Our Responsibility Towards Our Employees

Borusan Goup Human Resources Policy
Our employees are the most valuable corporate
asset of the Borusan Group. The human resource
initiatives play an important role in the long-term
success of the Borusan Group.
Compliance with legal requirements pertaining
to employee rights, privacy, equal employment
opportunity, safety, security and health are
considered as hygiene factors of Borusan Group
human resource policy. The primary principles
of our human resource policies include; the
recruitment of employees that have high potential,
maintaining employee dedication to the Group,
and ensuring the continuity of their career
development. With this goal in mind a dynamic
performance management system is utilized to
provide a just and competitive compensation
package.
Employee Recruitment and Evaluation System
The Recruitment and Evaluation System for employees being
utilized at the Borusan Group is based on the strategy of the
“Right Person for the Right Job.” All potential candidates
interested in fulltime, part-time or internship positions at any of
the Borusan Group companies can visit our website for further
information, as well as to submit an application.
In the employee selection process at the Borusan Group we
utilize modern recruitment and evaluation techniques which
enable us to select among professionals who are able to create
a difference as a result of their performance. This system also
helps us fi nd persons who are a perfect match in terms of the
competencies required for the job as well as the values of
the institution. Depending on the specifi c requirements of the
position, Borusan may also request candidates to take a foreign
language exam, go through competency based interviews, a
profi le analysis.
The Borusan Group’s goal is to become the employer of
choice. In an atmosphere of increasing competition for qualifi ed
employees the Group has adopted an effective recruitment
process.
In order to develop talented future managers Borusan has
been implementing the Development Personnel Project in
cooperation with various universities. This program calls for
studies conducted with university students on a project basis.
New graduates are offered job prospects while undergraduates
are given the opportunity of internships.
Borusan provides a modern, dynamic and transparent
environment where all the employees are able to develop
themselves to their fullest potential. As such, they can quickly
access any information they need
Performance Management System
Since the employees play the most important role in the
attainment of the Company’s vision-driven strategic targets,
the primary purpose of the Performance Management System
is to provide an objective assessment of each employee’s
performance in order to elicit their potential. We conduct
performance appraisals on an annual basis. The business
performance objectives of each Borusan Group employee are
linked to the departments and Company’s Balanced Scorecard.
Individual developmental targets are based on the results of
the 360 Degree Competency Evaluation System which is also
conducted on a yearly basis.
360 Degree Competency Evaluation System
The competency evaluation allows the assessment of the
capabilities of all Borusan Group employees by utilizing a
360 degree approach that takes into account the opinions of
subordinates, managers and peers, plus the person’s opinion
of themselves. With the help of this system the differences between the required job competencies and the individual’s
abilities are determined in order to determine areas that need
further development. We do performance appraisals so as
to examine and explore the individual’s effort and success in
accomplishing tasks, responsibilities and objectives.
The 360 Degree Competency Evaluation System is designed
to evaluate the competencies of employees in an analytical
manner. Simultaneously, the performance evaluation process
guides us in the formation of career development areas and our
reward system.
Career Management
At Borusan, we believe that career management is the basis
of our human resources practices. All of our recruitment
processes, the delineation of organizational needs and training
and development opportunities, as well as career planning
needs, are determined through this methodology. In our annual
Management Review meetings detailed assessments are
provided for employees at all levels. We endeavor to develop
employees who consistently meet or surpass their targets,
develop their competencies, prepare themselves for the
responsibilities of a higher post, take on diffi cult assignments
without prompting and create a discernible difference with their
attitude and personal qualities.
There are two primary aims of the Management Review
process. The fi rst is to identify the Borusan employees who
demonstrate the highest potential. Along these lines, vertical
and horizontal career plans are prepared for employees to
determine the ways in which they can advance in their future
careers. As a fi nal step the employees’ areas for development
are defi ned and specifi c progress plans are prepared. Our
second aim is to devise an effective career plan, especially
for our key positions. During this process the appropriate
employees are identifi ed, their personal and professional
development plans are prepared, training is initiated and job
rotation is put into operation.
The Borusan Academy
The Borusan Academy was established in March of 2006
with the vision of “fostering (or developing) business leaders
who create value.” The Academy was designed as a tool for
strategic information management, leadership development,
performance management and employee development.
After the Borusan Academy was established, we began to
create programs which are designed to ensure continued
development in accordance with the present Group and
company strategies, targets and priorities, as well as their
needs and resources.
The Primary Objectives of the Borusan Academy are:
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To centrally manage all training and development programs
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To provide all the necessary training and development
opportunities necessary for employees to perform their
duties more effi ciently and effectively.
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Developing a joint standard for the training and
development needs of the whole group while effectively
managing the differences between companies.
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To assure the continuity of training and development
processes
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To give precedence to training and development programs
that will create a difference in terms of the strategic
priorities which have been determined in order for the
Group to reach its 2010 targets
The Borusan Academy Training and Development
Programs
The Borusan Academy is a continual development platform
for all Borusan employees. The training and development
programs offered by the Academy are multidimensional:
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In addition to joint training programs designed to improve
the common competencies and business processes of all
Group workers, product and service oriented training that is
company-specifi c is also given.
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The development programs consist of two basic areas.
First, Group-specifi c programs focus on leadership forums
and internal training program Secondly, company-specifi c
development programs concentrate on such topics as
project management, job rotation and critical job tasks.
The fi rst step of Borusan Academy’s training and development
process for all new employees is known as “The Borusan
Group Orientation Program.” This program was designed
as an e-training module, but it also includes company visits.
The purpose of this training is to provide all employees with a
general background concerning the Borusan Group. All new
employees are required to complete this unit within the fi rst
three months of their employment.
In keeping with the vision of the Borusan Group that all
employees embrace its corporate culture, a second module
was developed, namely the “Borusan Citizenship Training
Program.” This course consists of six completely different units
and lasts for 14 days. All employees are required to fi nish this
program within two years from the date of their employment.
In addition to these programs there is also personal
development training for all Group employees. Every
individual can participate in these programs either for personal
development or to fulfi ll the requirements of their present
position. Finally, the Academy also offers faculty equipping
programs, such as Leaders Faculty, Sales Faculty and 6 Sigma
Faculty. The fi rst two of these are permanent and certifi cation
based training programs for Borusan employees.
Participation in these types of programs requires the fulfi llment
of certain criteria and courses are open to Borusan employees who meet specifi c conditions. The leadership and sales faculty
programs are offered in conjunction with Sabancı University.
All Lean 6 Sigma training is provided within the framework of 6
Sigma Faculty by internal trainers. The Lean 6 Sigma Faculty
aims to convey the 6 Sigma methodology to all Borusan
employees and provide for their development in this system.
Through the Borusan Academy the Group is making an
important investment for the equipping and growth of its
employees. In line with our 2010 Group vision, we have nearly
doubled our training and development budget. Besides a
nearly $ 8 million budget allotment for the Leaders and Sales
Faculty Program through the end of 2010, the Group has
budgeted $ 3.5 million annually for other joint training programs.
Employee Satisfaction Survey
Our human resources system has been designed not only to
recruit the best talent but also to foster mutual satisfaction.
At the Borusan Group we believe that satisfi ed employees
create better business results, ensure higher customer loyalty
and obtain better fi nancial performance results. An employee
satisfaction survey is implemented annually and the results
are shared with the members of the organization. The
insights gleaned from this study are used to form the basis of
developmental action plans the progress of which is closely
monitored.
Compensation Management
The compensation management system at the Borusan
Group is both satisfactory and competitive. A job evaluation
methodology is developed for each position to formulate a
consistent and objective framework. The primary aim of this
system involves matching the right people with the right roles,
defi ning their career progression and developing target oriented
award programs.
Employee Suggestion System
At the Borusan Group every idea put forth by employees is
evaluated as a suggestion. These concern such areas as
employee and customer satisfaction, increasing effi ciency and
quality, decreasing costs, the improvement of processes and
safety, as well as environmental and social responsibilities.
Procedures have been prepared to defi ne the basis of the
suggestion system and its implementation methods. These
include details about suggestions covering everything from
collection and classifi cation to evaluation and rewards for
positive contributions. The success of our suggestion system
can be seen in the fact that has been a substantial increase
in employee participation each year. With this valuable input
from our people, the Company aims to increase both employee
satisfaction and business success.
Health and Safety
The Group companies with the OHSAS 18001
Occupational Health and Safety Management Systems
Certifi cates are:
Borçelik
Borusan Mannesman Boru
Kerim Çelik
Borusan Lojistik
Occupational Health and Safety at Borçelik
The concept of occupational health and safety has always
been a priority at Borçelik. As the Company considers its
employees to be its most valuable asset, the management
gives great importance to providing a safe and healthy
working environment. In order to prevent possible injuries and
potential job loss it is vitally important for employees to fully
adhere to occupational safety regulations. After assessing
potential risks pertaining to the working environment at Borçelik
certain employee related preventative measures are regularly
implemented. These include hearing and eye exams, lung
x-rays and general health checkups. Borçelik attempts to
create further awareness among its employees at its Annual
Occupational Health and Safety Day activities. During this
special day in 2007 all the Company’s divisions viewed an
educational video on occupational safety and earthquake
emergency training. Employees participated in discussions
afterwards to share possible methods of preventing accidents.
Borçelik currently implements the Safety Training Observation
Program (STOP) which was developed by Dupont. One of the
objectives of the STOP individual job safety inspection system
involves informing employees about the impact injuries have
on the injured parties, colleagues, family members, supervisors
and the organization as a whole, making them aware of why
it is important to prevent injuries and occupational illnesses.
Furthermore, it aims to inform workers of their individual
responsibilities regarding job safety, teaching them how safety
can become a part of their everyday activities. Consequently,
the STOP program has been effective in reducing injuries,
providing an opportunity to work safely and eliminating risky
behavior. It also decreases expenses related to accidents and
injuries. In addition, the STOP program has been credited with
helping to improve competency in observation, communication
and leadership while creating more awareness about the
importance of job safety. Especially benefi cial is its clear
defi nition of safe and unsafe acts and working conditions.
The management of the Borçelik Cold Rolling and Galvanizing
Facility has prepared a written policy pertaining to occupational
health and safety and shared it with all of its employees. As
a part of its philosophy of continual improvement Borçelik has
made a commitment to:
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Setting up an effective system that will prevent all accidents and occupation related illnesses
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Determining occupational health and safety risks, as well as
managing risks by resolving weak areas while maintaining
and developing strengths
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Establishing a supportive culture which requires visible
leadership and clear responsibility
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Offering an effective training which allows everyone to safely
perform their job
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Researching the reason for all accidents and harmful events
to prevent their reoccurrence
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Creating a culture where unsafe jobs are eliminated
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Establishing measurable performance indicators to monitor
our development in health and safety at work through
regular inspections and reports
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Adhering to all applicable laws and other related regulations
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Taking all the necessary precautions to ensure the safety of
all subcontractors, visitors and others who have access to
our place of business
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Fully encouraging the attainment of “Zero Job Accidents”
goal and providing all the necessary support for its
achievement
Occupational Health and Safety at Borusan Mannesmann Boru
In Europe, Borusan Mannesmann Boru (BMB) has become
an model in the steel pipe sector which is its primary area of
business. All employees and management personnel comply
with all applicable laws and regulations pertaining to job health
and safety in order to attain the target of “Zero Job Accidents”
and provide a healthier and safer working environment for all
employees, customers and suppliers.
Based on its ideals of constant improvement, BMB’s health
and safety management system continually assesses all
potential risks brought about by its activities and implements
all necessary measures to bring these risks under acceptable
levels. The Company constantly monitors the system and
activities that have been established and is open to external
inspections by concerned parties or organizations. BMB utilizes
a scoring system designed to minimize all elements of risk in its
work. Following any mishaps a risk score is assigned for each
accident and corrective measures are taken to immediately
eliminate the conditions leading to the incident. In addition,
employees are encouraged to provide input concerning
risk assessment before a job is performed and preventive
measures are implemented to thwart any potential accidents.
Occupational Health and Safety at Kerim Çelik
From the day it was founded Kerim Çelik has always given top
priority to the concept of “job safety” in terms of its services
and the upgrading of the technological innovations it utilizes.
In 2007 the Company obtained its OHSAS 18001 certifi cation and successfully passed all inspections. As per requirements
set forth in the OHSAS 18001 Quality Management Systems
certifi cation process, Kerim Çelik has made a commitment of
full compliance with all legal regulations. All of the monitoring
and inspection of job safety regulations is handled through its
quality system.
In keeping with its job safety policies and philosophy of
continual improvement training, drills and risk analyses are
systematically conducted every year at Kerim Çelik. With the
help of the 6 Sigma methodology implemented throughout
the Borusan Group of companies, Kerim Çelik aims to attain
its goal of “Zero Job Accidents” by establishing job safety
management systems which will ensure compliance to all job
safety regulations.
Occupational Health and Safety at Borusan Lojistik
Since 2003 Borusan Lojistik has been actively involved in
various activities pertaining to occupational health and safety.
Initially, the Company received consultation with regard to
occupational health and safety at its port facilities and later, in
2004, it was awarded the OHSAS 18001 Quality Management
Systems Certifi cate. In 2006 fi eld applications of 5S were
started, emergency situation training was conducted and
a class “C” job safety authority was appointed for the port
facilities. Meanwhile, in 2007 Borusan Lojistik began a risk
management project, conducted research on accidents and
implemented training for root cause analysis. In 2008 the
Company selected and secured special protective equipment
for fi eld and work areas.
Occupational Health and Safety at Borusan Makina
In order to emphasize the importance of occupational health
and safety at Borusan Makina, the Company designed a
specifi c procedure and began a 6 Sigma Project for this
purpose. The primary aims of the project are:
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Reducing job related accidents to the lowest number
possible
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Eliminating absences due to work related illnesses
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Reducing the number of workdays missed
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Creating a healthy and safe working environment
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Preparing for legal inspections
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Establishing absolute control over OHS expenditures
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The occupational health and safety procedures established
at Borusan Makina are based on compliance with all legal
regulations. Within this framework Occupational Health and
Safety Authorities were established covering the regions of
Çayırova and Merkez. The purpose of these authorities are:
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Occupational Health and Safety – the organization and
management of the environment program
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The establishment of security procedures, as well as risk and duty analyses
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The employee orientation and awareness programs
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Danger assessment and reporting
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Job accident management and corrective activities programs
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Emergency situation plans and equipment (or “equipping”?)
program
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The Health check up program
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Design, control and purchasing of safety systems
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The control and improvement of physical conditions
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The periodic reporting of current conditions
During 2008 the authorities provided training for their
employees on the following topics:
- OHS Entry - Legal Regulations
- Job accidents - Occupational Illnesses
- Labeling - Locking - Marking - Pictograms
- Working in limited (restricted?) areas
- Ergonomics - Hygiene
- Personal protective equipment - Machine protectors
- Risks and risk analysis