Corporate Sustainability at Subsidiaries

Our subsidiaries which we presented in our 2019 Corporate Sustainability Report are Doğuş Oto, Doğuş Teknoloji, Škoda-Yüce Auto and vdf.

DOĞUŞ OTO

Doğuş Oto offers new and used vehicle, spare part and accessory sales and aftersales services for its customers in Istanbul, Ankara and Bursa as well as insurance and financing services for the six brands represented. Doğuş Oto provides sales and aftersales services for Volkswagen Passenger Cars, Volkswagen Commercial Vehicles, Audi, Porsche, SEAT and ŠKODA brands. Doğuş Oto also sells used vehicles as a DOD Authorized Reseller.

Doğuş Oto operates with a total of 38 Authorized Dealers and 40 Aftersales Service points in seven regions with more than 1,400 employees, maintaining a leading position in the sector with its strength and stability. Doğuş Oto’s mission is to offer highest quality sales and aftersales services for the passenger car and commercial vehicle brands represented in its defined territories.

Energy Efficiency

At Doğuş Oto, an energy efficiency survey was conducted by an authorized company to determine the basic areas that will ensure energy efficiency. Accordingly, work is under way to remedy the identified deficiencies. Monthly electricity and natural gas consumptions in the seven regions where Doğuş Oto facilities operate are monitored and if seasonal changes are observed in year-over-year comparisons, their reasons are investigated, and necessary measures are taken.

Ensuring efficiency in the use of energy and energy resources has become an imperative for the sustainability of the socio-economic structure based on industrial production.

This imperative is manifested by the concerns that arise with the rapid consumption of resources and the increasing importance of costs, especially the global climate change problems caused by environmental impacts and carbon emissions. Efficient use of energy, which is one of the most important inputs in today's industrial production, which can create particularly difficult and limited added value, will reduce costs of doing businesses and will contribute to the formation of surplus value that, in return, contributes to its development and increase in competitiveness. Legal regulations have been put in force in our country, as well as the world, regarding the efficient use of energy. For this purpose, within the framework of the Energy Efficiency Law No. 5627, which came into force in our country, and the related legal regulations, energy manager assignments have been made and studies in energy, heating, cooling, ventilation, lighting, mechanical and electrical installations are carried out in all locations affiliated with Doğuş Oto. Action plans are created within the framework of conducting efforts to save money by taking the reports prepared as a reference. Improvements have been made and continue to be made in the process, starting with those who consume significantly more energy. In order to calculate the effectiveness of the studies carried out, measurements are made in 7 regions served by Doğuş Oto according to fuel types, consumption is monitored, recorded and analysed periodically.

As part of efforts to remedy energy losses and leakage, all electrically operated devices and systems are regularly maintained and unnecessary power loss is avoided. The periodic maintenance and checks of the electricity distribution panels are outsourced to and carried out by a professional company. Several lighting fixtures with high-energy consumption in our regions are being replaced with low consumption LED fixtures. Furthermore, motion sensors (with photocell) have been installed in areas that need to be illuminated only during use, resulting in energy savings.

Mechanical ballasts of the lighting fixtures in the regions are converted to electronic ballasts to contribute to energy efficiency. Natural gas boilers are checked by the assigned energy efficiency firm, that also measures the condition of boiler chimneys to prevent unnecessary natural gas consumption. Using electric heaters instead of keeping the boilers up and running in the summer months only for hot water helps to save on natural gas in the May-June period. Compensation panels are checked weekly, preventing us from active and reactive fines.

Automation software system and technical equipment used at the Doğuş Oto facilities have been revised to ensure comfort, resulting in less natural gas consumption in winter and less electricity consumption in summer. Additional turbo/sectional doors have been installed in some service centre entrances to cover the openings in the service areas exposed to elements in order to save on heating and cooling costs. Unnecessary energy losses are prevented by periodic maintenance of air-conditioning plants and split air conditioners used in heating (air conditioning and ventilation system) with boilers and burners used in heating and cooling. Products with low energy consumption and air conditioners using R-410A gas, which is defined as an environmental gas, are definitely preferred in split air conditioner purchases. All roof membranes are maintained and their insulation is increased in the summer months.

Thermal air equalizers were installed in the Volkswagen showroom located in Doğuş Oto Esenyurt facilities to reuse the warm air rising to the ceiling/roof of the building. All heating and cooling circuits are checked at least once a year for the condition of insulation to prevent heat loss, and they are fixed where necessary.

In addition to the practices carried out in order to increase efficiency cited above, application of ISO EN 50001- Energy Management System, to increase the efficiency of automation systems with the industry 4.0 approach and establishment of solar electricity and solar thermal systems based on renewable resources, in order to ensure more effective and institutional execution of the mentioned works, are among the topics to be addressed under the heading of energy at Doğuş Oto operations.

Green IT

Devices used for data processing in Doğuş Oto facilities are recorded and their economic service life is monitored. End-of-life computers are replaced with new, less energy-consuming models. Servers, switches, drivers and similar systems are checked, updated and replaced by Doğuş Teknoloji. Decommissioned IT products are sent to recycling.

Emissions

Periodic route optimizations are applied at Doğuş Oto by grouping personnel shuttles in order to reduce the emissions from fuel consumption by decreasing the number of vehicles in traffic. Older vehicles are taken out of service and transportation is supported with low emission vehicles. Roof insulation of the buildings is continually tried to be enhanced. Energy-efficient heating, cooling and kitchen appliances are purchased. Trees are planted in the unused land of the facilities. For recoverable waste, we work with authorized companies and municipalities and deliver such materials for recycling and recovery.

Waste Management

Company has an Industrial Waste Management Plan in place. Doğuş Oto employed an officer in charge of waste management in 2017. Plans were created for waste fluorescent bulbs, lubricants, filters, antifreeze fluids, contaminated waste, contaminated packaging, spray cans, brake fluid, waste thinner solution, batteries, rubber, catalysts, diesel, gasoline, plastics, metals and glass. Company also has a treatment system and an oil retainer system. Reducing waste is generally not possible since the waste (other than contaminated waste) mostly results from the replacement of parts in the maintenance of passenger cars and light commercial vehicles. The importance of reducing contaminated waste has been communicated across maintenance staff. The amount of waste has been minimized as much as possible.

Employee Health and Safety

The values followed by Doğuş Oto to create a safe, healthy and happy working environment for its employees are as follows:

•           Creating a safer and healthier work environment and adopting the minimization of work accidents and occupational diseases as a priority business goal,

•           Complying with and applying legislation on occupational health and safety,

•           Ensuring the health and safety of all employees of the Company and subcontractors and all visitors,

•           Educating all employees and subcontractors and raising awareness about creating and developing health and safety practices,

•           Choosing and implementing practices in all fields of operation in accordance with occupational health and safety standards,

•           Bringing risks down to acceptable levels by evaluating the results of workplace risk analyses,

•           Investigating work accidents and developing permanent solutions by identifying root causes,

•           Keeping emergency teams up-to-date and monitoring their training,

•           Carrying out periodic health screenings,

•           Providing protective and preventive physician services.

In 2019, 114 work incidents occurred and preventive trainings related to incidents were held. During the year, new personal protective equipment was provided, business processes were revised and new safety systems were introduced. Furthermore, environmental measurements were conducted and continuous monitoring and control systems were implemented. Additionally, all legal data related to occupational health and safety began to be managed with an online program, facilitating follow-up of issues concerning occupational safety and health of all employees.

Employee Training Programs

Aiming to meet the training/development needs that arise within the framework of the Company’s vision and strategy, new and existing employees on all levels receive trainings according to their needs. Some of these trainings are compulsory for all employees while some are offered as optional. The main topics of trainings offered throughout the year are: Orientation training, Occupational Health and Safety Trainings, supplementary development programs, skill development trainings, professional development trainings, leadership development programs, expertise development programs and personal development trainings. In 2019, 1,431 employees participated in total 24,957 hours (17,44 man/hours) of training.

Employee Volunteering

Activity groups called ‘Dopdolu’ were formed in all regions, and a number of events such as excursions and tournaments were organized with the initiatives of these groups.

DOĞUŞ TEKNOLOJİ

Doğuş Teknoloji was established in 2012 to enlighten its customers' path with the excitement of creating value in the technology world. While continuing on its way as an R&D centre since 2017, it continues to be one of the companies that value the people, pursue new technologies with passion, and an entity that puts its stamp to the firsts in the IT sector with its agile and reliable working culture. Applying the latest IT technologies to develop and support technological projects, Doğuş Teknoloji is a 46% Doğuş Otomotiv affiliate.

Quality Standards

Doğuş Teknoloji aims to establish and operate an “integrated management system” in international standards to assure the quality, security and continuity of its services and products. For this purpose, the Company carries out its operation by taking the following standards as its reference:

• ISO27001: 2017 Information Security Management System

• ISO20000: 2011 IT Service Management System

• ISO22301: 2012 Business Continuity Management System

• ISO 22301: 2012 Societal Security – Business Continuity Management Systems

 

Ethics and Fight Against Corruption

The Company’s policies and regulations that define corruption and other unethical practices as well as penalties and sanctions are announced to employees. The Company contracts also contain provisions regarding corruption. Budgets and invoices are checked regularly as part of financial control. In addition, controls and rules are in place to detect, follow up and take precautions against security breach incidents. Actualized implementations are continuously monitored.

Doğuş Teknoloji acts in accordance with the Doğuş Otomotiv Code of Ethics. All employees are granted equal rights. In 2019, 131 employees participated in the Information Security Training.

Environmental Practices in IT

Doğuş Teknoloji builds a pool of virtual servers and provides shared infrastructure services, creating cost advantages for affiliated companies. As of April 2020, the number of virtual servers at Doğuş Teknoloji is 1794, with 6299 CPUs and approximately 24,87 TB memory. All this infrastructure and the virtual servers of some affiliates run on 55 physical servers. If a similar infrastructure had been met by physical servers, the costs of purchasing, hosting, cabling, energy and cooling would have been incomparably higher.

Confidentiality of Customer Data

In Doğuş Teknoloji, personal data of customers are processed by taking into account technical and administrative measures under the Law on Protection of Personal Data No. 6698. Personal data are processed for a limited time, suitable for their purposes, and are anonymized after the purpose and duration of the processing have expired.

Doğuş Teknoloji applies rules and regulations regarding the privacy, integrity and accessibility of customer data through policies and procedures within the scope of ISO 27001 Information Security Management System, systematically managing the risks for information assets and minimizing them down to acceptable levels with controls. The current situation is assessed through internal security audits conducted at certain intervals, and corrective and remedial actions are taken and followed through. Furthermore, physical measures and controls are applied on application and system layers against retrieval of data outside the Company, theft or loss of customer data categorized as confidential.

 

Customer Satisfaction

Carried out by an independent company, customer Satisfaction Survey is given to all customers who are serviced within Doğuş Group as well as outside Doğuş Group, and the result statistics are reported graphically. All teams take action within the company towards increasing customer satisfaction rate received from the survey results. Actions taken are monitored by the board of directors as well. Furthermore, customer feedback obtained by the parties responsible for customer relations within the Company, and the satisfaction comments communicated by the customers via the request management system are evaluated at management overview meetings as well as meetings with clients.

Employee Health and Safety (OHS)

The company employs dedicated staff (physician, nurse, OGH specialist) for occupational health and safety. The physician and OHS specialists are provided by the Joint Health and Safety firm we work with. The OHS Committee consists of seven members including a physician, an OHS Specialist, one employer representative, one employee representative, one human resources officer, one administrative affairs representative and one building maintenance specialist. The ratio of the employees in this committee to the total number of employees is 2%. Subcontractors’ representatives also serve on this committee. These individuals are responsible for monitoring and taking corrective-preventive actions. The Occupational Health and Safety Committee convenes quarterly. The ideas proposed during these meetings for safer working conditions for employees are evaluated and viable suggestions are implemented. Occupational health and safety risks are identified by obtaining the opinions of employees. OHS trainings (emergency, first aid, fire, civil defence, evacuation, etc.) are provided for all employees and related teams. In 2019, 100 employees participated in a total of 708 hours of training. Additionally, supplier contracts include OHS provisions as well. In 2020, OHS activities will be managed by Administrative Affairs Department.

Employee Training Programs

In 2019, various trainings were delivered in different fields to improve the employees in terms of both professional experience and personal development. During the year 2,375 employees took 154 different trainings, corresponding to 29 man/hours.

We partner with Bahçeşehir University, Koç University and Sabancı University to enable our employees to benefit from graduate programs (Master’s and PhD) at discounted prices. Employees are also provided with English language support. They can benefit from the program by enrolling in courses of partnering institutions or other training centres of their choice. Financial support for PhD studies is provided in the rate determined by the senior management. Employees attending PhD programs are allowed one day, and those attending Graduate programs are allowed half a day per week. Employees are also welcomed to organize presentations, conferences and trainings related to their fields of expertise at universities.

Performance Appraisal

Once a year, performance appraisals are conducted for employees who have completed their three months tenure at the Company. In the performance appraisal system, there are three periods titled Target Determination, Target Revision and Performance Evaluation, which are carried out at four-month intervals throughout the year Appraisals are based on personal target cards, which include 80% business targets and 20% 360-degree skill assessments. There are 3 separate sections within business objectives: Company Common Goals, Team Goals and Individual Goals. Units determine Team Goals and Individual Goals themselves, and the senior management holds meetings to identify the common goals that should be adopted by all units before the period begins. The decisions taken in those meetings are notified to department heads by the Human Resources Department. Performance appraisal results are used in career management, personal development and determining wage increases. Human Resources Committee, which includes all group managers, deputy general managers and general manager, makes the promotion decisions. Technical and competency-based trainings for employees to develop their careers are determined together with the managers.

Volunteering by Employees

Employees are welcomed to voluntarily lead social clubs and organize activities. In this context, the Social Responsibility Club organizes animal shelter visits and garbage collection activities.

 

 

 

Mother-Infant Policy and Equality at Work

In addition to maternity/paternity leaves and nursing leave in compliance with labour laws, the Company also has a nursing room. Pregnant employees are not allowed to work for more than 7.5 hours per day.

Community Engagement Activities

Doğuş Teknoloji is running a project to promote the employment of individuals with autism in the IT industry. This program is carried out in coordination with Autism Associations Federation (ODFED) while consultancy is rendered from companies that conduct such studies overseas. Competencies such as having an excellent command of details and executing routine tasks faultlessly, which are some of the key characteristics of individuals in autism syndrome, are an advantage in IT projects. An individual with autism was included in the permanent staff within the scope of a pilot project in 2018. The next plan is to spread this practice further in order to employ more persons with autism.

ŠKODA

Founded in 1989 to operate as the Turkish distributor of Škoda, and as a subsidiary of Doğuş Otomotiv, YÜCE AUTO offers sales, aftersales and spare parts services for FABIA, OCTAVIA, KAROQ, KODIAQ and SUPERB models with 44 Authorized Dealers and 6 Authorized Service Centres across Turkey. The main building of Yüce Auto, which has sold over 175,000 vehicles since its very first day, is built on total 2,200 m2 of land in Maltepe, Istanbul. Škoda joined the Volkswagen Group in 1991 and increased the number of countries of operation to 100 by 2007. Škoda’s manufacturing sites are located in the Czech Republic, India, China, Slovakia and Russia while all cars sold in Turkey are imported from the Czech Republic. Yüce Auto Motorlu Araçlar Ticaret A.Ş. is a 50% Doğuş Otomotiv affiliate.

Business Ethics

The Company has in place an ethical principles procedure and additionally all activities are carried out in accordance with the Doğuş Otomotiv Code of Ethics. The entire audit mechanism is regularly reviewed in compliance with laws and regulations related to corruption and conflict of interest. Processes of the Company are audited by Doğuş Otomotiv every year for compliance.

 

Environmental Efficiency

The Company uses LED luminaires, washbasin lighting with motion sensors and outdoor lighting with timers to reduce environment related consumption. The employees are informed about economic use of electricity and water as well as how to reduce consumption when they are not needed and we strive to raise awareness among our employees in these issues. We have placed recycling boxes for paper, plastics and battery waste in the company. Waste papers that accumulate in the collection area are regularly sent to Ayhan Şahenk Foundation. We work with DEHA, a biodiesel company for the disposal of lubricant waste.

Customer Satisfaction

In accordance with the Company’s quality policy, applicable laws and regulations are observed diligently, and customer complaints and problems are addressed to ensure that customer rights are respected pursuant to Law No. 6502 on Consumer Protection. Whereas Law No. 6502 stipulates that temporary vehicles should be provided in place of vehicles that need repairs within the warranty period and that require more than 10 days for repairs, we offer these temporary vehicles free of charge for the owners of vehicles that will take longer than 24 hours to repair. Furthermore, customers who do not prefer temporary vehicles are offered free travel and accommodation opportunities. Customer satisfaction surveys are regularly conducted to keep our customers' satisfaction at the highest level. Furthermore, IACS customer satisfaction calls and IPSOS customer satisfaction surveys are conducted on behalf of the Company at certain intervals. The road assistance requests, complaints, demands and wishes of the customers are met by the Value and Care Centre (DIM), which also resolves the complaints and meets the requests received.

Employees

Every year, various trainings on specific areas are provided to ensure the development of our employees. In 2019, our employees were given 152 man/day trainings in 11 different topics. For the health and safety of employees, the Company has an Occupational Health and Safety Committee in place. All legally required practices are performed under the responsibility of the Committee, which consists of eight members. Seven of these members are Company employees and one is independent. The ratio of our employees who serve on the committee to the total population is 11%. The employees are offered health and life insurance.

 

Vdf

Volkswagen Doğuş Finansman A.Ş. (vdf) was founded in 1999 as a joint venture of Volkswagen Financial Services A.G. (51%) and Doğuş Group (49%). Operating with the mission of “Developing and offering solutions to meet the financial needs of all the players within the automotive value chain,” vdf is Turkey’s leading automotive financing company.

Governance and Ethics

The Company takes all necessary measures against corruption and conflicts of interest. It operates in accordance with the provisions of related legislation, particularly Law No. 6361 on Financial Leasing, Factoring and Financing Companies, Regulation on the Establishment and Operation Principles of Financial Leasing, Factoring and Financing Companies and Law No. 6502 on Consumer Protection. Besides complying with relevant laws and regulations, the Company also adheres to the ethical codes of Volkswagen AG and Doğuş Otomotiv fully. The anti-corruption procedures and process controls constitute the first step of the measures taken. In the next stage, audits are conducted by the internal audit team. The outputs of audit reports and other inspections always include corrective/remedial measures.

Employees are reminded of the ethical principles through periodic classroom and online (e-learning) trainings. All the employees participate in the online compliance training, which includes our ethical principles and anti-corruption issues, and their attendance is monitored. In addition to the trainings, periodic updates and information on these topics are offered to strengthen the employees’ knowledge of these issues.

Environmental Efficiency

Aiming to raise awareness about saving energy and water among the employees, updates are regularly announced with the slogan “the people of vdf use their resources efficiently”. In the selection of diesel vehicles for the Company, vehicles with the “AdBlue” feature are preferred while regular maintenance and inspections are carried out for all. In addition, personnel shuttle routes are regularly updated every year to minimize emissions as much as possible. There are collection boxes for wastepaper, battery waste and packaging waste in certain locations in each department. Wastepaper, battery waste and other wastes are regularly collected and recycled. Our waste papers are collected once a week and delivered to recycling facilities.

 

Customer Satisfaction

Various customer-related activities in different channels within the Company are carried out to ensure that they are accurately informed, their information is protected and data privacy is guaranteed and to make sure that they benefit from our services in the best possible way. Brochures placed in the showroom and social media posts, as well as product descriptions on the website and in our mobile applications are presented in a clear and easy-to-understand format. Information forms about products and services, and policies are prepared in a detailed and descriptive manner. Any issues that make it difficult for the customer to understand are immediately revised. Customer data is not shared with third parties other than the customer and the authorized institutions and the security of such information is ensured within the scope of security software and procedures by IT. Documents such as loan utilization agreement, payment plans and notice form prior to loan utilization are signed by the customers and originals are delivered to us. Such documents are kept in locked cabinets, reviewed in a short time while copies are stored in the system and the originals are sent to the archiving company. There are people in charge of processes and all transactions are carried out under constant supervision.

Employee Health and Safety

For the health and safety of employees working at vdf, there is an OHS Specialist whose services are procured within the scope of Occupational Health and Safety (OHS), and a Workplace Physician. The Occupational Health and Safety Committee is composed of 37 people including the Emergency Teams that completed the necessary trainings of the authorized institutions, and constitutes approximately 10% of the total number of employees. All employees are trained in employee health and safety. OSH Specialist and Workplace Physician gave 8 man/hours of training. In addition, the private health insurance plan offered to employees is quite comprehensive and designed to cover a wide range of health problems and demands of employees during the year.

Employee Satisfaction

Employee satisfaction is a top priority for the Company. The benefits that we offer to our employees include private health insurance, private life insurance, bonuses, graduate scholarships, foreign language support, earning leave as of entry, birthday leave, birthday gift, education catalogue and task-based technical trainings. The vdfLife – human resources sharing platform – is at the forefront of our practices aimed at ensuring employee satisfaction and increasing loyalty. Through this platform, our employees can access all kinds of information they need. On the other hand, within the scope of vdf Employee Support Programs, in addition to the graduate, foreign language learning support that employees need, SMMM, project management, business analyst, etc. technical training support is also provided. Furthermore, we offer a long-term internship program called the ‘vdf Champs’. vdf takes part in the “Stimmungs barometer” (Idea Barometer) survey conducted by Volkswagen FS AG among all Volkswagen companies to measure employee satisfaction and the Great Place to Work rankings in turns. Meetings are held with various departments to evaluate the results of the Idea Barometer, and satisfaction areas/expectations/ proposals are discussed. An internal customer satisfaction survey is conducted to increase the operational efficiency of the company and the outputs are shared with relevant departments and all Company employees. The vdf Employee Assembly (vdf Echo), established in 2016, continued to function in 2019 and organized a number of events. However, the “vdf ce” suggestion system, which previously produced many results and led to radical changes, was unable to function efficiently for various reasons in 2018 and has been added to the 2019 Human Resources projects to regain its former function. Within the scope of the HR projects carried out in 2019, the Söz Uçar YazIKalır platform (spoken words fly away, written words remain) was created and employees were provided to convey their requests, suggestions and complaints to HR in this way.

In addition, Value Ambassadors team, created to internalize company values, organizes events taking into account the demands and expectations of the employees.

Equality at Work

The topic of supporting women in professional life and creating equal opportunities within the scope of Equality at Work Platform, a project of the Turkish Ministry of Family and Social Policies and supported by Doğuş Group, is followed by vdf Human Resources and Senior Management. Along with all the other Doğuş Group companies, vdf also responds to the “Equality at Work Follow-up Survey”. At present, there is a balance between the number of male and female employees at every level within the Company.