We are on the lookout for risks and opportunities

As a leader, social responsibility and sustainability have a very important place on the agenda of Mustafa Koç, the chair of Koç Holding. Indeed he personally takes the lead on these projects. Other important items on his agenda are closely monitoring opportunities and taking the group into the future. “New projects and growth plans will be on my agenda. We are closely following developments in Europe and in developing markets. We are on the lookout for risks and opportunities,” says Mustafa Koç. Last month Koç was invited to Özyeğin University by Yenibirlider, which was founded by Kerem Kamışlı and Cem Garih, as the guest of the young students. I was the moderator at this event, which was closed to the press. Mustafa Koç, the chair of Koç Holding, which closed 2012 with growth of 13 percent and TL 84.8 billion in turnover, answered questions from me and from the students.

Capital: What should come to mind when people talk about sustainable growth and sustainable business?
- The world economy has rapidly acquired a globalised structure over the last 15 years, This has brought with it many new problems with regard to social, economic and environmental issues. For a company, ensuring sustainability means successfully integrating all of its operations, from production to marketing, economic priorities and environmental and social issues. Today, this had become an indisputable reality. This has meant that for companies the main factors which determine their levels of success are both the management systems they have established and how they manage their relations with stakeholders,

Capital: What kind of results do companies which are successful in this area achieve? Does it mean that they end up increasing their profits?
- Sustainability results in companies shifting their focus from the short-term to the long-term. Companies which believe in sustainability don’t go running after short-term earnings but follow strategies for healthy, profitable growth in the long-term. This growth is achieved not despite all the stakeholders - I mean, customers, employees, the environment and society - but together with them. As a result, it is an exemplary business model in which the company, the value chain and society all benefit.~

Capital: What are you doing in terms of sustainability at Koç Holding?
- Our founder, the late Vehbi Koç, had a saying which has become synonymous with us, namely “if it is for the country then count me in”. Ever since our foundation, Koç Holding has been aware that there is a link between corporate sustainability and social sustainability. It is this aspiration which drives the holding’s culture and ensures integration between our vision, strategies, values and operations in terms of sustainability, We reinforced our voluntary commitment to sustainability by signing the UN Global Compact agreement in 2006. The Koç Group’s performance on the ten principles, which are grouped together under the four main headings of labour, human rights, the environment and anti-corruption are monitored, reports prepared and there is a focus on continuous development. If we look at it in this regard, sustainability is implemented under two main roofs at the Koç Group. The first involves our Corporate Social Responsibility (CSR) projects and investments in social development. The second is the integration of sustainability issues into our operations and ways of doing business. I am happy to say that we see that all of these initiatives make as positive a contribution to the Koç brand and reputation as they do to the development of the country. Research on corporate prestige in Turkey shows that there is a significant difference between Koç Holding and other leading companies.

Capital: What kind of projects are you implementing in this regard?
- For fully 43 years, the Vehbi Koç Foundation has been undertaking important work in the fields of education, culture and health. The voluntary assistance provided by 20 Koç Group companies and over 550 of our employees has made our “Vocational High Schools and the Issues of the Country” a model for forming a bridge between education and the business world. In our “For My Country” project we have planted over one billion saplings. Then, together with the Turkish Red Crescent, we have touched the lives of thousands of people through facilitating blood donations of over 83,000 units.

Capital: How would you describe the relationship between sustainability and environmental management?
- Environmental management is another important area in relation to sustainability. Just a small mistake in companies’ production processes can result in damage on a major scale both to the economy and to the health of society. Moreover, the effects of this damage can last for a long time. For this reason, we have developed an environmental policy, an environmental vision and a climate change strategy for all of the group’s companies. In addition, we conduct environmental inspections at set intervals. Innovation is very important in this regard. The design and production of environmentally friendly products is critically important both to a company’s sustainable success and to the solution of many problems related to the environment. Its investments have also made the Koç Group the leader in this field.~

Capital: As leader, how much of your time do you allocate to this issue?
- I allocate a significant proportion of my time to this issue. Because the role of the chair of the board of directors is not just to ensure the success of the entire group today but also means being the leader today in strategies, policies and projects that will ensure that it is successful in ten years’ time. In the same way, it is the responsibility of the chair of the board of directors to manage the business in such a way as to add value to our companies, shareholders, all our other stakeholders and society. As a result, the issue of sustainability is one of the most important issues on my agenda from every perspective.