Mazars Denge Integrated Report 2019

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BARIŞ ACAR • ÖZGE ACAR ALP • MESU T AÇKU • BUR AK AĞ CA • ERHAN AK • ORKUN AK AR TUĞBA AKBAŞ • SELMA AKBULUT • CEREN AKÇA • MUHAMME T YUNUS AKDAĞ • YA ZGÜL AKDAŞLI A L P E R A K D E M İ R • U Ğ U R A KG Ü N • A H M E T U LV İ A K I L L I • N E R İ M A N A K K U Ş • D İ L A N A K P I N A R M U S TA F A B U R A K A K S O Y • C A N A N A K S O Y • M E R V E A K S O Y İ N A N Ç E R • S O N G Ü L A K TA Ş K U TAY G Ü N D E M A L A N • B E R K AY A L E M D A R • TA N E R A LTA N • E S R A A LTAY • YA Ğ M U R A LT I N S İ N E M A LT I N ÖZ • ÖY K Ü M A LT I O Ğ L U • O N U R A LT O K • A L PA S L A N A LT U N • E R H A N A LT U N O K O N U R A R I C I • R E M Z İ M E R T A R I K A N • AT İ L L A T U Ğ K A N A R L AT • O Ğ U L C A N ATA K A N ALİCAN ATAL AN • SENA ELİF ATAL AY • OLGA ATEŞ • ŞAHİNDER AVCI • Z AFER AVCI • MUSTAFA KEMAL AY ŞULE AYDEMİR • DENİZ AYDIN • SEMR A AYDIN DEMİREL • EMRE AYDOĞDU • ENES FATİH AYK AÇ BİLG E AY PEK • ÇİĞ DEM AY TIŞ • ELİ BABANİ • OSMAN BACANLI • NAİM BACI • K UBİL AY BAK AN P E T EK B A LC I O Ğ LU • B U R Ç İN B A Ş O L • B ER K AY C E M B AT U R • C A N S E T B AY K A L M U S TA FA TAY L A N B AY K U T • M E R T B AY S A L • M U R AT B E K TA Ş O Ğ L U • K Ü B R A B E L E N RE Y H A N B U S E B I Ç A KC I • M EH TA P B İ Ç İL • M U S TA FA B İL B E Y • G Ö N Ü L B İLG İ Ç T U Ğ Ç E B İ L G İ Ç KO R K M A Z • M U S TA FA B İ R K A N • Ş E V K İ B O R A N • Y E Ş İ M B Ö L Ü K B A Ş S E L İ M B Ü Y Ü K AY D I N • S E L D A B Ü Y Ü K Ç O Ş K U N • M E H M E T B Ü Y Ü K G Ü M Ü Ş • İ R E M C A N E R SERDAR CEBECİ • BÜŞRA CENGİZ • ORÇUN CEYHAN • L AURE CHEVALIER ALP CİBİLİ • I N TE G R ATE D R E P O R T 2 0 1 9 • ELİF COŞKUN • MEHME T COŞKUN L E O N C O Ş K U N • İ Z E L L E V İ C O Ş K U N • S A R A H C O Ş K U N • Z E Y N E P C U L FA • G Ö Z D E Ç A K A R TA L AT Ç A K M A K • N E C İ P Ç A K M A K O Ğ L U • M E H M E T Ç A L I Ş K A N • C E M R E S U E D A Ç A L O Ğ L U D E R YA Ç AY • C A N S U Ç AY I R • İ L K N U R Ç E L İ K • A S L I Ç E L İ K K I R A N • N ATA L İ A Ç E LT İ K L İ K Ü R Ş A D Ç E V İ K • Ş E Y D A Ç I R A K • EG E M E N Ç I TA K • B O R AY E R AY Ç İ F T C İ • G Ö K M E N Ç O R U K GÜRK AN DAL AKLI • GÖKHAN DAL AKLI • HAMZ A DALDAL • ÖZLEM DEĞİRMENCİLER EŞREF DEMİR • BAR AN DEMİRCİ • GÖZDE DEMİRÇALI • ER AY DEMİREL • TUĞÇE AYŞE DEMİREL A ZİZ M U R AT D EMİRTA Ş • PIN A R PİNH A S D ERK A ZE Z •ERBİL DİN Ç ER • MEHME T ERH A N DİREK E M R E A M İ R D İ Ş P E N Ç E • M E L İ H H A S A N D O Ğ A N • ÖZG E D O Ğ A N AY • C E M D O Ğ R U YO L B E G Ü M D U R A K L I O Ğ L U • F E R H AT D U R N A • S O N E R D U R U S U • A L İ D U YA N • M E R V E E F E V E L İ E F L AT U N • E R T U Ğ R U L E K E N • K Ü B R A E K İ C İ • K A R D E L E N E K İ N C İ • E N E S E L İ B O L S E R V E T E L İ B O L • G Ö K S U E M İ C İ • B E G Ü M E R A L P • B U R A K E R B E K TA Ş • H AT İ C E E R Ç E L İ K YAĞ MUR ERDAÇ • NESLİ ERDEM • T U Ğ BA ERDEM • İBR A HİM ONUR ERDEM • H A RUN ERDEMİR ONAT ERDOĞ AN • E ZGİ ERDOĞ AN • SONGÜL ERDOĞ AN • İLHAN ERDOĞ AN • ZİY NE T ERDOĞ AN PIN A R ERD O Ğ A N • MEHME T ERD O Ğ A N • ŞE Y M A ERENLER • K ERİM ERG İN • MEHME T ERON AT S E N A E R S O Y • AY Ş E E R TA N • B İ L G E E R T Ü R K • D Ö N D Ü F I R AT • E R E N F I R AT • U F U K G A R İ P ÖMERCAN GÖNCÜ • SERGEN GÖNEN • UMUT GÖNÜLKIRMA Z • SADİYE GÖNÜLKIRMA Z BERR AK GÖRGÜLÜ • NAME GÖRGÜLÜ • GÖKÇE GÜCÜYENER • GİZEM GÜL • PELİN GÜL KORKMA Z C İ H AT G Ü L E Ç • C A N E R G Ü L E R • S E R E N AY G Ü L E R • D İ L E K G Ü L O Ğ L U • S E R C A N G Ü LT E K İ N E ZG İ G Ü M Ü Ş • M U R AT G Ü M Ü Ş O Ğ LU • C EL A L E T T İN G Ü N Ç AV D I • O K A N G Ü N E Ş MUS TA FA EREN G ÜNG ÖR • C A N A N G Ü V EN • T U Ğ BA G ÜZE Y • H A K K I E Y MEN H ACI A HME TO Ğ LU EC E H AC IFA ZLIO Ğ LU • A HME T C A N H AC IS A LİH O Ğ LU • S ELİM HİÇ S O LM A Z • B A RL A S HÜN A LP M E R V E I Ğ D I R • O Ğ U Z H A N I Ş I K • EC E M I Ş I K • Ö ZG Ü R I Ş I K • G Ü L Ü M S E R I Ş I K • M U R AT İ B İ L F E R H AT İ Ç E N • N U R H A N İ M AY H A N • R E F İ K A İ S TA N B U L L U O Ğ L U • H A L İ L İ B R A H İ M İ Ş C A N ÖZNUR K ABAK • DOĞUŞ CAN K AÇAR • MEHME T K ALKINOĞLU • RİELL A K ALVO AFŞAR • ÖZDEN K ANCI FER AH K APL AN • NURHAN K AR A • MERT K AR A • GÖRKEM K AR A AĞ AÇ • SERK AN K AR ACA Z Ü B E Y D E B Ü Ş R A K A R A DAĞ • A HM E T K A R TA L • EC E K A S A P • NE J D E T K AY • A B D U L L A H K AYA E S R A K AYA D İ B İ • D E V R A N K AYA R • H Ü S E Y İ N K AYG U S U Z R AŞİT UĞUR K AYL AN • ONUR K AYMAK • BERK AY KEÇEL • HAK AN K EK L İKÇ İ • C İH A N K E S K İN G Ü LT EK İN • Ç İĞ D EM K IL I Ç ER T Ü RK



I NTE G R ATE D R E P O R T 2 0 1 9


4 TA B LE O F C O NTE NT S

5

About the Report

5

Presentation

6

Chairman's Message

9

CEO / Sustainability Ambassador's Message

10 About Mazars Denge

10 Our Corporate Values

11 Mazars Denge by Numbers

12 Corporate Profile

13 Our Services

14 Our Value Creation Model

14 Engagement of Our Stakeholders

16 Our Material Topics

20 Sustainable Development Goals and

Mazars Denge

22 Risks and Opportunities

24 Our Business Model

26 Our Value Creation Model

28 Our 2019 Performance and Insights

28 Key Focus Area 1: Generating Sustainable and

Responsible Revenue

30 Key Focus Area 2: Sustainable Service Approach

32 Key Focus Area 3: Supporting Employee

Development and Employee Satisfaction

38 Key Focus Area 4: Client Experience and

Satisfaction

44 Key Focus Area 5: Digital Transformation

46 Key Focus Area 6: Sustainable Development

52 Corporate Governance and Risk Management

54 Corporate Governance Structure

56 Our Risk Management Strategy

56 Sustainability Management

58 Ethical Principles

58 Quality Control System

59 Annexes

59 Annex 1: UN Global Compact:

Principles and Mazars Denge

60 Annex 2: Our Supplier Criteria

60 Annex 3: Our Human Resources Indicators

and 2020 Targets

64 Annex 4: GRI Standards Index


5 ABOUT THE REPORT

In line with our mission to create sustainable value for all

1, 2019 to December 31, 2019 with regard to our

of our stakeholders, we are delighted to share the first

material topics identified depending on the results

integrated report of our firm, which aims to generate

of stakeholder surveys with a focus on our integrated

responsible income based on our values and the

thinking approach.

development of our employees or, in other words, the human aspect. The main purpose of our first integrated

While preparing our report in line with the

report is to attract the attention of our stakeholders

"Comprehensive" practical level of the Global Reporting

to our sustainability approach and practices making

Initiative (GRI) Standards, we took into consideration the

up our philosophy of doing business, the progress we

Professional & Commercial Services Guidelines by the

have made in this area and our future goals through our

Sustainability Accounting Standards Board (SASB). Our

integrated thinking perspective.

report also encompasses the Sustainable Development Goals of the United Nations and the principles of the

Along our journey to contribute to awareness-raising

United Nations Global Compact to which we are a

in the field of sustainability and to be in closer contact

signatory as well as the progress reports under the United

with all our stakeholders, we went one step further

National Women's Empowerment Principles.

from sustainability reporting this year following the last three years and prepared the first integrated report of

All our sustainability work including the preparations for

Mazars Denge. The report written in accordance with

the integrated report is carried out by our Sustainability

the International Integrated Reporting Council (IIRC)

Committee. We would like to thank Prof. Dr. GĂźler

Integrated Reporting Framework (<IR>) shares our

Aras, who encouraged and guided us throughout our

performance for the 12-month period from January

reporting journey.

P R E S E NTATI O N

Our reporting activities initiated in 2016 firstly aimed to raise awareness and then to underline the responsibilities brought about by awareness and finally to enable institutions to act so as to fulfill their responsibilities. We have considered our 2019 report as an opportunity to show how we fill in the triangle of awareness, responsibility and action. We have invited to the stage our employees underlying our value creation model to present our sustainability work in the form of an integrated report this time.


6 CHAIRMAN'S MESSAGE

Today, no business line, profession and enterprise can be expected to survive without the support of emerging technologies.

Dear Stakeholders, The process through which scientists and thinkers

It scrutinizes the relation between financial data

invited the entire humanity including country leaders

and non-financial data. Therefore, this report is the

in particular to be sensitive about the environment for

reflection of an integrated way of thinking prioritizing

a long time by constantly warning and setting off alarm

not the economic growth, but the development.

bells and to which a deaf ear was generally turned

Philosophy of the report is based on the interaction

ended up in a disaster to our regret. I believe that the

between the economy, society and the environment in

system called "liberal economy" emerging in the 18th

order to put into practice the economic structure I have

century and gradually gaining pace to reach a level of

mentioned above. Thus, it has been drawn up based

consumption frenzy hit the brick wall. Unfortunately,

on not only financial information, but also many other

it is not fortune-telling to predict that the persistent

parameters.

continuation of this system will bring about many disasters and even the end of humanity.

I hope you read it with pleasure and wish you many healthy days.

Is not the Covid-19 pandemic the most striking example of this? Nature is constantly giving us signals and saying, "Abandon the economy based on consumption, more consumption and unlimited growth in a limited world". Ultimately, sources of the blue planet are limited. No matter what we do, it is not possible to change these resources. However, it is possible to change measurement systems. Our first Integrated Report presents the value we create

Leon Aslan CoĹ&#x;kun, CPA

to our stakeholders by consolidating not only financial

Chairman

data, but also non-financial data not included in financial

Mazars Denge

tables such as carbon footprint, female manager ratio, training hours per capita and client satisfaction level.


7


8

İbrahim Onur Erdem – Experienced Audit Assistant

İlker Tunca – Human Resources Assistant Specialist

I think we served a good purpose in solidarity through the marathon and we benefited the people around us by raising awareness. Last year, we participated in a marathon with Octopus Volunteers, and together we supported the washing and ironing of the laundry in Kadıköy for people in need.

I can say that the event I attended helped me to improve my ability to organize and guide the employees. What was positive for me throughout this activity was the engagement of everyone in the event on behalf of social community institutions without seeking any interest.


9 C E O / S U S TA I N A B I LIT Y A M B A S S A D O R ' S MESSAGE Dear Stakeholders, We are facing a very grave crisis of injustice across the

The melting glaciers in Antarctica, the constantly-record

world. I am prioritizing injustice over the climate crisis

breaking temperatures, any fire or the injustice suffered

since I believe that the climate crisis is arising because of

by a person on the other side of the world are actually

our unfair stance against the nature. In the midst of this

a common problem for everyone... The Sustainable

crisis of injustice caused by humans against humans and

Development Goal 17 calls for a common mind to find

the nature, the Covid-19 pandemic maybe has given

solutions to these problems.

everyone an SOS signal in order to test the awareness and be able to return from the edge of the abyss with

As for businesses, the aforementioned bond can

minimal damage. Will it be possible to take the necessary

only be understood and measured via integrated

lessons and achieve sustainable transformation at the

reporting. Here, I am talking about not only presenting

end of this process that triggered the questioning of

financial data and non-financial data together, but also

consumption and irresponsible behavior models by

addressing the causality between them.

clearly revealing many things that are thought to be impossible, could be done? Unfortunately, I do not

As Mazars Denge, our goal in our first report launching

have any macro answer to this question. However, this

our corporate sustainability journey was to raise

situation increases by all odds the importance of what

awareness on the issue. The aim of our second report

could be done by companies on a micro scale. I observe

was to bear the responsibility brought about by this

that awareness about sustainable development is

awareness. In our third report, we focused on the

rapidly increasing all over the world in a period in which

actions to be taken. In this report, we have strived to

many businesses have difficulty in deciding on corporate

present you the relationship between financial and non-

sustainability and do not know how to act or sometimes

financial data from a holistic perspective.

take it slowly. As societies become conscious day by day and common responses are spreading very rapidly, it is

I would like to describe our report as a new beginning

not so difficult to determine whether the value created

because an integrated report built on an integrated

has turned into a real benefit or whether the cost is

way of thinking can only produce the desired outcome

imposed on the society or the environment in order

only with a very effective and constantly developing

to gain a certain benefit! Therefore, I think that taking

measurement mechanism. This means a long maturation

“responsible”, not “problematic” steps by knowing

and cultural adaptation process. I would like to thank all

that every action has an environmental and social

our stakeholders in advance for their support, which

consequence and measuring the positive or negative

I am sure they will not be refraining throughout our

impact of these outcomes will be the cornerstone of

journey.

every business manager's decisions from now on. Awareness of the bond among all assets lies at the heart of the sustainability approach. This bond brings relation and communication beyond a differentiation between living and non-living things; the lines created by people such as borders and diversities such as language,

İzel Levi Coşkun, PhD

religion and race.

CEO / Sustainability Ambassador

Awareness of the bond among all assets lies at the heart of the sustainability approach. This bond brings relation and communication beyond a differentiation between living and non-living things; the lines created by people such as borders and diversities such as language, religion and race.


10 ABOUT MAZARS DENGE

OUR VISION

OUR MISSION

To be the most reputable company in

To achieve sustainable revenue and

the sector through our commitment

to create sustainable value for all our

to offer high-quality, reliable and

stakeholders with a focus on our values

boutique services.

and (employee) development.

OUR CORPORATE VALUES

Respect for LIFE, NATURE AND CULTURE

Starting with recruitment, our search for

or, in other words, respect for all beings

TECHNICAL EXCELLENCE is supported by

in the earth lies at the heart of the

on-the-job training, general technical

relations established by Mazars Denge

training and competence-based training.

with its employees. We owe our ability to

We know that technical excellence also

live together despite our differences to

considered as one of the key pillars of

this perspective.

our principles of high-quality service and independence is a goal which is always

We are trying to introduce an approach

desired.

combining the utilitarian ETHICS looking after the interests of all our stakeholders

All our stakeholders consider us "honest

including the society and nature with

and objective". We owe this to our

the care ethics stressing the importance

INDEPENDENCE over which we have made

of emotional communication. We aim to

no compromise since our establishment.

adapt this approach to our daily work

Mazars Global trainings and rules offering

with the professional ethics guidelines.

norms to support our independence approach make us stronger.

Our four habits underlie our BOUTIQUE SERVICE mentality referred by all our

Our curiosity, constant inquisitive

stakeholders: attention and time spared

mindset, the lessons taken from

by our senior directors for the needs of

experience, being an organization that

our clients; the way of doing business

can learn from each other and together

producing quick results through rapid

and being open to innovation prepare

access; presenting creative and tailor-

us for the future as cultural dynamics

made solutions for the problems of our

enabling us to adopt the habit of

clients and proactivity...

CONTINUOUS DEVELOPMENT.


11 MAZARS DENGE BY NUMBERS

The Number of Offices

The Number of Employees*

The Number of Partners

The Number of Clients

7

370

35

1.344

*This figure does not include the turnover and employees of Prokon, a member of Marcaillance offering legal consulting services.

BREAKDOWN OF REVENUES IN 2019

31 %

45 %

Accounting Services

Tax Services

7%

Advisory Services

17%

Audit Services

Net Profit / Sales

2019 > 10.3%

2018 > 10.4%


12 C O R P O R ATE P R O FI LE

ABOUT MAZARS

ABOUT MAZARS DENGE

Mazars is an international, integrated and independent

Undoubtedly, the basis of our pride lies in taking the

organization specialized in audit, accounting, consulting

first step in 1999 for establishing a partnership with

and tax services. As Mazars, we operate in a total

Mazars Group tallying with the values of Denge Group

of 106 countries and regions with 91 international

established in Istanbul in 1977 and thereby adding

integrated partnership offices and 15 liaison offices.

an international dimension to its activities. What sets

Opportunity of working in 19 additional countries apart

us apart from our competitors is the fact that our 35

from these regions through Praxity Alliance's network

partners 15 of whom are CPAs and a team of 370

of professional teams enables us to create more added

employees working in 7 offices within 6 provinces of

value for our clients.

Turkey offer top quality service and pay senior attention to our 1,330 clients based on boutique service

The expertise of our 40,400 employees led by over 1,100 partners in our 318 offices all around the world allows us to provide the same quality of service for all our clients irrespective of where they are. We are proud of helping our clients of all sizes from SMEs to global players, start-ups and public organizations in all stages of development.

approach.


13

OUR SERVICES

Our Consulting Services Corporate Finance

Our Tax Services

Strategic Management Consulting

Full Certification

Information Technologies Audit, Security and

Tax Consulting

Consultancy Services

Tax Review

Financial Due Diligence Services

Transfer Pricing

Corporate Governance, Risk, Control, Internal Audit

VAT Refund

and Fraud Audit Services

Tax Due Diligence

Management & Human Resources Consulting Services

Tax Cases Circulars Our Audit Services

Amendments in the Field of Tax

Independent and Special Purpose Audit Services Denge Academy Our Accounting Services

Training Services

General Accounting Payrolling Reporting Accounting Revision

OUR TAX SERVICES

OUR ACCOUNTING SERVICES

Highlights of our Tax Consulting and Full Certification,

Our highlights while offering our clients the option

Tax Advisory, Review, Transfer Pricing, Tax Refund and

of partly or completely outsourcing their accounting

Tax Due Diligence Services:

departments:

Our goal of offering the same quality of service to

Vision fuelled by the expertise of our partners on

all our clients through common senior level visits,

independent audit and international tax matters and

interim reports and creative solutions for technical

the added value we have created for our clients from

matters in line with our boutique service approach;

the perspective of a consultant

Increasing the efficiency of our tax audit teams and reducing the workload of our clients' accounting

OUR CONSULTING SERVICES

departments owing to our continuously improved CAP audit software;

Our highlights for Corporate Finance Services, Strategic

Our quality of service improved through the

Management Consulting Services, Management and

rated quality audits developed by our Tax Partner

Human Resources Consulting, Corporate Governance,

Responsible for the Quality Control of Tax Services;

Risk, Control, Internal Audit and Fraud Audit Services,

Monthly technical meetings held with CPAs and

Information Technologies Audit, Security and

directors in all Mazars Denge offices under the

Consulting Services and Financial Due Diligence

leadership of the Chairman

Services: Responding to the needs of our clients from a broader perspective through our seasoned directors

OUR INDEPENDENT AUDIT SERVICES

with prominent success stories and consulting staff with interdisciplinary background

Highlights for our independent audit and special

Achieving time and energy savings through

purpose audit services offered at international

agile project management practices with highly

standards:

competent staff following international and national

A special blend of our knowledge on insurance with

agenda and literature

the customer insight of our teams experienced in both sides of the table

DENGE AKADEMÄ°

Added value created by the management letters prepared by considering analyses on internal control

Fulfilling the training needs of our employees on

and information technologies for the identification

professional matters, Denge Academy can also offer

of risks forming the basis of audits

boutique training events for our clients upon request.


14 O U R VA LU E C R E ATI O N M O D E L ENGAGEMENT OF OUR STAKEHOLDERS Based on our mission to create sustainable value for

communication at intervals varying depending on need

all our stakeholders, we identify our material and

and strive to continuously improve our sustainability

important topics in line with the expectations of our

performance in line with feedback from our stakeholders.

stakeholders and pay attention to periodically reviewing them. We build our long-term strategies depending on

Apart from maintaining the dialogue with our stakeholders

these priorities identified with the engagement of our

by various means of communication, we apply AA1000SE

stakeholders.

Stakeholder Engagement Standard methodology so as to execute the stakeholder engagement process in a more

We meet with our stakeholders lying at the heart

strategic and comprehensive way while identifying our

of our sustainability approach by various means of

priority areas of sustainability.

O U R N ATI O N A L A N D I NTE R N ATI O N A L M E M B E R S H I P S / C O LL A B O R ATI O N S We try to duly fulfill our duties in national and international associations to offer our knowledge

AHK - German-Turkish Chamber of Commerce AYMMO - Chamber of Certified Public Accountants

at Mazars Denge to our stakeholders

Endeavor

and play a pioneering role in sectoral

GKD - Revenue Inspectors' Association

developments.

GIMDER - Association of Revenue Administration

We undertake senior positions such as Chairman, Board Member, and Audit Board Member in leading

taking part in as many projects as possible in order to

GYIAD - Young Executives' and Business people's HUZV - Tax Inspectors' Foundation IYMMO - Chamber of Sworn-in Certified Public

Italian Chamber of Commerce and Industry Italian Chamber of Commerce in Izmir

We add value to our stakeholders by implementing

TAIDER - Family Enterprises Association

content partnership projects going beyond the scope of

TIDE - Institute of Internal Auditing of Turkey

ordinary membership with associations such as TÜSİAD, and BusinessFrance to render our collaboration more

Turkish-French Chamber of Commerce

attach to knowledge and make us an exemplary reputable institution not only for our clients, but also for NGOs and public authorities.

(CCI France Turquie) TMUD - Expert Accountants' Association of Turkey

qualified. Such content partnerships combining research and innovation signify the importance we

Accountants of Istanbul Swedish Chamber of Commerce

implement projects in associations.

IYMMO, Italian Chamber of Commerce and Industry

Directors and Assistant Directors

Association

professional organizations such as TÜSİAD, YASED, and AYMMO. We try to increase our contribution by

of Ankara BDD - Independent Audit Association

TÜSİAD - Turkish Industry and Business Association

Insurance and Private Pension Workspace

"These Young People Have the Potential!"

Workspace

Tax Workspace TURMOB - Union of Chambers of Certified Public

Accountants of Turkey UFE - International Financial Management Institute YASED - International Investors' Association

Sustainability Initiatives United Nations Global Compact WEPs - Women's Empowerment Principles ERTA - Integrated Reporting Turkey Network


15

STAKEHOLDER GROUP

Communication Channels Client visits and meetings, sectoral meetings, seminars and conferences,

CLIENTS

client satisfaction surveys, corporate website ( http://www.mazars.com. tr/ ), social media accounts, offices, information over e-mail, media, communication campaigns, client contact form, sustainability report

Department meetings, management meetings, intranet website, focus group meetings, talent management meetings, “Kick Off� meetings, EMPLOYEES

employee commitment and satisfaction surveys, Move & Mobility programs, Corporate Social Responsibility projects, employee events, internal announcements, training activities Annual ordinary general assembly meeting, board meetings, periodic

SHAREHOLDERS

reports, corporate website (http://www.mazars.com.tr/), social media accounts, teleconference meetings and e-mail correspondence

SUPPLIERS

Corporate meetings, face-to-face meetings, tenders, corporate website, periodic audits, e-mail, mail, phone, fax

AUDIT, TA X, ACCOUNTING AND

Meetings within the scope of industry association memberships, corporate

CONSULTING SECTOR

collaborations

COMPETITORS

PUBLIC INSTITUTIONS & REGUL ATORY AUTHORITIES

Various professional meetings with other companies operating in the sector, media monitoring, social media

Regular follow-up of reporting obligations and other forms of data flow stipulated in laws and regulations, periodic audits, related meetings, forums and conferences

NON-GOVERNMENTAL

Joint CSR projects, project meetings, sponsorships, sustainability report,

ORGANIZ ATIONS

corporate website (http://www.mazars.com.tr/), memberships

UNIVERSITIES

Conferences, sponsorship, career days, one-on-one meetings, scholarships

Corporate website (http://www.mazars.com.tr/), press releases, press MEDIA

conferences, social media accounts, advertisements, special news coverage and interviews, content partnerships Corporate Social Responsibility projects, sponsorships, press releases,

PUBLIC

sustainability report, events, corporate website (http://www.mazars.com. tr/), social media accounts


16 O U R M ATE R I A L T O P I C S

Until 2018, we annually updated our

We initially made use of a list of topics based on global

materiality analysis to guide our

and sectoral trends, sectoral reports, GRI and SASB

activities in line with the expectations of our stakeholders forming the core of our sustainability approach and to continuously follow the levels of materiality for the material topics identified. We decided to update it every two years since 2018.

Professional Services Sector Standards to identify the material topics of Mazars Denge. Following this study, we carried out a comprehensive stakeholder analysis by accessing all stakeholder groups via online surveys, face-to-face and phone interviews. This analysis was followed by the identification of core focal areas for Mazars Denge through the workshops organized with the Sustainability Committee, Board and partners. These activities conducted in 2018 singled out 6 focal areas considered significant by both Mazars Denge and our stakeholders:

Müge Olmuş – Accounting and Outsourcing Manager We attended the event “Women Leadership Seminar 2019” with Gökçen Müftüoğlu Çapa from the Financial Due Diligence Services Department. This event is a Mazars Global event held with the participation of 52 women from around 23 countries. During the seminar, we were inspired by many successful women and men who supported these women and listened to their stories. I came back with a lot of new knowledge and experience in my pocket! I have a long list of dos and don'ts. As women, we strive to exist in a business order organized and dominated by men. Even though women have started to play an active role in business life in recent years, we see that the decision-making mechanism of many companies is directed by men by considering their management staff. During this event, I met more than 50 women from different cultures, spent time together and shared both our business and life experiences. I realized that from whichever country you are across the world, you need to show your strength to have a say as a woman. Women are equipped with all the qualities necessary to be a leader, but societies are insufficient to offer equal opportunities. Participating in such an event supporting the adoption of positive perception towards women to achieve this success made me feel really powerful. I can say that I have started looking at my own management and career goals from a different perspective.

1. Generating Sustainable and Responsible Revenue 2. Sustainable Service Approach (Value-Oriented Service Approach)

3. Sustainable Employee Development and Employee Satisfaction

4. Innovation in Services and Digital Transformation 5. Client Satisfaction / Experience 6. Compliance with Sustainable Development Goals


17

Stakeholder interest

OTHER TOPICS

FOLLOW-UPs

MATERIAL

Supporting Sustainable Employee Development Work - Life Balance

Collaborations with Academic and Education Institutions

Gender Equality and Empowering Women

Employee Volunteerism Reducing Environmental Impact

Client Focus

Responsible Management

Cultural Sustainability Sustainable Performance Benchmarking

Intrapreneurship

Global Concerns

Innovation in Services and Digital Transformation

Generating Sustainable and Responsible Revenue

Integrated Reporting

Disseminating the Sustainability Perspective

The impact on the institution and operations


18

Nabi Küçükgergerli – Senior Audit Director We received training on the Atlas software that Mazars will use globally and we went to France and the Netherlands. We went to France with Necip Çakmakoğlu and to the Netherlands with Riella Kalvo. Since the audit will be carried out via the new software program, the way we perform the audit has been affected and we have switched to a more global audit software program.

Natalia Papamitrou – Executive Assistant

Gökhan Dalaklı – Accounting and Outsourcing Manager

I felt at home during Vasilopita event although I lived in a country and environment very different from my culture.

I have learned that attending in events ensures that the brand of which we are both a representative and employee is represented in a very good way and thus, such events create optimum dialogue between taxpayers and certified public accountants. Therefore, I really enjoyed Beaujolais Nouveau. Mehtap Kızıltaş – Accounting and Outsourcing Supervisor It was very nice to send good wishes in their own language to people you had never met or even seen, and to know that this would put a little smile on their faces. That's why I enjoyed the Chinese New Year celebration very much.


19

Kerimcan Ertuğ – Danışmanlık Ortağı The approach summarized by Zeynep Meydanoğlu during the Ashoka Fellowship Gala has exemplified how I can effectively summarize the topics I have integrated. The approach summarized by her in parallel with my life and work approach I have adopted as creating sustainable value is as follows: 1. Focus on the problem, not the solution. 2. Do not get stuck in the ego. 3. Be persistent. 4. Make it work in a way that you will not be needed one day.

Merve Iğdır – Senior Human Resources Specialist Considering in terms of business life, the TUGFO (Turkish National Youth Philharmonic) event has been a good example for me for creating synergy and achieving a goal as a team.

CAPITAL AREA

KEY FOCUS AREA

FINANCIAL

Generating

CAPITAL

Sustainable and Responsible Revenue Sustainable Service

MATERIALITY RANK 5

MATERIAL TOPICS

RELEVANT SDGs

Compliance with corporate governance principles

9 2

Approach

Sustainable performance benchmarking

8

10 12 16 17

Adherence to values (Mazars Denge's values to offer reliable, ethical, boutique and high-quality service)

HUMAN

Supporting

CAPITAL

Sustainable Employee Development and Employee Satisfaction

INTELLECTUAL

Digital Transformation

1

Supporting sustainable employee development and employee satisfaction

6

Equal opportunities and diversity

3

Work-Life balance

12

Employee volunteerism

4

Innovation in services and digital

CAPITAL

transformation

SOCIAL AND

Client Satisfaction /

RELATIONAL

Experience

14

Intrapreneurship

7

Client focus (commitment to clients,

5

8

10 16

8

9

10

8

10

independent approach and technical

CAPITAL

excellence) Sustainable

8

Spreading the sustainability perspective

4

Development

10

Supporting societal development

12 14 16

(collaboration with NGOs on societal,

17

cultural and environmental issues) 11

Collaborations with academic and education institutions

NATURAL

Sustainable

CAPITAL

Development

13

Reducing environmental impact

12 13 14 15


20 S U S TA I N A B LE D E V E L O P M E NT GOALS AND MAZARS DENGE

We included material topics as well as sustainable

SDG 13 - CLIMATE

development goals in 2018 stakeholder survey to

Due to rising temperatures, the

identify the priorities of our stakeholders. Their

Climate Crisis has become the most

feedback was evaluated by Mazars Denge Sustainability

important common problem for all

Committee, and we identified as focus areas the goals of

living creatures in the world. For this

"Reduced Inequalities", "Responsible Consumption and

reason, every business must have

Production" and "Peace and Justice" from among the

awareness and fulfill their respective responsibilities

Sustainable Development Goals (SDGs) in order to leave

just like every individual to keep global warming below

a better world to future generations.

2 degrees. In order to reduce carbon emissions, carbon emission per person is calculated precisely in all offices

SDG 10 REDUCED INEQUALITIES In line with this goal aiming to

of Mazars Denge, and various measures are taken to raise awareness and reduce consumption on matters related to climate action such as energy consumption, paper consumption and water consumption.

reduce disparities bet ween

implementation of international accounting and audit

SDG 16 PEACE, JUSTICE AND STRONG INSTITUTIONS

standards in Turkey at the highest quality possible on

We are aware that sustainable

one hand and strive to ensure that our clients receive the

development goals c an only

same quality of service not only in the head office, but

flourish in an environment of trust

and within countries, we, as Mazars Denge, contribute to the

also in all regions on the other.

SDG 12 - RESPONSIBLE CONSUMPTION AND PRODUCTION

developed by peace, stability, human rights and law. Therefore, we are trying to create an effective and fair management model that ensures maximum freedom of expression within the company, engagement in managerial decisions at different levels, and the

We know that educating individuals

resolution of potential conflicts of opinion and practice

in the society and entrepreneurship

through mutual persuasion. We believe that this model

are of great impor t ance for

will both create an impact on a micro scale and play a

smooth transition from the consumption economy to

role in social transformation by setting an example for

the sustainable economy. Therefore, we take part in

other businesses and contribute to the creation of an

activities to raise awareness on this subject both inside

entrepreneurship and innovation ecosystem within an

and outside the company, especially in cooperation

environment of trust.

with education institutions and NGOs. As reflected by "These Young People Have the Potential!" from TĂœSÄ°AD, acquiring a sustainable development perspective for entrepreneurs as early as idea development stage helps them get to know concepts such as bearing responsibility for the forms of producing and consuming goods and resources, calculating the ecological footprint at every stage, developing an awareness of local production & local consumption and the efficient management of shared natural resources.


21

Hayriye Ocak – Intrapreneurship Specialist

Cahit Yerci – Tax, Internal Quality Assurance Partner This event enabled me to learn about the Beaujolais Nouveau celebrations that I had never attended before and had a historical background. It was a nice and pleasant experience for me to get to know new business people and share some of my opinions and ideas with them as a member of Mazars Denge Family during that event.

You are trying to find solutions for the different problems regarding the world you share with other individuals throughout TÜSİAD's "These Young People Have the Potential!" event and what is common for you is to identify emerging needs and to have an entrepreneurial spirit. The communication I established there was a turning point for my career, which is the best outcome of this event for me. I started learning by experience owing to the people trusting me and what I will do and conferring responsibilities to me in this journey.


22 RISKS AND OPPORTUNITIES

As Mazars Denge, we systematically

2. Non-compliance with the Law on the Protection of

identify market risks based on our

Personal Data:

business experience of over 42 years. We consider all risks listed in this section as an integral part of business processes and aim to turn each risk into an opportunity. Under our sustainability approach, we consider each risk as an opportunity paving the way for learning, taking lessons and improving ourselves through long-term integrated thinking in connection with the inputs and outputs integrated into

This risk was identified when the Law on the Protection of Personal Data entered into force and an internal service unit was established within the company to identify the rules to be followed, the measures to be taken and the responsibilities undertaken. In addition, we started offering services on the Law on the Protection of Personal Data to our stakeholders in coordination with cyber security and legal firms.

3. Creation of a negative report or the cancellation of license because of the inspections of the Public Oversight Authority, the Banking Regulation and Supervision Agency or the Capital Markets Board of

our business model. In this regard, we

Turkey:

fill in the key performance indicators

Quality control units were established within the

table including not only financial, but also non-financial data monthly with data from all our offices and consolidate the results quarterly. As Mazars Denge, we choose our thematic Sustainable Development Goal by considering the aforementioned risks. RISKS RELATED TO PROFESSIONAL LIABILITY 1. The presence of any major deficiency or wrong information in the reports or opinions presented to clients: One of the major risks in audit, accounting and consulting services that are based on knowledge and interpretation is the presence of errors in the reports prepared or the opinions presented. Weekly and monthly technical meetings are held to turn the prevention of these mistakes into an opportunity for all employees, and these meetings encourage individuals to share their opinions in a sincere environment rather than one of mutual competition. The directors attending these technical meetings can easily express the problems and solution suggestions encountered during the services offered to the stakeholders, and solutions are offered in common sense.

company to achieve results worthy of our reputation as a result of the inspections conducted by regulators and the quality control activities organized by Mazars head office every 3 years. The quality control unit under the independent audit department also offers independent audit services to the clients, thus increasing the experience and knowledge of the team through field studies.

4. Loss of license because of unethical behavior by a licensed senior manager: Ethics is one of Mazars Denge's core values. Open communication is established for any aspect of ethics and employees are encouraged to receive opinions from the senior management on any gray area. The ethics line was introduced as of 2019. 7 applications filed here were examined and finalized by the relevant parties.

ECONOMIC RISKS 1. Failure to generate responsible revenue 2. Collection 3. Loss of turnover 4. Loss of profitability 5. Exchange rate Mazars Denge management aims to ensure that the revenue generated complies with the articles stipulated in the Global Compact. In this respect, we strive to create value for all stakeholders including society


23

and the environment from an integrated perspective

2. Loss of efficiency: Employees are granted the

throughout all processes starting with the selection

opportunity of increasing their own efficiency and

of clients. Cash flow and reserves are checked by the

encouraged to participate in all kinds of innovation

financial affairs department regarding all economic

projects through the environment of trust and

risks and the reserves sufficient for paying wages in the

technological development offered within the company.

absence of any collection are constantly allocated. In addition, attention is paid to ensuring that the revenue

3. Moving away from corporate values: It is expected

acquired from a single client does not exceed 10% of the

that the values at the core of Mazars Denge's culture

respective department's turnover. Daily collections are

will be internalized and owned by all employees. An

monitored daily by the department managers in order

environment of mutual trust is targeted among the

to reduce average collection periods. In addition, the

employees of the company and between the employees

relationship between the total team time spent on each

and clients as well as other stakeholders. It is believed

job and the value created for the respective stakeholder

that the company's resilience to market conditions

is questioned. Attention is paid to the currency/TRY

and potential crises originates from its commitment to

balance of the revenue generated from clients.

values as well as its financial strength.

TECHNOLOGICAL RISKS

CLIMATE CRISIS RISK

1. Lagging behind technological developments:

Failure to do business due to natural disasters that

Different innovation projects are developed within the

may be caused by the climate crisis: Mazars Denge

company with contributions from the Intrapreneurship

pays attention to raising awareness for all employees

Unit and the starting point of these projects is

about the climate crisis with a focus on its environmental

continuous feedback from our employees at all levels.

role within its micro area of influence, and cooperates

Software developers are employed in Izmir and Istanbul

with NGOs operating in the field of environment.

offices. Our goal is to develop products that can be

Environmental impact criteria are in play while selecting

used both within the company and by our stakeholders

suppliers and clients and activities are performed to

and increase efficiency by combining the capacity of

raise awareness on the climate crisis and environment in

developing software with our technical knowledge and

the institutions and organizations of which the company

experience regarding our services.

is a member.

2. Cyber Security: Constant coordination is established

POLITICAL RISKS

between the IT department and the cyber security service unit, and activities are carried out between the

Loss of business due to the political environment in

IT, IT Audit, Security and Consulting Services and Risk

the country: As a fully independent organization with

Management departments for all security aspects.

its stance and approach, Mazars Denge knows the

Innovations are followed in constant communication

importance of SDG 16 Peace and Justice and supports

with Mazars head office and Mazars offices in other

this cause. It also offers its employees and stakeholders

locations and they are turned into benefits both within

the opportunity of accessing to accurate and objective

and outside the company.

information.

OPERATIONAL RISKS

EARTHQUAKE RISK

1. High Employee Turnover: The HR department

Internal training activities are organized and drills are

and management ensure that integrated thinking

performed in Istanbul, which is an earthquake zone,

and corporate sustainability approach play a role in

regarding what to do in case of an earthquake. In

all decisions within the company and are integrated

addition, our IT department takes necessary measures

into all operations so as to increase the satisfaction

to prevent data loss during an earthquake.

of employees considered as the most important stakeholders, and to cater for their development not only in technical, but also in social and cultural terms.


24 OUR BUSINESS MODEL

OUR INPUTS

OUR BUSINESS ACTIVITIES

FINANCIAL CAPITAL

HOW DO WE CREATE VALUE?

• Strong equity structure • Ability to generate revenue through different

We offer

functions

• tax,

• Risk & Opportunity balance

• accounting, • audit,

HUMAN CAPITAL • Equal opportunities

• consulting services to our clients operating in various sectors

• Investment in sustainable employee development • Career planning and career support programs

We share our expertise and experience with our

• Work-Life integration

clients based on our boutique service approach.

• Seasoned staff

We blend our technical excellence perspective with the personal skills of our teams. International

SOCIAL AND RELATIONAL CAPITAL

and national large corporations, public

• Capacity of establishing sustainable and effective

institutions, SMEs and private companies prefer

communication with stakeholders

us for our special solutions at the same quality

• Sustainable client portfolio

as well as the quality of our activities that are

• Experience sharing

regularly audited through quality control systems.

• Strong collaborations with NGOs and Start-ups • Niche training and organizational structuring practices prioritizing the needs of clients • Sustainable and responsible approach in relations with business partners and clients INTELLECTUAL CAPITAL • Intrapreneurship perspective

Our corporate values guiding all our activities: Respect for Life, Nature and Culture Ethics Boutique Service

• Digital transformation - Information security

Technical Excellence

investments

Independence

• Sectoral expertise

Continuous Development

• Certificates and licenses • Content partnership with different institutions • Deep-rooted history PRODUCED CAPITAL • Investments aimed at developing sustainable quality of service infrastructure NATURAL CAPITAL • A mentality of continuously improving and developing environmental performance • Investments aimed at raising environmental awareness • Environmental and social impact assessment for the selection of suppliers

Quality


25

OUR OUTPUTS FINANCIAL CAPITAL

THE VALUE WE CREATE AND SHARE

• Shares of departments in total turnover • Net Profit / Sales

The value created for Mazars Denge; Responsible and sustainable revenue

HUMAN CAPITAL • Ratio of female employees

Expansion of sustainable service capacity

• Ratio of female managers

Employee commitment and satisfaction

• Employee turnover rate

Client loyalty and satisfaction

• Average training hours per employee

Expansion of the client portfolio Reputation

SOCIAL AND RELATIONAL CAPITAL • Rate of increase in collaborations

Brand equity

• Rate of increase in Client and Employee Activities

Corporate culture

INTELLECTUAL CAPITAL • Total number of certificates and licenses held by

Contribution of highly skilled workforce to

sustainable service development Reducing direct and indirect environmental

employees

impact PRODUCED CAPITAL • Investments aimed at developing sustainable quality of service infrastructure NATURAL CAPITAL • Total energy consumption

The value created for the External Environment and All Stakeholders; Responsible management approach

protecting the society and future

• Carbon emissions

Supporting the development of the sector

• Paper saving

Employees' reflection of sustainable perspective

• Rate of digitalization for communication activities • Rate of decrease in paper consumption for

to their lives and ways of doing business Talent and experience transfer

communication activities

Activities contributing to efforts aimed at

mitigating the impacts of climate change Contribution to the programs supporting

young entrepreneurs Contribution to social development through

Corporate Social Responsibility projects Information security


26 VA LU E C R E ATI O N M O D E L RISKS AND OPPORTUNITIES OUR INPUTS

FINANCIAL CAPITAL

HUMAN CAPITAL

Generating Sustainable and Responsible Revenue

CRE ATING SUS TAIN ABLE VALUE Responsible Revenue

O T H E R S TA K E H O L D E R S CLIENTS

SOCIAL AND

EMPLOYEES

RELATIONAL CAPITAL

Sustainable Development

Customer Relations Management

VA LUE S

INTELLECTUAL CAPITAL

PRODUCED

Digital Transformation

CAPITAL

NATURAL CAPITAL

TECHNOLOGY AND INNOVATION ECOSYSTEM

Employee Development & Learning Organization


27

OUR OUTCOMES / 2019 PERFORMANCE

REVENUE DIVERSITY

2019

2018

Change* (points)

Tax services

44.9%

44.3%

0.6

Accounting services

31.6%

33.7%

-2.1

Audit services

16.9%

17.1%

-0.2

6.7%

5.0%

1.7

Consulting services

Sustainable Service Approach

FINANCIAL RATIOS

Net Profit / Sales

2019

10.3%

2018

10.4%

Ratio of female employees

46%

Ratio of female managers

32% (directors + managers)

Employee turnover rate

28% ! (30% in 2018) 26% (voluntary terminations) ,(26% in 2018)

Processes

Supporting Sustainable Employee Development and Employee Satisfaction

Average training hours per employee

33 hours

Rate of Increase in Collaborations/Activities

237.5%

Rate of increase in client and employee activities

67%

Total number of certificates and licenses held by

262

employees

Client Experience and Satisfaction

Change in total energy consumption*

0.44% **

Change in carbon emissions*

-0.02% **

Change in paper consumption*

0.45%

Rate of increase in the followers of digital

60%

communication channels Rate of decrease in paper consumption for

-13.04%

communication activities *Represents the change between 2018 and 2019. **The Expense Management System, the absence of which was detected during the carbon calculations for 2018 and which was introduced through a new software program, has significantly facilitated the follow-up of transportation expenses in particular. This program has expanded the travels included in the carbon calculations. In addition to the flights calculated in previous years, leased or private vehicles, bus, ship and taxi calculations are now included in Scope 3 - Travels. As a result of the expanded scope, there was an increase in total energy consumption in 2019 (due to the widening of the scope for fuel calculation) while the total greenhouse gas emissions did not change significantly.

CORPORATE GOVERNANCE PRINCIPLES


28 FOCUS AREA 1: G E N E R ATI N G S U S TA I N A B LE A N D RESPONSIBLE REVENUE Our focus area "Generating Responsible and Sustainable Revenue" has five main components:

1. DEVELOPMENT INSTEAD OF GROWTH

2. ETHICS

As Mazars Denge, we know very well that unlimited

In his book titled 'Transient Caretakers', the Chairman

growth is not possible in a world with certain limits.

of IIRC Mervyn King says: "Ethics is how one makes

That is why we are a firm focused on improvement/

money". Our understanding of ethics as a corporation

development rather than growth. While growth is

combines the multi-benefit utility theory, or, in other

used as a quantitative concept, development is a

words, utilitarian ethics with care ethics. Examples

qualitative concept related to investment in people

of this approach forming the basis of our ethical

and the environment. It encompasses many elements

approach can be listed as being sensitive to client or

such as corporate stance, education, added value,

employee transfers by considering our competitors

quality, innovation, entrepreneurship and especially

as stakeholders, avoiding practices that will harm

investment in women. The definition of sustainability

the sector in pricing policies, making available the

we adopt at Mazars Denge aims to transform the

developments created with the technical knowledge of

consumption-base d e conomic g row th mo del

Mazars Denge in CAP software to the use of the whole

accumulating the "interest" in a single center into a

sector and not bidding for the tenders of the projects

model that "mainstreams" sustainable benefit and that

believed to cause environmental harm in spite of

is also benefited by our stakeholders, nature and society

promising lucrative economic return.

all together. This directly depends on balancing the economic return with social and environmental impact within a corporate setting. As Mazars Denge, all of our efforts to increase the number of female managers, increase the frequency of professional and competency training programs, introduce quality grading, not to accept assignments above the optimum level during the busy season, and revise client selection criteria are

Deniz Erginay – French Desk Coordinator Being in the same environment with young people and listening to their creative ideas during TÜSİAD's "These Young People Have the Potential!" event was exciting for me.

all development-oriented activities that can be grouped under the category of responsible income.

Seda Korkut – Human Resources Administrator Vasilopita event personally contributed to me in terms of getting to know and understanding a culture so that I could work more comfortably with different cultures throughout my career. It was very impressive that a team of young children came to tell about an important ritual of Greek culture and made a presentation along with Greek songs. Since my heart goes out to children, it made me experience very warm and sincere feelings.


29

3. RESPECT FOR THE LOCAL We do not accept the assumption that the desire for growth fueled by globalization is much more important than the preservation of local qualities. Through the geographical development policy that we have introduced to this end, we expect our regional offices to embrace fundamental values such as people, quality, trust, client focus and technical excellence. Beyond that, their cultural differences are respected and their daily affairs are not interfered with. Our goal is to support the establishment of a corporate order at local level through the exchange of information instead of introducing a central management system. In this sense, we pay attention to developing services at each local office from scratch rather than relocating these services from the headquarters to local offices.

4. TRANSITION FROM THE MONETARY MEASUREMENT SYSTEM TO THE SUSTAINABLE MEASUREMENT SYSTEM

5. EMPLOYEE RIGHTS The "people first" principle we adopt as Mazars Denge points to a responsibility beyond the execution of

We believe that businesses have very important social

employee rights in line with the Working Conditions

and environmental impacts going beyond the values

clause mentioned in the Global Compact and within

measured with money. While determining our key

the framework of the rules stipulated by law. Our

performance indicators for responsible revenue at

responsibility covers many examples such as increasing

Mazars Denge, we use parameters such as the ratio of

the number of female managers, ensuring work-life

pro bono service hours to total available time, social

balance, contributing to the development of employees

responsibility hours per person and carbon emissions

not only professionally, but also culturally, showing

per person in addition to monetary measures such as

respect for all kinds of diversity and differences, including

turnover, profitability and accounts receivable turnover.

LGBTQI individuals, within the company, expanding representation in managerial decisions and creating an environment dominated by freedom of expression. In

Hayriye Ocak – Intrapreneurship Specialist We designed the "Ideathon" event as Intrapreneurship Unit together with the Marketing Department. It was an event where we created a team of individuals with different specialties from our firm and produced ideas on what kind of changes we could make to improve our way of doing business.

addition, we pay attention to duly improving ourselves by diligently reviewing at department level the results of satisfaction survey organized every two years and covering all offices in 2018 and in the evidence of the feedback from the survey. Our employees experiencing any problem can also easily access to the CEO.


30 FOCUS AREA 2: S U S TA I N A B LE S E RV I C E A P P R OAC H

LONG-TERM RELATIONSHIP WITH OUR CLIENTS We take care to adopt the same values with our clients to establish long-term corporate ties with them. During and after the client evaluation process, the environmental and social impacts of our clients' activities play an important role in ensuring the sustainability of our business relationship. We attach importance to our clients' supporting social responsibility activities and engaging in sustainability efforts and we share our experience/facilities on these matters with our clients requiring them. The preparation of national/

Derya Çay – Senior Accounting and Outsourcing Assistant During Beaujolais Nouveau Izmir event, I realized that the business relations established with the clients in our client-oriented firm could also lead to nice friendships in mutual respect.

international sustainability reports by around 10% of the clients served by our Istanbul Office in 2019 stands out as an obvious indicator of this.

LONG-TERM RELATIONSHIP WITH OUR SUPPLIERS We attach importance to our suppliers' acting in line with the basic principles we have identified: Respecting human rights and not being complicit in

human rights violations Upholding the freedom of association and the

effective recognition of the right to collective

bargaining for their employees Not engaging in forced and compulsory labour Not employing child labour Elimination of discrimination in respect

of recruitment and placement Being sensitive to environmental problems and

acting with the awareness of environmental protection in their products and services Fighting against bribery, extortion and all kinds of

corruption Presence of an appropriate working environment

and opportunities

As Mazars Denge, we care about the provision by our suppliers of 'environmental', 'social' and 'legal' criteria stipulated in Annex 2 and pay attention to these criteria regarding the contracts we will conclude with our suppliers. We attach importance to the fact that our suppliers also support social responsibility activities and engage in sustainability efforts. In order to support our suppliers in this regard, we hold information meetings on sustainability. We offer a variety of consulting services so that they can develop their business based on sustainability criteria.

Oğulcan Atakan – Internal Audit Services Assistant Manager During the TIDE (Institute of Internal Auditing of Turkey) Congress, I had the opportunity of observing that digital technologies and new applications considered relatively new in the field of internal audit had gradually increasing importance in the sector. I had the chance to have an idea that I needed to focus more on my own development in these areas.

Ateş Sünbül – Information Technologies Audit, Security and Consultancy Services Partner Following the delivery of PCI DSS 3.2.1 certificate to Radore firm, I started working again to strengthen my PCI DSS audits and fortify my knowledge on it. It reminded me of the fact that PCI DSS Audit knowledge needed to be continuously improved.


31


32 FOCUS AREA 3: S U P P O R TI N G S U S TA I N A B LE E M P L OY E E D E V EL O P M E NT A N D E M P L OY E E S ATI S FAC TI O N OUR SUSTAINABLE HUMAN RESOURCES STRATEGY AND POLICIES As a firm that centers our sustainability strategy around

In order to achieve our vision to be the most reputable

employee development, the foundations of our human

company in the sector; Mazars Denge will Develop practices enabling all employees to adopt

resources strategy are; Bringing in the best talents who resonate with its

and internalize its sustainability strategy to pioneer

values and culture and are open to development and

for the mainstreaming of the strategy for both the

establishing a long-term relationship,

company and all stakeholders, Devise processes aimed at instilling into all Mazars

Creating a work environment supporting the

professional, technical and personal development of

Denge employees a culture where they can turn

its employees,

sustainability into a lifestyle during and after working

for the company,

Creating an ecosystem where employees can reveal

Develop policies to increase women's employment,

their innovation and creativity potential and which is

supported by a participatory management approach

enable women to be involved in the management

and offering career opportunities for them,

more effectively and increase the development of

Creating a climate where its employees see

women, Develop human resources policies that will pave

themselves as a part of Mazars Denge and develop

Mazars Denge and themselves with the perspective

the way for "shaping the future" through its

of an entrepreneur.

directors and teams composed of individuals that

are dynamic, interconnected, highly-competent,

believe in continuous development and set an

example with their expertise and values

.


33

46 %

54 %

Number of Female Employees: 171 (46%) Number of Male Employees: 199 (54%) Total Number of Employees: 370 Average Experience of Our Employees at Mazars Denge: 4+ Years 13% of our employees have 10+ years of experience at Mazars Denge

BREAKDOWN OF EMPLOYEES BY AGE AND GENDER

Gender / Age

18 - 30

31 - 50

50 +

Total

Women

95

67

9

171

Men

92

90

17

199

187

157

26

370

51%

42%

%7

100%

Total (Number of People) Total (%)

BREAKDOWN OF EMPLOYEES BY EDUCATION AND GENDER

Our goal is to increase

Education/Gender

Women

Men

Total

the ratio of female

PhD

0

2

2

directors in senior

Master's Degree

17

34

51

management to 30% -35%

Bachelor's Degree

133

141

274

4

5

9

12

15

27

5

2

7

171

199

370

and the ratio of female managers to 45-50% by 2020.

Associate Degree High School Primary/Middle School Total

BREAKDOWN OF EMPLOYEES BY POSITION AND GENDER

Position-Title / Gender

Women Persons

Men

Ratio

Persons

Ratio

Total

Manager (Director and Above) & Department Head

14

26%

39

74%

53

Senior Manager, Manager, Assistant Manager

24

37.5%

40

62.5%

64

Supervisor, Specialist, Assistant Specialist

36

53%

32

47%

68

Assistant, Senior Assistant

79

50%

78

50%

157

Operational Support Personnel

18

64%

10

36%

28

171

46%

199

54%

370

Total

Note: Detailed tables on our Human Resources indicators are included in Annex 3.


34

SUSTAINABLE EMPLOYEE DEVELOPMENT As Mazars Denge, one of the most important values

Mazars Denge Talent Matrix created in line with

we promise to our clients is technical excellence. For

performance evaluation and competency measurement

us, this is not only limited to professional and technical

results while designing these programs aims to devise

knowledge, skills and resources, but also includes

special talent management programs for our high-

basic, functional and managerial competencies. In

performing employees with a high potential.

this respect, apart from the vocational and technical trainings organized for the continuous development

In addition, the status of professional technical

of our employees, programs are also implemented to

knowledge and skills for our employees and their

develop the managerial competencies individuals will

development needs in these areas are observed

need to manage themselves, their teams and certain

by our directors who take part in field studies with

functions of our institution. Models encompassing basic,

them. The needs identified within the framework of

functional and managerial competencies designed

such observations and the development programs

specifically for each function and position lie at the heart

designed in this regard are applied to our employees

of the development approach of Mazars Denge.

through many different channels such as in-house training, external training, e-learning, micro-learning,

Today's development needs are identified from the

international trainings and seminars. In addition to

competency assessment perspective within the new

all these development activities, our employees are

performance evaluation system introduced as of 2019

enabled to receive trainings that will contribute to their

while potential employees who will play a role in the

awareness of social responsibility and benefit them and

future management of Mazars Denge are also identified

their families outside their work lives.

and special development programs are designed for these employees.

AVERAGE TRAINING TIME PER EMPLOYEE BY YEARS

2016 2017 2018 2019

45 hour 40 35 30 25 20

2.47 7.89 39.35 23.87

10.27 33.92 41.36 29.19

10.63 29.13 38.50 36.25

4.09 22.06 22.37 31.90

Average Training Time Per Employee (Head Office)

Average Training Time Per Employee (Other Offices)

Average Training Time Per Employee (Women)

Average Training Time Per Employee (Men)

Average Average Training Time Training Time Per Per Employee Employee (Levels (Manager) Below Manager)

12.97 36.80 41.69 33.48

13.85 40.08 39.93 36.45

5

31.29 39.77 32.98

10

10.46

15

0 Average Training Time Per Employee


35

CAREER AND WAGE MANAGEMENT Mazars Denge's career and wage management policy is based on transparent, fair and reliable foundations. In addition, high performance as well as professional technical and personal development aim to appreciate and reward the added value generated by our employees for the company. Our career and wage management system has been developed in line with the principle of "equal pay for equal work" and wage-setting over the same rules and principles for all our employees without any discrimination on the basis of religion, language, race, gender, sexual orientation etc. Through the career steps created for each function, our employees know the career steps they will go through from the moment they start their careers at Mazars Denge. Our employees diligently trained by our managers in a masterapprentice relationship from the moment they embark their career paths can be promoted to a higher level as a result of evaluation work by the managers of respective departments and our Human Resources Unit (Talent Roundtable Meetings) when they are ready in terms of professional and technical aspects and upon the request of their managers and in cases where they qualify for the technical qualities and competences regarding their prospective positions.

The aspect of talent integrated into our performance evaluation system introduced in 2019 measures the competencies of our employees according to their career objectives and the competencies required by the respective position. Competency measurement results are combined with the performance results of our employees in achieving their career objectives. At the end of these activities, our employees are positioned within the talent management matrix (Nine Box) during the joint assessment meetings held with our department managers for each function. Development needs of our potential employees are identified according to their positions within the talent management matrix, and special development programs are designed for individuals and their positions.

Success Stories (Award)

RECOGNITION & AWARD SIDE BENEFITS

Market Conditions

VARIABLE WAGE

Performance / Bonus

BASIC WAGE

Requirements of the Position

According to Mazars Denge's wage management policy,

We have continued to improve our current wage system

wages are set according to positions, not people. An

through the revision of the wage system performed

approach is adopted in wage-setting work to keep the

this year and activities are in place to achieve a more

balance between our employees and positions and not

transparent and understandable wage system. Our work

to ignore high performance.

in 2019 prevented potential wage imbalance between the persons performing similar work among our units and redesigned wage scales within functions. These changes were applied for recruitments in 2019 without any exception under the supervision of our Human Resources Unit.


36

INTERNATIONAL CAREER OPPORTUNITIES

IN-HOUSE EVENTS

As a member of Mazars Group, we consider it important

8 company events were organized for motivation and

and support our employees to have international work

training purposes. 629 employees attended these

experiences and progress in their career paths. In this

events. As in-house training events aim to mainstream

sense, we transparently share job opportunities in

the perspective of sustainability, these events have

different countries and positions with all our employees

become important not only for socializing, but also for

through the "International Mobility Letters" published

spreading the personal development and sustainability

by Mazars Global. In 2019, Chinese Desk Coordinator

perspective.

of Mazars Denge Halil İbrahim Topal attended a 4-week exchange program at Mazars Beijing Office

These events can be listed as Tax Kick-Off Meeting,

with the special initiative of the Executive Partner of

Dialogue In the Dark Exhibition, Independent Audit

Mazars China Beijing Office and the Member of Mazars

Happy Hour, Team Spirit Workshop, Change is Possible

International Executive Committee Zhang Li Wen.

Anywhere Seminar, the 3rd NGO Fair, Mazars Denge 43rd Year Sports Tournaments, Attendance in the Concert of Turkish National Youth Philharmonic, Year-End Meeting, Dialogue in the Dark Exhibition, ACCA Introduction HR Talks, Ethics Line Use Training, Financial Literacy and Atlas Kick-Off.

Atlas Kick-Off Meeting

Doğan Ruben – Accounting and Outsourcing Manager The entire process including additional project management trainings following Ideathon event gave me a more realistic perspective on entrepreneurship and innovation.

Halil İbrahim Topal – China Desk Coordinator / Assistant Marketing Manager Chinese Business Culture Training was an activity that lifted my spirits for the value attributed to our knowledge and experience.

Chinese New Year Event

Deep Current Exhibition

Ideathon


37

EMPLOYEE COMMITMENT AND SATISFACTION

EQUAL OPPORTUNITIES AND DIVERSITY We uphold the principle of "equality" in all our human

A detailed analysis of the data obtained from the

resources processes such as recruitment, promotion,

“Employee Commitment and Satisfaction Survey”

development and career management. We expect our

conducted in 2018 to identify the thoughts and

employees to be individuals who respect human rights,

priorities of our employees as well as the company's

ethical values and differences, have an awareness of

areas for improvement was presented to our senior

social responsibility and sustainable development

management and unit partners. As a result of the

and we manage recruitment practices accordingly.

related evaluations, a detailed action plan covering

We consider the employment of disabled persons, a

remedial and corrective measures that must be taken

legal liability in Turkey, as an inseparable part of equal

starting from basic needs was prepared and our Human

opportunities and diversity approach and we ensure that

Resources Unit continued to engage in improvement

our disabled employees bear equal responsibility with

and development activities in 2019 in line with this

other employees in technical functions and progress

action plan.

in their career paths in line with their professional and technical competencies.

In this direction; We updated our HR strategy and policies in line with

the needs.

Integration of different perspectives and cultures in harmony creates our inclusive and unifying corporate

We launched the ETHICS Line practice.

culture. Importance attached to differences is also

We reviewed our wage system from an in-house

adopted in recruitments. Our employees completing

justice perspective and achieved a certain level of

their undergraduate and graduate training in 52 different

standardization for all our departments.

universities in Turkey as well as Europe, America and Asia

By reviewing the title structure, we created new title

non-standard practices. We reviewed and revised the expense management

system in terms of employee satisfaction. We restructured the annual leave management

system, updated it in line with the needs, and made it user-friendly. We launched a re-orientation program for all our

employees through the e-learning system so as

to increase the awareness of our employees about

can communicate in 12 different languages.

structures for some departments and prevented Ahmet Kartal – Tax Partner I have been doing sports regularly for 45 years in many different branches. My main goal in the Mazars Denge Chess Tournament was to motivate Mazars Denge employees and, more importantly, create team synergy by organizing such tournaments for education purposes and participating as a player.

the company's practices. We updated the performance evaluation and talent

management system in line with the needs. In addition to vocational and technical training,

we started offering personal development training

as e-learning and classroom training. We listened to the first impressions and suggestions

of our new employees via the HR Talks event held after collective recruitment. We held the new year event, which had been

Görgün Uçar – IT Department Director I learned about the Chinese New Year celebration during the Chinese New Year Event. In fact, I realized that the thought of people I did not know in other offices smiling when they see the messages made me happy.

suspended for a while. We came together with our Audit and Tax

departments at Kick-Off meetings.

Özden Kancı – Tax Director Beaujolais Nouveau Istanbul event was a great opportunity to meet in a nice environment with people I had not seen for a long time. For instance, I had the opportunity of talking to my friend, whom I met very rarely since university years.


38 FOCUS AREA 4: C LI E NT E X P E R I E N C E A N D S ATI S FAC TI O N

CLIENT FOCUS Our clients from a myriad of sectors are generally

1. Balanced Distribution of Senior Attention

engaged in automotive, insurance, chemistr y,

to All Clients

informatics, energy, textile and food sectors.

Since the establishment of Mazars Denge, we have been dealing with the needs of all our clients at a senior

The fact that a significant portion of 1,330 clients we

executive level. Our partners and directors take special

served in 2019 are multinational companies grants

care of our clients' needs from the preparation phase of

Mazars Denge an international identity not only with

a project to its completion.

its place within the Mazars system, but also with the institutions it serves.

2. Balance Between Real Needs and Real Solutions In line with our principle of responsible revenue, we offer

Four basic principles guide our relations with our clients.

our clients only the services that they need and that we believe will contribute to the development of their business.

3. Balance Between Technical Excellence and CLIENT PORTFOLIO - SECTORAL BREAKDOWN

Ethical Values We know that technical excellence is not sufficient in itself to meet the needs of our clients, but also adherence to ethical values is a must and we aim to ensure that our

Chemistry

employees offer the best quality service based on this

Technology and Communication

5 23 7 Consumer Goods 7 Infrastructure7 % 12 Automotive and 21 Transportation Healthcare

18 Other

Service

approach.

4. Balance Between Client Satisfaction and Long-Term Relations Our commitment to clients, independent stance and technical excellence aim to continuously increase client satisfaction. We believe that we can establish long-term business relationships and contribute to the development of all the sectors we serve including our own sector through the importance we attach to client satisfaction. We annually check our quality of service via the client satisfaction surveys regularly organized in line with this approach and follow client satisfaction at senior management level.


39

RESULTS OF CLIENT SATISFACTION SURVEYS

To what extent could we act in accordance with the time schedule for services?

9.10

2019

9.15

2018

9.06

2017

9.05

2016 9.27 9.19

Would you recommend our firm to others?

9.08 8.95 9.07

Were we quick enough to sort out

9.11

the problems you encountered?

9.12 8.97 9.27

Did we communicate enough with you

9.21

and your team during the provision of

9.25

our services?

9.03 9.28 Would you consider receiving service

9.12

from our company again in the future?

9.00 8.77 9.15

How successful were we in avoiding

9.11

disruption to your usual workflow during

9.20

the provision of our services?

8.94 9.02 Did our services meet your expectations?

8.90 8.96 8.91 9.00

Did our team demonstrate extensive

8.97

technical knowledge of your business

8.83

and industry?

8.70 9.03 How satisfied are you with the quality of

8.95

the services provided in general?

9.13 8.94 8.61

How would you evaluate our fees

8.32

based on the quality of our services?

8.11 7.93


40

OUR SUSTAINABILITY POLICY IN MARKETING AND COMMUNICATION ACTIVITIES

By increasing our competence and effectiveness in digital channels, we reduced the quantity of paper

We have been regularly developing and digitalizing our

used for all communication activities from 3,836 KG in

communication capabilities and systems since 2016.

2017 to 2,951 KG in 2019. The fact that we designed

In 2019, we accessed to 11.5 million people through

670 different visual elements (documents, flyers,

our social media channels, events, sponsored events,

booklets, notebooks, e-design etc.) in 1 year reveals the

various contests and media communication.

importance of this saving.

We have centered our communication strateg y

In order to strengthen the communication regarding

around creating value for all our stakeholders. We

our services, we offered communication support

created content regarding tax, consulting, audit and

for all needs concerning presentations, reports and

accounting sectors. We presented our knowledge to

training documents. We standardized the information

our stakeholders through 1,045 pieces of content.

about our sustainability perspective and the QR codes

We achieved 2.5 millions of this access through digital

of our reports in our offers. In order to shorten the

channels and 9 million through conventional media

bid preparation processes, we started using digital

platforms. We acquired press visibility at an amount of

templates responding to the needs of different sectors.

TRY 3,455,027. We were watched by 20,792 persons

Where necessary, we managed to make our clients feel

for 330,198 minutes through our 71 new video contents

our boutique service approach via special offer designs.

most of which are composed of interviews in our fields

Our activities leaving their mark in 2019 through various

of specialty.

events for different business circles:


41

Created and organized by us, "Turkish Economy

gathered leading C-level businesspeople of Turkey. As the Content Partner of TÜSİAD's Understanding &

Doing Business with China Conference, we provided

the entire information and interaction infrastructure

of the conference. As a content partner or sponsor for various events of

TÜSİAD, Business France and the Turkish-French

Trade Association, we supported the rise of business

volume between the two countries. In the field of entrepreneurship, our CEO served

as the Head of Working Group in the fourth year

of our golden sponsorship in TÜSİAD's "These Young

People Have the Potential!" event. We launched

our project titled "Our Lesson is Entrepreneurship".

We started offering our clients the Ideathon

program, which enables them to learn

MARKETING IMPACT INFORMATION

Between the Lines of 2019 with Mahfi Eğilmez"

intrapreneurship by experiencing. We identified the needs of our clients in advance and

organized training/development programs to

make sure that they adapt to the emerging business

environment (due to new regulations, etc.). Our Chairman Leon Aslan Coşkun and our Transfer

Pricing Partner Gökçe Gücüyener attended the Tax

Conference of TÜSİAD and IFA.

Social Media Our followers (Rise between 2018 and 2019)

0.4 %

Facebook

34 %

Instagram

40 %

Twitter

60 %

LinkedIn

During 2019, we produced a total of 1,045 contents for our social media channels. We increased our impact on LinkedIn n by 17%, n and the number of hits by 135 %

Issuu In the last 3 years, we increased n our reading total to 5,392 and n total impact to 64,577 with 110 documents.

Medya By circulating a total of 149 news articles, we achieved a circulation of 2,897,804 and an access of 9,095,785. Advertising value of our 149 news articles TRY 3,455,027.


42

In order to strengthen the communication regarding our services, we offered communication support for all needs concerning presentations, reports and training documents. We standardized the information about our sustainability perspective and the QR codes of our reports in our offers. In order to shorten the bid preparation processes, we started using digital templates responding to the needs of different sectors. Where necessary, we managed to make our clients feel our boutique service approach via special offer designs.

13 Activity Management We offered support to our Human Resources Department for Vasilopita organized by Greek Desk, Tax Kick-Off held "Turkish Economy Between the Lines of 2019

with the participation of Mazars Global Tax Leader Anita

with Mahfi Eğilmez" gathered leading C-level

Casparis, Mazars Denge Ideathon and Ideathon Final

businesspeople of Turkey.

Event, SiaOn Idea Marathon, Mazars Denge General Assembly, Atlas Kick-Off, launch and final events for "Our Lesson is Entrepreneurship", Turkish Economy Between the Lines of 2019 with Mahfi Eğilmez, Turkish Airlines Seminar on Withholding and Value Added Tax for Imported Services, Turkish Airlines Transfer Pricing Training and NGO Fair event.

Increasing Integration with Mazars Global Communication Team: In 2019, we included more of Mazars' global contents in our communication to highlight our international identity and it was also a year during which our achievements found their way into the global newsletter of Mazars and Mazars Live! application. In addition, we shared

Sponsorship Management in 10 Events We concluded sponsorship agreements for TÜSİAD "These Young People Have the Potential!" (Golden Sponsorship), "Understanding

Content &

Partnership

Doing

Business

for

TÜSİAD's

With

China",

Sponsorship for July the 14th French National Day by French Consulate, Silver Sponsorship for Beaujolais Nouveau Events of Turkish-French Trade Association in Istanbul, Izmir and Bursa, content partnership with BusinessFrance for VIE Meeting, main sponsorship for Invest in France event, TIDE Congress sponsorship and Fortune 40 Under 40 Keynote Speaker Sponsorship and introduced our sponsorship management activities.

our exemplary practices in the field of communication at the Mazars United Marcom 2019 seminar in Italy, various meetings and workshops in China, the Czech Republic and the UK through one-on-one interviews or as speakers. Country Desks for our International Clients: Our China Desk Coordinator Halil İbrahim Topal offered services to our Chinese clients and attended TÜSİAD's Turkey-China Business Forum and China Today's panel as a speaker. Chinese New Year celebration video with the participation of around 50 of our employees was presented as a special project in Mazars China. Our China Desk Coordinator attended a 4-week on-thejob training program in China as the special guest of Chinese Office Executive Partner Zhang Liwen 张立文. Our relations with China rose to a higher level with the participation of our CEO İzel Levi Coşkun, PhD, our Tax Partner Ferrah Sefer and our China Desk Coordinator at the XiaMen International Investment Fair. We promoted Mazars Denge's services with 16 different publications at the investment fair. As an intrapreneurship project, we transferred "Doing Business with China" training to VR technology. Prepared in Turkish, Chinese and English, the training

As the Content Partner of TÜSİAD's Understanding & Doing Business with China Conference, we provided the entire information and interaction infrastructure of the conference.

through which one could experience the differences of doing business between cultures was launched in Turkey during TÜSİAD's seminar titled "Understanding &


43

Doing Business With China" and within Mazars System during 2019 Mazars Carl Partner Meeting-Global China Services Workshop held in London on December 13, 2019. By increasing our contacts with institutions in France under the management of our French Desk Coordinator Deniz Erginay, we established communication with Paris Region Enterprises, Station F, TÜSİAD's Paris Representative, Commercial Commissioner's Office in Turkey's Embassy in France, Invest in Turkey Representation Office and Turkish-French Chamber of Commerce and Industry. Under the partnership of Mazars and Business France, we organized the training on "Taxation in Turkey" by our Head of Tax CPA Mustafa Tan for Business France and we hosted 15 investors in Palais de France as the main sponsor of Invest in France. We attended TÜSİAD's Institut du Bosphore seminar. Through our silver sponsorship at Beaujolais Nouveau networking activity organized by the French-Turkish

In the field of entrepreneurship, our CEO served as the Head of Working Group in the fourth year of our golden sponsorship in TÜSİAD's "These Young People Have the Potential!" event.

Trade Association, we brought together nearly 100 guests at Palais de France.

We made the functioning of the system auditable through weekly, monthly, 2 quarterly and annual

We identified the needs of our clients in advance and

reports. In addition, we prepared a press report, social

organized training/development programs to make sure

media monitoring report, brand basket report and

that they adapt to the emerging business environment

online dictionaries monitoring reports to follow sectoral

(due to new regulations, etc.). Our Chairman Leon Aslan

developments. We used productivity programs such

Coşkun and our Transfer Pricing Partner Gökçe Gücüyener

as Zoho and Envato to accelerate our operations and

attended the Tax Conference of TÜSİAD and IFA.

made use of Shutterstock and Pond5 platforms for our creative needs.

Within the scope of CRM activities, we completed our client satisfaction surveys by e-mail, telephone, and

We published our sustainability report in 3 languages:

face-to-face interviews. By adding a manager to our

Turkish, English and Chinese. We became the first firm

team for the management of CRM activities, we started

to have published a sustainability report in Chinese

reviewing the practices suitable for us.

as well as the first team to have published the first Chinese sustainability report within Mazars Group. As

In order to improve our marketing system, we grouped

the Communication Sponsor of Integrated Reporting

our areas of responsibility under 6 topics: Marketing

Turkey Network, we supported both content generation

Communication, Market Development, CRM, Marketing

and media communication. We carried out a special file

System, Denge Academy, Sustainability.

study with Fortune Turkey.

We launched our project titled "Our Lesson is Entrepreneurship".

We continued to support Turkish National Youth Philharmonic. We raised TRY 6,515 in funds by running at Vodafone Istanbul Marathon with 38 persons. We undertook the production of the first documentary by Princes' Islands Life With Sea Club: Deep Dive Into A Culture: Princes' Islands, the Sea and Life. We sponsored the exhibition, which was a Parallel Event for the Istanbul Biennial and organized by the Adalar Marine Life and Sports Club (ADYSK) at the Theological School of Halki. We acted as Content Partner at Ashoka Social Entrepreneurship Day and Ashoka Gala.

*The data was obtained from the impartial reports of Interpress media monitoring agency.


44 FOCUS AREA 5: D I G ITA L TR A N S F O R M ATI O N

INNOVATION IN SERVICES AND DIGITAL TRANSFORMATION Important developments regarding IT technologies in recent years as well as the problems experienced concerning the continuously increasing volume of data on the accounting records of audited institutions made digital transformation compulsory for our sectors just like many other sectors. As an organization closely following the technology and attaching importance to making a difference through the technologies integrated into its services, we make use of the "tailor-made" software programs prepared for us in line with our way of doing business and quality approach. We carry out our tax audits with the help of "CAP" (Computerized Audit Program) software, the technical infrastructure of which was developed by Futurecom, and to which we have conveyed our knowledge and contributed to its infrastructure for long years.

Aziz Murat Demirtaş - Independent Audit Partner ATLAS is our new platform which will be used by Mazars at global level and which offers scalable online and offline modes. The software was specially prepared for us on top of the methodology developed by Mazars by considering the local needs. Requiring vigorous efforts, this development process guaranteed quality and compatibility. Owing to the use of ATLAS software during our audits, we aim to improve our operational integration, increase the standards of our quality of service as well as our productivity. ATLAS is planned to be introduced in a fully-fledged way at the end of 2020. Nabi Küçükgergerli and Riella Kalvo Afşar put a great effort in many aspects of its localization work from the creation of trainings and templates to the design of processes.


45

During our independent audits, we use Atlas software

INFORMATION SECURITY

that is prepared by Mazars and enables us to offer secure services in synchronization with other Mazars countries. We take responsibility not only as a user but also as a developer with the role we play in both the preparation and use of these software programs.

INTRAPRENEURSHIP As an institution attaching importance to digital change and transformation, we established our Intrapreneurship Unit to guide our activities on this topic and the relevant unit automatized five routine ways of doing business in 2019 to save 305 managerial hours. Concentrating on RPA in 2019, our unit will include artificial intelligence among its working areas from 2020 onwards. Ideathon We hosted five teams from different offices at ideathon, the intrapreneurship contest seeking an answer to the question "How can you eliminate the obstacles you encounter while doing your daily work?". Presented by our Intrapreneurship Unit Manager Hayriye Ocak with Turkey's first humanoid robot Miniada, Mazars Denge Ideathon was organized Kollektif House in Istanbul on March 2, 2019. Various entrepreneurs and managers of our company Ateş Sünbül, Mehmet Eronat and Gökçen Müftüoğlu Çapa took part as speakers and guides. Receiving various trainings such as Inversion Technique and Canvas Business Model, the participants submitted their projects to our managers at the General Assembly by conducting remote work and searches during the onemonth period following training. Ranked the first with the votes of all company partners at the General Assembly, We Know team (Bahar Sarı, Doğan Ruben) continued to work for bringing their ideas into action. Siaon Idea Marathon By organizing a similar event for our stakeholder Sia Insight just like the one organized for Mazars Denge team, we contributed to the generation of five new ideas via two idea development models. The winning team was identified by the jury members including our Financial Due Diligence Services Director at Mazars Denge Gökçen Müftüoğlu and awards were presented. (March 15, 2019)

As Mazars Denge, we consider “information” as one of the most important resources of all our stakeholders and we continue to perform our activities based on high security standards required by the relevant conditions. To this end, we integrate all our systems, processes and internal control processes to ensure the reliability, confidentiality and availability of data. We make great efforts to make sure that information security risk is properly managed and corporate information resources are used responsibly. Our focus on information security is not only to protect our IT infrastructure, but also to manage the information security risk at the organization level, which is an important part of our IT governance, and to develop an information security program. At Mazars Denge, we have an Information Security Committee fulfilling the tasks of coordinating our work on information security, monitoring the functioning of the system, evaluating, and deciding on proposals for improvement. Responsibility for the Committee composed of members representing each department of our company rests with both the Information Security Director and the representatives of departments. After achieving the goal of raising awareness of our employees at all levels on information security risks, which was one of the most important goals set regarding information security in previous years, we continued to apply the most up-todate security solutions for the continuous development and improvement of the information security process throughout our institution and invest in and develop innovation solutions accordingly in 2019. As Mazars Denge, we support future security sustainability and aim to focus on the following future trends: Internet of Things (loT) New encryption and protection trends Passwordless authentication approaches Variable attack patterns and cybersecurity As Mazars Denge, we resolutely continue our efforts to ensure vigilant, strategic and proactive information security by using appropriate administrative, technical and physical protection mechanisms.


46 FOCUS AREA 6: S U S TA I N A B LE D E V E L O P M E NT

REDUCING ENVIRONMENTAL IMPACT In our entire service cycle, we take care to carry out our activities by considering not only our environmental impacts but also those of our clients and suppliers.

30 %

Scope1: Fuel and Natural Gas Scope2: Electricity Consumption Scope3: Travels (Flights)

32

21

%

48

25

43

MA Z ARS DENGE GREENHOUSE

MA Z ARS DENGE GREENHOUSE

GAS EMISSIONS HE AD OFFICE

GAS EMISSIONS ALL OFFICES

GREENHOUSE GAS EMISSIONS (tCO2 EQUIVALENT)

Head Office

All Offices

2017

2018

2019

2017*

2018*

2019*

116.70

128.76

124.57

174.25

144.76

160.05

Scope 2 (Electricity Consumption)

237.00

252.09

281.36

335.14

347.85

281.70

Scope 3 (Travel) **

200.12

193.16

177.36

232.65

213.68

207.68

553.82

574.01

583.29

742.04

706.29

649.43

1.44

1.42

1.51

1.60

1.40

1.25

0.48

0.48

0.46

0.55

0.41

0.45

0.97

0.94

1.05

1.05

0.99

0.80

Scope 1 (Fuel and Natural Gas)

Total tCO2 Total Scope 1 & Scope 2 Greenhouse Gas Emissions per employee (tCO2e/person) Total Scope 1 Greenhouse Gas Emissions per employee (tCO2e/person) Total Scope 2 Greenhouse Gas Emissions per employee (tCO2e/person)

Note: 2017, 2018 and 2019 columns indicate the greenhouse gas emission figures for Mazars Denge Istanbul office (head office). 2017*, 2018* and 2019* column figures cover Mazars Denge Istanbul (head office), Ankara, Izmir and Denizli offices. **Apart from flights; bus, ship and taxi calculations were also included in Scope 3 - Travels calculations in 2018 and 2019. In 2019, the newlyintroduced Expense Management System included leased or private vehicles in the scope of travels in addition to these items. A drop in the figures of the head office in 2019 arises out a decline in flights during this year in spite of the expansion of the scope for travels.


47

The Expense Management System, the absence of which

In addition to the flights calculated in previous years,

was detected during the carbon calculations for 2018

leased or private vehicles, bus, ship and taxi calculations

and which was introduced through a new software

are now included in Scope 3 - Travels. As a result of the

program, has significantly facilitated the follow-up of

expanded scope, there was an increase in total energy

transportation expenses. This program has expanded

consumption in 2019 (due to the widening of the scope

the travels included in the carbon calculations.

for fuel calculation) while the total greenhouse gas emissions did not change significantly.

ENVIRONMENTAL INDICATORS

Head Office

All Offices

2017

2018

2019

Change (%)

238,005.00

253,139.37

282,536.62

+0.12

323.101,55

349,298.37

317,832.04

-0.09

971.45

944.55

1,054.24

+0.12

1,012.86

995.15

902.93

-0.09

88,930.00

90,344.00

75,153.00

-0.17

93,666.00

95,696.00

115,891.52

+0.21

363.00

337.10

280.42

-0.17

293.62

272.64

329.24

+0.21

-

27,469.00

28,432.00

+0.04

-

27,469.00

28,432.00

+0.04

311,309.00

333,787.00

690,473.00

+1.07

535,828.00

409,034.00

762,051.50

+0.86

90,790.00

68,925.00

142,126.00

+1.06

112,907.00

69,827.00

142,126.00

+1.04

729,034.00

773,664.37

1,218,720.62

+0.58

1,065,502.55

951,324.37

1,366,333.06

+0,44

2,975.60

2,886.81

4,547.46

+0.58

3,340.13

2,710.33

3,881.63

+0.43

8.33

7.40

6.8

-0.08

12.54

12.40

6.8

-0.45

0.034

0.028

0.025

-0.08

0.040

0.035

0.025

-0.28

15.20

14.00

15.45

+0.10

15.20

14.00

15.45

+0.10

Recycled waste (tonnes)

8.70

7.75

9

+0.16

8.70

7.75

9

+0.16

Water consumption (m )

1,379.10

1,305.70

1,687.52

+0.29

2,726.97

2,828.77

2,199.31

-0.22

Potable water (m3)

1,345.00

1,268.00

1,644.72

+0.30

2,689.27

2,787.00

2,156.51

-0.23

5.49

4.73

6.14

+0.30

8.43

7.94

6.13

-0.23

34.10

37.70

42.80

+0.14

37.70

41.77

42.80

+0.02

0.14

0.14

0.16

+0.14

0.12

0.12

0.16

+0.35

Electricity consumption (kWh) Electricity consumption/ number of people (kWh) Natural gas consumption (kWh) Natural gas consumption / number of people (kWh) Hybrid fuel consumption (kWh) Diesel consumption (kWh)*** Gasoline consumption (kWh)*** Total Energy Consumption (kWh)* Total Energy Consumption / number of people (kWh) Paper consumption (tonnes)****

2017*

2018*

2019*

Change (%)

Paper consumption per employee / number of people (tonnes) Waste Management**** Waste (tonnes)

3

Potable water / number of people (m3) Drinking water (m3) Drinking water / number of people (m3)

Note: 2017, 2018 and 2019 columns indicate the figures for Mazars Denge Istanbul office (head office). 2017*, 2018* and 2019* column figures cover Mazars Denge Istanbul (head office), Ankara, Izmir and Denizli offices. **Represents the change between 2018 and 2019. ***Consumption by leased or private vehicles regarding travels were also included in gasoline and diesel consumption calculations in 2019 in addition to company vehicles. ****Paper consumption and waste management calculations for 2019 represent the consumption figures of the head office.


48

2020 FORECASTS AND TARGETS We will continue to prefer gasoline-powered vehicles over diesel-powered ones by considering CO2 emissions since problems were encountered in diesel engines and the average consumption of gasoline engines was brought to the same level with or lower than that of diesel engines. In addition, our main goal is to increase hybrid vehicles in our vehicle fleet. These preferences aim to reduce carbon emission per vehicle. The Expense Management System (EMS) software the absence of which was felt during carbon emission

SUPPORTING SOCIETAL DEVELOPMENT As a signatory to the Global Compact, we are aware of our responsibility towards stakeholders in all our operations. We consider our society as a stakeholder just like our employees and clients. We offer pro bono or low-priced Audit and Consulting services to 30 non-governmental organizations for supporting societal development. Community Ashoka

calculations for 2018 was introduced. Significantly

Association of Peace and Solidarity Ambassadors

facilitating the follow-up of transportation expenses

Çocuklar Gülsün Diye Association

in particular, the EMS software makes it very easy to

Endeavor Association

calculate carbon emissions. Thanks to the use of the

Hrant Dink Foundation

software, it was observed that people acted in a more

Good Cotton Practices Association

careful manner especially while selecting vehicles for

KALDER (Quality Association of Turkey)

travels. It is foreseen that the EMS offering savings

Mor Çatı Women's Shelters Foundation

on time and cost will also produce positive impacts regarding environmental indicators.

Community Volunteers Foundation - We Run For

A Reason Project Amnesty International Young Guru Academy (YGA) - Dream Partners

Doğa Özsoy – Accounting and Outsourcing Partner I did not attend TÜSİAD's "Understanding & Doing Business with China" Conference not only for networking purposes, but also for aiming to respond to the relevant questions with satisfactory answers.

Culture The Quincentennial Foundation Actual Archeology Magazine Hasköy Turkish Karaite Jewish Foundation Cultural Awareness Foundation-KBGV Turkish National Youth Philharmonic

Hayriye Ocak – Intrapreneurship Specialist Our Intrapreneurship Department designed "Our Lesson is Entrepreneurship" event. Our goal is to raise awareness and competence on entrepreneurship across Turkey and enable the youth to use entrepreneurship in a more active way throughout their careers. We aimed to contribute to the entrepreneurship ecosystem in Turkey through collaborations between the Technology Transfer Offices of universities and the business world. Semra Aydın Demirel – Senior Tax Manager I have been working with clients based in China since 2018. I acquired new information on the Chinese culture and the ways of doing business for the companies based in China through TÜSİAD's "Understanding & Doing Business with China" Conference. Ceremony concerning the preparation and presentation of Chinese tea was very impressive for me. Each step of the preparation and presentation of tea clearly reflected how passionately an action was performed and the level of respect shown for that action, regardless of the action. It was also a conference that made the other party feel special.

Environment ADYSK (The Princes’ Islands Association for Life

with Sea and Sports Club) Buğday Association TEMA Foundation Çekül Foundation EKO IQ Magazine

(Apart from these associations and foundations, lowpriced accounting and independent audit services are also offered to various associations and foundations.)

We increased the number of saplings we planted this year by 50% compared to 2018.


49

CULTURAL SUSTAINABILITY

SOCIAL RESPONSIBILITY PROJECTS

In line with our sustainability strategy, we believe

Volunteerism and support for non-governmental

that it is important for our employees to be aware of

organizations underpin our sustainability strategy

and knowledgeable about not only business topics,

within the framework of social responsibilit y

but also social, cultural and historical matters to

awareness. We encourage our employees to take part

enable them to acquire knowledge, awareness and

in social responsibility projects by granting them social

different perspectives and progress within a learning

responsibility leave every year. The total time devoted

organization. We strive to organize regular historical/

by our CEO Ä°zel Levi CoĹ&#x;kun, PhD, was over 380 hours

cultural trips and meetings to thoroughly learn and

while nearly 1,300 hours were dedicated to pro-bono

teach our land, culture and history. Country desks of

service throughout Mazars Denge and our employees

Mazars Denge contribute to this process through the

devoted over 270 hours of their personal time to social

activities and trainings promoting Chinese, French and

responsibility projects.

Greek cultures. Mazars Denge & TOG 41st Istanbul Marathon We raised TRY 6,515 in funds by running with 33 persons at Vodafone Istanbul Marathon at which we took part for years.


50

COLLABORATIONS WITH ACADEMIC AND EDUCATION INSTITUTIONS In-house professional and technical training as well as activities performed in collaboration with academic and education institutions play an important role in "sustainable employee development", a part of our Human Resources policy. To this end, various collaborations were established with universities in different provinces of Turkey. Istanbul University - "Our Lesson is Entrepreneurship"

Project Istanbul University - Career days Galatasaray University - 21st BizFest Career Week Yeditepe University - Sustainability Training Karabük University - These Young People Have the

Potential! Van Yüzüncü Yıl University - These Young People

Have the Potential! Bilgi University Eskisehir - Osmangazi University

"Our Lesson is Entrepreneurship" Launched by our Intrapreneurship Unit to raise awareness and competence on entrepreneurship across Turkey and enable youngsters to use entrepreneurship more actively along their careers, 'Our Lesson is Entrepreneurship' project aims to contribute to the multi-center development of entrepreneurship ecosystem in Turkey through collaborations between Universities, Technology Transfer Offices and the business world. The winner team of the final round held on the 9th of May for the first contest organized with the Institute of Accountancy under Istanbul University (IU) and IU Technology Transfer Office was entitled to do internship at Mazars Denge as well as networking opportunities.

Göçken Müftüoğlu Çapa – Head of Financial Due Diligence Services Following "Our Lesson is Entrepreneurship" event, I realized that more frequent meetings with students were very useful and pleasant for both me and them. The student who came the first at this event served a 1-month internship at my department.


51

DISSEMINATING THE SUSTAINABILITY PERSPECTIVE

TAIDER We continued to offer support to the Northern Star, the sustainability project of TAIDER, and our CEO and

As Mazars Denge, we consider the dissemination of the

Sustainability Ambassador İzel Levi Coşkun, PhD,

sustainability perspective as a priority.

conveyed his take on sustainability to family businesses

Our CEO İzel Levi Coşkun, PhD, conveys how to apply this

as a speaker at the 7th National Family Business Summit.

perspective to our lives with our stakeholders during his

Besides, he led the Sustainability Workshop for Family

TV programs, articles and speeches as the Sustainable

Businesses during FBN Polaris Strategy Meeting to

Ambassador. In this context, he delivered speeches on

represent TAIDER.

sustainability at the following institutions in 2019: ADYSK HR Magazine - Performance Management Summit

We continued to offer management consulting,

Our CEO İzel Levi Coşkun, PhD, and our Governance

volunteerism, and finance creation support to ADYSK

and HR Consulting Partner Mehmet Eronat brought a

through the production of a documentary and the

new perspective on performance management at the

sponsorship of the Deep Current Exhibition organized in

Performance Management Summit organized by HR

Heybeliada. Acting in line with SDG 14 Life Below Water,

Magazine. Talking on Performance Management From

ADYSK managed to reach a wider group of people by

a Sustainability Perspective, İzel Levi Coşkun, PhD, and

using art through our support.

Mehmet Eronat created positive impact at the summit by receiving positive feedback from the participants.

Intermobil - For suppliers We organized an experience exchange meeting with wide participation on our sustainability work with our client Intermobil as well as a detailed meeting focusing on communication. In 2019, we published our sustainability report in 3 languages for the first time. Published in Turkish, English and Chinese, our report was distributed to different Mazars offices. Articles of İzel Levi Coşkun, PhD, on the reference information intended for companies planning to publish Sustainability Reports were translated into Chinese and made available to our China Office and all Chinese stakeholders.

Women Leadership Aiming to support and empower female employees

We simplified our support for social responsibility

and raise female leaders in line with the vision of

projects and offered corporate support to TUGFO,

Mazars Group, Mazars Women Leadership seminar

Ashoka, Octopus Volunteers and ADYSK. We supported

was organized in Milan with 52 participants from 23

our employees for raising funds for various associations

countries between the 9th and 12th of September.

at Vodafone Istanbul Marathon. We organized our third

Gökçen Müftüoğlu Çapa and Müge Olmuş participated

NGO Fair activity to increase interest in civil society and

in this event on behalf of Mazars Denge.

volunteerism.

Ashoka

As the communication sponsor of Integrated Reporting

Our long-term cooperation with Ashako manifested

Turkey Network, we supported social media and press

itself as content partnership in 2019. Via this content

communication.

partnership project, we offered support to Ashoka both for the preparation of multimedia elements and for the transformation of activities into content at its Social Entrepreneurship Day and Ashoka Gala. In this way, we not only answered social entrepreneurs' questions about tax, accounting and management, but also played an active role in spreading social entrepreneurship by reaching more people on digital channels.


52

C O R P O R ATE G OV E R N A N C E A N D R I S K M A N AG E M E NT

As a requirement and result of our sustainability

CORPORATE GOVERNANCE STRUCTURE

strategy, we rely on “corporate governance principles� encompassing fair management, transparency,

Our company partners constitute the management staff

accountability and responsibility components via our

as partners leading their teams, departments or offices

way of doing business responsibly.

due to their positions. In this respect, the partners have "Managerial" and "Functional" responsibilities based on

In line with Mazars' International TRANSPARENCY

their terms of reference. Our partners can be members

Principles, we have our accounts audited by Crowe

of both the Board of Directors and the Executive Board

Horwath, an independent audit company, since 2009.

at the same time.

The results are consolidated and published on Mazars' website.

The Board of Directors and the Executive Board are involved in our two-level senior management system.

We take care to ensure stakeholder engagement

Our Board of Directors has a total of 6 members including

in the decision-making processes regarding our

3 from Istanbul, 2 from Ankara and 1 from Bursa. Our

strategies on issues that are important enough to

Executive Board has a total of 7 members including 4

affect our organizational performance and that concern

from Istanbul representing each department, and 1

sustainable development, and to be in an ACCOUNTABLE

partner from Bursa, Ankara and Izmir. There is 1 female

by offering reliable information to all our stakeholders.

member in the Executive Board.

We are aware that our only goal is not to generate income and that we must fulfill our social and environmental RESPONSIBILITIES while creating value for our stakeholders. We expect the company management to adopt the principle of equality in all its activities and especially those at the level of management to act in line with the principles of FAIR MANAGEMENT without prioritizing their personal interests over those of the company and taking subjective and arbitrary decisions.


53

Halil İbrahim Topal – China Desk Coordinator / Assistant Marketing Manager By attending Mazars United Marcom Seminar, I had the opportunity of meeting the international marketing team in person for the first time and sharing the activities performed by Mazars Denge in Turkey. Informing high-level executives from the UK, USA, France and global team about our operations and responding to their questions improved my command of our own documentation and digital platforms.


54

ORGANİZASYON ŞEMASI

KALİTE KONTROL Cahit Yerci Tax Quality Partner A. Murat Demirtaş Independent Audit Quality Partner Eli Babani AOS Quality Partner

İSTANBUL

HEAD OFFICE & MANAGEMENT SUPPORT

AOS*

TAX

INDEPENDENT AUDIT

CONSULTING

Sarah Coşkun CFO

M. Taylan Baykut Head of AOS

Dr. İzel Levi Coşkun CEO & Head of Independent Audit

Neşe Ülkütan Corporate Finance Partner

Mehmet Eronat Human Resources Partner

R. Doğa Özsoy AOS Partner Executive Committee Member

Mustafa Tan Head of Tax Executive Committee Member

Onat Erdoğan Independent Audit Partner

Pınar Derkazez Consulting Partner

Görgün Uçar Information Technologies Director Barlas Hünalp Marketing & Communications Director Erhan Ak Overseas Reporting and Budget Director Celalettin Günçavdı Budget and Planning Manager A. Ulvi Akıllı Administrative Affairs Manager Laura Negrisoiu IT, Compliance and Security Manager Hayriye Ocak Intrapreneurship Specialist *Accounting Outsource Services

Eli Babani AOS Partner Executive Committee Member

Sedat Kurdoğlu Tax Partner Erkan Yetkiner Tax Partner Ahmet Kartal Tax Partner Ferrah Sefer Kurdoğlu Tax Partner Sadiye Gönülkırmaz VAT Refund Partner Gökçe Gücüyener Transfer Pricing Partner Eli Levi Tax Partner

A.Murat Demirtaş Independent Audit Partner Nesli Erdem Independent Audit Partner Emre Amir Dişpençe Independent Audit Partner Necip Çakmakoğlu Independent Audit Partner

Kerim Can Ertuğ Consulting Partner Mehmet Eronat Consulting Partner Ateş Sünbül Information Technologies Audit, Security and Consulting Partner Gökçen Müftüoğlu Çapa Head of Financial Due Diligence Fatma Feyza Külekçi Head of Internal Audit


55

BOARD OF DIRECTORS

Leon Aslan Coşkun Chairman

Dr. İzel Levi Coşkun CEO / Sustainability Ambassador Chief Executive Officer

ANKARA

BURSA

R. Uğur Kaylan Tax Partner

Şevki Boran Tax Partner

A. Şahin Savcı Tax Partner

Nazan Boran Tax Partner Executive Committee Member

Taner Altan Vergi Ortağı İcra Kurulu Üyesi Emre Yayla Tax Partner

Emre A. Dişpençe Independent Audit Partner Osman Bacanlı Tax Partner

R. Uğur Kaylan Tax Partner

Şevki Boran Tax Partner

M. Taylan Baykut AOS Partner

DENİZLİ

GAZİANTEP

Mehmet Erdoğan AOS Partner

Mehmet Kalkınoğlu Tax Partner

A. Şahin Savcı Tax Partner

İZMİR

Anıl Taşkoyan AOS Partner Executive Committee Member


56

OUR RISK MANAGEMENT STRATEGY

Furthermore, the projects we plan to carry out between 2017 and 2020 in parallel with our sustainability

Mazars Denge Corporate Governance and IT Compliance

approach are as follows: Creating actions plans regarding the results of the

function pursues the following main goals: To be prepared in advance against potential internal

"Employee Satisfaction Survey" organized in 2018

(2019-2020).

and external risks To ensure the effectiveness and efficiency of

operations

, Completed. The relevant activities are

conveyed in detail on Page 37. Reviewing from an integrated perspective of

To ensure the reliability of the reporting infrastructure To align corporate procedures with laws and

economic, social, environmental and corporate

management all our service processes delayed due

regulations such as the Law on the Protection of

to the high turnover of our HR department directors

Personal Data and GDPR

and rendering them more applicable, practical,

dynamic and compliant with the principles of

Structuring the control environment around these

corporate sustainability (2019).

principles, our institution pays attention to using the

, Completed.

highest ethics and quality standards. Accordingly, risk

The management and team structure of the

maps were prepared for all our units and processes were

Human Resources department has been

redefined. As an institution adopting innovative methods

preserved for 2 years, and activities on both

for creating and monitoring risk management action

strategic and operational HR processes are going

plans, we constantly review our strategies for mitigating

on in a steady way. Rendering more systematic the activity of adding

risks and constantly strive to improve and develop them. We also use the outputs of the risk assessment process

success criteria on economic, social, environmental

as an important input into identifying and executing

and corporate governance principles for the

internal control activities within the company.

outcomes of processes with the establishment of

an Internal Control and Risk Management

Department (2019).

, Activities are still going on.

SUSTAINABILITY MANAGEMENT

Operating on SPIs instead of KPIs through the joint

In 2018 when we made a transition to action on sustainability, a table was developed for the convenience

work of our Internal Control and Risk Management

of all our stakeholders including our employees. The

Unit and HR Department (2019-2020)

table lists the expected and conventional way of doing

, Activities are still going on. Publishing the first integrated report (2019-2020)

business on the left column and their counterparts from a corporate sustainability perspective on the right

, Completed.

column: Generally Accepted -

Corporate Sustainability

Continuity

Performance of businesses in connection with the communities in which they operate as well as their

Short-term Thinking

Long-term Thinking

Profit Pressure

Social / Environmental/ Economic Balance Pressure

Growth

Sense of Responsibility

Development / Improvement

environmental impacts play a critical role in the effective continuation of their operations and the evaluation of their overall performance. This requires the coexistence of healthy ecosystems, social equality and corporate governance as a prerequisite for corporate sustainability.

Fiscal Measurement

Fiscal + Other Parameters

Ethical approach within the Audit Sector broadens the

Competition With Rivals

Competitors are also

bounds of responsibility down to an individual within the

stakeholders! Interests of the

Interests of the System

Organization Alone

society. In other words, it is believed that the slightest mistake in the returns submitted to tax offices, full certification reports and independent audits may come to mean "misleading the common citizen at the

Consumption

Saving + Derivation

extreme end of the chain of responsibility". This clearly

Global

Local

demonstrates the deep sense of responsibility required

Destructive Language

Language of Peace

Horizontal Thinking

Integrated Thinking

by the profession.


57

Similarly, this social responsibility approach reveals that all stakeholders starting from employees to the society, our clients, competitors, public institutions, professional and other chambers, the state itself, education institutions, non-governmental organizations etc. and, ultimately, individuals are in constant interaction with each other.

We grant 2-day administrative leave to all our employees for engagement in social responsibility projects, which

This interaction requires acting with a shared

can be indicated as an example of our sensitivity on this

sense of responsibility, engagement and effective

subject.

communication for all units within Mazars Denge irrespective of department and seniority. In line with

As Mazars Denge, we are well aware of the distinction

the ISO 26000 Social Responsibility Standard, Mazars

between "responsible income" and "problematic

Denge pays special attention to:

income" and we consider it as a social and professional

Understanding the Concept of Social Responsibility,

duty to leave a profession enriched with this ethical

Exploring the relationship between the characteristics

approach to future generations.

of our company and social responsibility,

ORGANIZATION OF SUSTAINABILITY AT MAZARS DENGE

Volunteering to engage in social responsibility initiatives, Building confidence in Social Responsibility, Developing our company's actions and practices in

the context of social responsibility,

Our Sustainability Representatives Our Sustainability Committee convenes on a weekly

Developing an accurate and effective communication

basis under the leadership of the CEO to set sustainability

infrastructure of social responsibility within and

strategies, mainstream sustainability policies across the

outside the company.

entire company and track the implementation thereof.

İzel Levi Coşkun, PhD

CEO

Sustainability Ambassador

Mehmet Eronat

Management Consulting Partner

Human Resources Policies Representative

Hülya Yavuzcan

Tax, Director

Tax Services Representative

Gökçen Müftüoğlu Çapa

Financial Due Diligence Services, Head of Department

Audit and Consulting Services Representative

Görgün Uçar

IT Director

IT Representative

Barlas Hünalp

Marketing & Communications Director

Sustainable Communication Representative

Rahşan Yasdıman

AOS, Director

AOS Services Representative

Celalettin Günçavdı

Budget and Reporting Manager

Budget & Reporting Representative

Laura Negrisoiu

Governance and IT Compliance Processes Manager

Governance Representative

Doğan Ruben

AOS, Manager

AOS Services Representative

Seda Korkut

HR Director

Human Resources Representative

Hayriye Ocak

Intrapreneurship Specialist

Intrapreneurship Representative

Marketing & Communications Director AOS Services Representative Independent Audit and Consulting Services Representative

Department Representatives

Tax Services Representative

Sustainable Communication Sustainability Ambassador CEO Finance Budget and Planning Manager

Human Resources

İnsan Kaynakları Yöneticisi


58

ETHICAL PRINCIPLES

QUALITY CONTROL SYSTEM

Mazars Denge has established policies and procedures

Quality Control Standard I (QCS I) on Quality Control

offering reasonable assurance regarding the compliance

for Independent Audit Companies and Independent

of its legal entity and employees with relevant ethical

Auditors for the Audit of Financial Statements and

provisions. According to the policies and procedures

Other Control Assignments issued by the Turkish Public

in question, our fundamental ethical principles are as

Oversight and Accounting and Auditing Standards

follows:

Authority regulates the responsibilities of audit

Integrity

companies regarding their quality control systems

Impartiality

on the independent audit and review of financial

Professional competence and diligence

statements, other assurance audits and the relevant

Confidentiality

services. Aims of QCS I are:

Professional conduct

To ensure the company and employees fulfill

Other policies and procedures of Mazars Denge on

professional ethics are available in “MQAM- 2.1

professional standards and other applicable legal and regulatory provisions and To establish and maintain a quality control system

Independence and Objectivity" and “Mazars Risk

offering reasonable assurance that the reports

Management & Quality Manual-Ethics” as well as the

drawn up by the company accurately represent the

Tax Services Quality Handbook and Code of Ethics

existing circumstances.

sections of "Mazars Code of Conduct for Objectivity and Independence" (CCOI) harmonized with the "Code

Our quality control system contains policies and

of Ethics for Independent Auditors" published by the

procedures prepared in consideration of the following:

International Ethics Standards Board of Accountants (IESBA) affiliated to the International Federation of

Responsibilities of leadership on quality within the

Accountants (IFAC).

audit company Relevant ethical provisions Acceptance and maintenance of client relations and

audit contracts Human resources Execution of audits Monitoring

As a member of Mazars Group, we are obliged to comply with the provisions of "Mazars Quality Assurance Manual" ("MQAM") harmonized with QCS I.


59

ANNEX 1: UN GLOBAL COMPACT: PRINCIPLES AND MAZARS DENGE

As a signatory to the UN Global Compact in connection with the Sustainable Development

1

Businesses should support and respect the

2

Businesses should make sure that they are

3

Businesses should uphold the freedom of

4

Businesses should uphold the elimination

5

Business should uphold the effective

6

Businesses should uphold the

7

Businesses should support a

8

Businesses should undertake initiatives

9

Businesses should encourage

PRINCIPLE

protection of internationally proclaimed human rights.

Goals within the framework of our sustainability strategy, we prioritize the principles of "elimination of

PRINCIPLE

not complicit in human rights abuses.

discrimination in respect of employment and occupation", "precautionary approach towards environmental

PRINCIPLE

association and the effective recognition of the right to collective bargaining.

challenges", "initiatives to promote greater environmental responsibility" and "working against corruption in all its forms including extortion and bribery" in all our operations as well as our internal practices.

PRINCIPLE

PRINCIPLE

PRINCIPLE

PRINCIPLE

PRINCIPLE

PRINCIPLE

10 PRINCIPLE

of forced or compulsory labour.

abolition of child labour.

elimination of discrimination in respect of employment and occupation.

precautionary approach to environmental challenges.

to promote greater environmental responsibility.

the development and diffusion of environmentally friendly technologies.

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


60

ANNEX 2: OUR SUPPLIER CRITERIA

ENVIRONMENTAL

SOCIAL

Water and energy consumption

Implementation of all our discrimination principles

Carbon footprint Waste (paper, plastic, glass, technological waste

by our suppliers Ethics in business relations

sorting) management

Support for employee development and competence

Environmental impact of products and services

Contributing to campaigns and projects with public benefit

Prudent use of materials

Creating a healthy and safe working environment for

LEGAL PRACTICES

their employees Presence of an occupational health and safety expert

Regular payment of employees' wages, payroll

Presence of a workplace doctor

checks

Implementing risk analysis and actions in the

No employee working under minimum wage Regular use of annual leaves Timely notification of recruitments and terminations

business environment Presence of an occupational health and safety board

to the relevant authorities

and the attendance of employee representatives in

this board

Payment of severance and notice pays

Number of occupational accidents and diseases

Control of employment contracts Control of maternity leaves and breastfeeding breaks No child or forced labour Freedom of association and right to collective bargaining

ANNEX 3: O U R H U M A N R E S O U R C E S I N D I C AT O R S A N D 2 0 2 0 TA R G E T S OUR HUMAN RESOURCES INDICATORS FOR 2019

BREAKDOWN OF WORKFORCE BY REGIONS

Region / Gender

Women Persons

Men

Ratio

Persons

Total Ratio

Persons

Ratio

Istanbul

122

46%

146

54%

268

72%

Ankara

33

48%

36

52%

69

19%

Bursa

10

67%

5

33%

15

4%

Gaziantep

1

33%

2

67%

3

1%

Denizli

1

17%

5

83%

6

2%

Izmir

4

44%

5

56%

9

2%

Total

171

46%

199

54%

370

100%


61

AVERAGE MAZARS DENGE EXPERIENCE BY REGIONS AND GENDER (YEAR)

Women Region /

Men Avg. Experience (Year)

Total Experience (Year)

Total Experience (Year)

Total Avg. Experience (Year)

Total Experience (Year)

Avg. Experience (Year)

Gender

Persons

Istanbul

122

502

4.12

146

760

5.21

268

1,262

4.71

Ankara

33

118

3.58

36

148

4.11

69

266

3.86

Bursa

10

42

4.20

5

20

4.00

15

62

4.13

Gaziantep

1

1

1.00

2

11

5.50

3

12

4.00

Denizli

1

2

2.00

5

27

5.40

6

29

4.83

Izmir

4

11

2.75

5

13

2.60

9

24

2.67

Total

171

676

3.95

199

979

4.92

370

1,655

4.47

Persons

Persons

AVERAGE PROFESSIONAL EXPERIENCE BY REGIONS AND GENDER (YEAR)

Women Region /

Men Avg. Experience (Year)

Total Experience (Year)

Total Experience (Year)

Total Avg. Experience (Year)

Total Experience (Year)

Avg. Experience (Year)

Gender

Persons

Istanbul

122

1,445

11.84

146

2.279

15.61

268

3,724

13.90

Ankara

33

311

9.42

36

468

13.00

69

779

11.29

Bursa

10

120

12.00

5

84

16.80

15

204

13.60

Gaziantep

1

1

1.00

2

41

20.50

3

42

14.00

Denizli

1

2

2.00

5

113

22.60

6

115

19.17

Izmir

4

26

6.50

5

60

12.00

9

86

9.56

Total

171

1,905

11.14

199

3,045

15.30

370

4,950

13.38

Persons

Persons

TYPE OF EMPLOYMENT AND EMPLOYMENT CONTRACT BY GENDER

Type of Employment Type of Employment

Employment Contract

Men

Women

Total

Grand Total

Full-Time

197

169

366

Part-time

2

2

4

Permanent

198

171

369

Temporary

1

0

1

370

370


62

NUMBER OF EMPLOYEES WHO TOOK MATERNITY-PATERNITY LEAVE IN 2019

Number of female employees who took maternity leave Number of male employees who took paternity leave

BREAKDOWN OF ALL EMPLOYEES RECRUITED AND TERMINATED DURING 2019

4 4

NUMBER OF EMPLOYEES WHO RETURNED TO WORK AFTER MATERNITY LEAVE

Age

18-30

31-50

+51

Total

Recruited

89

13

1

103

Terminated

81

22

0

103

BREAKDOWN OF ALL EMPLOYEES RECRUITED AND TERMINATED DURING 2019 BY GENDER

Women

Men

Total

Recruited

49

54

103

Terminated

44

59

103

Women

Men

Total

Voluntary termination

41

56

97

Involuntary termination

3

3

6

Number of female employees who took maternity leave and returned to work during

3

the reporting period Number of female employees who took maternity leave in the previous reporting period and returned to work in this reporting

3 BREAKDOWN OF VOLUNTARY AND INVOLUNTARY TERMINATIONS

period Number of female employees currently on maternity leave Number of employees who resigned within 12 months after returning from maternity leave

1 1

MAZARS DENGE HUMAN RESOURCES KEY PERFORMANCE INDICATORS AND 2020 TARGETS HR FUNCTIONS / PRIORITY AREAS

KEY PERFORMANCE INDICATORS

2019 TARGETS

2019 RESULTS

2020 TARGETS

CORPORATE TRAINING AND DEVELOPMENT

Increasing total training hours per person • Increasing Technical/ Professional, On-theJob Training hours • Increasing competence/personal development training hours

Increasing average training hours per person to 40 hours • 25 hours of technical, professional training per person • 15 hours of competence/ personal development training per person

32.98 training hours per person. • 25.21 Technical/Professional training hours per person • 7.76 competence/personal development training hours/person

Increasing average training hours per person to 40 hours • 25 hours of technical, professional training per person • 15 hours of competence/personal development training per person

Overall employee satisfaction regarding training

A minimum overall employee satisfaction ratio of 80%

A total of 172 responders to the survey and the satisfaction ratio standing at 55.23%

A minimum overall employee satisfaction ratio of 80%

Increasing information on corporate sustainability

At least 2 hours of corporate sustainability training per person

This target could not be achieved in 2019

At least 1 hour of corporate sustainability training per person

Attendance in seminars, trips and film screenings on culture, human rights, diversity etc. aiming to raise awareness and improve knowledge

At least 20 seminars, trips and film screenings within the company

Dialogue in the Dark, Audit Happy Hour, Team Spirit Workshop, Change is Possible Anywhere Seminar, NGO Fair, TGFO Zorlu PSM Concert, Financial Literacy Seminar, Tax Kick - Off, Mazars Denge & TOG 41st Istanbul Marathon, HR Magazine Performance Management Summit , Women Leadership, Ideathon, 'Our Lesson is Entrepreneurship' Seminar, New Year's Party, Table Tennis Tournament, Chess Tournament, Tennis Tournament, ACCA Introduction & HR Talks

At least 10 seminars, trips and film screenings within the company. An online NGO Fair can be organized


63 Development of inhouse trainers

At least 5 hours of competence training per person for in-house trainers through internal and external training

35 hours of in-house trainer training by considering Professional/ Technical Competence and Behavioral Competence training

At least 40 hours of competence training per person for in-house trainers through internal and external training

Broader use of MazarsU E-Learning Platform

At least 60 persons trained

121 persons attending E-Learning

At least 200 persons trained

Increasing participation in ACCA training

At least 20 attendees in ACCA training

46 persons attending in ACCA introduction training

At least 50 attendees in ACCA training

More time dedicated to social responsibility

At least 3 hours of social responsibility per person for 2019

In 2019, Mazars Denge CEO allocated over 300 hours to Social Responsibility activities. This period has exceeded 650 hours when the efforts of middle and top-level executives are added. Pro Bono service hours has exceeded 1,250 hours. Social responsibility hours per person stands at 1.78.

At least 1 day of social responsibility per person for 2020

PERFORMANCE MANAGEMENT

Improvement of our performance system by adding measurement criteria suitable for our sustainability model

2019 Target

The performance evaluation system was revised to measure the performance based on business goal realizations and the competences required by positions. We continued to engage in efforts to create goal cards for partners in parallel with sustainability goals

Introducing the Partner Performance Evaluation system

HR SYSTEMS

Updating the HR infrastructure to enable better responsiveness to department processes

The performance evaluation model and HR policies were updated in line with emerging needs

Transferring the HR system infrastructure (IT) to a different software program

INTERNAL COMMUNICATION

Continuity of "We Hear You" practice, followup of the action plans to be implemented

The Ethics Box will be introduced

The Ethics Line was introduced

Taking measures required for offering a healthy and safe working environment for employees

Kick off meetings for departments such as Audit, Tax etc.

AOS department will also hold Kick-Off meetings in addition to Audit and Tax departments

This target was achieved by Audit and Tax Departments

Holding annual general information meetings for Audit, Tax and Consulting Departments

HR - Communication meetings with departments

All regions will be added in 2019

HR Talks event was held with the Audit Department

During Covid-19 pandemic, HR Department held group meetings called 'Insight Meetings' with volunteer employees that wanted to attend the meetings so as to improve the working conditions further throughout the pandemic

Development of university collaborations

Collaboration with universities for at least 10 events

Istanbul University, Galatasaray University, Trakya University, EskiĹ&#x;ehir Osmangazi University, Yeditepe University, Bilgi University

Collaboration with universities is targeted for at least 10 events

Maintaining diversity

We aim to increase the ratio of female employees to 50% while it is planned to qualitatively and quantitatively increase the effectiveness of our middle and top-level female executives

Women accounted for 46% of all employees in 2017

We aim to increase the ratio of female employees to 50% while it is planned to qualitatively and quantitatively increase the effectiveness of our middle and toplevel female executives

Average experience

We aim to keep average experience at 4 years

Average experience stood at 4.47 in 2019

We aim to raise average experience to 5 years

Number of employees sent abroad through Move&Mobility program under Mazars Global

We aim to include at least 1 employee in Move&Mobility program per year

This target could not be achieved in 2019

We aim to include at least 1 employee in Move&Mobility program per year

RECRUITMENT

KARÄ°YER PLANLAMA


64 A N N E X 4 : G R I S TA N DA R D S C O NTE NT I N D E X GRI STANDARD

DISCLOSURE

SUSTAINABLE DEVELOPMENT GOALS

GRI 101: COMPREHENSIVE GRI 102: GENERAL DISCLOSURE

CORPORATE PROFILE 102-1

Corporate Profile, p: 12.

102-2

Mazars Denge offers all its services in accordance with all national and international agreements to which it is a party. Mazars Denge fully complies with all regulations and voluntary rules on marketing communication including advertising, promotion and sponsorship. Our Services, p:13

102-3

Istanbul, Turkey

102-4

Corporate Profile, p: 12.

102-5

Corporate Profile, p: 12.

102-6

Corporate Profile, p: 12.

102-7

As of the end of the reporting period, Mazars Denge serves with 370 employees in 7 offices within a total of 6 provinces. Corporate Profile, p: 12; Our Services, p:14

102-8

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

102-9

Key Focus Area 2: Sustainable Service Approach, p: 30; Mazars Denge Supplier Criteria, p: 60

102-10

No change in size, structure, ownership or supply chain took place during the reporting period.

102-11

Within the framework of its sustainability strategy, Mazars Denge adopts the precautionary approach principle specified in the UN Global Compact, which it has signed in relation to the Sustainable Development Goals. As per its precautionary approach, Mazars Denge embraces policies and procedures set out in “MQAM- 2.1 Independence and Objectivity" and “Mazars Risk Management & Quality Manual-Ethics” as well as "Mazars Code of Conduct for Objectivity and Independence" (CCOI) harmonized with the "Code of Ethics for Independent Auditors" published by the International Ethics Standards Board of Accountants (IESBA) affiliated to the International Federation of Accountants (IFAC).

102-12

Our National And International Memberships / Collaborations, p:14

102-13

Supporting Societal Development, p:48

8

STRATEGY 102-14

Chairman's Message, p:6; CEO / Sustainability Ambassador's Message, p:9

102-15

Chairman's Message, p:6; CEO / Sustainability Ambassador's Message, p:9

ETHICS 102-16

Ethical Principles, p: 58

16

102-17

Ethical Principles, p: 58

16

GOVERNANCE 102-18

Key Focus Area 1: Generating Sustainable and Responsible Revenue, p: 28; Corporate Governance and Risk Management, p:52

102-19

Sustainability Management, p: 56

102-20

Sustainability Management, p: 56

102-21

Sustainability Management, p: 56

16

102-22

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

5

102-23

Key Focus Area 1: Generating Sustainable and Responsible Revenue, p: 28; Corporate Governance and Risk Management, p:52

16

102-26

Sustainability Management, p: 56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p: 28; Corporate Governance and Risk Management, p:52

16


65

DISCLOSURE

SUSTAINABLE DEVELOPMENT GOALS

102-27

Sustainability Management, p: 56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p: 28; Corporate Governance and Risk Management, p:52

4

102-28

Sustainability Management, p: 56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p: 28; Corporate Governance and Risk Management, p:52

102-29

Sustainability Management, p: 56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p: 28; Corporate Governance and Risk Management, p:52

102-30

Sustainability Management, p: 56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p: 28; Corporate Governance and Risk Management, p:52

102-31

Sustainability Management, p: 56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p: 28; Corporate Governance and Risk Management, p:52

102-32

Sustainability Management, p: 56

102-33

Sustainability Management, p: 56

102-34

Sustainability Management, p: 56

102-35

Mazars Denge employs a competitive wage policy for managers and employees at all levels. Career and Wage Management, p:35

102-36

Career and Wage Management, p:35

102-37

Mazars Denge does not have any practice in place.

102-38

Career and Wage Management, p:35

102-39

Career and Wage Management, p:35

GRI STANDARD

16

16

STAKEHOLDER ENGAGEMENT 102-40

Engagement of Our Stakeholders, p:14

102-41

There is no collective labor agreement.

102-42

Engagement of Our Stakeholders, p:14

102-43

Engagement of Our Stakeholders, p:14; Key Focus Area 4: Client Experience and Satisfaction, p:38

102-44

Engagement of Our Stakeholders, p:14; Key Focus Area 4: Client Experience and Satisfaction, p:38

REPORTING PRACTICES 102-45

Corporate Profile, p: 12.

102-46

Our Material Topics, p:16

102-47

Our Material Topics, p:16

102-48

Our Material Topics, p:16

102-49

Our Material Topics, p:16

102-50

January 1, 2019 - December 31, 2019

102-51

About the Report, p:5

102-52

About the Report, p:5

102-53

Contact Information, p:70

102-54

About the Report, p:5

102-55

GRI Standards Content Index, p:64

102-56

No external audit was conducted.

8


66

GRI STANDARD

DISCLOSURE

SDG

ANTI-COMPETITIVE BEHAVIORS

ANTI-CORRUPTION

MARKET PRESENCE

ECONOMIC PERFORMANCE

GRI 201: ECONOMIC STANDARD SERIES 103-1

Corporate Profile, p:12; Sustainability Management, p:54; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p:28; Corporate Governance and Risk Management, p:52

103-2

Corporate Profile, p:12; Sustainability Management, p:54; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p:28; Corporate Governance and Risk Management, p:52

103-3

Corporate Profile, p:12; Sustainability Management, p:54; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p:28; Corporate Governance and Risk Management, p:52

201-1

Mazars Denge makes a significant contribution to financial literacy due to its sector and employees of the company create economic added value both through the consulting services offered to clients and the experience acquired from Mazars Denge in their future firms. Furthermore, the employees of Mazars Denge strive to teach financial literacy to entrepreneurs, students and the employees of various NGOs and increase the economic added value generated thereby.

2

5

7

8

2

5

7

8

1

5

8

5

8

103-1

Corporate Profile, p:12; Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-2

Corporate Profile, p:12; Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-3

Corporate Profile, p:12; Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

202-1

Mazars Denge adopts a gender-neutral remuneration policy for all employees at a level over the minimum wage set by the Minimum Wage Determination Commission established by the Ministry of Labor and Social Security; Career and Wage Management, p:35

1

202-2

All members of the senior management at Mazars Denge are Turkish citizens.

8

103-1

Sustainability Management, p:56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p:28; Corporate Governance and Risk Management, p:52

103-2

Sustainability Management, p:56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p:28; Corporate Governance and Risk Management, p:52

103-3

Sustainability Management, p:56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p:28; Corporate Governance and Risk Management, p:52

205-1

Mazars Denge acts in compliance with anti-corruption laws and regulations in all of its operations;

16

205-2

Sustainability Management, p:56; UN Global Compact: Principles and Mazars Denge, p:59; Key Focus Area 2: Sustainable Service Approach, p:30; Mazars Denge Supplier Criteria, p:60

16

205-3

There was no confirmed case of corruption during the reporting period.

16

103-1

Sustainability Management, p:56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p:28; Corporate Governance and Risk Management, p:52

103-2

Sustainability Management, p:56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p:28; Corporate Governance and Risk Management, p:52

103-3

Sustainability Management, p:56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p:28; Corporate Governance and Risk Management, p:52

206-1

There was no pending legal action regarding anti-competitive behaviors, violation of the anti-trust and anti-monopoly legislation during the reporting period.

16

ENERGY

MATERIALS

GRI 301: ENVIRONMENTAL STANDARD SERIES 103-1

Reducing Environmental Impact, p:46

103-2

Reducing Environmental Impact, p:46

103-3

Reducing Environmental Impact, p:46

301-1

Reducing Environmental Impact, p:46

8

12

301-2

Reducing Environmental Impact, p:46

8

12

103-1

Reducing Environmental Impact, p:46

103-2

Reducing Environmental Impact, p:46

103-3

Reducing Environmental Impact, p:46

302-1

Reducing Environmental Impact, p:46

7

8

12 13

302-3

Reducing Environmental Impact, p:46

7

8

12 13

302-4

Reducing Environmental Impact, p:46

7

8

12 13

302-5

Reducing Environmental Impact, p:46

7

8

12 13

9


67

SUPPLIER ENVIRONMENTAL ASSESSMENT

COMPLIANCE

WATER AND EFFLUENTS

EMISSIONS

GRI STANDARD

DISCLOSURE

103-1

Sustainability Management, p:56; Reducing Environmental Impact, p:46

103-2

Sustainability Management, p:56; Reducing Environmental Impact, p:46

103-3

Sustainability Management, p:56; Reducing Environmental Impact, p:46

305-1

Reducing Environmental Impact, p:46

SDG

12

3

13 14 15

12

305-2

Reducing Environmental Impact, p:46

3

12

13 14 15

305-3

Reducing Environmental Impact, p:46

3

12

13 14 15

305-4

Reducing Environmental Impact, p:46

12

13 14 15

103-1

Sustainability Management, p:56; Reducing Environmental Impact, p:46

103-2

Sustainability Management, p:56; Reducing Environmental Impact, p:46

12

13 14 15

103-3

Sustainability Management, p:56; Reducing Environmental Impact, p:46

306-2

Reducing Environmental Impact, p:46

103-1

Sustainability Management, p: 56

103-2

Sustainability Management, p: 56

103-3

Sustainability Management, p: 56

307-1

There was no case of violation regarding environmental law and regulations at Mazars Denge during the reporting period.

103-1

Key Focus Area 2: Sustainable Service Approach, p: 30; Mazars Denge Supplier Criteria, p: 60

103-2

Key Focus Area 2: Sustainable Service Approach, p: 30; Mazars Denge Supplier Criteria, p: 60

103-3

Key Focus Area 2: Sustainable Service Approach, p: 30; Mazars Denge Supplier Criteria, p: 60

308-1

Key Focus Area 2: Sustainable Service Approach, p:30; Mazars Denge Supplier Criteria, p:60; Mazars Denge strives to make sure that all its suppliers act within the framework of Mazars Denge Supplier Principles and monitors their compliance with these principles.

308-2

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

3

6

EMPLOYMENT LABOR/ MANAGEMENT

12

13 14 15

12

13 14 15

12

13 14 15

8

GRI 401: SOCIAL STANDARD SERIES

OCCUPATIONAL HEALTH AND SAFETY

13 14 15

103-1

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-2

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-3

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

401-1

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

5

401-2

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

8

401-3

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

5

103-1

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-2

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-3

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

402-1

Mazars Denge acts in accordance with the notice periods stipulated in the Labor Law regulating these matters in Turkey; Mazars Denge does not have any applicable collective labor agreement during the reporting period.

103-1

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-2

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-3

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

403-1

Established as per the internal regulations, the Occupational Health and Safety Committee is composed of an Occupational Health and Safety Expert, a Workplace Doctor and an Employer's Representative as well as employee representatives and an HR representative.

8

403-2

No occupational accident, disease, lost day and absence occurred during the reporting period.

3

8

403-3

No occupational accident, disease, lost day and absence occurred during the reporting period.

3

8

8

8

16


68

RIGHTS OF INDIGENOUS PEOPLES

FORCED OR COMPULSORY LABOR

CHILD LABOR

FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

NONDISCRIMINATION

DIVERSITY AND EQUAL OPPORTUNITIES

TRAINING AND EDUCATION

GRI STANDARD

DISCLOSURE

SDG

103-1

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-2

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-3

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

404-1

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

5

404-2

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

8 5

8

8

404-3

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-1

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-2

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-3

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

405-1

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

5

8

405-2

Mazars Denge employs a gender-neutral remuneration policy for its employees; For detailed information on the wage policy, see Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

5

8

10

103-1

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-2

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-3

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

406-1

Raporlama döneminde, herhangi bir ayrımcılık vakası yaşanmamıştır.

5

8

16

103-1

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-2

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

103-3

Key Focus Area 3: Supporting Employee Development and Employee Satisfaction, p:32

407-1

During the reporting period, no violation occurred regarding the freedom of association and collective bargaining. Mazars Denge enshrines the freedom of association and collective bargaining within the framework defined by law.

103-1

UN Global Compact: Principles and Mazars Denge, p:59; Key Focus Area 2: Sustainable Service Approach, p:30; Mazars Denge Supplier Criteria, p:60

103-2

UN Global Compact: Principles and Mazars Denge, p:59; Key Focus Area 2: Sustainable Service Approach, p:30; Mazars Denge Supplier Criteria, p:60

103-3

UN Global Compact: Principles and Mazars Denge, p:59; Key Focus Area 2: Sustainable Service Approach, p:30; Mazars Denge Supplier Criteria, p:60

408-1

Mazars Denge engages in no activity posing risk for potential cases of child labor; The compliance of suppliers with the ban of child labor is monitored through various channels.

103-1

UN Global Compact: Principles and Mazars Denge, p:59; Key Focus Area 2: Sustainable Service Approach, p:30; Mazars Denge Supplier Criteria, p:60

103-2

UN Global Compact: Principles and Mazars Denge, p:59; Key Focus Area 2: Sustainable Service Approach, p:30; Mazars Denge Supplier Criteria, p:60

103-3

UN Global Compact: Principles and Mazars Denge, p:59; Key Focus Area 2: Sustainable Service Approach, p:30; Mazars Denge Supplier Criteria, p:60

409-1

Mazars Denge engages in no activity posing risk for potential cases of forced or compulsory labor; The compliance of suppliers with the ban of forced or compulsory labor is monitored through various channels.

103-1

UN Global Compact: Principles and Mazars Denge, p:59; Key Focus Area 2: Sustainable Service Approach, p:30; Mazars Denge Supplier Criteria, p:60

103-2

UN Global Compact: Principles and Mazars Denge, p:59; Key Focus Area 2: Sustainable Service Approach, p:30; Mazars Denge Supplier Criteria, p:60

103-3

UN Global Compact: Principles and Mazars Denge, p:59; Key Focus Area 2: Sustainable Service Approach, p:30; Mazars Denge Supplier Criteria, p:60

411-1

During the reporting period, there was no case of violation regarding the rights of indigenous peoples.

8

8

8

2

16


69

COMPLIANCE

CLIENT PRIVACY

PRODUCT AND SERVICE LABELING

HEALTH AND SAFETY OF CLIENTS

SUPPLIER SOCIAL IMPACT ASSESSMENT

LOCAL COMMUNITIES

SUPPLIER HUMAN RIGHTS ASSESSMENT

GRI STANDARD

DISCLOSURE

SDG

103-1

UN Global Compact: Principles and Mazars Denge, p:59; Key Focus Area 2: Sustainable Service Approach, p:30; Mazars Denge Supplier Criteria, p:60

103-2

UN Global Compact: Principles and Mazars Denge, p:59; Key Focus Area 2: Sustainable Service Approach, p:30; Mazars Denge Supplier Criteria, p:60

103-3

UN Global Compact: Principles and Mazars Denge, p:59; Key Focus Area 2: Sustainable Service Approach, p:30; Mazars Denge Supplier Criteria, p:60

412-1

UN Global Compact: Principles and Mazars Denge, p:59; Key Focus Area 2: Sustainable Service Approach, p:30; Mazars Denge Supplier Criteria, p:60

412-2

Employee Commitment and Satisfaction, p:37; The training events organized during the reporting period cover the theme of "Human Rights".

103-1

Supporting Societal Development, p:48

103-2

Supporting Societal Development, p:48

103-3

Supporting Societal Development, p:48

413-1

Mazars Denge supports many non-governmental organizations and projects within the scope of corporate social responsibility practices.

413-2

Mazars Denge does not have any operation that would negatively affect local communities.

103-1

Sustainability Management, p:56; Key Focus Area 2: Sustainable Service Approach, p: 30; Mazars Denge Supplier Criteria, p: 60

103-2

Sustainability Management, p:56; Key Focus Area 2: Sustainable Service Approach, p: 30; Mazars Denge Supplier Criteria, p: 60

103-3

Sustainability Management, p:56; Key Focus Area 2: Sustainable Service Approach, p: 30; Mazars Denge Supplier Criteria, p: 60

414-1

Key Focus Area 2: Sustainable Service Approach, p:30; Mazars Denge Supplier Criteria, p:60; Mazars Denge strives to make sure that all its suppliers act within the framework of Mazars Denge Supplier Principles and monitors their compliance with these principles.

5

8

16

414-2

Mazars Denge monitors all its suppliers against the actual and potential adverse impacts of labor practices within its supply chain in line with the Supplier Principles set thereby; No existing or potential negative impact was encountered during the reporting period.

5

8

16

103-1

Our Services, p:13

103-2

Our Services, p:13

103-3

Our Services, p:13

416-1

Our Services, p:13; Sustainability Management, p:56

416-2

There was no violation regarding this issue during the reporting period.

103-1

Key Focus Area 4: Client Experience and Satisfaction, p:38

103-2

Key Focus Area 4: Client Experience and Satisfaction, p:38

103-3

Key Focus Area 4: Client Experience and Satisfaction, p:38

417-3

There was no violation regarding this issue during the reporting period.

103-1

Sustainability Management, p:56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p:28; Corporate Governance and Risk Management, p:52; Information Security, p:45

103-2

Sustainability Management, p:56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p:28; Corporate Governance and Risk Management, p:52; Information Security, p:45

103-3

Sustainability Management, p:56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p:28; Corporate Governance and Risk Management, p:52; Information Security, p:45

418-1

No complaint was received regarding the violation of client privacy and the loss of client data during the reporting period.

103-1

Sustainability Management, p:56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p:28; Corporate Governance and Risk Management, p:52

103-2

Sustainability Management, p:56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p:28; Corporate Governance and Risk Management, p:52

103-3

Sustainability Management, p:56; Key Focus Area 1: Generating Sustainable and Responsible Revenue, p:28; Corporate Governance and Risk Management, p:52

419-1

There was no fine or sanction arising out of non-compliance with laws and regulations during the reporting period.

16

419-1

There was no case of non-compliance with the laws and regulations associated with the supply and use of products and services during the reporting period.

16

1

16

16

2


70

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



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