The impact of non-financial factors on the understanding of corporate responsibility in Turkey: The example of SME's in Ankara

Corporate responsibility has become prevalent with the intensified processes of globalization and increased social expectations from corporations. Corporate responsibility can be summarized as the consideration of economic, environmental and social benefits in all business processes by corporations. In accordance with the corporate responsibility, companies are setting measurable goals and trying to achieve financial results; in this way, they protect their self-interest. However, in the countries like Turkey, non-financial factors, or in other words, cultural factors such as cultural values, religious beliefs and traditional elements are affecting the understanding corporate responsibility. This effect is especially apparent on the small and medium enterprises (SME's) which are relatively less affected by global markets and reflecting more traditional values. The aim of this thesis is to understand how cultural factors, which are consisted of traditional philanthropic elements, such as cultural values, religious beliefs, Ahilik system and foundations (waqfs) affect the corporate responsibility understanding of SME's in the manufacturing sector of Ankara. Findings of the qualitative field research show that SME's in Ankara perceive corporate responsibility related activities predominantly with non-financial factors. From this viewpoint, it is possible to predict that strong connections can be established between traditional philanthropy and good business ethics, and the concept of modern corporate responsibility. On the other hand, perception of corporate responsibility based on cultural factors, carries the risk of restricting the scope of corporate responsibility, which is a concept producing new localities although disseminated by globalization.