İMKB (İstanbul Menkul Kıymetler Borsası) is honored to be part of the United Nations Global Compact. It goes without saying that İMKB will continue supporting the principles of the UN Global Compact which we adhered to on October 26, 2005.

Proud to be a socially responsible exchange, İMKB contributes to society in different ways. The biggest social responsibility project of İMKB is the “Contribution to National Education Project”, through which İMKB has been transferring funds to the Ministry of National Education for the construction of schools throughout Turkey. So far, approximately US$ 1 billion has been donated for the construction and with the completion of the eighth phase, the number of schools built will reach 415.

Another sustainability topic is the creation of a sustainability index, in which İMKB is cooperating with the Business Council for Sustainable Development Turkey in order to raise awareness of sustainability issues both at national and global levels.

Allow me to reiterate İMKB’s commitment to the Global Compact principles on human rights, labor, environment and anti-corruption. Also be assured that İMKB will keep promoting values such as sensitiveness to society and environment, equal treatment and transparency both inside and outside of the organization in order to help create a sustainable future.

Yours Sincerely,

İbrahim M. TURHAN, Ph.D.
Chairman and CEO
İstanbul Menkul Kıymetler Borsası

İMKB is committed to protecting human rights and freedom. İMKB believes that everyone should be given the liberty and security, the right to express himself/herself freely, the right to have respect in private life. In this context, İMKB strives to ensure a safe, free and healthy environment for its employees and its members.

The recruitment and personnel policy of İMKB is in line with the internationally proclaimed human rights principles. İMKB policies prohibit discrimination based on sex, race, religion, and color, political or other opinion and social origin. İMKB also has a certain recruitment reserve for disabled people.

İMKB staff must sign an ethics code of conduct, which is in line with the human rights principles. The ethics code of conduct is based on social work’s core values of service, honesty, fairness, non-discrimination and alike.

Indirect contributions to ensure a healthy corporate life:

İMKB has been computing and disseminating the Corporate Governance Index since 2007. The index measures the price and return performances of İMKB traded companies. A rating of compliance with corporate governance principles is an independent, unbiased and fair evaluation and classification of corporations’ and capital market institutions’ compliance with the corporate governance principles set by the Capital Markets Board of Turkey. Rating grades ranging between 1 and 10 shall be assigned on the compliance with corporate governance principles as a whole and individually with respect to the topics such as; shareholders, public disclosure and transparency, stakeholders, board of directors.

Contributions to education:

İMKB’s “Contribution to National Education Project”, which started back in 1997, is in progress. İMKB has been transferring funds to the Ministry of National Education for the construction of different types of schools throughout Turkey. This year, İMKB Executive Council has assigned TL 140 million (approx. US$ 77 million) to the project. In this regard, a protocol was signed between the Turkish Ministry of National Education and İMKB in December 2011.

•İMKB did not receive any negative feedback regarding human rights violation during the period.
•Number of disabled staff working at İMKB is 17 as of August 31, 2012.
•İMKB Corporate Governance Index comprises 40 companies as of August 31, 2012.

Contributions to education:
First and second phases of the “Contribution to National Education Project” have already been completed. Third, fourth and fifth phases are almost complete; above 90% for the construction of 378 schools. In the sixth and seventh phases, 21 schools are still in construction.

Through this project, İMKB has allocated funds of approximately $US 1 billion to national education since the project’s inception in 1997.

With completion of the eighth phase, total number of schools (primary, secondary, vocational, fine arts and science schools with amenities such as dormitories, teachers’ housing, sports halls, multipurpose halls, dining halls etc.) reaches 415.

İMKB respects and supports the professional and healthy relationship with the employees’ union. İMKB is also committed to offering democratic and equal working environment to its employees and members in addition to its non-discriminating recruitment and service policies.

İMKB personnel regulation provides the staff with the freedom of association and collective bargaining, as well as the right to become members of associations, foundations, etc. for social activities.

İMKB is against child labor.

The first collective agreement between İMKB and “Tez-Koop. İş - Commercial and Official Employees Union” was signed in 2007. In 2009, another collective agreement was signed covering the years 2009 and 2010. Finally, the last collective agreement was signed in March 2011, covering the years 2011-2013.

The total number of members of “Tez-Koop. İş - Commercial and Official Employees Union” is 409 whereas the figure was 483 in year 2011.

The ratio of union members to the total number of employees is 88.9% whereas the figure was 98.7% in year 2011.

The total number of members of “The Association of İMKB Employees” is 326.

A “Tez-Koop. Is-Commercial and Official Employees Union” representative is also in the İMKB personnel committee.

The number of female personnel is 135, which represents 29% of the total number of employees. Besides, there is no wage discrimination regarding genders.

The minimum age for employment is 18.

İMKB is committed to the protection of environment and resource saving and actively supports and participates in ecological protection, promotes environmental responsibility in most of its infrastructural and administrative systems.

By creating Corporate Social Responsibility and Sustainability web map which will include projects, reports, publications of companies listed on İMKB, İMKB plans to realize the aim of creating a socially responsible environment in which investors can reward socially responsible and sustainable companies.

Energy:

The İMKB building was constructed in line with the new technologies considering environmental protection. Additionally, environmental friendly technologies like recycling & energy saving initiatives started to be used in the current infrastructure construction projects.

Natural gas is used for heating.

İMKB continuously participates in programs aiming at reducing carbon footprint.

Recycling:

To protect the environment, waste papers, batteries and recyclables are collected.

Paper recycling and drained battery bins have been settled in different places within the premises and collected paper products and batteries are sent to recycling facilities periodically.

To reduce energy consumption and to save energy, efficient air conditioning systems and energy saving light bulbs are being used within İMKB premises.

İMKB Sustainability Index:

On the 10th of August 2010, İstanbul Menkul Kıymetler Borsası and Business Council for Sustainable Development Turkey (TBCSD) signed a Memorandum of Understanding (MoU) in order to jointly create a new index offering significant opportunities for the capital markets, companies and investors, namely, “İMKB Sustainability Index”.

The İMKB Sustainability Index (İMKBSI) project has been initiated by the İMKB and TBCSD in partnership with leading experts in corporate sustainability and sustainable investment, globally and in emerging markets. The İMKBSI project is a multi-stakeholder, multi-year project through December 2011 developing best practices with the goal of launching a Turkish sustainability benchmark for the İMKB listed companies and their investors. The creation of the index has been endorsed by leading Turkish companies, investors, NGOs, as well as a group of international experts in sustainability, sustainable investment and sustainability indexes.

Corporate Social Responsibility and Sustainability Committee:

İMKB has a Corporate Social Responsibility and Sustainability Committee to regulate and oversee İMKB’s environmental-social responses to sustainability issues.

A training session of “Sustainability Reporting (GRI)” has been planned for employees working at Strategic Planning and Business Development and Corporate Communications departments in order to get information about preparation of a detailed corporate social responsibility report compatible with GRI standards.

Corporate Social Responsibility and Sustainability web pages have been designed and published on the İMKB web site. Corporate social responsibility web map project has also started. An e-mail regarding this project was sent to the companies listed on İMKB. İMKB-listed companies’ inventory of corporate social responsibility and sustainability information will be held in this web map.

2011–2012 Corporate Social Responsibility and Sustainability Report has been prepared and is yet to be published.

Energy:

İMKB employees are diligent to integrate environmental management and control in their daily life and administrative activities.

Previous enhancements in the building automation system had enabled İMKB to achieve minor reductions in electricity consumption. Further efficiency is targeted for energy savings, hence a comprehensive infrastructure renovation is still under way to achieve this end.

İMKB Sustainability Index:

Since the beginning of the project, two surveys were held and three workshops have been organized with the participation of the represantatives of İMKB-traded companies and investors. Turkey-specific sustainability criteria were discussed during these workshops and a survey report was published.

İMKB Sustainability Criteria and Question-Answer Samples were finalized and shared with Capital Markets Board of Turkey (CMB). The Legal Framework for the assesment of the companies is being prepared by the CMB.

The İMKBSI adapts learnings from a cohort of sustainability indexes in developed and developing markets to determine the index methodology and sustainability criteria. With the project, a sustainability index at world standards will be created.

Corporate Social Responsibility and Sustainability Committee:

Number of the companies which sent information about their Corporate Social Responsibility projects and activities has been tracked by İMKB.

Quality of İMKB Corporate Social Responsibility and Sustainability Report will be assessed by GRI reporting levels.

İMKB does not allow violation of laws/regulations and dishonesty or unethical behavior. Any illegal act such as bribery, abuses by employees or executives are strictly prohibited.

İMKB takes all necessary precautions in terms of preventing market abuses.

İMKB rules and regulations require that the employees are not allowed to offer, give or take any presents in any form in cash or in kind, directly or indirectly from any person, institution, public officials, etc.

Enforcement and Market Supervision İMKB monitors the trading activities for any unusual price/volume changes in order to detect illegal practices such as manipulation, insider trading and any other market abuses.

İMKB has supported activities of the Institute of Internal Auditors (IIA), Institute of Internal Auditors- Turkey (TİDE), European Confederation of Institutes of Internal Auditing (ECIIA) and ACFE Local Chapter.

Currently, İMKB is employing 16 CFE (Certified Fraud Examiners), 7 CIA (Certified Internal Auditor) and 1 Certified Information Systems Auditor (CISA) certified personnel.