Mazars Denge Sustainability Report

SUS TA I NA BIL ITY RE PO RT 20 16

SUS TA I NA BIL ITY RE PO RT 20 16

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About this Report

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Vision - Mission - Values

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Message from the Board Chairperson

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Message from the CEO

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Mazars Denge by Numbers

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Corporate Profile

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Mazars Denge Services

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National and International Memberships

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Sustainability for Mazars Denge

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Mazars Denge’s Sustainability Strategy

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Corporate Governance

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Clients

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Environmental Impact of Operations

48

Human Resources at Mazars Denge

55

Cultural Sustainability

62

Mazars Denge and Society

64

Annexes

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GRI G4 Content Index

CON TEN TS

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AB OUT THIS RE PORT (G4-28, G4-29, G4-30, G4-32) Mazars Denge hopes this report will foster closer contact with all its stakeholders by sharing with them its approach to sustainability. The company owes its 40-year history to having made sustainability a part of its corporate culture, and to having maintained a harmonious balance of interests between itself and all its stakeholders.

Mazars Denge’s first-ever sustainability report, covering the period from January 1st to December 31st, 2016, surveys the company’s performance with respect to top-priority sustainability issues identified by stakeholder surveys. This is a GRI (Global Reporting Initiative) G4 Comprehensive report.

Our Sustainability Committee undertakes all sustainability studies and efforts at Mazars Denge, including sustainability reporting. The Mazars Denge Sustainability Report 2016 was prepared with the assistance of an outside consulting company.

Henceforth, Mazars Denge plans to issue comprehensive reports on its sustainability performance and activities annually.

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OUR VISION

To be the most reputable company in the industry through an unshakeable commitment to offering reliable, high-quality boutique services.

OUR MISSION

To generate income responsibly while respecting core values and employee development, and to create sustainable value for all clients and stakeholders.

INDISPENSABLE ( C O R P O R AT E ) VA L U E S

MAZARS DENGE’S OBJECTIVE Mazars Denge focuses on a single objective in all its business: ‘Creating sustainable value for society and all stakeholders.’

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RESPECT FOR HUMANS AND DIVERSITY FIRST Human beings are a priority for Mazars Denge, and human values always come first. At Mazars Denge, we respect everyone regardless of geographical borders, cultural differences or gender, and we embrace diversity of all kinds within our corporate structure.

ETHICS Mazars Denge’s professional ethics guidelines reflect its approach to ethics and act as a guide in all business transactions.

BOUTIQUE SERVICES Mazars Denge is solution-oriented and aims to create value for all stakeholders through handling client problems as its own, regardless of the size of its clients’ business.

EXCELLENCE IN TECHNICAL KNOW-HOW Excellence in technical know-how at Mazars Denge starts at the recruitment stage and is supported by on-the-job training, general transfer of know-how and competence-based learning. It is a fundamental component of Mazars Denge’s principles of independence and quality service.

INDEPENDENCE All stakeholders define Mazars Denge as an “honest and objective” solution partner thanks to its neutrality and independence, on which it never compromises. The principle of independence requires full conformity with the international norms established by Mazars’ head office.

CONTINUOUS DEVELOPMENT Mazars Denge takes pride in being an innovative business, learning from the past and looking to the future by adapting to technological change and transferring knowledge to all stakeholders.

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MESSAGE FROM THE BOARD CHAIRPERSON Our sustainability model contributes to the creation of an environmental, social and economic balance, and to the pursuit of progress.

(G4-1, G4-2)

Dear Stakeholder, According to Heraclitus of Ephesus (535-475 BC), “Change is the only constant in life.” Ever since humans stood on two feet, we have both contributed to changes in our surroundings and stretched our imaginations to adapt to that change.

The relationship between humans and the environment-with all its ups and downs-is different and far more complex than that between the environment and any other living thing.

Hunter-gatherer human communities passed through many phases before evolving into the “homo intellectus” of today’s “information society.”

Unfortunately, the wealth and healthy living opportunities brought about by development have not been shared equally across regions or even between people inhabiting the same region.

This has resulted in large gaps. Development has also had hazardous environmental consequences that may be difficult to reverse. The overconsumption model, promoted as the engine for development and progress, has become both hard to sustain and detrimental to ecology and society. This has led to widespread questioning of the future of our world and humanity.

Today, economists argue that change to the existing model is inevitable. They have created alternatives, and advised us to switch to an environmentally friendly and sustainable economic model that will benefit mankind.

Implementing such a model will certainly necessitate national and international reform as well as altered state structures—all of which are outside the scope of our responsibility and work.

However, individuals and businesses alike have the crucial duty to do their utmost to support

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realization of a sustainable model within their spheres of influence, and to facilitate environmental, social and economic equilibrium to achieve progress.

Mazars Denge—celebrating its 40th anniversary this year—has always been true to the above-defined values, which constitute a part of corporate sustainability. This report stresses the importance our company places on this approach to sustainability and the effort that goes into it. Our wish is to strive even harder in the future and contribute to the prevalence of sensitivity towards sustainability in the world, until it eventually becomes universal.

I would like to extend my heartfelt thanks to all Mazars Denge employees and to our “Sustainability Team,” especially our CEO Dr. İzel Levi Coşkun and consultant Prof. Dr. Güler Aras, for their valuable contribution to the preparation of this report.

LEON ASLAN COŞKUN, Chairperson of the Board of Directors Mazars Denge

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MESSAGE FROM THE CEO The values of our 40-year-old company have buoyed us up since the beginning, becoming an indispensible part of our operating procedures.

(G4-1, G4-2) Dear Stakeholder, COP 21, held in December 2015, was a milestone in our firm’s sustainability report efforts. COP 21 helped us understand the impossibility of fulfilling desired goals as long as micro-level contributions to sustainable development remained limited while states sought methods of reconciliation on a macro-scale.

This understanding paved the way for our signing the “UN Global Compact” on April 1, 2016. We initiated our GRI4 reporting process in light of the consistency between GRI standards and the values of our 40-year-old company as both a center of learning and a pioneer in the accounting, tax, audit and consultancy sectors.

These values—inherited from Mr. Leon Coşkun, the founder and chairperson of our firm—include “human first,” professional responsibility, ethics, independence and quality.

We are confident that our commitment to protecting professional and universal values, along with our rational approach to business and efforts at self-improvement, will carry us forward another forty years. At Mazars Denge, we appreciate the value of reporting on the social and environmental impact of the value we create for our stakeholders. We understand how effective this is in fulfilling our duty of sustainable development.

We believe the first step in achieving this is to create awareness of sustainability within our company. The next steps will be: • Implementation across all processes, • Defining short, medium and long-term sustainability goals, • Correct measurement, and • Assuming the role of a sustainability envoy.

The main purpose of each step is to ensure our company’s development in addition to its growth. Our strategic focus is to facilitate such development through investing in our employees,

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with a particular focus on women’s employment. As part of that effort, we signed the Women’s Empowerment Principles in 2016. We plan to publish our first integrated report on these endeavors by 2020 at the latest.

We expect to encounter two main challenges at this point.

The first challenge concerns existing economic, social and environmental problems. The second pertains to ensuring that top management fully understands and embraces the concept of corporate sustainability, and that it informs other employees in order to integrate it into all our operations.

We are aware that our responsibility extends to the “individual” at the far end of the chain of stakeholders.

We are aware that we play a vital role at the macro-scale in ensuring that our country passes tests of law, justice, democracy and economic freedom while doing what our profession requires.

With this in mind, we will continue practicing our profession with the sense of responsibility established as part of our corporate culture in 2016 and 2017. We will strive to create and increase awareness of corporate sustainability across all ranks of our company, and we will do this while setting goals and making accurate assessments within the model we have devised.

We hope this report—published for the first time on the 40th anniversary of our founding—benefits all stakeholders, particularly our employees and clients.

DR. İZEL LEVİ COŞKUN CEO Mazars Denge

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MAZARS DENGE BY NUMBERS

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32

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Emp loy e

T An nual Growth

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*The employees of the corporate consultancy company Prokon, a member of Marcalliance, are not included in this figure. **Mazars Denge’s annual growth rate between 31.12.2015 and 31.12.2016. ***Mazars Denge’s annual growth target for 31.12.2016 and 31.12.2017.

C O R P O R AT E PROFILE MAZARS WORLDWIDE As a fully-integrated global firm, Mazars offers professional audit, accounting, tax and advisory services.

MAZARS DENGE Mazars Denge celebrates its 40th anniversary this year.

Founded in 1977 by two partners, the firm now operates with 322 employees in 7 offices in Istanbul, Ankara, Bursa, Denizli (2), Gaziantep and İzmir.

With its experience of 40 years, Mazars Denge serves a portfolio of over 1,000 companies from different industries (over 50% are global businesses) with 322 professionals, including 32 partners of whom 15 are certified public accountants, working in 7 offices in 6 cities across Turkey Istanbul, Ankara, Bursa, Denizli (2), Gaziantep and İzmir.

Mazars Denge is one of Turkey’s top 5 audit firms, providing exclusive, quality services to its clients.

İstanbul Bursa Ankara

İzmir Denizli

Gaziantep

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MAZARS DENGE FROM PAST TO PRESENT

THE STORY OF 40 YEARS Mazars Denge has successfully reached its 40th year by remaining loyal to its values, mindful of its ethical standing, and sensitive to the importance of providing quality boutique services through qualified professionals who understand our customers’ needs.

1977-1987 Denge Group started out as a simple accounting practice with two partners on December 20, 1977, in the days when an accountant was still called a “clerk.” Even then, the company committed itself to reliability and a sense of quality as the foundation for its own style of service.

1987-1997 The first audit services were offered in 1988.

Tax services became a separate department in 1989, and in 1994 an office opened in Ankara, significantly expanding the firm’s sphere of influence in the country. The first business consultancy services were offered in 1995.

1997-2007 The firm acquired an international dimension while remaining true to its fundamental values when a partnership agreement with Paris-based Mazars was signed in 1998. The firm’s Accounting Outsourcing Services department was restructured in 2001 to offer services tailored especially to international companies.

2007-2017 Transfer Pricing Services were introduced in 2008, and in the same year the firm was named Best Tax Firm in Turkey by International Tax Review. In 2009 a new office opened in Bursa, the third largest city in Turkey. In 2011, International Tax Review again chose Mazars Denge as Best Tax Firm in Turkey, and in 2012, the firm’s Gaziantep office was opened, and corporate finance, internal audit and strategic consultancy services were introduced.

World Tax 2015 ranked Mazars Denge among the top 4 Tax Consultancy Firms in Turkey.

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MILESTONES

1994 Ankara Office opens

2008 Transfer pricing services are launched

2009 International Tax Review recognizes Mazars Denge as Turkey’s Top Transfer Pricing Firm

2013 The Denizli office opens

1977

1988

1989

Founded as an accounting and tax firm

Audit services are launched

Tax services are organized under a separate department

1995

1998

Management consultancy services are launched

Mazars Partnership is formed

2001 AOS are restructured

2008

2009

2009

Mazars Denge is recognized as Turkey’s Top Tax Firm by International Tax Review

The Bursa office opens

Denge Academy is set up to offer training services

2011

2012

2012

International Tax Review recognizes Mazars Denge as Turkey’s Top Tax Firm

The Gaziantep office opens

Corporate Finance, Internal Audit and Strategic Consultancy services are launched

2013

2015

The İzmir office opens

World Tax 2015 recognizes Mazars Denge as one of Turkey’s Top Tax Consultancy Firms

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MAZARS DENGE SERVICES

TAX SERVICES Tax Consultancy and Full Certification Tax Revision Transfer Pricing VAT Return

Mazars Denge provides auditing, accounting, tax and consultancy services to clients from various industries.

ACCOUNTING SERVICES Accounting revision Payrolling Reporting Accounting

2016 Revenue

Di s

By sharing its expertise and experience with its boutique service approach, Mazars Denge offers exclusive, high-quality solutions to each client. We blend technical know-how excellence with the personal strengths of each of our teams to serve large companies, public corporations, SMEs and sole proprietorships alike. tion u b tri

CONSULTANCY SERVICES Corporate Finance - Valuation - Mergers and acquisitions consultancy - Pre-IPO consultancy - Financial modeling - Project finance - Capital markets regulation consultancy Strategic Management Consultancy Corporate Management, Risk, Control and Internal Audit Services - Corporate management consultancy - Risk, control and internal audit services - Internal audit services - Internal control services - Corporate risk management services - Information technology risk services CIRCULARS Amendments to tax legislation DENGE ACADEMY Training

Accounting

28%

Tax

50% Audit

20%

Consultancy

%2 16

INDEPENDENT AUDIT SERVICES Independent and Special Purpose Audit

CHINA DESK Assisting Chinese companies

TA X S E R V I C E S Mazars Denge offers tax consultancy, full certification, tax advisory, revision, transfer pricing and VAT return services.

Mazars Denge has expert certification specialists who have been trained under the company’s experience of 40 years. These expert certification teams diligently review client documents and records under Law No. 3568 on Independent Accountancy, Independent Public Accountancy and Certified Public Accountancy.

INDEPENDENT AUDIT Mazars Denge offers clients international and special-purpose audit services to international standards. The company holds all significant professional authorizations granted by national and international organizations.

Originally set up in 1988, the Independent Audit department uses the programs and technical know-how of its global partner, Mazars, in carrying out its operations.

The reports that Mazars Denge specialists send to clients’ management serve three purposes: (i) communicating errors to management so that measures can be taken to prevent tax-related risks; (ii) protecting the company from negative inspection findings; and (iii) ensuring that the company is in good tax standing.

Mazars Denge is licensed in Turkey by the PCAOB (Public Company Accounting Oversight Board), the organization that authorizes external audit companies to carry out audits of public companies in the United States under the Sarbanes-Oxley Act.

How Mazars Denge Services Are Distinct:

Audits meet International Auditing Criteria and include all procedures deemed necessary for verifying the accuracy of accounting records.

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•

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Continuous development of CAP software carried out by the company’s technical team increases tax audit efficiency and reduces workload for clients’ accounting departments during fieldwork.

The company’s tax partner checks review reports prepared by Mazars Denge offices through sampling, and the results are reported to the relevant CPA and Board of Directors.

Every three weeks, CPAs and directors in all Mazars Denge Offices convene for a technical meeting at which they discuss legal amendments, newly published articles and communiques within the financial quarter.

How Mazars Denge Services Are Distinct: •

•

Mazars Denge’s insurance team is among Turkey’s top teams in terms of expertise in the field. Those who join the Mazars Denge team after having first worked as independent auditors and then in the insurance industry provide Mazars Denge with a valuable and uncommon perspective.

The audit/tax hybrid team project, successfully implemented at Mazars Denge, has resulted in increased efficiency and higher quality in tax and independent auditing.

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ACCOUNTING By making it possible for its clients to partially or entirely outsource their accounting departments, Mazars Denge provides an alternative to setting up an accounting department and to the obligation to invest in computer hardware, personnel, expensive accounting software, etc.

In addition, regular tax inspections are carried out and the results are reported to company management to provide information about tax errors that may result in fines. The services we offer also include payroll and management reporting. Finally, Mazars Denge prepares circulars on every major amendment in tax and labor legislation and forwards these to clients regularly via e-mail.

How Mazars Denge Services Are Distinct: •

Mazars Denge partners in the top management of the accounting department are experts in independent audits and international tax. This furnishes our accounting teams with a new vision, allowing them to create greater added value for clients.

C O N S U LTA N C Y With its interdisciplinary structure, Mazars Denge provides exclusive solutions to customer needs in different industries. Our main lines of business include: •

• • •

Corporate Finance Services (valuation, mergers and acquisitions, and other corporate finance services) Strategic Management Consultancy Services Corporate Governance, Risk, Control and Internal Audit Services Information Technology and Risk Services

DENGE ACADEMY At Denge Academy experts offer boutique training courses in a wide range of professional fields.

CHINA DESK

For further information about our services and products please visit Mazars Denge website at http://eng.mazars.com.tr/Home/Our-expertise

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The China Desk at Mazars Denge offers company formation, legal, tax, inspection, training and corporate finance consultancy services to Turkey-based businesses that aim to invest in China as well as China-based businesses wishing to invest in Turkey.

N AT I O N A L A N D I N T E R N AT I O N A L MEMBERSHIPS Mazars Denge participates and will continue to participate in a wide range of organizations to which it can meaningfully contribute by exercising its sense of professional and social responsibility. Employees and executives at Mazars Denge share their time and resources efficiently and competently in areas where they can make a tangible impact.

S U S TA I N A B I L I T Y I N I T I AT I V E S • • •

UN Global Compact Women's Empowerment Principles (WEPs) Integrated Reporting Turkey Network (ERTA)

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• • • • • • • • • • • • • • • • • • • • • •

TÜSİAD (Turkish Industry and Business Association): as an active member of TÜSİAD, Mazars Denge is represented at the CEO level.

Mazars Denge was the gold sponsor for TÜSİAD’s “These Young People Have the Potential” project, and was a participant in and contributor to that project at the CEO level.

CCI France Turquie Expert Accountants’ Association of Turkey (TMUD) Chamber of Sworn Certified Public Accountants in Istanbul Union of Chambers of Certified Public Accountants of Turkey (TURMOB) Endeavor: CEO-level representation British Chamber of Commerce in Turkey Italian Chamber of Commerce in Turkey Belgian Chamber of Commerce in Turkey German-Turkish Chamber of Trade and Commerce (AHK) Swedish Chamber of Commerce Keiretsu Forum: CEO-level representation Institute of Internal Auditing (TIDE) Foreign Economic Relations Board (DEIK) Independent Audit Association Turkish Integrated Reporting Network (ERTA) International Financial Management Institute (UFE) TÜSIAD Insurance and Private Pension Work Group International Investors’ Association (YASED) Revenue Inspectors’ Association Account Experts Foundation Association of Revenue Administration Directors and Assistant Directors (GİMDER) Chamber of Certified Public Accountants of Ankara: Board-level representation

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S U S TA I N A B I L I T Y FOR MAZARS DENGE

MAZARS DENGE’S APPROACH TO S U S TA I N A B I L I T Y The three key components that define sustainability are:

○ Commitment to values ○ Continuous development ○ Sense of responsibility

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1. Commitment to Values:

2. Continuous Development:

The “identity” of a company, which is the key element of its founding philosophy and manner of business, must be aligned with its “image” – how it represents and shares its identity with stakeholders. At the beginning of its corporate sustainability journey, Mazars Denge conducted a stakeholder survey, the results of which revealed that the top terms respondents associated with Mazars Denge were “reliable,” “ethical,” “boutique services,” “quality” and “innovative.” These results indicate that even after 40 years, stakeholders perceive Mazars Denge`s values accurately, offering strong evidence that the company’s identity and image are aligned.

Throughout its journey of 40 years, Mazars Denge has always viewed its commitment to values as the “end goal” in practicing its profession, regardless of circumstances. Mazars Denge’s refusal to compromise its values has created a corporate culture of responsibly generated income as the means to the company’s short, medium and long-term financial ends. This is why the very values that have carried Mazars Denge to where it stands today will sustain it for at least another 40 years.

By exalting the principle of “human first” – the appreciation that “human” is the fundamental building block of our service industry – Mazars Denge has made employee growth and satisfaction the focus of its life.

It takes a spirit of entrepreneurship to start a business. Growth and institutionalization follow. If institutionalization causes that spirit of entrepreneurship to erode and the company to slow down, development will eventually stop. Mazars Denge takes maximum care to ensure that all team members are continuous learners and developers within its corporate governance structure. In the long run, the company aims to take the following steps to enable different teams within the company to develop and implement the innovative and pioneering projects that management has specially introduced.

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•

Create action plans based on the results of the “Employee Satisfaction Survey.” (2016- 2017) Increase the average number of technical and competence-based training programs offered per person. (2017 onwards) Create fields of expertise in addition to the insurance and automotive spheres; seek local support for development as well as make use of Mazars’ international reach. (2017 onwards)

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•

•

•

•

• •

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Review all service processes from an integrated economic, social, environmental and corporate management viewpoint and align them with the practical, dynamic and corporate principles of sustainability. (2017 and first half of 2018) Attach economic, social, environmental and corporate governance-based success criteria to process output.

(2017 and first half of 2018) Ensure that those success criteria become performance indicators in the long run for all teams, starting with top management. (2018-2019) Create an innovation-minded ecosystem across the company by making use of the expertise of our newly founded strategic consultancy and IT services departments. Use the hybrid team projects of the tax and audit departments when creating that ecosystem.

(Q3 of 2017 onwards) Create a culture of entrepreneurship. (goal for 2019) Publish the company’s first integrated report. (2019 or 2020)

3. Sense of Responsibility: The community-related performance and environmental impact of businesses’ activities play a critical role in the effective continuation of their operations, as well as in the evaluation of their overall performance. This means that the coexistence of healthy ecosystems, social quality and corporate governance becomes a prerequisite for corporate sustainability.

The ethical standards of the audit industry broaden the scope of responsibility to individuals within a society. In other words, the smallest error in a statement, full certification report or independent audit can mislead the layperson at the extreme end of the chain of responsibility, demonstrating the deep sense of social responsibility our profession requires.

Similarly, this sense of social responsibility is an indicator of the interaction taking place among

all stakeholders – clients, competitors, the public institutions we report to, professional and other chambers, the state, educational institutions, NGOs and - in the largest circle of all - individuals. This interaction endows everyone at Mazars Denge with a shared sense of responsibility, participation and effective communication, regardless of department, rank or seniority.

In parallel with the ISO 26000 Social Responsibility Standard, Mazars Denge strives for the following to make the best of “reliability,” one of the most important components of reputation:

• • • • • •

Understanding the concept of social responsibility, Studying the relationship between social responsibility and our company’s characteristics, Volunteering to take social responsibility initiatives, Building confidence about social responsibility, Improving our company’s social responsibility actions and practices, and Creating an efficient social-responsibility communication infrastructure within and outside the company.

Mazars Denge is aware of the difference between “responsible income” and “problematic income” and it considers it a social and professional duty to leave future generations with the legacy of a profession characterized by a firmly entrenched ethical code.

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O R G A N I Z AT I O N O F S U S TA I N A B I L I T Y AT MAZARS DENGE Sustainability Representatives at Mazars Denge The Sustainability Team at Mazars Denge convenes on a weekly basis under the leadership of the CEO to extend sustainability policies across the company.

Dr. İzel Levi Coşkun

CEO

Sustainability Ambassador

Barlas Hünalp

Marketing Director

Sustainable Communication Representative

Nisa Dizdar

Human Resources Director

Employee Satisfaction and Development Representative

Celalettin Günçavdı

Budget and Reporting Manager

Budget & Reporting Representative

Doğan Ruben

Manager, AOS

AOS Representative

Esra Çatlıoğlu

Expert, Auditing

Audit Representative

Tayfun Öztürk

Assistant Manager, Tax

Tax Representative

As the Sustainability Ambassador, Mazars Denge’s CEO has full responsibility and power to define and implement the company’s sustainability strategy.

Since 2013 the CEO has been working towards creating awareness for embracing a sustainability approach through various meetings and workshops, starting from top management. Following a threeyear seeding period, the CEO set up a sustainability committee in 2016 with the aim of publishing regular sustainability reports.

The Sustainability Communication Representative is responsible for integrating a sustainable perspective into corporate culture and brand communication. This member is also responsible for preparing, publishing and distributing the sustainability report.

The Employee Satisfaction and Development Representative is responsible for ensuring employee satisfaction and development through the perspective of sustainability; integrating a sustainable perspective into corporate culture and extending it across the company, as well as preparing the sustainability report.

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The Budget and Reporting Representative is responsible for verifying that all company investments and expenses have adopted a sustainable approach, and for formulating the budget from a sustainability perspective.

AOS, Audit and Tax Representatives are responsible for ensuring that the influence of the company’s sustainability efforts are integrated into the daily running of each department. They also play a part in turning departmental experience - as shared with others during weekly meetings - into “best practices.”

MARKETING AND COMMUNICATIONS DIRECTOR

SUSTAINABLE COMMUNICATION

AOS REPRESENTATIVE

INDEPENDENT AUDIT REPRESENTATIVE

DEPARTMENT REPRESENTATIVES

TAX REPRESENTATIVE

SUSTAINABILITY AMBASSADOR CEO

HUMAN RESOURCES

HUMAN RESOURCES DIRECTOR

FINANCE

BUDGET AND PLANNING MANAGER

The Sustainability Ambassador and members of the Sustainability Committee collaborate in the areas of sustainability, social and environmental impact, occupational health and safety, human rights, sustainable methods of procurement, and anti-bribery and anti-corruption policies.

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S TA K E HOLDER A N A LY S I S

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Guided by its mission to create sustainable value for all stakeholders, Mazars Denge defines all corporate priorities and longterm strategies in accordance with stakeholder expectations.

Stakeholders, situated at the heart of the company’s approach to sustainability, use several different channels to convene as and when necessary. Mazars Denge strives to continuously improve its sustainability performance in line with stakeholders’ feedback.

Stakeholder Group

Communication Channels

CLIENTS

Client visits and meetings; industry-specific meetings; seminars and conferences; client satisfaction surveys; corporate website (http://eng.mazars.com.tr/); social media accounts; offices; e-mail information; media; communication campaigns; client communication form; Sustainability report; annual report;

EMPLOYEES

Departmental meetings; management meetings; intranet; focus group meetings; talent management meetings; “Kick Off” meetings; employee commitment and satisfaction surveys; Move&Mobility programmes; CSR projects;

SHAREHOLDERS

Annual shareholders meeting; Board meetings; periodical reports; corporate website (http://eng.mazars.com.tr/); social media; teleconference; email

SUPPLIERS

Corporate meetings; face-to-face meetings; tenders; corporate website (http://eng.mazars.com.tr/); periodical audits; e-mail; mail; phone; fax

AUDIT, TAX, ACCOUNTING AND

Industry union membership-specific meetings; corporate collaboration;

CONSULTANCY INDUSTRY COMPETITORS

PUBLIC INSTITUTIONS & REGULATORY AUTHORITIES

Professional meetings with other firms operating in the same industry; media monitoring; social media Regular monitoring of reporting obligations and other forms of data flow as set out in the law and regulations; periodic review; meetings, forums and conferences

NGOS

Joint CSR projects; project meetings; sponsorships; sustainability report Corporate website (http://eng.mazars.com.tr/); Memberships

UNIVERSITIES

Conferences; sponsorship; Career Days; Face-to-face meetings; Scholarships;

MEDIA

Corporate website (http://eng.mazars.com.tr/); press releases; press conferences; social media accounts; notices and announcements; special news coverage

PUBLIC

Interviews CSR projects; sponsorships; press releases; sustainability report; events; corporate website (http://eng.mazars.com.tr/); social media accounts

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PRIORITY A N A LY S I S Prioritization and Stakeholder Analysis The sustainability committee reviewed the results of the prioritization survey administered in June 2016. This was followed by workshops that aimed to define some focus areas.

P R I O R I T Y A N A LY S I S FOCUS AREAS Fighting Global Warming Taking global issues seriously; working towards minimizing climate change and its environmental impact; informing employees about global warming and drawing attention to methods of combat.

Strengthening gender equality and women’s empowerment Observing balance and attaching importance to women’s employment and development to create value through diversity among Mazars Denge employees.

Corporate Volunteerism Spreading a culture of volunteerism among employees; enhancing internal and external positive social impact through volunteering employees.

Generating sustainable and responsible income Generating sustainable income based on our values; attaching importance to the social and environmental outcome and impact of the business.

“Intrapreneurship” Encouraging and supporting new ideas within the company that will contribute to the quality of the work we do.

Principles of corporate governance Generating income and creating value through a sense of transparent, accountable and fair management and efficient communication with all stakeholders.

Innovation in services Extending our approach continuous change and development to our services; keeping abreast of and using developments in the industry.

Employee development and satisfaction Investing in employee growth and satisfaction to better equip our employees; ensuring that such investment transforms into innovative, quality services.

R E S U LT S O F T H E P R I O R I T I Z AT I O N A N A LY S I S The results of the Mazars stakeholders and top management prioritization analysis show that the priority focus areas per stakeholder group are as follows:

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Shareholder Emphasis

OTHER

CRUCIAL

TO BE FOLLOWED

Generating Sustainable Income Corporate Volunteerism

Compliance with Principles of Corporate Governance

Innovation in Services Commitment to V alues Intrapreneurship

Employee Satisfaction

Gender Equality Work-Life Balance

Global Warming Global Concerns

Influence on the business and the institution

P R I O R I T I Z AT I O N M AT R I X According to the results of the prioritization study that involved the participation of all Mazars Denge stakeholders, the core area of focus was “sustainable and responsible income generation.” Within the scope of its sustainability strategy, Mazars Denge is trying to meet this goal by mobilizing its employees, clients, principles of corporate governance and values.

EXTERNAL STAKEHOLDERS 1 2 3 4 5 6 7 8

In order to support its priority goals, Mazars Denge places an emphasis on a continuously innovative approach to services, entrepreneurship, corporate volunteerism and creating a balance between work and leisure for its employees.

Mazars Denge has always been committed to global issues, as demonstrated by its participation in the UN Global Compact. In addition, the company offers continuous support in the fight against gender inequality and global warming through its corporate practices and contribution to relevant initiatives.

INTERNAL STAKEHOLDERS

Employee growth and satisfaction Compliance with principles of corporate governance Sustainable and responsible income generation Innovation in services Corporate volunteerism Intrapreneurship Gender equality and women’s empowerment

Gender equality and women’s empowerment Intrapreneurship

Fighting global warming

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MAZARS DENGE’S S U S TA I N ABILITY S T R AT E G Y “Mazars Denge is a human-, society- and environment-oriented company that aims to generate sustainable and responsible income by offering quality services, prioritizing employee satisfaction and development within corporate governance principles.”

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Customer Relations Management

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I

T

U

A ST

O

S

Responsible Income

PL

LDERS

TS

EE OY

S

Processes

VALUES

Employee Growth & A Learner Organization

T E C H N O L O G Y A N D I N N O VA

PRINCIPLES OF C

TION

OR

YS ECOS

E GO P O R AT

TEM

VE

N RNA

CE

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THE SOURCE AND GOAL O F T H E S U S TA I N A B I L I T Y MODEL The answers given to the open questions in the Mazars Denge stakeholder survey match the company’s founding values. In line with this, Mazars Denge’s previous vision statement “to be the most reputable company in the industry without compromising its values” was changed to “to be the most reputable company in the industry through a commitment to offering reliable and highquality boutique services,” which covers the concepts of ethics and reliability as well. The corporate values included in that vision statement were placed in the first circle of the sustainability model. “Employees” as primary stakeholders, “clients” and “other stakeholders,” who consist of competitors, professional chambers, public institutions, universities, NGOs and the whole environment were placed in the second, third and fourth circles respectively. The last circle refers to the economic, social and environmental impact created by all stakeholders. Mazars Denge is aware that due to its extensive reach, the sustainable value circle cannot consist of a set of values that can only be measured in monetary terms.

This model predicts that all operations, including the services offered, will be nourished by the values at the center. This will continue uninterrupted all the way to the sustainable value creation circle, which is the output of the sphere of influence of these values. The most

32

important assumption of the model is the existence of efficient communication between stakeholders.

These circles stand on a platform of “principles of corporate governance,” which include the indispensable components of fair management, transparency, accountability and responsibility. This means that complying with principles of corporate governance in each step is essential.

The second circle on that platform consists of technology and innovation. The future of our profession cannot be independent of technological advance. The goal of the company is to go beyond keeping abreast of and taking part in technological developments; it is to pioneer technological changes and practices. The company also aims to create an organization-wide ecosystem to encourage innovation, which in turn will nourish “intrapreneurship” in the long run.

In order for this model to succeed, it is important that the goals are set correctly and the measurements are accurate. The Balanced Score Card (BSC) method was thought to be the method that best serves this purpose with its different-size options. We updated BSC’s headings in line with our corporate sustainability approach, replacing “finance” with “responsible

income” and “customers” with “customer relations management.” “Employee growth and a learner organization” and “processes” were left as they appeared in the original. We aim to identify the performance indicators for BSC components from a corporate sustainability perspective.

Initially, the partners at the company formed groups to discuss visualization of the model. Their work inspired the idea of using the “nautilus” to represent the model.

The nautilus is among the oldest living things on Earth today, having existed for approximately 500 million years.

Etymologically speaking, the word is the Latin form of the Ancient Greek for sailor: “nautilos.” The nautilus has witnessed many phases of the Earth without undergoing any essential changes and has survived due to its ability to adapt.

the present day, and that we trust will continue to serve us for the foreseeable future.

The logarithmic growth model of the nautilus is often compared to the Fibonacci spiral and the golden ratio, which coincide with Mazars Denge’s search for perfection in all its operations.

On the one hand, the outer shell of the nautilus represents the presentation of our sustainable values to stakeholders as output. On the other hand, it refers to “Nautilus,” the fictional submarine captained

by Nemo in Jules Verne’s Twenty Thousand Leagues Under the Sea, freely roaming the deep and making intriguing discoveries. This represents Mazars Denge’s uncompromised independence and innovative character in the industry.

We have identified the nautilus’ witnessing the history of the earth with Mazars Denge’s history as among the first in its industry, and with the ability to survive institutionalization. A cross-section of the nautilus’ shell will show a logarithmic spiral growth, allowing it to grow at a constant rate without changing shape. The ability of the nautilus to maintain its essential shape and form during the growth phase represents the faith we have in the unchanged values that have carried our company to

33

S U S TA I N A B L E DEVELOPMENT GOALS Sustainable Development Goals are a call for universal action to end poverty, protect the world and ensure all people live in peace and economic security. Mazars Denge has become a signatory to this action plan to reach the Sustainable Development Goals and leave a better world for future generations. Mazars Denge has identified its focus goals as “Reducing Inequalities,” “Responsible Consumption and Production,” and “Peace and Justice.”

Reducing Inequalities: This goal consists of improving the regulation and monitoring of financial markets and institutions, and directing development and foreign investment to regions that most need them. The importance of economics in reducing inequality validates the vital role played by companies offering accounting, audit, tax and consultancy services.

Peace and Justice: Sustainable development is impossible without efficient management based on peace, stability, human rights and the rule of law. Implementing the Sustainable Development Goals fosters cooperation between governments and societies in developing permanent solutions to conflict and lack of trust, as well significantly reducing all forms of violence.

This goal is an indispensable principle and value for Mazars Denge. We see it as a requirement for the achievement of humane and dignified living conditions of all human beings.

34

Responsible Consumption and Production: In order for economic growth and sustainable development to occur, immediate ecological footprint reduction through changed resource utilization and production-consumption patterns must also take place. Local production-consumption; efficient management of shared natural resources; and the manner in which poisonous waste and pollutants are disposed of are among the factors determining whether this goal is reached.

17 WISHES FOR 2017 PROJECT UN S U S TA I N A B L E DEVELOPMENT GOALS

Mazars Denge’s New Year 2017 celebrations used this theme with the intention of providing information on sustainable development goals and initiating internal communication. As part of its “17 Wishes for 2017,” Mazars Denge created wish cards for our employees with sustainable development goals written on them. The wishes that the employees made in their offices and at the New Year’s party were used to define the company’s Sustainable Development Goals.

35

36

U N G L O B A L C O M P A C T: THE PRINCIPLES AND MAZARS DENGE As part of its efforts to achieve its Sustainable Development Goals, Mazars Denge has prioritized the following GM Global Compact Principles with regard to the operations it supports and its internal practices: elimination of discrimination in respect of employment and occupation; a precautionary approach to environmental challenges; initiatives to promote greater environmental responsibility; and fighting corruption in all its forms, including extortion and bribery.

1

Businesses should support and respect the protection of internationally proclaimed human rights; and

Principle

2

make sure they are not complicit in human rights abuses.

3

Businesses should uphold freedom of association and the effective recognition of the right to collective bargaining; and

4

work to eliminate all forms of forced and compulsory labor;

5

work to abolish child labor; and

Principle

Principle

Principle

Principle

Principle

6

eliminate discrimination in respect of employment and occupation.

7

Businesses should support a precautionary approach to environmental challenges;

Principle

Principle

8

undertake initiatives to promote greater environmental responsibility; and

Principle

9

encourage the development and diffusion of environmentally friendly technologies.

10

Businesses should work against corruption in all its forms, including extortion and bribery.

Principle

37

CORP O R AT E GOVERNANCE

Mazars Denge is driven by a set of “principles of corporate governance” that cover fair management, transparency, accountability and responsibility as required by the responsible business approach it has adopted in line with and as a result of its sustainability strategy.

Corporate Governance Principles and Practices at Mazars:

Transparency In line with Mazars’ principles of international transparency, the independent audit company Crowe Horwarth has been auditing Mazars Denge since 2009.

Results are consolidated and published on the Mazars website.

Accountability Mazars Denge aims to ensure stakeholder participation in defining important strategies connected with sustainable development that can impact organizational performance. The company also aims to provide reliable information and be accountable to its stakeholders.

Responsibility Mazars Denge understands that income generation is not the sole purpose of the company, but that it should also embody social and environmental responsibility while creating value for stakeholders.

Fair Management Mazars Denge expects management to embrace the principle of equality for all operations. All company operatives – including especially managers – must avoid putting their personal interests over those of the company, and must also avoid subjective or arbitrary decision-making.

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TRANSPARENCY

ACCOUNTABILITY

RESPONSIBILITY

FAIR MANAGEMENT

C O R P O R AT E GOVERNANCE S T R U C T U R E AT MAZARS DENGE The company’s top management consist of partners who lead teams, departments or offices. Within that framework, company partners have “managerial” and “functional” duties, and a partner can be a member simultaneously of both the Board and the Executive Board.

Mazars Denge’s senior management uses a two-tier system. The Board of Directors consists of 6 members: 3 partners from Istanbul, 2 from Ankara and 1 from Bursa.

The Board convenes twice a year to discuss and make strategic decisions. The Executive Board consists of a total of 7 members. Four – one from each department – are from Istanbul; Bursa, Ankara and Izmir send 1 each. Currently, two members of the Executive Board are female.

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O R G A N I Z AT I O N A L C H A R T Organizational Chart as of 2017 Q1

QUALITY ASSURANCE

Cahit Yerci Tax Services Quality Assurance Partner A. Murat Demirtaş Independent Audit Quality Assurance Partner Eli Babani AOS Quality Assurance Partner

ISTANBUL

AOS*

TAX

INDEPENDENT AUDIT

CONSULTANCY

Sarah Coşkun CFO

M. Taylan Baykut AOS Leader R. Doğa Özsoy AOS Partner Member of the Executive Committee

Aylin Beydemir Independent Audit Leader Member of the Executive Committee

Esra Yıldırım Consultant Partner

Görgün Uçar IT Director

Mustafa Tan Tax Leader Member of the Executive Committee

Belma Öztürk Independent Audit Partner

Neşe Ülkütan Corporate Finance Partner

Onat Erdoğan Independent Audit Partner

Ateş Sünbül IT Security Services Director

HEADQUARTERS

Alber Amado International Reporting Director Barlas Hünalp Marketing Director Nisa Dizdar HR Director A. Ulvi Akıllı Administrative Affairs Manager Celalettin Günçavdı Budget & Planning Manager

Hovman İmayhan AOS Partner Eli Babani AOS Partner

Sedat Kurdoğlu Tax Partner Erkan Yetkiner Tax Partner Ahmet Kartal Tax Partner Numan Emre Ergin Tax Partner Sadiye Gönülkırmaz VAT Return Partner

Suat Şensoy Independent Audit Partner A.Murat Demirtaş Independent Audit Partner

Gökçe Gücüyener Transfer Pricing Partner Eli Levi Tax Partner

40

Pınar Derkazez Consultant Partner

*AOS: Accounting Outsourcing Services

BOARD OF DIRECTORS

Leon Coşkun Chairperson

Dr. İzel Levi Coşkun CEO President of the Executive Committee

R. Uğur Kaylan Tax Partner

Şevki Boran Tax Partner

M. Taylan Baykut AOS Partner

A. Şahin Savcı Tax Partner

ANKARA

BURSA

DENIZLI

GAZIANTEP

IZMIR

R. Uğur Kaylan Tax Partner

Şevki Boran Tax Partner

A. Akif Ercan Tax Partner

Mehmet Kalkınoğlu Tax Partner

A. Şahin Savcı Tax Partner

Nazan Boran Tax Partner Member of Executive Committee

Mehmet Erdoğan AOS Partner

Çağlan A. Gençer Tax Partner Member of Executive Committee

Taner Altan Tax Partner Member of the Executive Committee

Hüseyin Erikler AOS Partner

Anıl Taşkoyan AOS Partner

Emre A. Dişpençe Independent Audit Partner

Emre Yayla Tax Partner

THE FOLLOWING PRIMARY GOALS WERE SET FOR 2017-2018: • The Board of Directors has an independent member responsible for sustainability strategies.

• The Board of Directors has a female member.

• All departmental processes are analyzed, and flow

•

charts for all departments are prepared, starting with the tax department in Istanbul, with the aim of ensuring a sound corporate structure.

Strategic Consultancy, Information Security, COBIT audits and sustainability consultancy services are launched.

41

“All operations of the company are monitored through the Quality Control System” Quality Control Standard I (QCS I) on Quality Control for Independent Audit Companies and Independent Auditors for the Auditing of Financial Tables and Other Assurance Engagement, published by the Turkish Public Oversight, Accounting and Auditing Standards Authority regulates the liabilities of audit companies regarding quality control systems for the independent auditing and review of financial statements, other assurance audits and all other related services.

“Ethical Principles are Mazars Denge’s priority” Mazars Denge has created policies and procedures providing reasonable assurance that the company and its employees will follow relevant rules of ethics. Our fundamental principles of ethics as set out in those policies and procedures include the following: • • • • •

Honesty Impartiality Professional competence and diligence Confidentiality Professional conduct

Mazars Denge’s other professional ethics policies and procedures are available under “MQAM – 2.1 Independence and Objectivity,” “Mazars Risk Management & Quality Manual – Ethics.” “Mazars Code of Conduct for Objectivity and Independence” (CCOI), prepared in line with IFAC-IESBA’s “Code of Ethics for Independent Auditors” is available in the Tax Services Quality Handbook and the section on the Code of Ethics in the same document.

42

The purposes as set out by the QCS I are: (a) To ensure the company and its employees meet professional standards and comply with the legal and other regulatory provisions in force. (b) To set up and maintain a quality control system that provides reasonable assurance that the reports prepared by the company are in line with the existing circumstances.

Mazars Denge’s quality control system contains policies and procedures prepared in consideration of the following: (a) Responsibilities of the leadership within the audit company (b) Relevant ethical provisions (c) Acceptance and maintenance of customer relations and inspection contracts (d) Human resources (e) Conduct of inspections (f ) Monitoring As a member of Mazars Group, the company is obliged to comply with the “Mazars Quality Assurance Manual” (“MQAM”), a document also compatible with QCS I.

“Cares about establishing long-term relationships with clients”

“Embraces some supply chain management principles”

To be able to establish long-term corporate relationships, Mazars Denge takes care to serve clients that have embraced similar corporate values. The environmental and social impact of the operations of clients during and beyond the client evaluation phase plays an important role in maintaining relationships with clients.

It is important for Mazars Denge that its suppliers act in accordance with some fundamental principles.

Mazars Denge’s Principles for Suppliers: • Respecting human rights and not being complicit in human rights violations • Supporting employee freedom to unionize and collective bargaining rights • No forced labor • No child labor • No discrimination in recruitment and placement • Environmental consciousness; commitment to environmental protection with regard to goods and products • Fighting corruption in all forms, including bribery and extortion • Availability of appropriate work environment and facilities.

It is important for Mazars Denge that suppliers meet the “environmental,” “social” and “legal” criteria set out in Annex 1. These criteria are a part of the supplier contracts.

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CLIENTS

Client D istr i bu

With its 40 years of experience, Mazars Denge serves clients from almost all industries, although the automotive, insurance, information technology, energy, textile and food industries stand out from the rest. 52% of our clients are in manufacturing industries; 36% operate in service industries; and 12% operate in other sectors.

t

The majority of the company’s more than 1,000 clients in 2016 were either multinational corporations or companies based outside Turkey. This furnishes Mazars Denge with a second layer of international identity in addition to the identity it possesses by virtue of being a part of the Mazars network.

Mazars Denge’s relations with clients rest on the following four fundamental principles, each of which the company has afforded equal importance, allowing for balanced customer relations for 40 years.

Balanced distribution of senior attention across all clients From day one, Mazars Denge has always responded to every client need at the top management level. Mazars Denge partners and directors specially address client needs throughout the project, from preparation to completion.

Balance between real needs and real solutions

ion

Mazars Denge’s responsible income generation principle sits at the heart of client relations. Mazars Denge offers its clients only those services a client needs, and which it believes will help to improve a client’s business.

Services

36%

Production

52% Other

12%

Balance between technical excellence and ethics Mazars Denge is aware that technical excellence is not enough to meet customer demands on its own.

Commitment to ethical principles is a requirement, and the company aims to ensure that employees offer the best services by adopting an ethical approach.

Balance between customer satisfaction and long-term relationships Mazars Denge’s engagement, independent approach and sense of technical excellence are aimed at continuously improving customer satisfaction. Mazars Denge believes that the longer-term business relationships it can establish by attaching utmost importance to customer

44

The company conducts regular customer satisfaction surveys to measure customer experience and satisfaction. A survey was carried out in 2016.

Mazars Denge Customer Satisfaction 2016

Rating scale is one to ten

How successful were we in following the timetable?

9.05

Was there sufficient contact with you and your team during the provision of our services?

9.03

Were we quick enough in responding to your problems?

8.97

Would you recommend our firm to others?

8.95

How successful were we in avoiding interruption of your daily workflow during our work?

8.94

Overall, how satisfied are you with the quality of the services provided?

8.94

Did our services meet your expectations?

8.91

How likely are you to return to our firm in the future?

8.77

Did our team demonstrate its comprehensive know-how in your business and industry?

8.70

Please evaluate our services relative to the price.

7.93 0

4.5

9.0

Customer Satisfaction at Mazars Denge satisfaction contribute to the development of all the industries it serves. The company administers customer satisfaction surveys on a yearly basis.

The company conducts regular customer satisfaction surveys to measure customer experience and satisfaction. A survey was carried out in 2016.

45

ENVIRONM E N TA L IMPACT OF O P E R AT I O N S

Mazars Denge takes into account the environmental impact of all its operations as well as client and supplier operations throughout the services cycle.

Mazars Greenhouse Gas Emissions (tCO2 equivalent)

2016

Scope 1 (Fuel & Natural Gas)

88.50

Scope 2 (Electricity Consumption)

242.30

Scope 3 (Business Travel)

133.00

Total tCO2

463.80

Total scope 1 & scope 2 greenhouse gas emissions (tCO2e/person) per employee

1.46

Total scope 1 greenhouse gas emissions (tCO2e/person) per employee

0.39

Total scope 2 greenhouse gas emissions (tCO2e/person) per employee

1.07

Scope 3

29%

Scope 1

Scope 2

52%

19%

Scop

46

e 1: Fu

el and N

atural Gas Scop e 2: Electricity Consumption S

el s Trav s e n i s u cope 3: B

Environmental Indicators Electricity consumption (kWh)

Total Consumption(2016) 243,308.95

Electricity consumption / # people (kWh)

1,076.60

Natural gas consumption (kWh)

72,978.00

Natural gas consumption / # people (kWh) Diesel consumption (kWh)

322.90 181,504.73

Diesel consumption / # diesel vehicles (kWh)

7,260.19

Gasoline consumption (kWh)

43,065.61

Gasoline consumption / # gasoline cars (kWh)

6,152.23

Total Energy Consumption (kWh)* Total Energy Consumption / # people (kWh)

540,857.29 2,393.17

Paper Consumption (tons)

7.80

Paper consumption per employee / #people (tons)

0.03

*Including gas consumption of 43,065.61 kWh

Waste management Waste (tons)

14.69

Recycled waste (tons)

9.91

Water Consumption (m3)

2,108.53

Running water (m3)

2,079.00

Running water / # people (m3)

9.20

Drinking water (m3)

29.53

Drinking water / # people (m3)

0.13

*Reduction of fuel consumption per vehicle In 2017, a 38% increase from 2016 in the number of company vehicles is expected. We have increased the share of diesel cars in our vehicle fleet in 2017 and drafted a plan for the reduction of fuel consumption per vehicle.

*Reduction of energy consumption per employee The company’s employee body is expected to grow by 3.1% in 2017, while no increase in workplace size (m2) is planned or expected. A 3% increase in energy consumption is expected in 2017 based on these

assumptions. We aim to contribute to the reduction of energy consumption per capita through increased employee awareness.

*Reduction of paper consumption per employee As more electronic applications come into use in 2017, consumption of paper – more than any other type of consumption – is expected to drop despite the company’s growth target of 12%.

These calculations cover the Istanbul office only. Other offices will be included in the calculation as part of our 2017 goals.

47

H U M A N R E S O U R C E S AT MAZARS DENGE S U S TA I N A B L E H U M A N R E S O U R C E S S T R AT E G I E S A N D P O L I C I E S The fundamentals of Mazars Denge’s human resources strategy, which is aligned with the company sustainability strategy centered on employee development, are to: • Attract those of the most talented individuals who fit in with the company’s values and culture, and are eager to learn; • Create a learning environment supportive of the professional and personal development of employees; • Create an ecosystem and career opportunities allowing employees to realize their innovative and creative potential; and • Ensure long-term employee retention and encourage employees to imagine a future for themselves at Mazars Denge.

Mazars Denge develops HR policies to fulfil its vision of “being the most reputable firm in the industry” based on this strategy. These HR policies: • help spread the company’s sustainability strategy throughout the company and its stakeholders through practices allowing all employees to embrace and internalize that strategy; • aim to improve women’s employment and development; • facilitate development of a “learner organization”; • are based on the principle of establishing an “emotional bond” with all employees.

H U M A N R E S O U R C E I N D I C AT O R S Female Employees: 155 (%48) Male Employees: 167 (%52) Total Employees: 322

48

52

%

Average Length of Service by Region and Gender (Years)

%

Region / Gender Istanbul Gaziantep

48

Female

Male

Average

3.00

4.49

3.76

-

1.66

1.66

Employee Distribution by Age and Gender

Bursa

3.09

2.40

2.76

Age / Gender

18 - 30

31 - 50

50 +

Total

Izmir

1.00

1.50

1.17

Female

78

72

5

155

Ankara

2.22

3.04

2.65

Male

72

84

11

167

Denizli

1.00

1.00

1.00

Total

150

156

16

322

Average

2.79

3.87

3.46

*There is one part-time member of staff at Mazars Denge in 2016. **There are no temporary-contract members of staff at Mazars Denge in 2016.

Educational Background and Distribution by Gender Educational Background/Gender

Female

Male

Total

PhD

0

2

2

MA

18

26

44

BA

118

120

238

Two-year degree

1

2

3

High school

13

16

29

Primary/Middle school

5

1

6

155

167

322

Total

We aim to increase the number of females in top management to 30% - 35% from 23% by 2020. We also aim to increase the number of female managers to 45%-50% from 37.5%.

49

Employee Distribution by Title and Gender Female

Position-Title / Gender

Male

Total

#

%

#

%

Top Management, Partner, Director

10

23%

33

77%

43

Senior Manager, Manager, Asst. Manager

18

38%

30

63%

48

Supervisor, Expert, Junior Expert

37

56%

29

44%

66

Assistant, Senior Assistant

81

55%

65

45%

146

Janitorial Services

9

47%

10

53%

19

Total

155

48%

167

52%

322

Workforce by Regions Female

Region / Gender

50

Male

Total

#

%

#

%

Istanbul

111

49%

115

51%

226

Ankara

27

47%

30

53%

57

Bursa

11

52%

10

48%

21

Gaziantep

0

0%

3

100%

3

Denizli

2

22%

7

78%

9

Izmir

4

67%

2

33%

6

Toplam

155

48%

167

52%

322

Employees leaving for and returning from maternity leave during the reporting period

9 female and 0 male employees left for maternity leave during the reporting period. 5 employees returned at the end of their maternity leave, while the remaining 4 employees are still on leave. No employees resigned in the 12 months after returning from maternity leave.

2016 New Hires and Employees Leaving in 2016 by Age

2016 New Hires and Employees Leaving in 2016 by Gender

Age

18-30

31-50

51+

Total

Hired

63

27

1

91

Leaving

53

30

1

84

Female

Male

Total

Hired

48

43

91

Leaving

42

42

84

• nurture the belief that diversity improves perspective, … and commit to these fundamental principles during recruitment.

Recruitment and Placement

Equal Opportunity and Respect for Diversity Mazars Denge is committed to the principle of “equality” in recruitment.

• Equal opportunity for all candidates during recruitment and placement; • Equal training and development opportunities for all ethnic, cultural, political, religious backgrounds and gender identity differences; and • Fair performance criteria for promotion and salary increase.

Mazars Denge expects employees to: • respect human rights, • commit to ethical values, • maintain a sense of social responsibility and sustainable development, • respect differences,

Mazars Denge strives to place the right person in the right job through the use of supportive tools such as personality inventories, general aptitude tests and the assessment center. Mazars Denge integrates principles of sustainability into all operations, starting with recruitment. The company prepares job postings, assesses candidates, and trains hired personnel based on the principles of human rights, ethical values, social responsibility, sustainable development and diversity.

Performance and Career Management Mazars Denge conducts competence-based performance appraisals twice per year, using the sustainability model to review employee development at a learner organization and develop target competencies.

Twice per year, employees attend assessment and feedback meetings with their supervisors to review the results of the performance appraisal system, which career planning and development support taken into consideration.

Employees are given the opportunity to work temporarily at Mazars offices abroad through Mazars Global’s Move & Mobility programs.

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Training and Development Every year Mazars Denge organizes internal and external technical, professional and personal development training programs for employees. Mazars Denge employees also attend international training programs and conferences organized by Mazars Global.

The total number of training hours in 2016 was 3,368.

The average number of training hours per employee was 10.46.

Training programs: Orientation All newly-hired employees attend a six-hour orientation programme organized by human resources. All departments, depending on title, may be part of the orientation, which contains presentations made by the HR, marketing and IT departments.

On-the-job Training New employees attend a trainee and on-the-job learning program designed by their supervisors.

Professional Competence Development Training Employees are encouraged to obtain professional certification to increase their professional competence.

Certificate costs are covered by the company, and employees are given administrative leave to study for the exams.

CPA Initiation Exam Administrative leave of 3 days CPA Proficiency Exam Administrative leave of 5 days KGK Independent Audit Exam Administrative leave of 3 days

Average number of training hours per employee in 2016 Average number of training hours per head office employee 13.85 Hours

16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0

Average number of training hours per employee 10.46 Hours

Average number of training hours per non-head office employee 2.47 Hours

Female 10.27 Hours

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Male 10.63 Hours

Manager 4.09 Hours

Non-managerial 12.97 Hours

“Kick-Off ” Goal-Sharing Meetings Motivational “Kick-Off” meetings are held for each department (Independent Audit, Tax) at the beginning or end of every year where the preceding year is reviewed and the goals and strategies for the years ahead are shared with all employees.

Sustainability Meetings Mazars Denge holds corporate sustainability strategy workshops, and corporate sustainability information and roadmap sharing meetings. Articles and studies about sustainability are shared with employees via e-mail.

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Employee Satisfaction at Mazars Denge The essential and indispensable component of the Mazars Denge sustainability model is the “employees,” who keep our values alive. Employees constitute our learning organization, and they are the ones who will honor our values. Therefore listening to employee opinion, learning about their level of satisfaction and achieving awareness of the areas that, in their opinion, need development are key performance indicators for the HR department.

An Employee Commitment and Satisfaction study was carried out in July 2016. The results of that study were then shared with the employees. The following results of the study show employee opinions and interest in sustainability issues.

Areas for development were identified and action plans were prepared following the Employee Commitment and Satisfaction study. Remedial changes to improve salaries, benefits, the physical work environment and equipment have been included in the 2016 action plans.

As part of its sustainability and HR strategies the company aims to repeat the Employee Satisfaction Survey every two years, review the results, take action and monitor actions taken.

88 ofthinkemployees the %

company is socially and environmentally conscious.

78 believe corporate %

sustainability efforts will have a positive impact on the company’s future.

the company gives importance to 77 think diversity (age, gender, ethnicity, language,

%

education, perspective, opinions, etc.).

Occupational Health and Safety Policy at Mazars Denge Because employee health and safety is very important at Mazars Denge, the company monitors occupational health and safety practices rigorously. As part of the internal regulations created to maintain a safe and peaceful work environment, occupational health and safety committees were formed. Each committee consists of an occupational health and safety expert, an on-site doctor, an employer’s representative, employee representatives and a human resources representative.

The company’s policy is to offer each new employee basic occupational health and safety training as part of their orientation within the first month of employment.

Pay and Salary Policy

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Job offers are made within the company’s pay bands based on candidates’ competence, education, foreign language skills and conditions of competition.

Health Insurance: After having worked a year at Mazars Denge, all employees are offered private health insurance.

In 2016, Mazars Denge made a decision to compare its pay bands with pay band averages in Turkey in terms of length in years and position. It has made the necessary adjustments to 2017 salaries on the basis of those averages.

Retirement at Mazars Denge: If an employee wishes to remain employed by Mazars Denge after reaching the retirement age, senior management evaluates that request. The decision is made together with the employee wishing to remain.

CUL TU RAL SUS TA I NA BI LI TY

55

Aktüel Arkeoloji

In line with its sustainability strategy, Mazars Denge believes that employees should be aware of and knowledgeable on social, cultural and historical issues in addition to knowing their profession. In this way, they can benefit fully from their learning organization journey through the accumulation of knowledge, awareness and a diverse range of perspectives. Mazars Denge cares about cultural and artistic communication in the workplace as a means of sharing its sense of cultural sustainability with employees, clients and all other stakeholders vising the office. All meeting rooms at Mazars Denge Head

The Yenikapı Excavations Seminar

56

Office are named after and use themes from ancient Anatolian cities. Works of contemporary art are displayed throughout our offices.

Mazars Denge offers free-of-charge or lower-cost accounting and consultancy services to nongovernmental organizations and foundations to support them and enable employees to attend trips and seminars.

Mazars Denge organizes regular historical and cultural learning trips along with meetings to increase knowledge of Turkey. Some examples are:

•

The Culture Awareness Foundation’s Symbols and Meanings Seminar on how symbols emerge and develop, as well as their local and universal meaning, with examples of symbols given The Yenikapı Excavations Seminar on the history and story of Yenikapı, Istanbul’s hidden port The Climate Justice Seminar by Ömer Madra on the causes of climate change, what needs to be done, and what we will be doing Cultural trips to Sultanahmet, Tophane and Karaköy in 2016 under the leadership of Hayri Fehmi Yılmaz, art historian and Board Chairperson of the Cultural Awareness Foundation.

Our employees were invited to the Turkish Youth Philharmonic Orchestra concert and the play “Punta Atmak,” both sponsored by Mazars Denge.

•

•

• •

•

•

The company, in partnership with Yaşam TV, has organized film screenings where films from the Sustainable Life Film Festival 2016 were shown. “Time to Choose” was the first film to be screened.

Mazars Denge’s support to the magazines Aktüel Arkeoloji, which tells the history of Anatolia to its people under the motto “Carrying Anatolia into the Future,” and Eko IQ, the first green business and life magazine in Turkey, continued in 2016.

The play, Punta Atmak

Cultural trips to Sultanahmet, Tophane and Karaköy

Cultural and artistic events

The film, Time to Choose

57

SOCIAL RESPONSIBILITY PROJECTS One of the areas in which sustainability springs to life at Mazars Denge is social responsibility.

Undertaking voluntary work and supporting non-governmental organizations underpin the company’s sustainability strategy.

Mazars Denge encourages employees to take part in social responsibility projects by offering them social responsibility leave each year.

58

“SHARE TO BRING TO LIFE” PROJECT In 2016 Mazars Denge, in collaboration with the Community Volunteers Foundation, launched the “Share to Bring to Life” project. Unused but usable clothes, shoes, bags and toys were collected in “sharing boxes” and sent to those who needed them.

37 TH ISTANBUL MARATHON WITH THE COMMUNITY VOLUNTEERS FOUNDATION Mazars Denge’s running team took part in the 37th Istanbul Marathon with the Community Volunteers Foundation (TOG). The donations collected were used to create funds for young Community Volunteer projects.

COOPERATION WITH THE ÇEKÜL FOUNDATION In cooperation with the Çekül Foundation, the company donates trees for every new employee and employees’ newborn children. Since 1994, Mazars Denge has planted 9,426 trees in 9 Çekül sites. In 2016, 484 trees were planted in 9 Çekül sites.

INTERNAL ACTIVITIES Mazars Denge has a social activities room equipped with sports and fitness equipment, table tennis, a chess set and a number of musical instruments. This room is available for employees who wish to take a break from work.

Mazars Denge hosts activities to increase awareness about “eating organic.” The company aims to concentrate more on organic nutrition efforts.

Paşa

59

EMPLOYEE OPINIONS

Hakan Düzel, Supervisor - Audit I feel very lucky to be a member of the Mazars family, where I work with people from different cultures and countries and am surrounded by a vast number of learning and development opportunities as well as colleagues who are sincere and genuine.

60

Müge Olmuş, Assistant Manager - AOS The common ground for all that we do here is “people,” and this leads to good communication skills and shared knowledge. I believe this is the most important component that will always carry us one step further.

Furthermore, our support for social responsibility along with a strong sense of environmental awareness and our efforts to live in a better world make me happy, not only as a member of this community but also as an individual.

Zuhal Yıldırım, Senior Assistant - AOS The age of retirement in Turkey is 65. Job advertisements, on the other hand, mostly give an age bracket of 27 to 30.

Many companies in Turkey treat 40+ people as if they’re old and unproductive. This is not the mindset at Mazars Denge. Here all individuals are trusted, regardless of age.

The humanistic approach of the company and its trust in people make it stand out from the rest.

Nurhan İmayhan Senior Assistant - VAT Returns I am very happy to be working at Mazars Denge and I plan to grow old here. If you asked me why, I would say it’s because what I hold most dear to my heart in life springs to life at this company: “Human Value”

Ahmet Suer, Manager - Tax While offering a wide range of services to clients, Mazars Denge also values employee satisfaction. The lack of a strict hierarchical structure within the company allows employees to take the initiative and become a part of the decision-making process. Being part of a fortyyear-old company with its accumulated knowledge and a culture supporting a variety of social responsibility projects empowers employees while giving them the responsibility to enhance the already high quality of services offered.

61

MAZARS DENGE AND SOCIETY

As a signatory to the Global Compact, Mazars Denge is aware of its responsibility towards all stakeholders in all its business.

Mazars Denge considers society to be a stakeholder just like its employees and clients. So in addition to doing its job properly, the company also aims to support nongovernmental organizations working in different fields to add value to society.

Non-Governmental Organizations and Projects Supported by Mazars Denge:

Society •

• • • • • •

62

Community Volunteers Foundation - We Run for a Reason Project: The company helped over 100 university students receive social responsibility training with donations collected by Mazars Denge employees at the Intercontinental Istanbul Marathon.

KAOS GL Cultural Research and Solidarity Association Mor Çatı Women’s Shelter Hrant Dink Foundation Çocuklar Gülsün Diye Kalder (Turkish Quality Association) Support for various associations and foundations

Culture •

• • •

• •

Turkish National Youth Philharmonic Orchestra: The company sponsors the Turkish National Youth Philharmonic Orchestra to support the education of young individuals talented in music.

Cultural Awareness Foundation Association for the Protection of Cultural Heritage Aktüel Archeology Magazine: The company has been sponsoring and acting as a consultant for Aktüel Archeology Magazine to support its publication since 2012.

500th Year Foundation The Hasköy Turkish Karaim Jewish Foundation

Environment

• •

• •

EKO IQ Magazine: The company has sponsored and offered pro bono consultancy to EKO IQ to support its publication.

TURMEPA (Deniztemiz Association) Çekül Foundation: Throughout the year trees were planted as gifts for new employees to increase awareness and to provide financial support for ÇEKÜL. Buğday Association ADYSK (Life with the Sea and Water Support Association of the Islands)

KU

VE ŞAM SPOR YA

LÜB Ü DERNE

Ğİ

R DENİZ A LA LE AD

•

63

ANNEXES ANNEX 1: MAZARS DENGE SUPPLIER CRITERIA Environmental: • • • • •

Water and electricity consumption Carbon footprint Waste management (paper, plastic, glass, technological waste sorting) Environmental impact of products and services Awareness about using fewer materials

Social: • • • • • • • • •

•

Suppliers should have in place all the antidiscrimination rules that we do Ethical business relationship Contributing to employee development Supporting campaigns and projects for the good of society A healthy and safe work environment for supplier’s employees Availability of an occupational health and safety officer Availability of an on-site doctor Workplace risk analysis carried out and necessary actions taken Existence of an occupational health and safety committee; employee representatives should be a part of that committee Number of work accidents and occupational diseases

Legal practices • • • • • • • • •

64

Regular salary payment, payroll review No employees should be paid less than the minimum wage Regular annual leave Timely new employee and termination notification Severance and notice payments Monitoring of employee agreements Monitoring of maternity leave and breastfeeding break periods No child or forced labour Unionization and collective bargaining freedom

ANNEX 2: MAZARS DENGE’S HUMAN RESOURCES POLICIES •

• • •

• •

• •

Help spread the company’s sustainability strategy throughout the company and stakeholders via a number of practices to allow all employees to embrace and internalize that strategy Develop HR policies based on the principle of establishing an “emotional bond” with all employees Communicate and collaborate with internal and external stakeholders Adopt practices that will help Mazars Denge to be an innovative company attracting the most talented and open-minded individuals Prioritize existing employees for open positions, if they meet the requirements Disregard gender, religion, ethnicity and similar differences in recruitment and promotion; view diversity as wealth; select the most suitable and competent candidates at the end of a transparent recruitment process in which each candidate is given equal opportunity Adopt practices to improve women’s employment and development Plan and carry out technical/professional

• •

•

•

• •

•

•

development and human resources processes structured through classroom, online and one-toone coaching and mentoring methods to improve competencies, thus ensuring that the company is a learner organization on the basis of its sense of ethics and reliability as well as its commitment to offering quality and boutique services.

Help employees make career plans, including work and exchange programs abroad Develop the performance system in line with the changing needs and demands of the working day and employees Work towards integrating corporate sustainability criteria into the performance criteria for all employees Utilize human resources in a way that allows for the creation of an ecosystem that supports innovation and internal entrepreneurship Develop and follow a fair wage policy Implement boutique practices for different departments while sharing the same fundamental values Diligently monitor occupational health and safety practices, as employee health and safety is much valued at Mazars Denge; create and maintain a safe and peaceful work environment and conduct any training needed to ensure this Work towards helping Mazars Denge offices outside Istanbul to adopt similar practices.

65

ANNEX 3: MAZARS DENGE HUMAN RESOURCES K E Y P E R F O R M A N C E I N D I C AT O R S A N D 2 0 1 7 HR FUNCTIONS/ PRIORITY AREAS

KEY PERFORMANCE INDICATORS

The aim in 2017 is to add coaching, mentoring and e-learning training programs to existing development tools (classroom, on-the-job)

Increase total number of training hours per person - Increase technical/professional, on-the-job training hours - Increase competence/personal development training hours

Ave. # training hours per person in 2016: 10.46

Increase # training hours per person to 40 in 2017 Technical/professional training hours per person: 25 hours in 2017 Competence/personal development training hours per person: 15 hours in 2017

Overall rate of satisfaction for each

No data available.

A minimum of 80% overall rate of satisfaction for each employee

In 2016 information at manager level was provided; no employee training was offered

A minimum of 1 hour corporate sustainability training per person

Increased training on ethics

In 2016 employees received training on ethics

A minimum of 2 hours of ethics training per person

Attend seminars, trips and filmscreenings on culture, human rights, diversity and similar issues to increase knowledge and awareness within the company

In 2016: 3 seminars, 1 film screening, 2 cultural trips

A minimum of 10 seminars, film screenings and trips

In 2016 a competencebased performance system was in place.

The system is to be updated in 2017. We aim to switch to a 360 performance system in the 2nd performance period of 2017.

Did not take place in 2016.

Launch in 2017 “We Hear You” to hear employee ideas and suggestions.

PERFORMANCE Develop competence-based performance system MANAGEMENT

RECRUITMENT

CAREER PLANNING

66

2017 (TARGETS)

Set up Mazars Denge Development Orientation, classroom Academy within HR and on-the-job training offered in 2016

CORPORATE employee after training EDUCATION Increased corporate sustainability AND TRAINING knowledge

INTERNAL COMMUNICATION

2016 (ACTUAL)

Continue "We Hear You" and monitor the implementation of the action plans.

Kick-off meetings for Audit, Tax and Audit Department kickother departments off meeting took place in 2016.

The aim is to have yearly kick-off meetings for the Audit and Tax departments.

Develop cooperation with universities

2016 cooperation included career days, internships and MA programmes for employees

The target for 2017 is to cooperate with at least 10 universities in different areas.

Protect diversity

The percentage of female employees was 48 in 2016

Increase the percentage of female employees to 50 in 2017.

Average length of service

Average length of service was 3.46 in 2016

Average length of service intended for 2017 is 4.

Number of individuals sent abroad as part of Mazars Global’sMove&Mobility

No employees were sent abroad with Move&Mobility in 2016.

We aim to send at least one employee abroad every year.

GRI G4 CONTENT INDEX G E N E R A L S TA N D A R D D I S C L O S U R E S GENERAL STANDARD DISCLOSURES

G4 INDICATOR

DISCLOSURE

PAGE

OMISSIONS

EXTERNAL ASSURANCE

STRATEGY AND ANALYSIS G4-1

Provide a statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability.

Message from the Board Chairperson, p.6; Message from the CEO, p.8

No

G4-2

Provide a description of key impacts, risks, and opportunities.

Message from the Board Chairperson, p.6; Message from the CEO, p.8

No

ORGANIZATIONAL PROFILE

68

G4-3

Report the name of the organization.

Corporate Profile, p.11

No

G4-4

Report the primary brands, products, and services.

Mazars Denge Services, p.16

No

G4-5

Report the location of the organization’s headquarters.

Istanbul, Turkey

No

G4-6

Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report.

Corporate Profile, p.11

No

G4-7

Nature of ownership and legal form.

Corporate Profile, p.11

No

G4-8

Markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries).

Corporate Profile, p.11

No

G4-9

Report the scale of the organization

As of the end of the reporting period Mazars Denge serves with 322 employees in 6 head offices and 7 offices. Corporate Profile, p.11; Mazars Denge Services, p.16

No

G4-10

Report the total number of employees Human Resources at Mazars Denge by employment contract, gender and p.48 region.

No

G4-11

Report the percentage of total employees covered by collective bargaining agreements.

No collective agreements

No

G4-12

Describe the organization’s supply chain.

Mazars Denge’s Principles for Suppliers p.43; Annexes p.64

No

G4-13

Significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain.

No changes in size, structure, ownership status or supply chain during the reporting period.

No

GENERAL STANDARD DISCLOSURES

G4 INDICATOR

DISCLOSURE

PAGE

OMISSIONS

EXTERNAL ASSURANCE

G4-14

Whether and how the precautionary approach or principle is addressed by the organization.

Mazars Denge embraces the precautionary approach principle as set out in the UN Global Compact, which the company signed as part of its sustainability strategy. In line with that principle Mazars Denge is committed to the policies and procedures set out in “Mazars Code of Conduct for Objectivity and Independence”(CCOI), which is compatible with IFAC-IESBA’s “Code of Ethics for Independent Auditors” and with “MQAM- 2.1 Independence and objectivity”, “Mazars Risk Management & Quality ManualEthics.”

No

G4-15

List externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.

National and International Memberships, p.15

No

G4-16

List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization participates.

Mazars Denge and Society, p.62

No

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES G4-17

a. List all entities included in the organization’s consolidated financial statements or equivalent documents. b. Whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report.

Corporate Profile, p.11

No

G4-18

a. Explain the process for defining the report content and the Aspect Boundaries. b. Explain how the organization has implemented the Reporting Principles for Defining Report Content.

Priority Analysis, p.28.

No

G4-19

List all the material Aspects identified in the process for defining report content.

Priority Analysis, p.28.

No

G4-20

For each material Aspect, report the Aspect Boundary within the organization.

Priority Analysis, p.28.

No

G4-21

For each material Aspect, report the Aspect Boundary outside the organization.

Priority Analysis, p.28.

No

G4-22

Effect of any restatements of information provided in previous reports, and the reasons for such restatements.

This is Mazars Denge’s first sustainability report.

No

G4-23

Significant changes from previous reporting periods in the Scope and Aspect Boundaries.

This is Mazars Denge’s first sustainability report.

No

69

GENERAL STANDARD DISCLOSURES

G4 INDICATOR

DISCLOSURE

PAGE

OMISSIONS

EXTERNAL ASSURANCE

STAKEHOLDER ENGAGEMENT G4-24

List of stakeholder groups engaged by Stakeholder Analysis, p.26 the organization.

No

G4-25

Basis for identification and selection Stakeholder Analysis, p.26 of stakeholders with whom to engage.

No

G4-26

Organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.

Stakeholder Analysis, p.26

No

G4-27

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns.

Stakeholder Analysis, p.26

No

G4-28

Reporting period (such as fiscal or calendar year) for information provided.

Jan 1, 2016 - Dec 31, 2016

No

G4-29

Date of most recent previous report (if any).

This is the first sustainability report of Mazars Denge.

No

G4-30

Reporting cycle (such as annual, biennial).

Mazars Denge plans to publish a sustainability report every year.

No

G4-31

Contact point for questions regarding the report or its contents.

Contact Information, p.82

No

G4-32

a. ‘In accordance’ option the GRI G4 Consistent with the organization has chosen. b. GRI “Comprehensive” option.

Content Index for the chosen option. c. Reference to the External Assurance Report, if the report has been externally assured. GRI recommends the use of external assurance but it is not a requirement to be ‘in accordance’ with the Guidelines.

No

G4-33

a. Organization’s policy and current practice with regard to seeking external assurance for the report. b. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided. c. Relationship between the organization and the assurance providers. d. Whether the highest governance body or senior executives are involved in seeking assurance for the organization’s sustainability report.

No

REPORT PROFILE

70

No external audit.

GENERAL STANDARD DISCLOSURES

G4 INDICATOR

DISCLOSURE

PAGE

OMISSIONS

EXTERNAL ASSURANCE

G4-34

Governance structure of the organization, including committees of the highest governance body.

Identify any committees responsible for decision-making on economic, environmental, and social impacts.

Corporate Governance, p.38

No

G4-35

Process for delegating authority for economic, environmental, and social topics from the highest governance body to senior executives and other employees.

Sustainability for Mazars Denge, p.20

No

G4-36

Whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental, and social topics, and whether post holders report directly to the highest governance body.

Sustainability for Mazars Denge, p.20; Organization of Sustainability at Mazars Denge, p.24

No

G4-37

Processes for consultation between stakeholders and the highest governance body on economic, environmental, and social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body.

Sustainability for Mazars Denge, p.20

No

G4-38

Composition of the highest governance body and its committees.

Human Resources at Mazars Denge p.48

No

G4-39

Whether the Chair of the highest governance body is also an executive officer (and, if so, his or her function within the organization’s management and the reasons for this arrangement).

Corporate Governance, p.38

No

G4-42

Highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental, and social impacts.

Sustainability for Mazars Denge, p.20

No

G4-43

Measures taken to develop and enhance the highest governance body’s collective knowledge of economic, environmental, and social topics.

Sustainability for Mazars Denge, p.20

No

GOVERNANCE

71

GENERAL STANDARD DISCLOSURES

72

G4 INDICATOR

DISCLOSURE

PAGE

OMISSIONS

EXTERNAL ASSURANCE

G4-44

a. Processes for evaluation of Organization of Sustainability at the highest governance body’s Mazars Denge, p.24 performance with respect to governance of economic, environmental, and social topics.

Report whether such evaluation is independent or not, and its frequency.

Report whether such evaluation is a self-assessment. b. Actions taken in response to evaluation of the highest governance body’s performance with respect to governance of economic, environmental, and social topics, including, as a minimum, changes in membership and organizational practice.

No

G4-45

a. Highest governance body’s role in the identification and management of economic, environmental, and social impacts, risks, and opportunities.

Include the highest governance body’s role in the implementation of due diligence processes. b.

Whether stakeholder consultation is used to support the highest governance body’s identification and management of economic, environmental, and social impacts, risks, and opportunities.

Organization of Sustainability at Mazars Denge, p.24

No

G4-46

Highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental, and social topics.

Sustainability for Mazars Denge, p.20; Organization of Sustainability at Mazars Denge, p.24

No

G4-47

Frequency of the highest governance body’s review of economic, environmental, and social impacts, risks, and opportunities.

Sustainability for Mazars Denge, p.20; Organization of Sustainability at Mazars Denge, p.24

No

G4-48

Highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all material Aspects are covered.

Organization of Sustainability at Mazars Denge, p.24

No

G4-49

Process for communicating critical concerns to the highest governance body.

Organization of Sustainability at Mazars Denge, p.24

No

G4-50

Nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them.

Sustainability for Mazars Denge, p.20; Organization of Sustainability at Mazars Denge, p.24

No

G4-51

Remuneration policies for the highest governance body and senior executives.

Mazars Denge follows a pay and salary policy that takes into account the condition of competition for manages and employees at every level. Pay and Salary Policy, p.54.

No

GENERAL STANDARD DISCLOSURES

G4 INDICATOR

DISCLOSURE

PAGE

OMISSIONS

EXTERNAL ASSURANCE

G4-52

Process for determining Pay and Salary Policy, p.54. remuneration. Report whether remuneration consultants are involved in determining remuneration and whether they are independent of management. Report any other relationships which the remuneration consultants have with the organization.

No

G4-53

How stakeholders’ views are sought and taken into account regarding remuneration, including the results of votes on remuneration policies and proposals, if applicable.

No such practices at Mazars Denge.

No

G4-54

Ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country.

Pay and Salary Policy, p.54.

No

G4-55

Ratio of percentage increase in Pay and Salary Policy, p.54. annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual) in the same country.

No

ETHICS AND INTEGRITY G4-56

Organization’s values, principles, standards, and norms of behavior such as codes of conduct and codes of ethics.

Ethical Principles are Mazars Denge’s Priority, p.42

No

G4-57

Internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines.

Ethical Principles are Mazars Denge’s Priority, p.42

No

G4-58

Internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines.

Ethical Principles are Mazars Denge’s Priority, p.42

No

73

GRI G4 CONTENT INDEX S P E C I F I C S TA N D A R D D I S C L O S U R E S SPECIFIC STANDARD DISCLOSURES

DISCLOSURES ON MANAGEMENT APPROACH (DMA) / G4 INDICATOR

DISCLOSURE

PAGE

OMISSIONS

EXTERNAL ASSURANCE

ECONOMIC Economic Performance

DMA G4-EC1

Market Presence

a. Direct economic value generated and distributed (EVG&D) on an accruals basis, including the basic components for the organization’s global operations. b. To better assess local economic impacts, report EVG&D separately at country, regional, or market levels, where significant. Report the criteria used for defining significance.

DMA

Corporate Profile, p.11; Sustainability for Mazars Denge, p.20

No

Mazars Denge contributes greatly to financial literacy due to the nature of its industry. Employees create economic added value with the advisory services they provide for clients, and with the experience they gain at other companies after they have left our company. Furthermore, Mazars Denge employees see it as a mission to teach entrepreneurs, teachers and NGO workers about financial literacy, which increases the economic added value they create.

No

Corporate Profile, p.11; Human Resources at Mazars Denge, p.48

No

G4-EC5

Ratio of entry level wage to local minimum wage

Mazars Denge embraces a pay policy which does not take into account. Salaries are higher than the minimum wage set by the Minimum Wage Fixation Committee set up by the Ministry of Work and Social Security. Pay and Salary Policy, p.54.

No

G4-EC6

Proportion of senior management hired from the local community

Mazars Denge’s senior management consists of Turkish Citizens only.

No

Environmental Impact of Operations, p. 46

No

ENVIRONMENTAL Materials

Energy

74

DMA G4-EN1

Materials by weight or volume

Environmental Impact of Operations, p. 46

No

G4-EN2

Percentage of recycled input materials used to manufacture the organization’s primary products and services.

Environmental Impact of Operations, p. 46

No

Environmental Impact of Operations, p. 46

No

DMA G4-EN3

Energy consumption (Scope 1 + 2)

Environmental Impact of Operations, p. 46

No

G4-EN5

Energy intensity

Environmental Impact of Operations, p. 46

No

G4-EN6

Energy reductions

Environmental Impact of Operations, p. 46

No

SPECIFIC STANDARD DISCLOSURES

Emissions

Effluents and Waste

DISCLOSURES ON MANAGEMENT APPROACH (DMA) / G4 INDICATOR

DISCLOSURE

PAGE

G4-EN7

Energy reductions in products and services

Environmental Impact of Operations, p. 46

No

Sustainability for Mazars Denge, p.20; Environmental Impact of Operations, p.46

No

DMA GHG emissions (Scope 1)

Environmental Impact of Operations, p. 46

No

G4-EN16

GHG emissions (Scope 2)

Environmental Impact of Operations, p. 46

No

G4-EN17

GHG emissions (Scope 3)

Environmental Impact of Operations, p. 46

No

G4-EN18

GHG emissions intensity

Environmental Impact of Operations, p. 46

No

Sustainability for Mazars Denge, p.20; Environmental Impact of Operations, p.46

No

Environmental Impact of Operations, p.46

No

Sustainability for Mazars Denge, p.20

No

No irregularities regarding laws and regulations on environment took place at Mazars Denge during the reporting period.

No

Sustainability for Mazars Denge, p.20

No

Environmental Impact of Operations, p.46

No

Mazars Denge’s Principles for Suppliers p.43; Annexes p.64

No

DMA

Environmental fines and sanctions

DMA G4-EN30

Supplier Environmental Assessment

Waste by type and disposal method

DMA G4-EN29

Transport

EXTERNAL ASSURANCE

G4-EN15

G4-EN23 Compliance

OMISSIONS

a. Significant environmental impacts of transporting products and other goods and materials for the organization’s operations, and transporting members of the workforce. Where quantitative data is not provided, report the reason. b. How the environmental impacts of transporting products, members of the organization’s workforce, and other goods and materials are mitigated. c. Criteria and methodology used to determine which environmental impacts are significant.

DMA G4-EN32

Percentage of new suppliers that were screened using environmental criteria.

Mazars Denge’s Principles for Suppliers p.43; Annexes p.64. It is important for Mazars Denge that all suppliers act in accordance with Mazars Denge’s Principles for Suppliers and compliance with these principle is monitored.

No

G4-EN33

Significant Actual And Potential Negative Environmental Impacts in The Supply Chain And Actions Taken

No current or potential environmental impact regarding suppliers was identified during the reporting period.

No

75

SPECIFIC STANDARD DISCLOSURES

DISCLOSURES ON MANAGEMENT APPROACH (DMA) / G4 INDICATOR

DISCLOSURE

PAGE

OMISSIONS

EXTERNAL ASSURANCE

SOCIAL Employment

Labor/ Management Relations

DMA

76

No

G4-LA1

Number and rate of new employee hires and turnover by age group, gender and region.

Human Resources at Mazars Denge p.48

No

G4-LA2

Benefits which are standard for fulltime employees of the organization but are not provided to temporary or part-time employees, by significant locations of operation.

Human Resources at Mazars Denge p.48

No

G4-LA3

Return to work and retention rates after parental leave

Human Resources at Mazars Denge p.48

No

Human Resources at Mazars Denge p.48

No

Mazars Denge uses the periods of notice set out in Turkish Labour Law. No collective agreements were made at Mazars Denge during the reporting period.

No

Occupational Health and Safety Policy at Mazars Denge, p.54

No

DMA G4-LA4

Occupational Health and Safety

Human Resources at Mazars Denge p.48

a. Minimum number of weeks’ notice typically provided to employees and their elected representatives prior to the implementation of significant operational changes that could substantially affect them. b. For organizations with collective bargaining agreements, report whether the notice period and provisions for consultation and negotiation are specified in collective agreements.

DMA G4-LA5

a. Level at which each formal joint management-worker health and safety committee typically operates within the organization. b. Percentage of the total workforce represented in formal joint management-worker health and safety committees.

The Occupational Health and Safety Council structured within the framework of our internal regulations consist of an Occupational Health and Safety Expert, on-site doctor, employer’s representative, employee representatives and a human resources representative.

No

G4-LA6

Rates of injury, occupational disease, lost days, absenteeism, and work-related fatalities

No work-related accidents, occupational diseases, lost days or absence took place during the reporting period.

No

G4-LA7

Workers with high incidence risk of diseases

No work-related accidents, occupational diseases, lost days or absence took place during the reporting period.

No

SPECIFIC STANDARD DISCLOSURES

DISCLOSURES ON MANAGEMENT APPROACH (DMA) / G4 INDICATOR

Training and Education

DMA

Diversity and Equal Opportunity

OMISSIONS

EXTERNAL ASSURANCE

Human Resources at Mazars Denge, p.48; Training and Development, p.52

No

Average hours of training that the organization’s employees have undertaken during the reporting period by gender and employee category.

Training and Development, p.52

No

G4-LA10

Programs for skills management managing career endings

Human Resources at Mazars Denge, p.48; Training and Development, p.52

No

G4-LA11

Employees receiving performance and career development reviews

Performance and Career Management, p.51

No

Human Resources at Mazars Denge, p.48; Equal Opportunity and Respect for Diversity, p.51

No

DMA

Percentage of individuals within the Human Resources at Mazars Denge, organization’s governance bodies p.48 in each of the following diversity categories

DMA

G4-LA13

Supplier Assessment for Labor Practices

PAGE

G4-LA9

G4-LA12

Equal Remuneration for Women and Men

DISCLOSURE

Ratio of basic salary and remuneration of women to men

DMA

No

Human Resources at Mazars Denge, p.48; Equal Opportunity and Respect for Diversity, p.51; Pay and Salary Policy, p.54.;

No

Salaries at Mazars Denge are gender-neutral. Please see Human Resources at Mazars Denge, p.48 for detailed information about the pay and salary policy.

No

Mazars Denge’s Principles for Suppliers p.43; Annexes p.64

No

G4-LA14

Percentage of new suppliers that Mazars Denge’s Principles for were screened using labor practices Suppliers p.43; Annexes p.64. It is criteria. important for Mazars Denge that all suppliers act in accordance with Mazars Denge’s Principles for Suppliers and compliance with these principle is monitored.

No

G4-LA15

Negative impacts for labor practices in the supply chain

Mazars Denge monitors all suppliers through its Principles for Suppliers to avoid current and potential negative impact regarding labour practices.

No such current or potential impact occurred during the reporting period.

No

Human Resources at Mazars Denge, p.48

No

No labour related complaints were received during the reporting period.

No

Labor Practi- DMA ces Grievance Mechanisms

G4-LA16

Total number of grievances about labor practices filed through formal grievance mechanisms during the reporting period.

77

SPECIFIC STANDARD DISCLOSURES

DISCLOSURES ON MANAGEMENT APPROACH (DMA) / G4 INDICATOR

DISCLOSURE

PAGE

OMISSIONS

EXTERNAL ASSURANCE

HUMAN RIGHTS Investment

DMA G4-HR2

Non-discrimination

Employee training on human rights

DMA G4-HR3

a. Total number of incidents of discrimination during the reporting period. b. Status of the incidents and the actions taken with reference.

Freedom of DMA Association and Collective Bargaining

G4-HR4

Child Labor

DMA

G4-HR5

Forced or Compulsory Labor

a. Operations and suppliers considered to have significant risk for incidents. b. Operations and suppliers considered to have significant risk for incidents of child labor. c. Measures taken by the organization in the reporting period intended to contribute to the effective abolition of child labor.

DMA

G4-HR6

78

a. Operations and suppliers in which employee rights to exercise freedom of association or collective bargaining may be violated or at significant risk. b. Measures taken by the organization in the reporting period intended to support rights to exercise freedom of association and collective bargaining.

a. Operations and suppliers considered to have significant risk for incidents of forced or compulsory labor. b. Measures taken by the organization in the reporting period intended to contribute to the elimination of all forms of forced or compulsory labor.

Training and Development, p.52

No

Training and Development, p.52; Training on Human Rights was offered during the reporting period.

No

Human Resources at Mazars Denge, p.48; Equal Opportunity and Respect for Diversity, p.51

No

No cases of discrimination during the reporting period.

No

Human Resources at Mazars Denge, p.48

No

No cases in violation of the right to association and collective agreement was identified during the reporting period. Mazars Denge protects the right to association and collective agreement as set out by the law.

No

UN Global Compact: The Principles and Mazars Denge, p.37; Mazars Denge’s Principles for Suppliers p.43; Annexes p.64.

No

Mazars Denge has no practices or operations that may be risky in terms of child labour. Suppliers are also monitored through various channels.

No

UN Global Compact: The Principles and Mazars Denge, p.37; Mazars Denge’s Principles for Suppliers p.43, Annexes, p.64

No

Mazars Denge has no practices or operations that may be risky in terms of forced labour. Suppliers are also monitored through various channels.

No

SPECIFIC STANDARD DISCLOSURES

DISCLOSURES ON MANAGEMENT APPROACH (DMA) / G4 INDICATOR

Indigenous Rights

DMA

G4-HR8

Supplier Human Rights Assessment

Human Rights Grievance Mechanisms

DISCLOSURE

PAGE

UN Global Compact: The Principles and Mazars Denge, p.37; Mazars Denge’s Principles for Suppliers p.43; Annexes, p.64 a. Total number of identified No violation of local communities’ incidents of violations involving the rights took place during the reporting rights of indigenous peoples during period. the reporting period. b. Status of the incidents and actions taken.

DMA

OMISSIONS

EXTERNAL ASSURANCE

No

No

UN Global Compact: The Principles and Mazars Denge, p.37; Mazars Denge’s Principles for Suppliers p.43; Annexes, p.64

No

G4-HR10

Percentage of new suppliers that were screened using human rights criteria.

Mazars Denge’s Principles for Suppliers p.43; Annexes, p.64.

It is important for Mazars Denge that all suppliers act in accordance with Mazars Denge’s Principles for Suppliers and compliance with these principle is monitored.

No

G4-HR11

Human rights impacts in the supply chain

No current or potential negative impact on human rights by suppliers were identified during the reporting period.

No

Mazars Denge collects and assesses stakeholder complaints and suggestions through the Contact section on their official website as well as through a number of different platforms. Communication with Stakeholders, p.27.

No

No complaints about human rights impact were received during the reporting period.

No

Mazars Denge and Society, p.62

No

DMA

G4-HR12

Grievances about human rights impacts filed through formal grievance mechanisms during the reporting period

SOCIETY Local Communities

DMA G4-SO1

Percentage of operations with implemented local community engagement, impact assessments, and development programs.

Mazars Denge supports a large number of non-governmental organizations and projects as part of its corporate social responsibility practices.

No

G4-SO2

Operations with significant actual and potential negative impacts on local communities.

Mazars Denge has no operations that may impact the local community adversely.

No

79

SPECIFIC STANDARD DISCLOSURES

DISCLOSURES ON MANAGEMENT APPROACH (DMA) / G4 INDICATOR

Anti-corruption

DMA

DISCLOSURE

Sustainability for Mazars Denge, p.20; Corporate Governance, p. 38.

80

No No

G4-SO4

Total number and percentage of governance body members that the organization’s anti-corruption policies and procedures have been communicated to, broken down.

Sustainability for Mazars Denge, p.20; UN Global Compact: The Principles and Mazars Denge, p.37; Mazars Denge’s Principles for Suppliers p.43; Annexes, p.64

No

G4-SO5

Confirmed incidents of corruption

No confirmed cases of corruption during the reporting period.

No

Sustainability for Mazars Denge, p.20; Corporate Governance, p.38

No

No legal actions pending or completed regarding anticompetitive behaviour and violations of anti-trust and monopoly legislation during the reporting period.

No

Corporate Profile, p.11; Sustainability for Mazars Denge, p. 20

No

No penalty or sanctions for the violation of laws or regulations during the reporting period.

No

Sustainability for Mazars Denge, p.20; Mazars Denge’s Principles for Suppliers p.43; Annexes p.64

No

Legal actions pending or completed during the reporting period regarding anti-competitive behavior and violations of anti-trust and monopoly legislation in which the organization has been identified as a participant.

DMA G4-SO8

Grievance Mechanisms for Impacts on Society

EXTERNAL ASSURANCE

a. Total number and percentage Mazars Denge complies with all antiof operations assessed for risks corruption laws and regulations in all related to corruption. b. Significant its operations. risks related to corruption identified through the risk assessment.

G4-SO7

Supplier Assessment for Impacts on Society

OMISSIONS

G4-SO3

Anti-competi- DMA tive Behavior

Compliance

PAGE

Significant fines and non-monetary sanctions

DMA

G4-SO9

Percentage of new suppliers that were screened using criteria for impacts on society.

Mazars Denge’s Principles for Suppliers p.43; Annexes p.64; It is important for Mazars Denge that all suppliers act in accordance with Mazars Denge’s Principles for Suppliers and compliance with these principle is monitored.

No

G4-SO10

Negative impacts on society in the supply chain

No existing or potential impact on society by suppliers during the reporting period.

No

Mazars Denge collects and assesses stakeholder complaints and suggestions through the Contact section on their official website as well as through a number of different platforms. Communication with Stakeholders, p.27.

No

DMA

SPECIFIC STANDARD DISCLOSURES

DISCLOSURES ON MANAGEMENT APPROACH (DMA) / G4 INDICATOR

DISCLOSURE

PAGE

OMISSIONS

EXTERNAL ASSURANCE

G4-SO11

Grievances about impacts on society filed through formal grievance mechanisms during the reporting period

No complaints about the impact on society were received during the reporting period.

No

Mazars Denge Services, p.16

No

PRODUCT RESPONSIBILITY Customer Health and Safety

Product and Service Labeling

DMA G4-PR1

Percentage of significant product and service categories for which health and safety impacts are assessed for improvement.

Mazars Denge Services, p.16; Sustainability for Mazars Denge, p.20

No

G4-PR2

Non-compliance concerning the health and safety impacts of products and services

No such irregularities occurred during the reporting period.

No

Customer Satisfaction at Mazars Denge, p.44.

No

Customer Satisfaction at Mazars Denge, p.44.

No

Mazars Denge Services, p.16; Sustainability for Mazars Denge, p.20

No

DMA G4-PR5

Marketing Communications

Customer Privacy

DMA G4-PR6

Sale of banned or disputed products

Mazars Denge provides all its services in accordance with its all national and international agreements. Mazars Denge is fully compliant with the marketing communications regulations and voluntary codes, including advertising, promotion and sponsorship.

No

G4-PR7

Non-compliance with regulations concerning marketing communications.

No such irregularities occurred during the reporting period.

No

Sustainability for Mazars Denge, p.20; Corporate Governance, p.38

No

No complaints occured regarding breaches of customer privacy and losses of customer data during the reporting period.

No

Sustainability for Mazars Denge, p.20; Corporate Governance, p.38

No

No such irregularities occurred during the reporting period.

No

DMA G4-PR8

Compliance

Results or key conclusions of customer satisfaction surveys (based on statistically relevant sample sizes) conducted in the reporting period.

Complaints regarding breaches of customer privacy and losses of customer data.

DMA G4-PR9

Fines for non-compliance with laws and regulations concerning products and services.

81

NOTES

Design: Selin Estroti Design Studio

CONTACT INFORMATION Mazars Denge Hürriyet Mah. Dr. Cemil Bengü Caddesi Hak İş Merkezi No:2 Çağlayan Kağıthane 34403 İstanbul, Türkiye www.mazars.com.tr marketing@mazarsdenge.com.tr +90 212 296 51 00 /company/mazarsdenge /MazarsDenge /MazarsDenge /MazarsDenge /MazarsDenge