                environment. The trainings will continue to be
                                Fighting Corruption            102-15
                                                                                       affiliates will be carried out within the scope of
                                                                                                                                            GRI    205-1, 205-2, 412-2                              assigned to employees regularly every year.
     Employees

                                The Internal Audit Department, reporting to                                                                 Ethical code trainings are provided with the            Anti-corruption topics are also included in
                                                                                       the risk-based annual audit plan approved by
                                the Audit Committee formed under the Board                                                                  aim of giving our employees a complete                  Code of Ethics training.
                                                                                       the Board of Directors and the results will be
                                of Directors, includes the operations of               shared with the Audit Committee. The goal for        picture of why Doğuş Otomotiv has published
                                Doğuş Otomotiv as well as its Affiliates within                                                             its Code of Ethics, when it is needed and how           Face-to-face ethical code trainings at Doğuş
                                                                                       2018 is to conduct regular audits as the weight
                                the scope of the risk-based audit plan. As part                                                             to use it. In 2017, 96 Doğuş Otomotiv                   Otomotiv started in 2015. In the period from
                                                                                       of continuous audits and Information
                                of the regular internal audits carried out in                                                               employees received a total of 240 man/hours             2015 until the end of 2017, 713 employees at
                                                                                       Technology audits increases.
                                2017, compliance of brand and department                                                                    of ethical code training. Furthermore, 360              Doğuş Otomotiv received 1,446.5 man/hours
                                processes with policies and procedures has             Shareholder Relations                                employees recruited in the same timeframe               of training while 1,324 employees at Doğuş
Environmental
Responsibility

                                been assessed in terms of both operational             Investor Relations Department is responsible         were informed about the Code of Ethics during           Oto received 2,168.5 man/hours of training.
                                risks and also risks of misconduct. Risks related      for regularly providing shareholders and             a total of 900 man/hours of e-orientation
                                to bribery and corruption are also included            potential investors with information related to      training. The employees that took the training          Ethics Hotline
                                within this scope. If development areas are            the Company’s operations, financial position         watched the viral film on Corporate                     The complaints received through the ethics
                                identified as a result of the audits,                  and strategies, except for information not           Sustainability performances, learning “what the         hotline are carefully evaluated and all are
                                recommendations are made to improve the                disclosed to the public or considered                code of ethics and ethical principles are and           reported to General Directorate of Human
Economic Development

                                control environment regarding the process.             confidential and trade secrets, in a manner not      how more information can be obtained”. In               Resources. The ethics hotline notifications are
                                Those recommendations are followed through             to lead to information inequality as well as for     addition to in-class training for adopting              also periodically presented to the Audit
     Performance

                                and those with high priority are reported to the       responding to information requests. Investor         ethical principles, Code of Ethics training has         Committee and the Board of Directors.
                                Audit Committee and the Board of Directors.            Relations Department continues its activities        also been included in the e-learning
                                                                                       to form a bridge based on two-way
                                As part of the 2017 audit plan, 18 audit reports       communication and trust between Doğuş
                                for Doğuş Otomotiv and 11 audit reports for            Otomotiv's current and potential investors.
                                Doğuş Oto were prepared and audit results                                                                         Policies and Goals
                                                                                       Climate Change         GRI   102-15, 201-2
Corporate Sustainability

                                were presented to the Board of Directors in
                                January, April, July, September and December           Climate change is defined as a risk at Doğuş         The most important part of Corporate                    define policies and firm goals in relevant areas.
      Approach

                                2017 by the Audit Committee.                           Otomotiv. In this respect, risks within the scope    Sustainability Management at Doğuş Otomotiv             The activities carried out to determine policies
                                                                                       of climate change, as with social,                   is determining the corporate policies and               and the 2023 targets in line with the material
                                Audits    GRI   102-15
                                                                                       environmental and economic risks, are                related goals in line with material issues.             issues redefined in December 2017 are
                                Considering the growing need for Information           integrated into business models together with        Accordingly, all processes are reviewed to              expected to be finalized in 2018.
                                Technology Audits, a comprehensive                     corporate sustainability strategies and
                                information technology audit was conducted             managed proactively.
                                in 2017. Furthermore, with information

                           24                                                      DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017        DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017                                                       25
Corporate Strategies and Management Approaches                                                                                                                                           Corporate Sustainability
Product and Service
   Responsibility

                                                                                                                                                                                       ECONOMIC                                                                                         COMMUNITY
                                                                                                                                                                                                       ENVIRONMENT           EMPLOYEES       HUMAN RIGHTS        CUSTOMERS
                                                                                                                                                                                      DEVELOPMENT                                                                                      ENGAGEMENT
                                Corporate Sustainability-related areas and           reporting on global standards every year. (For
                                goals at Doğuş Otomotiv are managed directly         further information on Doğuş Otomotiv’s
                                by an official committee under the Board of          Corporate Sustainability Strategy and                                                              Financial                            Sustainable                       Customer Health
                                                                                                                                                                                                            Water                            Discrimination                            Traffic Safety
                                Directors. A Sustainability Council, reporting to    Management and Governance structure                                                                Efficiency                          Employment                           and Safety
                                                                                                                                                                                        Economic       Waste Management       Employee         Freedom of         Customer
                                this committee and consisting of managers             GRI
                                                                                                                                                                         ,
                                                                                            102-18, 102-22, 102-23, 102-24, 102-27, 102-28, 102-29, 102-31, 102-32, 102-33
                                                                                                                                                                                                                                                                                      Business Ethics
                                                                                                                                                                                         Volatility        Energy            Satisfaction      Association       Satisfaction
                                representing all departments of Doğuş                please refer to:
                                                                                                                                                                                          OEM                              Employee Health   Child Labor and    Training and            Community
                                Otomotiv, has also been working on these             http://www.dogusotomotiv.com.tr/en/sustainab                                                     (Manufacturer)       Logistics         and Safety       Forced Labor      Information            Development
     Community

                                topics for nine years. The Sustainability Council    ility/corporate-sustainability/governance-risk-m                                                   Suppliers      Environmentally                       Rights of Local    Responsible           Cooperation and
                                                                                                                                                                                                       Friendly Products    Equal Rights     Communities         Marketing               Dialogue
                                is responsible for improving Sustainability          anagement-ethics/corporate-governance-and-                                                                                             Dialogue with
                                performance across all business units and            compliance)
                                                                                                                                                                                                                             Employees
                                                                                                                                                                                                                                                                                            Traffic
                                                                                                                                                                                                                          Strategy and Management                                           Is Life!

                                                                                                                                                                             Doğuş Otomotiv Material Issues Performance Criteria                                      GRI    102-15
                                  Doğuş Otomotiv Products and Services
                                                                                                                                                                                   Topic                                                                         2016                       2017
                                Doğuş Otomotiv’s Integrated Corporate                fully meet the expectations of all key
     Employees

                                                                                                                                                                                  ECONOMIC DEVELOPMENT
                                Sustainability Framework provides various            stakeholders. (For detailed information on
                                                                                                                                                                                  Net Sales (TL Million)                                                            11,925                          13,220
                                options for managing the potential negative          Doğuş Otomotiv Products and Services, please
                                impacts arising from the Company's operations        see:                                                                                         Number of Suppliers                                                                  736                               554
                                and transforming them into opportunities as          http://www.dogusotomotiv.com.tr/en/about-us/                                                 Local Procurement Amount (TL Million) 2                                            921.6                              839.9
                                well as offering tools to ensure that we             dogus-otomotiv/brands)                                                                       Local Employment Ratio (%)                                                           7.27                                8
                                continue to deliver products and services that
                                                                                                                                                                                  ENVIRONMENT
Environmental
Responsibility

                                                                                                                                                                                  Water Consumption Amount (m3) – Per Vehicle Sold                                    0.48                               0.51
                                                                                                                                                                                  Amount of Packaging Recycled Through ÇEVKO (kg)                                 473,225                        374,799
                                CORPORATE SUSTAINABILITY STRATEGY AND                                                                                                             Battery Recycling Ratio (%)                                                         101.2                             106.7
                                MATERIAL ISSUES  102-47, 103-1, 103-2   GRI

                                                                                                                                                                                  Electricity Consumption (kWh)                                                 5,427,821                      5,610,089
                                                                                                                                                                                  Natural Gas Consumption (kWh)                                                  445,079                         497,283
                                                                                                                                                                                  CO2 Emission per Vehicle Sold (kg)                                                        121                          122
Economic Development

                                Doğuş Otomotiv has defined the scope of the          Doğuş Otomotiv uses the methodology
                                2017 Corporate Sustainability Report according       recommended by AA1000SES (AccountAbilitiy
                                                                                                                                                                                  EMPLOYEES
     Performance

                                to the results of the material issues Workshop,      Stakeholder Engagement Standard) to                                                          Number of Employees                                                                2,488                              2,492
                                which was held with wide participation in            determine its material issues while the                                                      Employee Satisfaction Rate (%)                                                            75         Surveyed every
                                2009. However, with stakeholder expectations         workshop is moderated and results analyzed                                                                                                                                                            other year
                                and conditions changing since 2009, material         by an independent consultancy firm,                                                          Workplace Accident Ratio (%)                                                               0                             0
                                issues study was repeated in December 2017.          specializing in this field. (For more information
                                                                                                                                                                                  Employee Representation Ratio in OHS                                                4.87                               4.41
                                The results of this workshop, which the Doğuş        on Doğuş Otomotiv Material Issues and
                                                                                                                                                                                  Committees 3 (%)
Corporate Sustainability

                                Otomotiv Chairman and CEO opened and                 Determination Methodology, please refer to:
                                contributed with their opinions, will be                                                                                                          Female Employment Ratio (%) 4                                                             23                           22.4
                                                                                     http://www.dogusotomotiv.com.tr/en/sustainab
      Approach

                                published in the 2018 Corporate Sustainability       ility/corporate-sustainability/sustainability-at-d                                           Number of Suggestions Received
                                Report.                                              ogus-otomotiv/dogus-otomotivs-key-impacts-a                                                  by the Suggestion System                                                         2,348 5                         2,506 6
                                                                                     nd-material-issues
                                                                                                                                                                             2
                                                                                                                                                                               Domestic procurement amount excluding vehicle imports and purchases from Doğuş Group companies.
                                                                                                                                                                             3 Pertains to Doğuş Otomotiv alone. Other ratios have been provided in detail in relevant sections of the report.
                                                                                                                                                                             4 Doğuş Oto and Doğuş Otomotiv average figure.
                                                                                                                                                                             5 Cumulative figure of Doğuş Otomotiv, Doğuş Oto and Škoda.
                                                                                                                                                                             6 Doğuş Otomotiv, Doğuş Oto, Doğuş Teknoloji ve Skoda toplam rakamıdır.

                           26                                                    DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017                                             DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017                                                                            27
2016                   2017          Corporate Sustainability Goals and Progression Model                                    GRI   102-15
Product and Service

                                     Number of Suggestions Implemented                                  789 7                  736 8
   Responsibility

                                     Training Provided for Employees (man/hours) -                       35.9                   29.9      Doğuş Otomotiv’s goals related to material
                                     at Doğuş Otomotiv                                                                                    issues and progression model are explained in         http://www.dogusotomotiv.com.tr/en/sustainab
                                     HUMAN RIGHTS                                                                                         the following table. Performance details of           ility/corporate-sustainability/sustainability-at-d
                                     Rate of Employees Trained on Human Rights                           100                       100                                                          ogus-otomotiv/dogus-otomotivs-key-impacts-a
                                                                                                                                          each material issues are covered in the report’s
                                                                                                                                                                                                nd-material-issues
                                     Number of Authorized Dealers Informed                                 17                        21   relevant sections and on the website.
                                     on Human Rights
                                     Rate of Suppliers Informed on Human                                 100                       100
                                     Rights (%)                                                                                                Target attained              Ongoing                     Target to be Revised                BM
                                                                                                                                                                                                                                            SKH
                                                                                                                                                                                                                                                  UN SDG
     Community

                                     CUSTOMERS
                                     Customer Satisfaction Rate                          Sales                    Sales
                                                                                         average: 109.7           average: 4.93               Economic            Progres-
                                     (over 5 since 2017)                                                                                                                        Development Summary
                                                                                         Aftersales service       Aftersales sevice           Development         sion
                                                                                                                                              Material Issues     Status
                                                                                         average: 103.6           average: 4.73
                                     Authorized Dealer Satisfaction Rate                 Sales: 4.64              Sales: 4.64                                                  With 85 lean management projects launched in 2017, we
                                                                                         Service: 4.74            Service: 4.84               Financial
                                                                                                                                                                               anticipate TL 3 million in savings. Doğuş Otomotiv continues its
                                     COMMUNITY ENGAGEMENT                                                                                                             BM       operations with a vehicle park of over 1.9 million, approximately
                                                                                                                                              Efficiency              SKH

                                                                                                                                                                               2,500 employees and nearly 550 customer-facing service points
     Employees

                                     Number of Employees trained on Code of Ethics                       188                       96
                                     Number of Authorized Dealers informed                                 17                      21
                                                                                                                                                                      8        by adapting to the changing conditions in the automotive
                                                                                                                                                                               industry.
                                     on Code of Ethics                                                                                                                         The retail passenger car and light commercial market in Turkey
                                     Number of Suppliers informed                                             3                     7                                          showed some slowing due to foreign exchange rate fluctuations
                                     on Code of Ethics                                                                                                                         and new SCT regulations in 2017, with total sales amounting to
                                                                                                                                                                               956,194 units, decreasing 2.8% year on year. Despite the
                                     Amount of Investments for Community                              14.372                 1.680
                                                                                                                                              Economic                         negative outlook, Doğuş Otomotiv maintained its strong
                                     Development Purposes (TL Million)                                                                        Volatility                       presence in the industry in 2017, with a total sales of 182,199
                                                                                                                                                                               vehicles including heavy commercial vehicles and an 18.9%
Environmental
Responsibility

                                                                                                                                                                               retail market share. We also sold 22,009 used vehicles in 2017.
                                Doğuş Otomotiv has social, economic and              Since 2009, Doğuş Otomotiv assesses its social,                                           Meanwhile, service entries were recorded as 280,122 at Doğuş
                                environmental impacts as a result of its growth      environmental and economic impacts, and                                                   Oto and 1,015,504 at other Authorized dealers and Aftersales
                                oriented activities, which are considered as         shares its related sustainability performance in                                          Service, amounting to 1,295,626 in total.
                                material. In line with stakeholder expectations,     material areas with the public. Doğuş
                                Doğuş Otomotiv aims to improve its                   Otomotiv, while distributing world’s leading                                               Doğuş Otomotiv continued to enable the world's most valuable
                                                                                                                                                                                brands to perform successfully in Turkey and maintained its title
                                performance in these areas yer by year, convert      brands in sustainability and providing services
                                                                                                                                                                                as the leading automotive distributor of the country with the
                                the risks into opportunities, and fulfill the        in Turkey, has the following topics in its agenda                                          added value and competitive advantages brought by the
Economic Development

                                stakeholder expectations within the frame of         as key impacts:                                                                            brands represented. As the representative of 12 international
                                                                                                                                              OEM
     Performance

                                its sustainability strategy. For more info:                                                                                                     brands, all leaders in their respective fields of passenger cars,
                                                                                                                                              (Relations with                   light commercial vehicles, heavy vehicles, industrial and marine
                                https://www.dogusotomotiv.com.tr/en/sustaina
                                                                                                                                              Manufacturers)                    engines and cooling systems, Doğuş Otomotiv is Turkey's
                                bility/corporate-sustainability/sustainability-at-
                                                                                                                                                                                leading automotive importer and one of the largest automotive
                                dogus-otomotiv/dogus-otomotivs-key-impacts-
                                                                                                                                                                                distributors with a wide product portfolio consisting of nearly 85
                                and-material-issues                                                                                                                             models of these brands. Doğuş Otomotiv maintains its relations
                                                                                                                                                                                with the manufacturers with its value chain that best represents
                                                                                                                                                                                OEM standards.
Corporate Sustainability

                                                       Social Impacts            Environmental Impacts            Economic Impacts
                                                                                                                                                                                Since 2014, Doğuş Otomotiv has been working toward its
                                    Traffis is Life!                             Water Consumption                                                                              sustainability targets regarding suppliers, one of the most
      Approach

                                                                                                                    Local Purchasing                                            important stakeholders of the Sustainable Supply Chain Model.
                                    Business Ethics
                                                                                 Waste Management                                                                               Sustainability-related aspects were added to the supplier
                                    Employment and Employee Satisfaction                                                                      Suppliers               BM
                                                                                                                                                                                selection criteria in 2017. Risk categorization activities will be
                                                                                 Emissions per Vehicle Sold         Supply Chain                                      SKH

                                    Cooperation with Vocational Highschools                                                                                                     completed in 2018 according to plan. As of 2017, 554 suppliers
                                                                                                                                                                     12         have been actively working with Doğuş Otomotiv’s
                                                                                                                                                                                Procurement Department. With 21% of these suppliers audited
                                7Doğuş Otomotiv and Doğuş Oto’s total number of suggestions implemented as of June 16, 2017.                                                    in 2017, our audit target for 2018 is to improve this ratio to 25%.
                                8Doğuş Otomotiv, Doğuş Oto, Škoda and Doğuş Teknoloji’s total number of suggestions implemented as of
                                May 16, 2018.

                           28                                                   DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017        DOĞUŞ OTOMOTİV CORPORATE SUSTAINABILITY REPORT 2017                                                             29
You can also read
Next slide ... Cancel