The History About Zorlu Holding Business Essay


'Zorlu Holding's story goes back to early 1950s, opening up a whole new world of opportunity in Denizli BabadaÄŸ by Hacı Mehmet Zolru, and since then appears as one of Turkey's one of the biggest enterprises playing important role in Turkish economy by achieving the highest growth figures in production, export and employment and promoting competition in global markets' [1] .

 Zorlu Holding is currently headed by Ahmet Nazif Zorlu and Zeki Zorlu, headquartered in İstanbul.

'Zorlu Holding has been playing active role in four principal business sectors since 2006' [2] : Home textiles and polyester yarns, electronic goods, information technologies, and durable consumer goods, real estate, energy production with following companies; Korteks, Zorluteks, Linens Marketing, Zorlu Foreign Trade, Vestel Electronics, Vestel White Goods , Vestel Digital, Vestel Foreign Trade, Vestel Durable Goods Marketing, Vestel CIS, Vestel Defense Industrials, AYESAÅž, Birim, Vestel Germany, Vestel France, Vestel Iberia, Vestel Italy SRL, Vestel Holland BV, Vestel UK limited, Vestel Electronica SRL, OY Vestel Scandinavia AB, UTS-United Technical Services, SPOL S.R.O., Vestpro Electronics S.A., Dexar Multimedia &, Vestel USA, CABOT Communications Ltd., Vestel Electronic India, Vestek Electronics Research & Development, Deksarnet Telecommunications, Intertechnika LLC (Russia) Energy Group, Zorlu Energy, Zorlu O&M, Zorlu Industrial Rotor, Zorlu Hydroelectric, Zorlu Electricity, Zorlu Petrogas, Amity Oil International, Zorlu Natural Gas, Thrace Region Natural Gas Distribution, Gaziantep Natural Gas Distribution, Rosmiks LLC (Russia), Zorlu Energy Pakistan, Dorad Energy (Israel), Ashdod Energy (Israel), Ramat Negev Energy (Israel), Solad Energy (Israel), Zorlu Natural Electricity, Zorlu Geothermal Energy, Zorlu Intergas GMBH (Austria), Zorlu Energy and Construction, Zorlu Construction & Investment, and Intermar.

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In a nutshell, with close to 50 companies and more than 30,000 employees today, Zorlu Holding continues its business operations in all over the world.

One of the biggest reasons to choose Zorlu Holding for my assignment was intending to examine company activities of one of the biggest Turkish global business entity and introduce Turkish companies at an international platform with respect to their level of social responsiveness as I am with the Erasmus Exchange program in Bradford College.

Another reason of examine Zorlu Holding is the purpose of using my firsthand experience with the company as a former Mehmet Zorlu Scholarship holder between 2010 and 2011. Apropos, 'Zorlu Holding continues to their social responsibility projects in Turkey in several areas under the name of Mehmet Zorlu Foundation that's why I believe that Zorlu Holding is a ''good example'' of a ''responsive'' company and the topic of my assignment.

Chapter II- Review of Zorlu Holding with respect to Corporate Social Responsibility Theories

Carroll's Pyramid of Social Responsibility

Every company in the business life has various responsibilities towards its both internal and external stakeholders. As can be seen from several books and sources, 'these responsibilities are depicted into a pyramid' [3] . Furthermore, each of these responsibilities has a either directly or indirectly tremendous effect on business activities, corporate image, and level of corporate social responsiveness of a company. When we examine Zorlu Holding with respect to Carroll's Pyramid of Social Responsibility Pyramid:

Philanthropic Responsibilities:

As an ultimate level of responsibility, philanthropic responsibilities can be seen as the degree of giving importance of desires of society without waiting any return.

From the sources of Mehmet Zorlu Foundation, 'which bears the name of Zorlu Group's founder Hacı Mehmet Zorlu, Zorlu Holding continues to contribute to the social and economic development of Turkey by planning and carrying out activities in the areas of education, culture, and sports' [4] . Currently, the foundation provides supports for students by giving scholarships and building schools, War of Independence veterans, needy by assistance in the form of health care, food, clothing, and fuel, Pakistan earthquake victims by 'donating a total of 15,000 blankets, comforters, and sleeping bags to various aid campaigns launched to help the people' [5] Â , young designers, and Turkish athletics by the social responsibility project of Vestel stands by Turkish athletics which 'has been continuing since 1 May 2004 in line with the primary goal of increasing the interest that Turkish young people take in athletics' [6] .

Ethical Responsibilities:

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As a more abstract responsibility, every company in the business life is expected to 'obey what is right, fair, and just.' [7] 

As a Turkish company, Zorlu Holding gives importance to ethical responsibilities because of collectivist and orientalist Turkish culture. Furthermore, strong ethically responsible corporate image and business ethics of Zorlu Holding dominate Turkish market and Turkish customers' decisions.

Legal Responsibilities:

Every company in the business life must comply with laws and regulations of the county which their operations in.

As an international group of companies, every company operating under Zorlu Holding act as a law-abiding, keep its goods and services under rules and standards , and inform 'SPK-Capital Markets Board of Turkey' and 'IMKB-Ä°stanbul Stock Exchange' about each business activity which must be published with public with respect to Turkish laws and regulations in Turkey.

In detailed, Zorlu Holding arranges working hours, overtime work, and holiday periods of employees with respect to the Turkish laws and regulations; Zorlu Holding does not employ child labor or underage labor in any operations. Furthermore, according to Constitution of Turkish Republic-Employee's Right To Form Unions/Collective Bargaining (Labor) Agreements-, every employee have a right to become a union member, that's why Zorlu Holding's blue collar employees engaged in Tekstil Union, Türk-Ä°Åž and all of the rights of employees are guaranteed under the agreements.

Economic Responsibilities:

The basic ultimate responsibilities of a company are making profit and creating value for its shareholders. In other words, economic responsibilities are the core responsibilities of a company to ensure sustainable value creation for shareholders.

From that point of view, Zorlu Holding is maintaining Zorlu Group Companies profitable, having a strong competitive advantage with respect to other companies and keeping high level of efficiency at business activities in energy, estate, electronic and textile sectors.

In more economic terms, 'in the year 1998, Group exports reached USD 600 M, in 1999 USD 680 M, in 2000 USD 852 M. Despite the severe economic crises in 2001, there has been escalation in Zorlu Holding's export figure, climbing USD 879 M. In 2006, the exports reached USD 1.3 B and then USD 3,153 M in 2008.' [8] With respect to other companies or holdings in Turkey, it's obvious that economic responsibilities of Zorlu Holding are fulfilled.

The Triple Bottom Line Concept

The Triple Bottom Line Concept of John Elkington contains three factors which companies should be providing to their stakeholders. Today, profit is not the only factor to measure the success of businesses; therefore businesses should consider planet and people as much as profit.


Financial return or reward is the primary aim of shareholders with respect to the return the risk they are taking by investing a business. Therefore, a business should fulfill the profit desire of shareholders.

From the profit point of view, with total assets of Zorlu Holding around US $ 10 billion, Zorlu Holding companies which are operating textiles- biggest integrated manufacturer and exporter of polyester yarns in Europe and the Middle East, consumer electronics- one of the major players in the European LCD market, information technologies, consumer durables, energy- 'one of the leading IPPs in the domestic market with 771 MW of installed capacity, accounting for approximately 4.4 % of the total electricity generated by private producers (excl. BOO, BOT & TOR), real estate and mining sectors'. [9] 


Environmental issues have been affecting businesses for a long time because of legislations, financial gains, and expectations of stakeholders. For that reason, a business should consider ecology, environmental abuse and harm, and environmental protection.

From the planet point of view 'Zorlu Holding has displayed its will and decisiveness on sustainability in international platform by signing Global Compact in 2007.' [10] With respect to the Global Compact, Zorlu Holding confirms to comply with The United Nations Global Compact's ten principles which are related with the areas of human rights, labor, the environment and anti-corruption. With respect to the planet-environment side of the issue, Zorlu Holding accepts encourage the development of environmentally friendly technologies - A+ A++ products - , promote environmental responsibility, and support preventions for environmental harm.

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According to Waste Electrical and Electronic Equipment(WEEE) and international equipment utilization standard Restriction of The Use of Certain Hazardous Substances (ROHS), Vestel products does not contain lead, mercury, cadmium, Cromium +6, PB B, and PBDE. Based on greenhouse effect, low-level gases suchas ODP (ozone depletion potential) and GWP (global warming potential) are used in manufacturing of refrigerators and air conditions. As a member of TAP (Portable Battery Manufacturers and Exporters Association),and ÇEVKOV(Environmental Protection and Packaging Waste Evaluation Foundation) , the battery wastes fTrom production stages are 'collected and recycled by TAP whereas packaging wastes by ÇEVKOV according to the quota' [11] . EU Energy Label and the other one is EU Eco-Label (Euroflower) covers %90 of products of Vestel.


For a successful business life, social dimensions of the society must be included in business concerns. Thence, social responsibility of a company should be measured and taken into consideration by businesses.

From the people point of view, labour is one of the most important field of application for a company. Therefore, job opportunties are offered to the disabled and handicapped persons over than the legal quota in Zorlu Holding , 'there is no lawsuit filed against Zorlu Holding on the ground of non-performance of obligations in the field of Human Resources.' [12] , with respect to the Occupational Health and Safety (OHS) - OHSAS 18001; security of the workplace, occupational safety and environment, occupational accidents and disease, emergency circumstances, risks, trainings for risk, impact of changes in environment and occupational safety, promotion and revision of environment and occupational safety policies and targets, documents relating to environment and occupational safety management system, environment and occupational safety surveys are provided to labour and certificated by authorities, and last of all as it mentioned before Zorlu Holding does not employ child labor or underage workers.

As another aspect of a people point of view, culture and society-citizens and consumers- are also attached importance by Zorlu Holding. For culture and society, Mehmet Zorlu Foundation has involved several projects as it mentioned before.(pg. 5) For consumers, as one of the most consumer focused company , Zorlu Holding knows exactly who their customers are and what they need to provide.

Ladder of Green-ness

The rapid growth of consumer consciousness about environmental issues leads companies to think about their level of environmentalism with respect to their competitors in the same sector. From the bottom-anti green to the top-militant green, companies can be grouped under eight categories with respect their responsiveness to the environment and nature.

According to the ladder of Green-ness, Zorlu Holding can be defined as 'Green Partner' because of several projects and initiatives which are operated by solely Zorlu Holding companies and in the cooperation with several businesses from varied sectors, non-governmental organizations (NGOs) and local authorities.

Global Contact (pg. 8)

CDP-Carbon Disclosure Project:

'CDP is an international, not-for-profit organization providing the only global system for companies and cities to measure, disclose, manage and share vital environmental information' [13] about climate change, supply chain, cities, water, forests, and carbon change. In 2011, Carbon Disclosure Leadership Award was granted to the Zorlu Enerji Elektrik Üretim A.Åž. in the ranking of transparency of greenhouse gas emissions and climate change risk management strategies with respect to the independent assessment of Ernst and Young Turkey.

ISO 14001, ISO 9001, 18001 Occupational Health and Safety Management System Certificate ,Certificate from TSI in 2008:

With respect to the accountability and transparency of a company, a company needs to fulfill all its obligations and responsibilities on the subject of minimization of environmental harms at the consequence from company's operations, presentation of nature-compatible products to market. For that reason, Zorlu Holding was evaluated with respect to several dimensions, and granted to those certificates.

WEEE and ROHS (pg. 8)

TAP and ÇEVKOV (pg.8)

ECOSecurities Group- Carbon Emission Sales Contract

According to the contract and agreement between ECOSecurities Group, electrical energy is produced in Zorlu Power Plants without causing environmental pollution.

VERPA- Purchasing Agreement Agreements

With the supports of VER-based (Voluntary Emission Reduction) funding, wing power plant project which is one of the Turkey's and world's largest energy project awarded Gold Standard Certificate 'foresees a production approximately 500 million MWh per year with zero CO2 emission' [14] .

Chapter III- Conclusions and Recommendations to Zorlu Holding

The concerns for ethical governance and social responsibilities of companies no longer remain in theses, theories or non-governmental organizations projects. Today, all of the companies need to go beyond traditional management aims-profit- and solely shareholder focus instead of stakeholder satisfaction. That being said, representatives of socially responsible companies and the other ones which are not can be found in abundance.

However, while the positive and negative effects [15] of the corporate activities of Zorlu Holding on the society can be argued, I believe that it is easily concluded that Zorlu Holding is a good example of a socially responsible company by voluntary hazard elimination, developing own company foundation, and using green technologies and policies, and social awareness of companies ,

Even though socially responsible behaviors and projects of Zorlu Holding mentioned above for many times, 'there is always a better way' [16] . As a Turkish citizen who knows the dynamics of Turkey and Turkish culture, I believe that understanding the role of women in the society and lack of opportunities provided to Turkish women are the topics which businesses must attach importance with respect to the their responsibilities toward the society. That's why Zorlu Holding should have taken cognizance of as much as the topics of education, art, and sport.

Chapter IV- Bibliography