MDG-F 2067

UN Joint Program “Harnessing Sustainable Linkages for SME’s in Turkey’s Textile Sector”

Inception Report

Version History

Version No Description Date

IR.V1 Produced by JP Manager Feb 2011

IR.V2 Cleared by the JP Team Mar 2011

IR.V3 Cleared by the JP Committee Mar 2011

IR.V4 Cleared by the National Steering Committee Mar 2011

MDG-F 2067 is a UN Joint Programme, implemented in Turkey by United Nations Development Programme, United Nations Industrial Development Organisation and International Labour Organisation in cooperation with General Secretariat of Istanbul Textile and Apparel Exporters’ Associations.

C o v e r P a g e

CONTENTS

Executive Summary.........................................................................................................................................................................1Introduction and Context................................................................................................................................................................4

The Global Textile and Apparel Industry.....................................................................................................................................4The National Textile and Apparel Industry..................................................................................................................................4

Methodology and Approach............................................................................................................................................................6JP-specific Implementation Strategies........................................................................................................................................6

Improving skills and capabilities to collaborate (Outcome 1).................................................................................................6An Integrated Approach for CSR Enhancement (Outcome 2).................................................................................................7

Sustainability Strategy.................................................................................................................................................................8An Equal Emphasis on Skills and Capabilities..........................................................................................................................8Scalability of the Intervention.................................................................................................................................................9Inclusiveness and Participation...............................................................................................................................................9Cooperation with other Projects and Programmes................................................................................................................9Communication and Outreach..............................................................................................................................................10

Description of JP Activities............................................................................................................................................................11Outcome 1................................................................................................................................................................................ 12

Output 1.1............................................................................................................................................................................12Output 1.2............................................................................................................................................................................13Output 1.3............................................................................................................................................................................15Output 1.4............................................................................................................................................................................16

Outcome 2................................................................................................................................................................................ 18Output 2.1............................................................................................................................................................................18Output 2.2............................................................................................................................................................................20Output 2.3............................................................................................................................................................................22Output 2.4............................................................................................................................................................................22

Conclusions and Recommendations..............................................................................................................................................24Conclusions...............................................................................................................................................................................24Recommendations....................................................................................................................................................................24

Annex 1: Inceptıon Phase................................................................................................................................................................1Annex 2: JP Management and Coordınatıon.................................................................................................................................13Annex 3: JP Monitoring Framework..............................................................................................................................................15Annex 4: Budget & Work Plan.......................................................................................................................................................19Annex 5: Risk Assessment Matrix..................................................................................................................................................20Annex 6: Projects and Programmes for Cooperation....................................................................................................................23Annex 7: Communication Matrix...................................................................................................................................................25Annex 8: FORMATION of Technical Advisory Committee (TAC).....................................................................................................27

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LIST OF TABLES

Table 1: Three Levels of CSR Enhancement.....................................................................................................................................8Table 2: Stakeholders......................................................................................................................................................................9Table 3: JP Outcome 1, at a snapshot............................................................................................................................................12Table 4: JP Output 1.1, at a snapshot............................................................................................................................................12Table 5: JP Output 1.2, at a snapshot............................................................................................................................................13Table 6: JP Output 1.3, at a snapshot............................................................................................................................................16Table 7: JP Output 1.4, at a snapshot............................................................................................................................................16Table 8: JP Outcome 2, at a snapshot............................................................................................................................................18Table 9: JP Output 2.1, at a snapshot............................................................................................................................................19Table 10: Anticipated scope of Output 2.1 and division of labor for its generation.......................................................................19Table 11: JP Output 2.2, at a snapshot..........................................................................................................................................21Table 12: JP Output 2.3, at a snapshot..........................................................................................................................................22Table 13: JP Output 2.4, at a snapshot..........................................................................................................................................23

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ACRONYMS

ABIGEM EU Turkey Business Development Centre

CSR Corporate Social Responsibility

DİSK-TEKSTİL Trade Union of Textile Workers

DOGAKA East Mediterranean Development Agency

FKA Fırat Development Agency

GDP Gross Domestic Product

İGEME Turkish Export Promotion Agency

İKA İpekyolu Development Agency

ILO International Labour Organization

ITKIB General Secretariat of Istanbul Textile and Apparel Exporters’ Associations

JP Joint Programme

JPM Joint Programme Manager

KOSGEB Presidency for SME Development and Support

KSSD Corporate Social Responsibility Association of Turkey

MDG Millennium Development Goals

MoIT Ministry of Industry and Trade

MoLLS Ministry of Labour and Social Security

NSC National Steering Committee

Öz İplik-İş Trade Union for Workers of Woven, String, Knitting and Clothing Industries

PMC Programme Management Committee

RC Resident Coordinator

SME Small- and Medium-sized Enterprises

SPO Undersecretariat of State Planning Organization

T/A Textile and Apparel

TEKSİF Textile, Knitting and Clothing Workers Union of Turkey

TÜTSİS Turkish Textile Employers Association

UFT Undersecretariat for Foreign Trade

UN United Nations

UNDP United Nations Development Programme

UNIDO United Nations Industrial Development Organization

VCMP Value Chain Management Platform

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EXECUTIVE SUMMARY MDG-F 2067: “Harnessing Sustainable Linkages for the SMEs in Turkey’s Textile Sector” is a joint programme (hereinafter “the JP”) of United Nations Development Programme (UNDP), United Nations Industrial Development Organization (UNIDO) and International Labour Organization (ILO), implemented by the General Secretariat of Istanbul Textile and Apparel Exporters’ Associations (ITKIB).

The JP aims to contribute to the progress towards achievement of the Millennium Development Goals (particularly MDG1, MDG3, MDG7, and MDG8) by means of increasing networking and collaboration among textile and apparel manufacturers (Outcome 1), and integrating sustainable development, CSR principles and gender equality into the business processes and practices in the textile and apparel industry (Outcome 2).

The JP is a timely intervention to help Government of Turkey operationalise the National Textile Strategy (2009), which envisages and supports creation of regional clusters that specialize on different nodes (design, R&D, manufacturing etc.) of the textile and apparel value chain. The Government of Turkey has already introduced certain measures (e.g. incentives such as tax cuts, social security premium etc.) to implement this strategy; however the long-term sustainability and success of the strategy hinge heavily on the level of networking and collaborating between the various nodes of value chains, scattered across the country, and the level of skills and capabilities of the local manufacturers in terms of adopting economically sustainable, and socially and environmentally responsible business practices. As such, the key success factors of Government’s strategy coincide nicely with the two outcomes, which the JP is set to achieve. The complementarities between the Government’s strategy and the JP’s outcomes are the strongest assurance of sustainable impact of the JP.

The strategy of the JP is geared towards creating skills (i.e. the learned capacity to carry out certain functions) and improving competencies (i.e. the ability to use learned capacity) to achieve its ambitious, yet achievable, outcomes. In other words; the JP not only aims at creating and/or improving the skills of the T/A industry, but also includes measures (i.e. development of tools, replicable models) which will make the T/A industry capable of using their new or improved skills in a sustainable manner.

Against this background, the inception phase of the JP has been utilized to confirm the ongoing relevance of the design of the JP with the national/local context, and to test viability and feasibility of modifications that would further enhance the expected impact of the JP.

An important finding of the inception phase concerns an emerging risk associated with past and ongoing work on “clustering” in Turkey. Clustering approach is an important element of the JP, especially with respect to achievement of Outcome 1, having spill-over effects on Outcome 2, as well. Some of the previous attempts that supported regional and local clustering initiatives in the target regions did not create the anticipated results, thus it is now harder for the JP revive target groups’ (SMEs’) interest in this highly rewarding approach. UNIDO’s expertise and established role in facilitating cluster development especially in less developed regions, is a strong assurance for the JP. In addition to this UNIDO and UNDP agreed to strengthen the linkages between activities related to cluster development and SME support scheme, envisaged under the JP.

The Development Agencies, which were “in-the-make” during the preparation of the JP, have been established and have become important agents of regional economic development. The JP realizes the emerging yet rapidly expanding roles of development

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The complementarities between the Government’s textile and apparel strategy and the JP’s outcomes are the strongest assurance of sustainable impact of the JP.

The JP will not only create and/or improve skills, but also make the target groups capable of using their new and/or improved skills

Better alignment of inter-agency activities help mitigate emerging risks and ensure increased efficiency and effectiveness.

The JP established linkages with development agencies, creating a strong regional base for operations.

agencies in matters concerning regional development and hence incorporates them as regional institutions for collaboration into the JP’s overall work programme.

Another achievement of the inception phase was the better alignment of the JP activities that require inputs from the partaking UN Agencies. The details of such revisions/modifications to the JP activities are addressed in detail in the IR. Additionally, synergies between the JP and ongoing projects of the involved UN Agencies have been established. The ongoing partnership between UNDP/IBM Corporate Service Corps Program in Turkey has been instrumental in providing expert opinion for deployment of the Value Chain Management Platform (VCMP). Linkages have also been established between the JP and Promoting Registered Employment in Southeast Anatolia Project (UNDP, ILO and ITKIB). Further examples of linkages established with other projects and programmes are elaborated in detail in the inception report. It also became evident that had the JP had not existed, exploitation of such synergies would have been harder.

In summary, the work carried out during the inception phase confirmed that the strategic focus of the JP remains highly relevant to the national context as well as to the MDG Achievement Fund. The strategy of the JP contributes to the overarching national policies and programmes, and is owned by the national authorities. Secondly, the inception phase also demonstrated that relocation of the sub-national gravity centre of the JP from Kahramanmaras would contribute to both aid effectiveness and prospects for greater impact. Thirdly, areas where further efficiency gains are possible through minor (activity-level) operational and budgetary revisions have been identified and introduced. Such measures include concrete cooperation opportunities with ongoing projects and programmes of the partaking UN Agencies. Fourthly, the inception phase provided the JP partners to assess the risks that may have an effect on the JP, and introduce relevant risk mitigation measures. Finally, the inception phase was utilized to conduct a thorough stakeholder analysis, which revealed additional collaboration opportunities (i.e. development agencies).

A notable achievement of the JP during the inception phase was its recognition by the stakeholders and target groups as an innovative intervention. The JP’s intervention modality diffuses MDGs into the daily business practices of the target groups by putting competitiveness, the most appealing notion for SMEs, on the forefront of the intervention. The JP melts information and communication technologies, process innovation, clustering, decent work, environment, competitiveness, institution building, skills development etc. in the same pot. All these different and individually essential elements could have been subjects of individual projects at their own merits. The inception phase demonstrated that comprehensive yet integrated nature of the JP is not only its biggest challenge, but also its strongest value proposition and assurance for sustained impact.

The partaking UN Agencies and ITKIB are aware that the inception phase has taken longer than anticipated. However it is also to be noted that such an extensive analyses, which is expected to justify the delay with the additional value that the JP will create, would not have been possible, had sufficient time not been allocated. The inception phase could have been much shorter; however this would have come at the expense of losing sight of elements that would boost JP’s long-term impact, overlooking the multiplier effects of creating synergetic collaboration opportunities, and last but not the least a problematic implementation period.

The inception report at hand is composed of five sections. The first section introduces the JP and the context, by focusing on the key elements (e.g. strategy, outcomes, outputs etc.) of the JP vis a vis the general context and environment, in which the JP is to be implemented. This section intends to lay the ground for the rest of the report. The second section of the report focuses on methodological issues concerning the implementation and coordination of the JP, forming the background of the third section

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Synergetic opportunities between the JP and ongoing projects and programmes of partaking UN Agencies have been identified and incorporated into the JP’s work plan.

The comprehensive yet integrated nature of the JP is not only its biggest challenge, but also its strongest value proposition and assurance for sustained impact.

A belated inception report was not called for, yet the expected benefits will justify the delay.

The IR has 5 sections; starts with why and where, continues with how and ends with conclusions and recommendations.

which elaborates on JP activities. The fourth section concludes the report, and presents recommendations, which will be considered taken with the approval of the report.

The following annexes complement the inception report:

The following annexes complement the inception report:

Annex 1: Inception Phase Annex 2: JP Management and Coordination Annex 3: JP Monitoring Framework Annex 4: Budget and Work Plan Annex 5: Risk Assessment Matrix Annex 6: Projects and Programmes for Coordination Annex 7: Communication Matrix Annex 8: Formation of Technical Advisory Committee

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INTRODUCTION AND CONTEXT

THE GLOBAL TEXTILE AND APPAREL INDUSTRY

The global textile and apparel industry commands a highly sophisticated value chain, consisting of a number of discrete activities, scattered across the World. It is rather difficult to characterize the global TA value chains by a uniformed set of characteristics. On one hand, there are heavily commoditized segments (e.g. basic t-shirts) where cost is by far the most important driver of competitiveness; but on the other hand, there are higher value-added segments (e.g. technical textiles, fashion products etc.), in which the competitiveness is derived not only from cost but also from innovation, R&D etc.

The abolishment of the international Agreement on Textile and Clothing, introduced a quota-free environment for international trade of textile and apparel products. However, liberalization of international trade in TA industry has always been a highly controversial issue, for both textile and apparel contribute to employment in developing as well as developed countries. Thus there have been temporary total or partial disturbances to the fully liberalized trade of such goods. Despite these disturbances, the international trade of clothing products tripled over the last two decades; whereas that of textile products doubled (Source: WTO).

The significant increases in international trade of textile and clothing products, reaffirms the highly scattered and globalized nature of the T/A value chain. Thus on the supply side the most important element that has an impact on the functioning of the T/A industry has been the globalization of the value chain. It is basically because of this trend that the conventional wisdom said that the manufacturing capacity in the T/A industry always moves to “the East” (or to “the South”, in contemporary international development jargon). That is to say as an economy grows, it will find it harder to sustain low cost production.

However, the dramatically changed nature of demand, especially over the last two-three decades, is poised to prove the aforementioned conventional wisdom, at least partially, wrong. The consumers, specifically in the developed markets, have become socially more demanding. The mainstream consumer markets have gotten more and more concerned with the social issues (e.g. environment, fair labour etc.), making the global producers and retailers to take actions towards adopting and ensuring socially responsible manufacturing practices. Even a small rumor, say subcontractor of a global brand employing children, may have detrimental and long-lasting effects on sales of the global brand. Another important concern for the global brands is to decrease their carbon footprint, which is possible only if the distance of shipments is reduced. Thus more and more, the global brands are looking into ways of consolidating their supply chains in smaller geographies.

THE NATIONAL TEXTILE AND APPAREL INDUSTRY

In the midst of such dynamics, the Turkish T/A industry has grown rapidly in the last three decades, making Turkey one of the important players of the global T/A industry. According to World Trade Organisation (WTO), Turkey was the fourth largest exporter of clothing products, following China, EU27 (including intra-EU trade) and Hong Kong, China (including re-exports) in 2009. Again according to the WTO statistics, Turkey is the eighth biggest textile (fiber-yarn-fabric) supplier with 3.7% of global trade in textiles.

Turkish T/A industry’s rapid growth has also made it one of the most important engines of growth, employment and exports in Turkey’s national economy. The T/A industry contributes 8% to national GDP, 16% to industrial output and 18% to total exports; and employs 11.4% of the registered labour force in the country.

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The global textile and apparel industry commands a highly sophisticated value chain, consisting of a number of discrete activities, scattered across the World.

The international trade of clothing and textile products increased significantly over the last two decades.

On the supply side, the most important element that has an impact on the functioning of the T/A industry has been the globalization of the value chain

On the demand side, the increased awareness of the consumers of social issues has resulted in a more demanding customer profile.

Turkey is the fourth largest exporter of clothing and eighth largest exporter of textile products in the Word.

The T/A industry is an indispensable element of Turkey’s economy.

Turkey is one of the few countries that can command the entire T/A value chain - from cotton to final products. The industry hosts vertically integrated manufacturers that possess in-house ginning, spinning, weaving, dyeing and finishing capabilities, as well as specialized large-scale manufacturers (e.g. yarn manufacturers) and small- and medium-scale enterprises (e.g. cut-make-trim, accessories etc.).

Turkey’s manufacturing capacity owes to large investments on tangible assets (i.e. technology, machinery etc.), which made it possible to establish a well-developed textile finishing industry in the country. This is critical, as it is impossible to meet the requirements of the higher value-added segment in the absence of such a physical infrastructure. Starting in early 2000s the investments on intangible assets (i.e. skills, design, R&D etc.) has also gained momentum. As a result of these developments, today one can see Turkish brands, marketed in world’s leading retailers, as well as Turkish brand stores, marketing their own products.

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Turkey is one of the few countries that can command the entire T/A value chain.

The industry invested not only on tangible but also on intangible assets.

METHODOLOGY AND APPROACH

Although such a brief introduction is not sufficient to explain the functioning of global T/A industry and the state of play in Turkey, it provides sufficient hints to understand the rationale of the Government of Turkey’s strategy for the T/A industry. The officially announced “Strategy Document for the Textile, Apparel and Leather Products” envisages, inter alia, increasing the competitiveness of the national T/A industry by facilitating greater degrees of specialization at the sub-national (regional) level. For instance; the strategy foresees relocation of labour-intensive parts of the T/A value chain into regions/provinces where unemployment rates are high, whereas cost of living is lower. Although similar strategies and attempts (i.e. relocation of manufacturing capacity to a lower-cost region within the same country) have not always been successful, Government’s strategy seems to be the only way, if Turkey is to sustain its unique and inimitable advantage commanding the entire T/A value chain.

It is exactly at this point where the present JP comes into play. For the Government’s strategy to work, an environment that would enable such a transformational change needs to be created. For instance, relocation of manufacturing capacity would call for increased levels of networking and collaboration capabilities so that the advantages of proximity do not completely vanish. Secondly; although the manufacturing capacity can be physically relocated with some cost, certain intangible assets, such as know-how, managerial skills etc. cannot be transferred, as readily as the tangible assets. The JP is set to generate scalable and replicable solutions to address these issues.

The JP is expected to facilitate further progress primarily towards MDG1 (End Poverty), MDG3 (Gender Equity) and MDG7 (Environmental Sustainability). The methodology of the JP integrates JP-specific strategies (i.e. networking, collaboration, CSR) with horizontal strategies (i.e. sustainability, gender etc.).

JP-SPECIFIC IMPLEMENTATION STRATEGIES

JP-specific implementation strategies are the means, through which the JP will contribute towards achievement of JP Outcomes. In plain words, the JP aims at facilitating implementation of Turkey’s textile strategy by increasing networking and collaboration among the actors of the T/A value chain, and by enhancing corporate social responsibility across the board.

Both of the outcomes of the JP are serving the same goal of supporting SME’s in textile sector which are located at the pilot provinces of Malatya, Adıyaman, Kahramanmaraş and Gaziantep. This support is based on the needs of SME’s in establishing sustainable linkages, by improving their efficiency, innovation capacities and competitiveness by increased and improved utilization of IT, by supporting clustering activities, by increasing awareness on CSR is issues and by supporting the sustainability of this support by the establishment of a Sustainable Competitiveness Center.

Therefore, outcomes 1 & 2 are designed to have linkages and feedbacks with one another.The basic approach of the implementation strategy,a) a diagnostic study of the textile clusters in pilot provinces will provide basis for all other outputs.b) Training and counselling activities focusing on the competitiveness of the SMEs on the subjects of CSR;

environmental conduct, cluster development, sustainability, labour standards shall be provided. SME’s of the pilot provinces will receive financial support from the JP, in relation with their participation and involvement in outcomes 1 & 2, i.e value chain, clustering and CSR activities.

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The Government of Turkey has introduced an ambitious strategy to improve the competitiveness of the T/A industry.

The present JP complements the overarching national strategies.

c) Sustainability Competitiveness Center/network is designed to provide advisory support for the SME’s of the pilot provinces on clustering, CSR, competitiveness and value chain.

IMPROVING SKILLS AND CAPABILITIES TO COLLABORATE (OUTCOME 1)

As indicated above, Turkey is one of the few countries that can command the entire T/A value chain. The national TAL strategy recognizes this advantage, and introduces several measures to capitalize on this particular advantage. One of such measures is promoting regional specializations, through, for instance, encouraging relocation of labour-intensive segments of the value chain from high-cost regions to lower-cost regions.

Regional specializations (i.e. clusters) will create the expected impact (i.e. increased competitiveness), if, and only if, value chain actors within different regions of Turkey can collaborate. The value chain management portal (VCMP), which will be deployed with the support of the JP, will provide the enterprises within the T/A industry to collaborate on an online platform.

The JP’s intervention modality also includes promotion of clustering, as a means of increasing networking and collaboration among the T/A SMEs, in the target regions. Clusters are agglomerations of interconnected companies and associated institutions. Firms in a cluster produce similar or related goods or services and are supported by a range of dedicated institutions located in spatial proximity, such as business associations or training and technical assistance providers.

Clusters and business networks have become keywords in the policy debate in industrialized and developing countries. They are regarded as tools to promote poverty reduction and the development of competitive industries. The Ninth Development Plan of Turkey recognizes clustering as a tool for increased competitiveness, and includes several measures for promoting clusters. As such; JP’s emphasis on clustering as means of increased competitiveness coincides nicely with national policies.

As such, the JP will facilitate improvement of capabilities and skills for both inter-regional and intra-regional collaboration and networking, which will in turn improve the competitiveness of the national T/A industry.

AN INTEGRATED APPROACH FOR CSR ENHANCEMENT (OUTCOME 2)

CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives (“Triple-Bottom-Line- Approach”), while at the same time addressing the expectations of shareholders and stakeholders.

A properly implemented CSR concept can bring along a variety of competitive advantages, such as enhanced access to capital and markets, increased sales and profits, operational cost savings, improved productivity and quality, efficient human resource base, improved brand image and reputation, enhanced customer loyalty, better decision making and risk management processes.

This said, governments have not yet reached consensus on common approaches to CSR, which has meant that the “rules” are being set de facto by the companies embracing it, and these are mostly large Transnational Companies (TNCs). As a result, SMEs, especially those in developing countries and countries in transition, find themselves confronted with approaches to CSR that are often very incompatible to their economic and social contexts. Yet, they cannot afford to ignore CSR, since the very same TNCs that are pushing the CSR agenda hardest are also their clients.

An integrated CSR enhancement strategy usually involves interventions at three levels:

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The VCMP will provide the enterprises within the T/A industry to collaborate on an online platform.

Clusters are agglomerations of interconnected companies and associated institutions.

JP’s emphasis on clustering as means of increased competitiveness coincides nicely with national policies.

The JP will foster both inter-regional and intra-regional collaboration and networking

An integrated CSR enhancement strategy usually involves interventions at micro-, meso- and macro-level.

Micro-level: Assistance on the micro-level involves direct support to a group of companies belonging to the same sector, region, cluster, supply chain, etc.

Meso-level: Support on this level focuses on business support and advisory institutions (public or private) that aim at expanding their service portfolio and strengthening their institutional capacity.

Macro-level: This level involves CSR related policy work with a view to support government institutions in determining what public policies best support a country’s private sector in its efforts to apply socially and environmentally responsible business practices.

The design of the second outcome of the JP includes elements from all these three levels, providing a sound basis, on which a sustainable CSR enhancement strategy can be built and integrated into the national textile strategy.

At the micro-level, the JP includes activities towards development of enterprise tools, such as training materials, reporting tools etc. At the meso-level, the JP activities will support the institutional development activities, particularly at the business support and advisory institutions by means of providing trainings etc. Finally; at the macro-level, the JP will produce a policy note with a view to support relevant government institutions in determining what public policies best support the Turkish T/A industry.

There are trade-offs between a JP implementation strategy that focuses on only one the levels, described above, and that touches upon all three elements, as the present JP does. The benefit of concentrating on one level is the possibility of achieving a higher progress at that level. However that benefit will come at the expense of achieving no progress at the other levels, limiting also the possibilities to enjoy multiplier and/or spill-over effects that one level has on the others.

A second element that has an effect on the design of JP Outcome 2 is the division of labour between partaking UN Agencies. In plain words, each partaking UN Agency is responsible from analysis of one of the three imperatives of the triple-bottom-line approach, mapped against the most relevant MDGs. That is to say, UNDP will lead the analytical efforts with regard to economic imperatives of CSR by focusing on MDG1 and MDG8, while ILO focuses on social conduct and MDG3. UNIDO’s specific responsibility, in term of analysis, concerns MDG7; however UNIDO is also responsible from “putting it all together” and producing a CSR advocacy strategy for ITKIB.

It is to be noted that the original JP foresaw production of a CSR Strategy for the Turkish T/A industry for incorporation into the national textile strategy, whereas the revised design focuses on an advocacy strategy for ITKIB. The analyses carried out during the inception phase revealed that CSR in the Turkish T/A industry will evolve and enhance through a bottom-up approach. ITKIB, as a strong player at the meso-level, is ideally positioned to support the micro-level, coordinate the efforts in the meso-level and advocate for change at the macro-level.

The following table maps the JP outputs against the three levels of intervention to enhance CSR in Turkey’s T/A industry.

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Table 1: Three Levels of CSR Enhancement

Micro-level Meso-level Macro-level

Corporate Social Responsibility assessment report

Awareness raising strategy document

Enterprise-level awareness-raising tool(s)

CSR-based management and reporting tool

Increasing capacity of core JP staff through provision of training on CSR and labour issues.

Corporate Social Responsibility assessment report

Awareness raising strategy document

CSR advocacy strategy document Training to SME support agencies Training of trainers Training of target groups

Corporate Social Responsibility assessment report

Awareness raising strategy Policy Note Awareness raising activities

SUSTAINABILITY STRATEGY

The sustainability strategy of the JP identified five key success factors: (a) an equal emphasis on skills and capabilities; (b) scalability and replicability of the interventions; (c) inclusiveness and participation; (d) cooperation and collaboration with other projects and programmes; and (e) efficient and effective communication and outreach.

A key element of the JP’s methodology is ensuring sustained impact; in other words, ensuring that the capacities to be established and/or improved continue to contribute to progress towards MDGs even after completion of the JP. The strongest assurance of the JP’s sustained impact is the ownership of the ITKIB, which is one of the key players in the Turkish T/A industry.

AN EQUAL EMPHASIS ON SKILLS AND CAPABILITIES

The strongest side of the JP’s intervention modality is its emphasis on both skills (i.e. the learned capacity to carry out certain functions) and competencies (i.e. the ability to use learned capacity) to achieve its ambitious, yet achievable, outcomes. An intervention modality that focuses merely on skills development would still be a valuable effort, however improved skills, combined with the competencies/capabilities to exercise those skills, possess a higher potential to lead to transformational change.

For instance, improving the skills of the SMEs on CSR-based management and reporting has its own merit; however if such improvement is backed up with tools that will make help the SMEs exercise these skills, one can safely claim existence of a sound basis, on which further progress towards sustainability can be built. This approach underpins almost all JP activities, including but not limited to the Value Chain Management Platform, CSR-based management and reporting tools, awareness-raising tools etc.

SCALABILITY OF THE INTERVENTION

Another important cross-cutting strategy that the present IR brings to the scene is scalability of the intervention. The present JP is about the Turkish T/A industry and targets a specific region. In terms of manageability of the JP focusing on a single industry and a specific region make perfect sense; however this should not preclude the JP partners from thinking beyond these perimeters and envisioning an impact that goes far beyond even the articulated outcomes of the JP.

For instance, the VCMP will be an online portal accessible by SMEs in other less developed regions of Turkey which could not be made part of the JP mainly for budgetary constraints. Another example of scalability is the expanded scope of the awareness-building tools that the JP will produce. The original JP Document foresaw classroom training as the main medium of awareness-building activities; whereas the

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The strongest assurance of the JP’s sustained impact is the ownership of the ITKIB.

The strongest side of the JP’s intervention modality is its emphasis on both skills and competencies.

The present design of the JP is scalable, making it possible to expand the geographical scope of the intervention.

present IR adds additional media (such as animated movies etc.) that can be readily utilized by T/A SMEs all across Turkey.

INCLUSIVENESS AND PARTICIPATION

The present JP is built on an inclusive and participatory approach, bringing all relevant parties and making them a part of the solution.

Table 2: Stakeholders

Micro-level Meso-level Macro-level

T/A SMEs T/A Transnational

Companies T/A Employees

General Secretariat of Istanbul Textile and Apparel Exporters’ Associations (ITKIB),

Turkish Textile Employers Association (TÜTSİS),

Textile, Knitting and Clothing Workers Union of Turkey (TEKSİF),

Trade Union for Workers of Woven, String, Knitting and Clothing Industries (Öz İplik-İş)

Trade Union of Textile Workers (DİSK-TEKSTİL),

Corporate Social Responsibility Association of Turkey (KSSD),

Development Agencies (İKA, DOGAKA, FKA)

KOSGEB Service Centers, Turkish Export

Promotion Agency (IGEME)

Malatya İnönü University,

Sütçü İmam University, Gaziantep University Adıyaman University Kadir Has University

Ministry of Labour and Social Security (MoLLS),

Ministry of Industry and Trade (MoIT),

Undersecretariat of State Planning Organization (SPO),

Undersecretariat for Foreign Trade (UFT),

National SME Development Agency (KOSGEB),

COOPERATION WITH OTHER PROJECTS AND PROGRAMMES

The inception phase provided the JP with the opportunity to identify projects and programmes, with which the JP can collaborate. As an official candidate for EU membership Turkey is the recipient of EU’s financial support under the Instrument for Pre-accession Assistance. As such, there are several ongoing and upcoming projects and programmes, co-funded by EU and the Republic of Turkey. Additionally, all three partaking UN Agencies have ongoing projects and programmes in Turkey. Annex 6 provides the list of the projects, with which the JP may cooperate and the areas of cooperation.

COMMUNICATION AND OUTREACH

The goal of the JP’s communication and outreach strategy is to “Increase networking and collaboration among T/A value chain actors and accelerate progress towards MDG1, MDG3, MDG7 and MDG8 by raising awareness, strengthening broad-based support and action and increasing engagement in MDG related policy and practice in Turkish T/A industry”.

The outcomes of this strategic goal are (a) increased networking and collaboration among T/A value chain actors; and (b) increased awareness on CSR (in particular MDG1, MDG3 and MDG7).

The Communication Matrix (in Annex 7 provides further information on (a) key messages, (b) targets, (c) means, (d) indicative activities, and (e) costs.

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The JP can benefit from and contribute to many ongoing projects and programmes.

The goals of the JP’s communication strategy are aligned with those of the MDG Achievement Fund.

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DESCRIPTION OF JP ACTIVITIES

This section is composed of two sub-sections (JP Outcomes) and elaborates on the JP activities.

The outcome level discussion focuses on the strategic rationale of the outputs, which will contribute to achievement of the related output, responding to “what”, “why” and “how”. Such considerations are tabulated at the outset of each sub-section, providing the reader with the opportunity to see the big-picture. It is to be noted that no modification is proposed at the JP Outcome level.

The discussion at the output level is rather operational. Here the report reflects on the experience gained during the inception phase. The IR proposes certain improvements to the specific activities. This section provides brief description on specific activities, as well as justifications for deviations from the original project document. This section also casts light on the activity-level collaboration between the partaking UN Agencies.

The considerations with regard to timing, sequence and cost of activities are presented in the Annexes (Annex 4).

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OUTCOME 1

Productivity and innovation capacities of the SMEs in the Turkish textile and apparel industry especially in poor and vulnerable areas strengthened through enhanced collaboration and networking for increased competitiveness.

Table 3: JP Outcome 1, at a snapshot

Output # Output 1.1. Output 1.2 Output 1.3 Output 1.4.

Output Description (what)

An online Value Chain Management Platform (VCMP) activated by İTKİB and utilized by T/A value chain actors

The capacity of national SME support and advisory institutions in the field of clustering and business linkage development are enhanced

A Sustainable Competitiveness Centre (SCC) is established and activated

Sustainable business models in T/A industry, encouraged and achieved (through a support scheme)

Rationale (why)

The value chain is scattered across the country, maintaining communication and coordination between the value chain actors is the main challenge to address.

In order to ensure sustainability of the clustering initiatives, the institutional capabilities of the SME support agencies need to be enhanced.

SME s’ access to advisory services on sustainable competitiveness needs to be improved.

SMEs’ awareness on sustainable competitiveness can be improved through identifying, supporting and showcasing successful business models

Strategy (how)

Facilitating collaboration and networking between the value chain actors, operating in the different nodes of the value chain, by means of introducing state-of-the-art and user-friendly technologies.

A comprehensive stocktaking exercise will identify the needs, training will be provided to the SME support organizations and cluster action plans will be developed and implemented.

A sustainable competitiveness center (or a network of centers) will be established and activated, providing business advisory services to the SMEs on sustainable competitiveness

Business models that capitalize on JP’s activities and objectives will be promoted.

OUTPUT 1.1

An online Value Chain Management Platform (VCMP) activated by İTKİB and utilized by T/A value chain actors

Value chain is a means of ensuring involment and participation of all stakeholders including small producers, suppliers and big buyers alike. Therefore, facilitating collaboration and networking between the value chain actors, operating in the different nodes of the value chain, is contributing to the sustainable development of the sector as a whole as well as providing better access of SME’s to various actors and stakeholders of the value chain. In addition, available information regarding processes such as marketing, CSR applications and decent work will support the competitiveness of the SME’s located at pilot provinces. Thus the value chain will be operational by means of introducing state-of-the-art and user-friendly technologies, by establishing a value chain management platform which is managed by ITKIB during the JP and after. Sustainability of the VCMP will be ensured by the ownership of ITKIB.

The tangible benefits of VCMP to SME’s are as follows:

a) SME’s (producers and suppliers) will have better access to buyers.b) SME’s will have access to other SME’s in the T/A sector and other actors, such as ITKIB.c) SME’s will have information about buyers, other SME’s and stakeholders.d) SME’s will have information on CSR and clustering activities within the sector.e) Speed of marketing will be increased.

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f) Competitiveness will be increased.

Beta version of the VCMP has already been developed by ITKIB and CISCO, through a partnership, forced by a UNDP project. However the Portal is not fully utilized yet. The objective of the JP is to operationalize the VCMP (Output 1.1.1) and improve capacities of the target groups (i.e. SMEs) to utilize the Portal (Output 1.1.2). The following table lists the specific activities, against the programme outputs.

Table 4: JP Output 1.1, at a snapshot

1.1.1 Internet based VCMP platform is operational and accessible

1.1.2 Capacity development strategy on ICT is implemented

1.1.1.1 Develop a deployment plan1.1.1.2 Develop a business plan1.1.1.3 Launch the VCMP1.1.1.4 Manage and maintain the VCMP

1.1.2.1 Identify training needs1.1.2.2 Develop training programmes1.1.2.3 Deliver training programmes1.1.2.4 Develop an assessment report

The work, undertaken during the inception period revealed that the activities defined in the original project document needs to be revised in accordance with the current state of play. The original project document foresaw JP’s support mainly in the form of software development; however meetings held between ITKIB and CISCO revealed that such support from the JP is not expected. CISCO has indicated that the company will make necessary software improvements. Thus the first activity of Output 1.1.1 has been revised to development of a deployment plan (Annex 3).

What was missing in the original document was a business plan for the portal. Thus, the IR introduces development of a business plan as the second activity of Output 1.1.1. This business plan is expected to cast light on the financial as well as operational sustainability of the portal. The duties and responsibilities of ITKIB, the management structure, outsourcing strategies should also be discussed in the business plan etc.

The third activity under Output 1.1.1 concerns launch of the VCMP. This activity will be implemented in accordance with the communications strategy, which shall be an integrated part of the business plan (i.e. Activity 1.1.1.3).

The last activity under Output 1.1.1 will provide technical assistance to ITKIB for management and maintenance of the portal, ensuring its smooth operationalisation and management, and identifying bottlenecks to be remedied, as well as areas of improvement.

Activities under Output 1.1.2 are self-explanatory and are kept intact with the exception of a new activity (1.1.2.4) which aims at assessment of the training programmes with a view to incorporate the findings into VCMP’s expansion strategy.

OUTPUT 1.2

The capacity of national SME support and advisory institutions in the field of clustering and business linkage development is enhanced

The following table presents JP Output 1.2 at a snapshot, listing the specific activities, against the programme outputs. The overall design of the Output 1.2 remains intact; however, as explained below, has been improved by establishing concrete linkages with other components of the JP.

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The deployment plan will cast light on the short-term actions to be taken to operationalise the VCMP

The Portal needs a business plan, according to which it will be launched, managed and maintained.

Launch of the VCMP will be supported with a communications strategy.

Table 5: JP Output 1.2, at a snapshot

1.2.1 Needs assessment for the support in textile sector 1.2.2 Capacities of minimum 4 selected business support institutions on business linkage development are reinforced/developed

1.2.1.1 Undertake needs assessment1.2.1.2 Organize focus group meetings1.2.1.3 Prepare a set of recommendations

1.2.2.1 Adapt UNIDO training material1.2.2.2 Organize 2 training courses1.2.2.3 Formulate a diagnosis study1.2.2.4 Formulate and validate cluster action plans1.2.2.5 Support the implementation of CAPs1.2.2.6 Formulate policy recommendations

Output 1.2.1 concerns identification of needs of the national/local SME support institutions, along with development of a set of recommendations to strengthen their roles in supporting clustering and networking.

The first activity under Output 1.2.1 concerns undertaking a needs assessment that will take a snapshot of the textile clusters present in various parts of Turkey. Previous initiatives related to Turkish textile clusters as well as the new ones shall be compiled from the aspect of increasing the competitiveness of the Turkish textile industry. The knowledge that will be accumulated via the current Joint Programme both in the field and through collaboration with the stakeholders shall be reflected into this study. The aim is to map the stakeholders, identify the strengths and weaknesses with the final objective of assessing the needs of the textile sector in order to support the Turkish textile sector.

The second activity under Output 1.2.1 is a focus group meeting. All the members of the value chain shall be invited to this interactive event where the findings of the activity will be presented and feedback as well as suggestions willl be gathered. This will also be used as another opportunity to present UNIDO Cluster Methodology to underline the activities that have been carried out up to date and the expectations from the stake-holders to ensure sustainability of what has been implemented.

At the time of the event, there shall have been continuous and various activities carried out related to cluster development in the pilot provinces. During the focus group meeting; the progress of these activities shall be presented to the public and the potential approaches for application of the pilot activities for the overall Turkish textile sector will be discussed. Based upon the interest, concrete role and involvement of each member of the value chain shall be identified.

Upon completion of activities 1.2.1.1 and 1.2.1.2; a clear picture of the Turkish textile sector shall become available and the outputs will have been shared with the stakeholders also having received their feedback and suggestions. Accordingly based on these activities, it will be possible to prepare a set of recommendations in order to make it available for the textile value chain. Related to the sequence of the linked activities 1.2.1.1 and 1.2.1.2, the set of recommendations will be finalized.

Output 1.2.2 will reinforce capacities of minimum 4 select business support institutions on business linkage development.

As the first activity under Output 1.2.2, the existing UNIDO training material, which combines UNIDO’s accumulated know-how, will be adapted to the national/local context. The existing material shall be adapted to the local context in order to be used in the training courses to be carried out,,.

Consecutively two training courses will be organized on UNIDO Cluster Development and Export Consortia Methodology (Activity 1.2.2.2). Information shall be provided to the stakeholders in order to identify and recruit the relevant participants prior to the sessions. The essence of clustering shall be presented and the training programs will also

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The needs assessment will provide a snapshot of the T/A clusters in Turkey.

The focus group meeting will validate the findings, and provide the opportunity, inter alia, to present UNIDO approach

Recommendations will emerge from a consultative and participatory process

Adaptation of UNIDO training material ensures capitalization on UNIDO’s accumulated know-how, as well as producing a contextualized tool.

be used as an opportunity to raise interest for the cluster development activities to be carried out consequently. During the inception period, it is assessed that the 2 training programs shall provide further benefit in case they are carried out in the target provinces. As cluster development activities shall also be carried out in the target provinces, it is deemed essential to carry out the training programs prior to the start of these activities.

Activities 1.2.2.3, 1.2.2.4 and 1.2.2.4 concern formulation of a diagnosis study in the target regions, development of cluster action plans (CAPs) and support for implementation of the CAPs. The inception phase revealed that implementation of these three activities, which are under the overall responsibility of the UNIDO should be aligned strongly with activities under Output 1.3 (Sustainable Competiveness Centre – SCC), which is under the overall responsibility of the UNDP. For instance, the findings of the diagnostic studies should be incorporated into the design of the SCC. Secondly, cluster agents should be able to leverage on SCC’s capacity to implement their cluster action plans. UNIDO and UNDP have taken necessary measures to ensure full alignment of their respective activities.

The diagnostic studies leverage on the survey (Annex 3, produced by UNIDO, and contributed by ILO and UNDP, and involve in-depth interviews with stakeholders (e.g. governorates, development agencies, universities, chambers etc.) and SMEs in the target provinces (Activity 1.2.2.3). Upon completion of the diagnostic studies as well as the first training Programme, Cluster Action Plans will be prepared through a participatory process (Activity 1.2.2.4). The CAPs will demonstrate, among others, the activities which will be supported by the JP (through Activity 1.2.2.5) and the activities to be executed/funded by the local stakeholders. The action plans will bear practical information and instructions focusing on increasing the competitiveness of the textile clusters in the target provinces.

In order to support the implementation of cluster action plans (Activity 1.2.2.5), cluster development agents, who are indispensable elements of any organized clustering initiative, will be recruited and trained. The main function of the CDAs will be to facilitate implementation of the CAPs; however both UNIDO and UNDP see benefit in engaging them in other elements of the JP (i.e. establishment and operations of the SCC, SME support scheme, VCMP etc.). In due course, CDAs costs may need to be shared by UNDP and UNIDO.

The final activity under Output 1.2.2 is formulation of policy recommendations (Activity 1.2.2.6). As a result of overall cluster development related activities carried out, a strong basis for formulating policy recommendations will be established. The findings of all cluster related outcomes shall be translated into policy recommendations in order to further support development of the textile value chain.

OUTPUT 1.3

A Sustainable Competitiveness Centre (SCC) is established and activated

The original JP Document envisaged establishment and activation of an Innovation Research and Advisory Centre (IRAC) that would support the T/A SMEs on matters relating to innovation and research, business linkages, corporate social responsibility, social and environmental conduct. Although innovation and research are critical elements for enhancing competitiveness, the JP’s main objective is promoting sustainable competitiveness. As such the name of the centre has been revised to Sustainable Competitiveness Centre.

Another possibility that emerged during the inception phase is the notion of facilitating establishment of a network of centrers, rather than a single centre in one of the target regions of the JP. If such a network of centers can be established, they can be

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The needs assessment for SCC (UNDP) has been incorporated into the diagnostic studies (UNIDO), ensuring greater coherence and efficiency.

CDAs will be instrumental in implementation of the CAPs; however they need to be engaged in other elements of the JP as well.

The centre should focus on delivery of advisory services on sustainable competitiveness.

The possibility of activation of a network of centers rather than a single center is to be pursued for increased outreach and impact.

instrumental in ensuring sustained impact of the JP outputs (i.e. implementation of cluster actions plans, promotion of VCMP, dissemination of CSR-based management and reporting tool, awareness-raising tools etc.).

The original project document was based on the assumption that the role of such a center was clear, and accordingly defined the first activity under this output as “Establishment of administrative infrastructure. Basis of collaboration will be founded by signing a protocol with the university administration.”

The inception phase revealed that further thought and analyses should go into the design of the SCC. First of all, Malatya is also home to a Business Centre (Malatya ABIGEM), established within the scope of an EU-funded project (i.e. Expansion of EU Business Centers Network). Malatya ABIGEM has been established to render business development services to the SMEs. In due course, the JP should not duplicate previous efforts and/or create any redundancy. Secondly, possible linkages and synergies between ITKIB’s present capabilities should be analyzed. In light of the above considerations, the specific activities under Output 1.3.1 have been revised.

It is to be noted that the specific activities concerning output 1.3.1 have been modified. Such modifications were required to ensure that the SCC, once established becomes a self-sustainable structure, responding to the needs of the SMEs.

A sustainable competitiveness center (or a network of centers) will be established and activated, providing business advisory services to the SMEs of the pilot provinces, on sustainable competitiveness. In order to avoid duplications and redundancies in advisory services, a needs assessment study will be carried out which would identify the specific needs of the textile sector for advisory services in pilot provinces. Combined with the best practices in Turkey and abroad, a road map will be prepared for the establishment of SCC, which will include management and business plans. For the sustainability of SCC during and after the JP, active involvement of ITKIB, ownership of local chambers of trade & industry and active participation of some other actors such as local universities and clusters are foreseen. Management plan will set forward the management structure and the financial plan of SCC.

The following table presents JP Output 1.3 at a snapshot, listing the specific activities, against the programme outputs.

Table 6: JP Output 1.3, at a snapshot

1.3.1 Advisory services are provided for at least 25 companies by the SCC

1.3.1.1 Assess needs, and identify and evaluate good practices1.3.1.2 Identify the management model and develop a business plan1.3.1.3 Facilitate establishment of the Centre1.3.1.4 Improve institutional capacity of the Centre1.3.1.5 Deliver business development services to the SMEs

The first activity under Output 1.3.1 is geared towards assessment of needs and identification and evaluation of good practices in this field. The needs assessment is to be done in coordination with Activity 1.2.2.4 (i.e. diagnostic studies).

The second activity (1.3.1.2) concerns identification of the management model and development of a business plan. Relevant structures (i.e. ITKIB DESTEK A.S, Malatya ABIGEM etc.) shall be taken into consideration in order to learn from experience and avoid redundancies. One of the key elements of the business plan will be the sustainability strategy of the Centre.

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Complementarities with existing SME support structures should be sought and redundancies should be avoided.

The third activity under Output 1.3.1 will facilitate establishment of the Centre. This would include signature of protocol(s), if needed, between ITKIB and local stakeholders. Malatya Inonu University seems to be the ideal local partner for this initiative, yet this issue would become clearer upon completion of the first two activities within this particular output. Establishment of the Centre may call for procurement of equipment etc. for the Centre.

Activity 1.3.1.4 is geared towards improvement of the institutional capacity of the Centre. It is anticipated that this activity will facilitate improving skills of the staff to work at the SCC. However this activity may lend itself to actions towards establishment of working relations with similar agencies and organizations. The business plan to be developed for the Centre within the scope of Activity 1.3.1.2 will cast further light on these issues.

The final activity (1.3.1.5), under this Output, concerns delivery of business development services to the SMEs by the SCC. Ideally this activity will be executed in coordination with CAPs to be produced under JP Output 1.2.

OUTPUT 1.4

Sustainable business models in the T/A industry, encouraged and achieved (through a support scheme)

Business models from the pilot provinces which capitalize on JP’s activities and objectives such as clustering, CSR applications and improved competitiveness by utilizing CSR principals will be promoted and supported through a support scheme

The following table presents JP Output 1.4 at a snapshot, listing the specific activities, against the programme outputs.

Table 7: JP Output 1.4, at a snapshot

1.4.1 Support scheme is implemented

1.4.1.1 Design the support scheme and prepare guidelines1.4.1.2 Identify beneficiaries1.4.1.3 Implementation (by beneficiaries)1.4.1.4 Monitor implementation (by the SCC/CDAs)1.4.1.5 Disseminate results

The work carried out during the inception phase revealed that the support scheme should be designed and implemented in a “focused” manner to ensure maximization of expected impact. First of all, the support scheme should be integrated with other elements of the JP, particularly with the CAPs. Secondly, the support scheme should not create any redundancy with the grant schemes, executed by the development agencies. On the contrary, the support scheme of the JP should leverage on the already existing support schemes (i.e. KOSGEB, UFT and the Development Agencies etc.). It has also been observed that the support scheme might incentivize increased commitment of the SMEs in engaging in the implementation of the CAPs and registration to the VCMP.

In light of the above considerations, which emerged during the inception phase, the activities under Output 1.4.1 have been reformulated. Activity 1.4.1.1 will design the support scheme after sufficient progress has been achieved with regard to (a) activation of the SCC, (b) development of the CAPs, and (c) deployment of the VCMP. The remaining activities under this particular output are self-explanatory; however the following explanations would cast light on important details.

First of all, the support will be extended under the overarching principles of good governance, ensuring transparency, accountability and fairness. Priority may be given to

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Activity 1.3.1.5 is planned to be executed in tandem with Activity 1.2.2.5 & Activity 1.4.1.3.

The support scheme will be designed to facilitate achievement of JP outputs; otherwise it will be “just another support scheme”, impact of which will be diluted.

the initiatives that possess the potential to have multiplier effects and to contribute to the sustained impact of the JP.

Implementation (Activity 1.4.1.3) will be responsibility of the beneficiaries; however the implementation will be monitored (Activity 1.4.1.4) both by the JP staff, and by the CDAs where applicable.

The final activity under this Output concerns dissemination, and hence will be made an integral part of the JP’s overall communication strategy and will be implemented in conjunction with other JP activities that are geared towards communicating the results of the JP.

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OUTCOME 2

CSR principles (including sustainable development, gender equality) are integrated into the business processes and practices of the Turkish SME’s in textile sector for increased competitiveness.

Since CSR is an all-compassing term that covers all elements of sustainability, social conduct and environment with increased awareness on climate change and energy efficiency, a slight revision has been introduced to the wording of the outcome without changing its overall philosophy. Although this is a minor revision, it has critical importance in terms communicating the objectives of the JP in a consistent manner.

As the following table depicts the improved design Outcome 2 builds stronger synergies between the corresponding outcomes, and includes interventions at micro-, meso- and macro-level.

Table 8: JP Outcome 2, at a snapshot

Output # Output 2.1. Output 2.2 Output 2.3 Output 2.4.

Output Description (what)

An assessment report on CSR in Turkish T/A industry produced.

An overall awareness-raising strategy developed, and enterprise-level awareness building tools produced and deployed

A CSR advocacy strategy, complemented with CSR-based management and reporting tools and improved institutional capacities

A national sustainable and responsible competitiveness agenda for the T/A industry created

Rationale (why)

The current situation needs to be analyzed in order to identify the needs of the Turkish T/A industry in terms of CSR enhancement.

Awareness-raising is one of the key elements of enhancing CSR within the T/A industry.

A sustainable CSR enhancement agenda can be pursued, if the promoters of CSR possess an advocacy strategy.

The T/A industry should have an agenda to pursue sustainable and responsible competitiveness at the national level, owned and supported by policy-making institutions as well as SME support agencies

Strategy (how)

Primary and secondary research will identify the level of awareness of CSR, the needs of the industry as well as the needs of the SME support agencies.

The JP aims at improving local capacities and producing awareness-raising tools.

The JP will increase the capacities of the SME support agencies and provide them with tools to promote corporate social responsibility at micro-, meso- and macro-levels.

The JP will facilitate implementation of a targeted advocacy campaign to create and pursue a sustainable and responsible competitiveness agenda for the T/A industry.

As the preceding table suggests the output statements have been reworded without compromising on or diverging from the objectives of the outputs, listed in the original JP Document. The present formulation provides the JP with the opportunity to deliver clearer messages to the target groups. For instance, output 2.1 in the original JP Document had a specific and somewhat discounting emphasis on assessment of “awareness”. Although assessment of awareness is a critical factor, and is still within the scope of the Output 2.1, a CSR enhancement agenda cannot be pursued by focusing merely on awareness.

OUTPUT 2.1

An assessment report on Corporate Social Responsibility in Turkish T/A industry is produced and shared with the relevant Turkish authorities and institutions for validation.

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The activities under Output 2.1 will produce an assessment report on the state of CSR in the Turkish T/A industry, and culminate in validation of the assessments by relevant Turkish authorities and institutions. The validated assessment report will be basis, on which Output 2.2 (i.e. awareness-raising) will be built. Output 2.1 will be generated as a joint activity of the all partaking UN agencies.

Table 9: JP Output 2.1, at a snapshot

2.1.1. Assessment of contribution to the MDGs by the Turkish T/A industry

2.1.2. Assessment of social conduct and gender in the T/A industry

2.1.3 Assessment of environmental conduct in the T/A industry

2.1.1.1 Conduct research on contribution to the MDGs by the Turkish T/A industry

2.1.1.2 Complete situation analyses SD and MDGs

2.1.1.3 Produce five business models as case studies

2.1.1.4 Validate, publish and disseminate the assessment report

2.1.2.1 Conduct research on social conduct and gender

2.1.2.2 Complete situation analyses on social conduct

2.1.2.3 Complete situation analyses on gender

2.1.2.4 Contribute to five business models

2.1.2.5 Validate, design and disseminate the assessment report

2.1.3.1 Conduct research survey on environmental conduct

2.1.3.2 Complete situation analyses on environmental conduct

2.1.3.3 Contribute to five business models

2.1.3.4 Validate, design and disseminate the assessment report

Output 2.1.1 (UNDP/ITKIB), Output 2.1.2 (ILO) and Output 2.1.3 (UNIDO) will collectively form a single assessment report (JP Output 2.1). The following table demonstrates anticipated scope of the report and division of labour between the UN Agencies.

Table 10: Anticipated scope of Output 2.1 and division of labour for its generation

Select Sections of the Report Anticipated Scope of the Section Anticipated Roles of UN Agencies

Turkish T/A industry and MDGs (with emphasis on MDG1, MDG3 & MDG8)

Assessment of contribution to and awareness on sustainable development and MDGs within the corporate and public sector, and civil society organizations.

UNDP/ITKIB has the primary responsibility on MDG1 & MDG8; ILO has the primary responsibility on MDG3.

Social Conduct within the Turkish T/A industry

Assessment of Social Conduct within the Turkish T/A industry, identifying strengths and weaknesses

ILO has the primary responsibility; other UN agencies will review and contribute to ensure coherence with other sections.

Environmental Conduct within Turkish /TA industry (MDG7)

Assessment of environmental conduct within the Turkish T/A industry, identifying strengths and weaknesses

UNIDO has the primary responsibility; other UN agencies will review and contribute to ensure coherence with other sections.

Five business models (case studies) Presentation of five business models (case studies) as role models to the Turkish T/A SMEs.

UNDP/ITKIB has the primary responsibility; other UN agencies will review and provide substantive contribution to ensure coherence with other sections.

Micro-, meso- and macro-level conclusions and recommendations

Presentation of findings of the assessments and the recommendations, forming the basis for formulation of the CSR strategy

UNDP/ITKIB has the primary responsibility; other UN agencies will review and provide substantive contribution to ensure coherence with other sections.

There are four modifications in the way the activities are designed. First of all, in the original JP Document, all partaking UN Agencies were planned to have a specific activity on “gender” analyses, and another specific activity for developing “five business models (as case studies)”. However UN Agencies agreed that ILO take the lead on gender analyses, with the two other UN Agencies contributing to development of this section. A similar arrangement has been made for the development of five business models, for

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which UNDP will take the lead, with the two other UN Agencies contributing to development of this section.

Secondly, the original JP document proposed a survey approach for analyses. However the studies, carried out during the inception phase, demonstrated that a more comprehensive approach covering primary research (e.g. surveys etc.) as well as secondary research (e.g. desk reviews etc.) will be needed.

Thirdly, the present design of the activities includes a “validation” element, which is needed before the finalization of the assessment report to ensure stakeholder ownership.

Last but not the least, the scope of the analyses in the original JP Document was restricted to “assessment of level of awareness”. Although assessment of awareness is a critical element, it is not sufficient to provide a sound basis for a complete situation analysis. Accordingly, the scope of the analyses has been expanded to cover other critical elements, such as needs assessments etc.

The studies to be conducted for preparation of the report will start with primary and secondary research, covering 10 large national and transnational companies, 100 SMEs and at least 10 relevant business organizations. Partaking UN agencies will collaborate by organizing workshops in the target regions, through which 100 SMEs and 10 relevant business organizations will be reached. These workshops will facilitate the surveying process. Due to the specific nature of the assessment on environmental conduct, UNIDO may conduct on-site analyses as well1. The expert team(s) will also survey 10 transnational companies (Activity 2.1.1.1, Activity 2.1.2.1, and Activity 2.1.3.1).

The expert teams to be mobilized will complete the situation analyses (Activity 2.1.1.2, Activity 2.1.2.2, and Activity 2.1.3.2) together so that the different sections of the report complement each other. Presentation of the five business models will mainly be responsibility of UNDP/ITKIB, however with inputs from UNIDO and ILO (Activity 2.1.1.3, Activity 2.1.2.3 and Activity 2.1.3.3).

UNDP/ITKIB will validate and publish the final report, and all partaking UN agencies will contribute to its design and dissemination.

It should be noted that the original JP Document foresaw surveying 20 transnational and 200 SMEs; however the analyses carried out during the inception phase revealed that surveying 10 transnational and 100 SMEs would suffice both qualitatively and quantitatively in order to assess the level of awareness. The revised approach for conducting the assessment pays due consideration to quantitative aspects of analyses; however aims mainly at leveraging on in-depth qualitative analyses.

OUTPUT 2.2

An overall awareness-raising strategy developed, and enterprise-level awareness building tools produced and deployed

Based on the findings of Output 2.1, Output 2.2 aims at development and deployment of an overall awareness-raising strategy, and awareness-raising tool(s) that can be used at the enterprise-level.

As the revised output statement implies, Output 2.2 will initially generate an overall awareness-raising strategy that targets micro-, meso- and macro-level stakeholders. The JP will facilitate implementation of the three-pronged strategy within Output 2.2 at the enterprise-level and within Output 2.4 at the meso- and macro-level.1 Gate to gate approach shall be adopted while carrying out the survey in the companies. That is to say the first gate shall be considered as the boundary for the inputs and the second gate shall be considered as the boundary for the outputs. The resources (materials, energy and water) that are purchased, the resources that are generated or collected on the site and the outputs (waste, waste water, air emissions, and products or services) from the operations shall be included and assessed.

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The new design of the activities provides a clearer division of labour without compromising on the synergies between UN agencies’ experiences.

The scope and methods of analysis and validation have been expanded to develop a more comprehensive assessment.

The JP indentifies level of awareness as a key concern, as such attacks this issue at micro-, meso- and macro-levels.

The original JP Document foresaw “classroom” training as the only means of building awareness; however the analyses and consultations carried out during the inception phase revealed that different possibilities should be taken into account in order to produce a realistic, sustainable and scalable strategy.

Although classroom training approach may work in certain settings and for reaching certain objectives, it has been observed that reaching thousands of employees through conventional “classroom” training programmes is not a “realistic” scenario, for most of the employers would be reluctant to send their employees to full-day training programmes. Secondly, scalability and sustainability of conventional training approaches are also questionable. A review of international good practices in this particular field demonstrated that similar awareness building strategies leverage more and more ICT technologies (e.g. animated short movies etc.)

A third finding of the inception phase was the possible interest of global buyers (e.g. global brands, retailers etc.) in contributing to development and implementation of awareness building strategies on sustainability in general, and social and specifically environmental conduct, where aspects of climate change and energy efficiency are also elaborated .

In light of the above considerations, the specific activities under Output 2.2 have been revised, as demonstrated in the following table.

Table 11: JP Output 2.2, at a snapshot

2.2.1. Awareness building strategy on gender-sensitive SD and MDGs implemented

2.2.2. Awareness building strategy on social conduct implemented

2.2.3 Awareness building strategy on environmental conductand productivity implemented

2.2.1.1 Develop overall awareness building strategy in cooperation w/ UNIDO &ILO

2.2.1.2 Develop awareness building tools on sustainable development

2.2.1.3 Implement the awareness building strategy

2.2.2.1 Contribute to development of overall awareness building strategy through training activities.

2.2.2.2 Develop awareness building tools on social conduct and gender through training activities.

2.2.2.3 Contribute to implementation of the awareness building strategy through training activities.

2.2.3.1. Contribute to development of overall awareness building strategy through training activities.

2.2.3.2 Develop awareness building tools on environmental conduct through training activities.

2.2.3.3 Contribute to implementation of the awareness building strategy through training activities.

Partaking UN agencies will jointly develop an overall awareness building strategy (Activity 2.2.1.1, Activity 2.2.2.1, and Activity 2.2.3.1).The strategy should demonstrate the means, through which awareness of the target groups i.e. the employers and workers can be improved. Some elements of the strategy such as training activities for trainees and trainers will be implemented within the scope of the JP; however certain elements of the strategy will need to be implemented by ITKIB through means other than the JP. The strategy should account for employers and workers employees as related yet different target groups. As such, the means, through which their awareness can be built or improved, may be different. The strategy development process should be inclusive and participatory process, including public organizations, civil society organizations, buyers, sellers, trade unions and employer’s organisations. .

UNDP/ITKIB will take the overall responsibility for development of the awareness building tools, with UNIDO and ILO contributing to the development of these tools by providing substantive inputs (Activity 2.2.1.2, Activity 2.2.2.2, and Activity 2.2.3.2).

UNDP/ITKIB will also take the overall responsibility for implementation of the awareness building strategy, with UNIDO and ILO contributing to the implementation of these tools

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Classroom training approach will work in certain settings; however should be backed up with more scalable and sustainable solutions.

Inclusion of the global buyers into the implementation of the awareness-raising strategy will strengthen the prospects of impact, especially at the SME-level.

by providing substantive inputs (Activity 2.2.1.3, Activity 2.2.2.3, and Activity 2.2.3.3). ILO’s responsibility with respect to implementation of the strategy includes provision of training of the JP staff on CSR and international labour standards and training of trainers services. Throughout the CSR awareness building activities of JP 15 people from core project staff and at least 15 trainers are to be trained in addition to the target group of 750 workers and managers and 10 people from related organizations.

OUTPUT 2.3

A CSR advocacy strategy, complemented with CSR-based management and reporting tools and improved institutional capacities

Output 2.3 is designed to generate impact not only at micro-level but also at the meso-level. Output 2.3.1 is micro-level intervention that seeks to provide the T/A SMEs with CSR-based management and reporting tools. Output 2.3.2 is a meso-level intervention that aims at contributing to the capacity of ITKIB for advocating for an ambitious CSR enhancement agenda within the T/A industry. Finally, output 2.3.3 is also a meso-level intervention that will improve capacities of select SME support and advisory organizations.

In light of the above considerations, the specific activities under Output 2.3 have been revised, as demonstrated in the following table.

Table 12: JP Output 2.3, at a snapshot

2.3.1. A CSR-based management and reporting tool for Turkish T/A SMEs, produced

2.3.2. A CSR advocacy strategy, produced for ITKIB

2.3.3 Capacities of select SME support and advisory organizations on CSR improved

2.3.1.1 Organize expert group meeting

2.3.1.2 Deliver focus group meetings2.3.1.3 Produce CSR-based

management and reporting tool

2.3.1.4 Pilot the CSR-based management and reporting tool on 5 SMEs , training and counseling on CSR

2.3.2.1 Compile outcomes of Output 2.1, Output 2.2, & Output 2.3.1

2.3.2.2 Develop CSR advocacy strategy for ITKIB

2.3.3.1 Train 20 persons from select SME support and advisory organizations

Output 2.3.1 will produce a CSR-based management and reporting tool for Turkish T/A SMEs. This will be achieved by contextualization of UNIDO’s existing tools through Activity 2.3.1.1, Activity 2.3.1.2 and Activity 2.3.1.3. Finally, Activity 2.3.1.4 will pilot the CSR-based management and reporting tool on 5 SMEs in combination with training and counseling on CSR.

Output 2.3.2 will culminate in a CSR advocacy strategy to be produced mainly for ITKIB. Development of this particular strategy will leverage on the outcomes of Output 2.1, Output 2.2, & Output 2.3.1 (Activity 2.3.2.1).

Output 2.3.3 is a single-activity-output, through which the JP will train 20 experts from SME support and advisory organizations on CSR.

OUTPUT 2.4

A national sustainable and responsible competitiveness agenda for the T/A industry created

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Output 2.4 builds on the Advocacy Strategy to be produced within Output 2.3, and will thus facilitate creation of a nation-wide agenda on sustainable and responsible competitiveness.

The notion of “sustainable and responsible competitiveness” brings together concerns related to sustainable development, MDG achievement and CSR enhancement, and makes these critical elements attractive especially to the T/A SMEs by making a special emphasis on competitiveness. In terms of communication the term “Agenda” is much more powerful than “Strategy”, for it implies collective action towards a common goal.

In light of the above considerations, the specific activities under Output 2.4 have been revised, as demonstrated in the following table.

Table 13: JP Output 2.4, at a snapshot

2.4.1. National awareness on SD, MDGs and CSR improved

2.4.2. A policy note on SD, MDGs and CSR produced

2.4.3. Establish and implement an M&E system

2.4.1.1. Design an awareness-raising campaign

2.4.2.1 Develop a policy note based on lessons to be learned during execution of the JP

2.4.3.1 Establish an M&E system to be used during the execution of the JP

2.4.2.2. Deliver awareness-raising events

2.4.2.2 Present the policy note to relevant authorities

2.4.3.2 Transfer the M&E system to ITKIB for utilization after the completion of the JP

The first under Output 2.4 concerns design and implementation of an awareness-raising campaign at the national level. Activities under Output 2.4.1 will leverage on the guidance of the advocacy note to be produced under Output 2.3 and the communication and outreach strategy of the JP.

Output 2.4.2 will include activities towards development of a policy note, which will be one of the interventions of the JP at the macro-level. This policy note will be produced by taking all the lessons to be learned during execution of the JP and will reflected combined know-how of all partaking UN Agencies and ITKIB.

Finally, Output 2.4.3 will produce an M&E system, which will initially be utilized within the scope of the JP (Activity 2.4.3.1), and then transferred to ITKIB for utilization after the completion of the JP (Activity 2.4.3.2).

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Policy note will be an intervention at the macro-level.

M&E system is envisaged to be utilized even after completion of the JP.

CONCLUSIONS AND RECOMMENDATIONS

CONCLUSIONS

The work carried out during the inception phase revealed several opportunities, exploitation of which would enable the JP to have a higher and longer-lasting impact on accelerating Turkey’s already mature efforts towards achievement of the MDGs.

Despite some delay, experience during the inception phase, the scope and results framework of the JP is feasible and has the potential to achieve development results. The joint work plan, presented in the IR, articulates what the expected results are, framed within realistic timelines and the proposed division of labour by activity between the implementing partners.

The IR gives further clarity to the areas of intervention and beneficiaries (right-holders) and includes measures to ensure implementation of the joint programme in close cooperation with the right-holders. This is mainly achieved by applying UNIDO’s systematic multiple-level approach for CSR enhancement, and mapping the stakeholders against the multiple-level interventions that the JP will introduce.

The IR reaffirms national leadership and ownership of the JP’s interventions. The linkages between the JP and overarching national policies (e.g. national TAL strategy, Ninth Development Plan, clustering etc.) have been clearly articulated in the IR. The IR also provides room for better alignment of the capacities to be established within the JP with the already existing capacities in Turkey.

The inception phase was instrumental in identification of administrative and processes challenges. Such challenges applied mostly to the value chain management portal (VCMP) and Sustainable Competitiveness Centre (previously named Innovation Research and Advisory Centre). The IR proposes measures in the form of reformulated to activities to remedy the situation.

The inception phase identified several external risks, and developed and put into place corresponding risk mitigation measures. One of the measures that have an impact on many external risks is the better alignment of JP activities towards common goals.

The inception phase also identified new partnership opportunities (e.g. development agencies, and ongoing projects and programmes). Such opportunities have been reflected in the JP’s sustainability strategy. The JP’s sustainability strategy has been further strengthened with measures towards development of scalable and replicable tools.

RECOMMENDATIONS

The IR recommends stronger alignment between the JP and the existing structures in Turkey. JP’s outputs will have a higher likelihood of sustainability and impact, if they complement the existing structures in a feasible manner. This recommendation applies especially for the Sustainable Competitiveness Centre (SCC) to be established within the scope of the JP. Establishment of a redundant and unsustainable structure is worse than doing nothing in this field. As such, JP should embark upon establishment of such a centre once all partaking UN agencies and ITKIB are fully convinced of uniqueness of its value proposition, value-added to the T/A industry, and, last but not the least, its self-sustainability. In relation to the SCC, the feasibility and viability of a network of SCCs, instead of a single centre should be investigated. The benefit of a network of SCCs is the greater outreach and thus the potential for higher impact.

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The scope and results framework of the JP is feasible and has the potential to achieve development results.

Further clarity is brought forth with regard to the intervention of the JP and beneficiaries’ involvement in the JP.

The IR reaffirms national leadership and ownership of the JP’s interventions.

Administrative and processes challenges have been identified and remedied.

Risk mitigation strategies have been developed.

A stronger sustainability strategy leverages on new partnerships that improve scalability and replicability of the JP’s intervention.

The IR recommends stronger alignment between the JP and the existing structures in Turkey.

With respect to the support scheme to be implemented within the scope of the JP, a more visionary and sustainable approach is needed. The IR provides sufficient room of maneuver for utilizing the support scheme to achieve the outputs of the JP. However work in this area should also include consultations with the UFT, development agencies and KOSGEB. All these three agencies extend state aids (e.g. grants etc.) to foster competitiveness of the SMEs in Turkey. Inclusion of CSR-based support schemes into the state aids would be a significant achievement of the JP.

ITKIB is headquartered in Istanbul but has members from across the country. ITKIB shall consider the clustering programmes to be implemented under the JP as pilot initiatives that can be replicated in other regions as well. Accordingly, ITKIB is encouraged to continue to remain heavily committed to such regional actions. There is nothing that would prevent ITKIB from establishing organic linkages between its already established structures and the cluster development initiatives to be in the less developed regions of Turkey.

As an exit strategy, outcomes and outputs of the JP will be anchored at various institutions at mezzo level and strategic documents at macro level. Sustainability will be ensured by the exit strategy.

a) CSR report (output 2.3) is for the prepared for the entire textile sector of Turkey. This report will be the first and the only one prepared for T/A sector. It will be owned and distributed by ITKIB.

b) CSR report will have the potential of making substantial contributions to the “New Textile Strategy of Turkey”, prepared by a number of public institutions under the chairmanship of MOIT.

c) At mezzo level, training of trainers programme on CSR, labour standards and sustainable competitiveness as an activity that will be carried out. The aim of this programme is not just to provide training techniques to trainers who will undertake workers’ and employers’ training in project provinces but also to develop technical capacity of local institutions on CSR, labour standards and sustainable competitiveness. To this end, experts from chambers of trade and industry, organized industrial zones and representative of trade unions & employers’ organization from project provinces will be invited to take part in the TOT programme and be encouraged to use their knowledge by providing advisory services to SMEs and local institutions when it is necessary.

d) Advocacy Strategy which will be produced with an aim to facilitate creation of nation-wide agenda on sustainable and responsible competitiveness.

e) VCMP will be under the ownership of ITKIB.f) Involvement of local chambers of trade and industry in clustering activities for the continuity of “cluster

development agents” should be ensured as a part of the exit strategy.g) Management plan for SCC will clearly explain what is needed for the sustainability of this center (or network) as

a part of the exit strategy.

The coordination, nurtured among the partaking UN Agencies during the inception phase, should continue. A clear division of labour is a key success factor, yet ensuring synergies between the activities of UN Agencies will add more value to the JP. The IR demonstrates some measures, introduced by the UN agencies towards this particular objective, and welcomes the linkages established between the JP and the ongoing programmes and projects of partaking UN Agencies.

Based on the above conclusions and considerations, the IR recommends that the implementation period of the JP be extended until end of 2012. Upon endorsement of the IR by the MDG-Fund Secretariat, a no-cost-extension request will be filed by following the standard procedures.

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Inclusion of CSR-based support schemes into the state aids would be a significant achievement of the JP.

ITKIB’s continued commitment to and ownership of the JP outputs is the strongest assurance of JP’s sustainability.

Ensuring synergies between the activities of UN Agencies will add more value to the JP

ANNEX 1: INCEPTION PHASE

Minutes of Meetings for the key meetings, workshops and conferences can be found below.

MDG-F - 2067: Harnessing Sustainable Linkages for SMEs in Turkey’s Textile Sector Joint Programme

Minutes of Programme Management Committee Meeting

Date & Time 16.03.2011 and 14.00-18.00

Venue İTKİB –İSTANBUL

Meeting Type Minutes of Programme Management Committee Meeting

Participants Name Organization Title

Ulrika RICHARDSON GOLINSKI UNDP -Turkey Permanent Representative of UNDP -Turkey

Gülay ASLANTEPE ILO- Turkey Director of ILO Turkey Office

Süleyman YILMAZ UNIDO- Turkey Director of UNIDO Turkey Office

Halide ÇAYLAN UN- Turkey UN Turkey

Bilal BOZDEMİR Governate Office Deputy Governor of Malatya

İnci ATAÇ RÖSCH İTKİB JPM

Erbil CİHANGİR İTKİB Representative

Damla TASKIN UNIDO- Turkey Joint Programme Coordinator for UNIDO

Özge BERBER AĞTAŞ ILO - Turkey Joint Programme Coordinator for ILO

Murat GÜRSOY UNDP –Turkey Expert

Vedat KUNT UNIDO- Turkey Expert

Nuran TOPAL ASİLBAY İTKİB-JP JP- Local Officer

Işıl ALKAN İTKİB-JP JP- Administrative Officer

Özlem GÜNEŞ İTKİB-JP Representative

Esin AÇIKGÖZ UFT Representative

Canan KANİ MoLSS Representative

Midhat YÜZEROĞLU RDA- Malatya Representative

Hürol KARLI UFT Representative

Emrah ÖNGÜT SPO Representative

İbrahim ÖZKAYA MoIT Representative

Embassy of Spain (invited but did not attend)

Agenda Items

# Description Owner

1 Evaluation of last version of IR MG

2 JP activities in the first quarter of 2011 outlined JPM

3 Outlining future activities JPM

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4 Exchange of ideas and recommendations

5 Discussions/Conclusions

1 Adoption of the Agenda

Discussions The objective and agenda of the meeting were outlined by Ms. Ulrika Richardson-Golinski.

Conclusions The agenda was adopted by the JPC.

Action Items Description Responsible Party Deadline

- - - -

2 Presentations

Discussions a. Introduction

The meeting has been chaired by Ms GOLINSKI. She briefly outlined the agenda items of the meeting. Importance of the IR’s approval by the MDG-F Secretariat has been emphasised. Hence, some alterations had to be made to the IR in order to illustrate that the programme would contribute towards achieving Millennium Development Goals. In this sense, Ms Golinski emphasised the importance of the feedback that will be provided by the PMC members and also requested swift feedback from the PMC members. In that, the revised version of the IR aimed to illustrate the tangible impact of the JP.

b. Presentation of the changes made to the IR by Murat GÜRSOY

The presentation focused on the revision made to the IR with respect to the original JP document. In that, the new version of the IR explicitly makes reference to the MDGs that the programme aims to achieve. In this sense MDG1 (poverty), MDG3 (gender) and MDG7 (environment.) have been stressed more in the IR as the goals of the JP. Ms. Richardson – GOLINSKI stated that the revisions have been made in the Inception Report in order to continue the effectiveness of the programme. She also pointed out that linkages between the outputs and activities have been strengthened between the outputs and activities. The other important aspect of the IR as explained is the intersection of the programme with the “National Textile Strategy”. Another emphasis the presentation made has been the methodology that the programme will employ. In that, within the three dimensions (i.e. economic, social and environment) that the programme aims to impact, three levels of scale has been identified; micro level, meso level and macro level. Within this framework the interrelation of the outputs and outcomes have been presented to have more concrete impact on the three dimensions.Presentation also highlighted the revised aspects of the IR that would serve as a tangible outcome ensuring sustainability of the JP. The original document intended to establish an Innovation, Research and Advisory Centre (IRAC) in one of the universities of the four provinces. Whereas now, it has been put forward that sustainability entails realistic approach hence, changing IRAC to establishing a Sustainable Competitiveness Centre (SCC). After the JP ends this centre will continue to support the textile SMEs in the region. Also the importance of cluster development in the region explained and to some extent shifting the emphasis from Value Chain Management Portal (VCMP) to Cluster Development as an aspect for sustainability. Overall, the new IR version gives more emphasis to the micro, meso and macro interventions with respect to economic, social and environmental dimensions. Upon the question of the representative of the Fırat Development Agency related to cooperation with current donor funded projects, Mr. Gursoy pointed out that active cooperation is definitely envisaged and a specific section is present in the IR related to the projects for potential cooperation. The linkages between the outputs to be strengthened had been emphasised. Skill improvement that will be available for the region after the programme, serving as a pilot for other provinces, development of sustainability tools such as SCC and VCMP as well as cluster development were explained as key outcomes of the JP, illustrated in the new version of IR.Ms. ÇAYLAN also pointed out that sustainability of the programme carried great importance for the United Nations and it is crucial that cooperation is achieved between all Turkish MDG-F programmes. Therefore it is decided that further efforts will be made in this respect and cooperation will be ensured.

c. Presentation of the Quarterly Work Plan by İnci Ataç- RÖSCH

The activities that took place in the first quarter of 2011 and the activities that will take place in the second quarter of 2011 were outlined. The activities are carried out by the collaboration of the UN Agencies. In the first quarter UNIDO undertook a field study, where firms and institutions are visited in the four provinces and subsequently conducting a focus group meetings. At the end of the March a report based on this field study will be produced by UNIDO. Based on this report, the subsequent activities in the four provinces will be shaped. In the second quarter of 2011, there will be questionnaire and workshop activities on gender, environment and CSR. Based on the findings each agency will produce a report on Situation analysis related to their fields. These reports and results from best practice review will determine the type of SCC to be formed in the next three months. On

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the other side, trainers for the activities will be identified. During April and May 2011, Local Coordination and Project Management meetings will take place in the four provinces together with workshops specific to programme activities.

d. Inputs and Recommendations by the PMC Members

It was raised that, national clustering strategy that is being worked on is important to form a network in order to form synergy as well as to avoid duplications of activities in the provinces. Level of participation in the provinces is discussed and the ways to attract them. Deputy Governor of Malatya, Bilal BOZDEMIR indicated that they will support the project in gaining participation. Statistical information has been provided implicating that textile is an important employment generating sector for Malatya. In empirical terms the Deputy Governor provided that Malatya has 132 textile firms employing 10,740 people as registered workforce. It has also been raised that the Regional Development Agencies to be more inclusive in the programme. It has also been recommended to involve local ISKUR in the training programmes as well as the Department of Education to alter the syllabus of vocational training programmes to include, gender, decent work issues and environment. In this way it would have a greater impact. Another important point raised is that, the JP expected to develop a linkage with other Joint Programmes. A guidance handbook is suggested would shed a light and contribute towards sustainability.

Action Items Description Responsible Party Deadline

3

Conclusions Based on the presentations and discussions the preliminary findings of the inception conference can be summarized as below:

There was agreement on the revised version IR to be sent to all members of the PCM.

Final feedback/ comments from the PMC members about the IR should be returned within a week with theirr final approval

Representatives from the Regional Development Agencies and Governates of the four provinces is to be invited to the PMC Meetings

Synergy formation with other MDGF Joint Programmes

All reports produced by the Joint Programme to be shared by the PCM members

Next PMC meeting agreed to be organised in the second half of June 2011.

The revisions made in the IR are all agreed by the PMC members

Action Items Description Responsible Party Deadline

Attachments

Description # of Pages

Participation List

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MDG-F - 2067: Harnessing Sustainable Linkages for SMEs in Turkey’s Textile Sector Joint Programme

Minutes of Programme Management Committee Meeting

Date & Time 07.12.2010 at 13.00 to 16.00

Venue ILO MEETING ROOM - ANKARA

Meeting Type MDG-F - 2067: Harnessing Sustainable Linkages for SMEs in Turkey’s Textile Sector Joint Programme

PROGRAMME MANAGEMENT COMITTEE MEEETING

Participants Name Organization Title

Ulrika RICHARDSON GOLINSKI UNDP -Turkey Permanent Representative of UNDP -Turkey

Gülay ASLANTEPE ILO- Turkey Director of ILO Turkey Office

Süleyman YILMAZ UNIDO- Turkey Director of UNIDO Turkey Office

Jale TUNCEL İTKİB Member of Board of Directors

İnci ATAÇ RÖSCH İTKİB JPM

Damla TASKIN UNIDO- Turkey Joint Programme Coordinator for UNIDO

Manuela BOESEULOFER UNIDO –Vienna UNIDO- Expert

Semiha VAROL UNDP -Turkey Expert

Özge BERBER AĞTAŞ ILO - Turkey Joint Programme Coordinator for ILO

Murat GÜRSOY UNDP –Turkey Expert

Vedat KUNT UNIDO- Turkey Expert

Nuran TOPAL ASİLBAY İTKİB-JP JP- Local Officer

Işıl ALKAN İTKİB-JP JP- Administrative Officer

Çetin DUMAN İTKİB-JP JP- Financial Officer

Esin AÇIKGÖZ UFT Representative

Funda DEMİREL UFT Representative

Serdar EKİNCİ MoLSS Representative

Emrah ÖNGÜT SPO Representative

Agenda Items

# Description Owner

1 Introduction of the MDG-F Joint Programme JMP

2 Inception phase activities JPM

3 Review of the inception report JPM

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4 Activities planned for the first quarter of 2011 JPM

5 Formation of the Technical Advisory Committee (TAC) JPM

6 Coordination mechanism JPM

5 Discussions/Conclusions URG

1 Adoption of the Agenda

Discussions The objective and agenda of the meeting were outlined by Ms. Ulrika Richardson-Golinski.

Conclusions The agenda was adopted by the JPC.

Action Items Description Responsible Party Deadline

- - - -

2 Presentations

Discussions b. Introduction

The objective of the meeting has been explained by the chairperson Ms. Golinsky (UNDP). She has indicated that, PMC meeting is an important platform to explain and to discuss the progress of the programme, in particular providing ideas and suggestions for the inception report, which is an initial first stage of the programme. Thereafter, Dr. Rösch (JMP) reviewed the each agenda item one by one, opening up to discussion and recommendations

b) Presentation of İnci Ataç Rösch

Dr. Rösch explained the objectives and expected outputs of the Joint Programme (JP). Inception phase activities have been shared with the PMC members. In that, the Inception Conference details and forthcoming local meeting and workshops had been outlined. The draft inception report details explained. In particular the intended outputs that the programme aims to disseminate. In particular, it has been indicated that, the linkages between the outputs and collaboration between the participating UN agencies as an important aspect for the programme. Presentation, elaborated on the tangible impacts the programme will have in the region through development of Value Chain Management Portal (VCMP) and textile clusters as well as establishment of Innovation, Research and Advisory Centre (IRAC). Training activities towards increasing awareness in Corporate Social Responsibility, entailing gender equality, decent work and environmental issues are intended to contribute to Millennium Development Goals (MDGs). It has been explained the attributes the JP makes with respect to MDGs. The presentation underlined that, the first actual activity would take place in late December 2010 and January/February 2011 by UNIDO, entailing visits and interviews to relevant institutions and textile and apparel SMEs in the four provinces. Although, the field study of UNIDO will mainly concentrate on the inclinations on cluster development, it has been explained it will also provide an important tool in determining the region as well as programmes other activities.

c) Discussions/Recommendations by the PMC members

The field study to be conducted by UNIDO in late December 2010 and January/February 2011 has been raised as an important determinant for the format of the subsequent activities in the region. Especially, identification of which university would be suitable, with respect to establishment of IRAC. It has been recommended that the future PMC meetings should also include local partners and MDG-F Secretariat for further input. Regards to the inception report, it has been suggested that, greater detail about the activities of the JP to be provided. At the same time revising the indicators of achievement and targets as stated in the original project document. MDG-F Report on Turkey would guide the JP in its communication strategy. In terms of cluster activities, the administrative capacities of the local partners are questioned whether or not to include Kahramanmaras. Another discussion issue has been to concentrate the study only on textile and apparel sector as otherwise it would not be feasible to conduct comprehensive programme. Related to this, it has also been suggested that, the original target numbers are high in comparison to the reality, hence revisions to be made. VCMP related activities to be considered and developed, drawing up budget requirements and work plan schedule. ILO raised the issue of having a common understanding about CSR aspects. Hence, the core project staff will receive training in February 2011, to take place either in Ankara or Turin. It has been raised that, CSR Association staff to be included in the training programmes of JP. It has also been suggested to revise the work plan in the inception report (IR) and also to elaborate further about Malatya being the central location for the activities of the JP to take place.

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Action Items Description Responsible Party Deadline

3

Conclusions Based on the presentations and discussions the preliminary findings of the inception conference can be summarized as below:

1. Emphasis made to the outcome of the UNIDO’s diagnostic study in the four provinces, in that it will serve as a guide for the subsequent activities of the JP.

2. It has been agreed to limit the scope of the JP’s activities’ to textile and apparel sectors

3. Members of the TAC to be formed with the approval of PMC members.

4. Any preparatory activities including drawing up a protocol between İTKİB and the “University” to establish IRAC is to be postponed until the UNIDO’s diagnostic study findings are reported.

5. Reviewing/researching of “best practice” models around the world that would serve as a guide for IRAC

6. Revising/reducing the target number of SMEs and participants for the activities of the JP

7. Organizing workshops in each province in March 2010.

8. Formation of online platform to be accessed by all PMC members

9. Sharing the presentation and implementation schedule of JP with the members of the PMC.

10. Official start of the JP agreed to be 12th of January 2010

11. Common view has been raised that, due to eight months late start off of the JP, “no-cost” extension of the programmed is deemed necessary until the end of 2012.

12. Next PMC meeting decided to take place in March 2011 in İstanbul at İTKİB premises.

Action Items Description Responsible Party Deadline

Attachments

Description # of Pages

Participation List

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MDG-F - 2067: Harnessing Sustainable Linkages for SMEs in Turkey’s Textile Sector Joint Programme

Minutes of Inception Conference

Date & Time 11.11.2010 10.30 – 16.30

Venue Anemon Hotel- Malatya

Meeting Type Inception Conference of the Joint Programme

Presenters Name Organization Title

Hikmet TANRIVERDİ İTKİB President of İHKİB

Shahid NAJAM UN- Turkey UN Resident Coordinator of Turkey

Carlos Ruiz GONZALES Embassy of Spain MDG-F Spain Consulate

Ulvi SARAN Governate Office Governor of Malatya

Süleyman YILMAZ UNIDO- Turkey Director of UNIDO Turkey Office

Gülay ASLANTEPE ILO- Turkey Director of ILO Turkey Office

Ulrika RICHARDSON GOLINSKI UNDP -Turkey Permanent Representative of UNDP -Turkey

Kemal ŞAHİN Sahinler Holding Executive Director of Sahinler Holding

Dr İnci ATAÇ RÖSCH İTKİB Director of the Joint Programme

Damla TASKIN UNIDO- Turkey Joint Programme Coordinator for UNIDO

Özge BERBER AĞTAŞ ILO - Turkey Joint Programme Coordinator for ILO

Murat GÜRSOY UNDP –Turkey Expert

Agenda Items

# Description Owner

1 Opening Speeches HK,SN,CR,UR

2 Presentations by the UN Agencies SY,GA,URG

3 Keynote Speaker KŞ

4 Interactive presentation by the directors of the Joint Programme JPM,DT,ÖBA,MG

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5 Discussions JPM

1 Adoption of the Agenda

Discussions Agenda presented by Isıl ALKAN (Presenter of the Conference)

Conclusions

Action Items Description Responsible Party Deadline

- - - -

2 Presentations

Discussions a) Summary of the opening speeches is as follows:

Hikmet TANRIVERDI (President of IHKIB )

Mr Tanrıverdi, began his speech by pointing out how, the Joint Programme (JP) will benefit the textile sector in various ways in the selected provinces, stressing the importance for the sector to be integrated into the global market. In order to achieve this integration, he underlined the importance of adaptation of value chains, social and environmental aspects into the production processes. Especially, emphasising the concept of Corporate Social Responsibility (CSR) as being an important social aspect that business should apply. In that, it is increasingly becoming a determining factor for the firms in becoming global actors. In this respect, achievement of Millennium Development Goals (MDGs) plays a crucial role, where the JP aims to achieve. Besides, adaptation of CSR principles, he gave the message of achieving high value added production within the framework of ILO’s labour conditions. He explained that, ITKIB’s involvement in the Joint Programme, with its comprehensive experience will be an asset for its success and sustainability. He concluded his speech by dwelling on ownership and level of support for the JP by the local actors and institutions in the selected provinces.

Shahid NAJAM ( UN Permanent Coordinator for Turkish Office and UNDP Permanent Representative)

The starting point of Mr Najam’s speech has been on poverty alleviation. He stressed on how to overcome poverty and the importance of creating healthy environments, where deadly diseases are combated. It was pointed out that, confronting poverty is a means of survival. Hence, the ultimate aim of the Millennium Development Goal Fund (MDGF) provided by the Spanish Government for this JP is to alleviate deprivation and poverty, thereby contributing towards making the earth a more prosperous place to live in. It was indicated that, this is the bases of this MDGF project whereby, UNDP and Spanish government had agreed to finance. He pointed out that, eradication of poverty, improving gender equality and maternal health and combating deadly diseases are all important aspects of MDGs. Further indicating that, together with this MDG-F JP, agreements had been made on another three JPs for Turkey. The current JP will be implemented in four chosen cities where Malatya will be the centre for the programme. He outlined that; the programme will be implemented with three UN agencies, namely, ILO, UNIDO and UNDP where solidarity will be formed. Mr Najam underlined that, as well as strengthening the competitiveness of the textile sector in the region; the essence of UN’s involvement in the programme is to ensure that all forms of disparities are reduced and eradicated. In that, the ultimate aim of the activities’ of the JP is designed towards achieving these means. The base of the JP’s approach is people centred, whereby marginalised segments of the society would be given the opportunity to participate in the development process. At the same time participatory approach, involving stakeholders and beneficiaries are identified to the important policy approach of the JP. He also pointed out that, building sustainable linkages and implementing corporate social responsibility in the sector make up important features of the JP. An especial emphasis has been placed in bettering the working conditions of the employees as being an important principle of the UN. Gender sensitivity and sensitivity to the environment have also been stressed. ITKIB as being the leading agency in the textile industry has taken the responsibility to establish these principles in the sector. Another crucial aspect of the JP is to forming sustainable linkages between SME’s in the textile sector through appropriate networking, thereby increasing competitiveness. Mr Najam, in his remarked on some crucial aspects with respect to JP’s success; role taken by the national and local partners; commitment and ownership of the project; achievement of social and economic development through establishment of sustainable linkages.

Carlos Ruiz GONZALES (MDG-F Undersecretary of the Spanish Embassy)

Mr. Gonzales began his speech by mentioning the aim and expected outcome of the programme. He explained how Spain is pleased in have UN’s total commitment in the project and proud to be in this position. He explained that, Spain is the main MDG funder, with a total donation of 750 million USD, where 17 million USD has been allocated for the programmes to be used in Turkey. He thanked UNDP for its leadership in the programme. He stressed that, the main aim is to benefit the disadvantaged people in the society. MoI and ITKIB are both important partners and with the added value of UN agencies involvement in the project, the JP would serve as an important tool towards contributing development of Turkey. He pointed out that the textile industry in Turkey requires assistance in achieving development, in order to compete internationally and to integrate into value chains. Mr Gonzales also indicated that, Turkey and Spain are strategic partners, sharing bilateral commitments and having common values in overcoming disparities

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between the east and the west. Furthermore, Spain is a leading supporter for Turkey’s accession to EU, and because of this Spain has undertaken steps to increase cooperation with Turkey. He concluded his speech by stressing that, Spain will continue to support Turkey on her journey to join EU.

Dr Ulvi SARAN ( Governor of Malatya)

After mentioning common features of the JP, the Governor expressed his gratitude in having Malatya as the centre for the programme’s activities. He stressed that the programme would play an important role in assisting the textile sector in the region towards achieving integration into the world markets and to becoming a global actor. He said that, it has become crucial for the textile sector SMEs to be able compete on a global scale, in order to survive and have sustainability. Mr Saran stressed the importance of restructuring the sector both in Malatya and in the surrounding provinces in line with the global competitors. The probability of success is high, as he indicated that, especially in Malatya establishment of new textile sector enterprises is on the increase. Hence, this project will provide the opportunity in enlarging their horizon. He concluded his speech by thanking ITKIB for their leading support within the programme.

b) Summary of the UN Agencies’ Presentations

Süleyman YILMAZ ( Director of UNIDO- Turkey)

Mr YILMAZ indicated that, Malatya chosen as being the centre of the JP’s activities’ will also serve other three provinces equally. Involvement of three UN agencies together with the support of ITKIB adds strength to the success of the programme. He briefly mentioned about UNIDO; in that it was established in Vienna in 1967, and now employing 650 experts worldwide. The main aim of UNIDO is to have sustainable industrial development. Within this perspective, Mr. YILMAZ outlined the three main principles of UNIDO. These as he put forward are; (i) lowering levels of poverty through increased production capacity; (ii) increasing commercial capacity; and (iii) increased sensitivity to energy consumption and environmental protection. He explained that, UNIDO’s vision in the years 2000 has evolved since its establishment in Turkey in 1968. This changing vision has stemmed from Turkey’s strategic position in the region. In that, UNIDO Turkey office has become a regional office for the Middle East and African counties. Thus, UNIDO with the support of TUBITAK and Ministry of Industry organised and delivered four training activities in several countries in these regions. UNIDO Turkey office has been assisting these regions in the areas of food, textile, technology and climate change. Mr. YILMAZ emphasized that, the textile sector in Turkey had always been an important locomotive for the industry. However, in the recent past, this has changed due to inability to compete in the global markets, necessitating a strategic change in the textile sector. Hence, he underlined that this Joint Programme will provide the required key strategic approach for this change to take place in the Turkish textile sector. This strategic approach will encompass areas of gender equality, environment and labour conditions. The role of UNIDO within in the programme has been explained will be to provide technical support in terms of establishing sustainable business networks, improving the relationship between industry and poverty, introduce and integrate the sector into value chains. He put forward that, in practical terms UNIDO will undertake case studies in identifying the needs of the sector, which will form the bases of the JP. Finally, he stressed his gratitude to ITKIB and the Spanish government.

Gulay ASLANTEPE (Director of ILO- Turkey)

Ms ALANTEPE began her speech by stressing that, the main responsibility of ILO is to implement Corporate Social Responsibility in organisations. In order to achieve sustainable development, it has become a prerequisite for the private sector to integrate human development as part of their corporate culture. It is crucial for the private sector to understand aspects of CSR and to adopt it into their business practices. Ms Aslantepe pointed out that, the concept CSR is not correctly understood. In that, many perceive CSR to be a charity/philanthropy issue. However, she explained that, firms should be able understand that their accountable both to the workers in their firms as well as the society at large. In other words, enterprises do no longer have the luxury to act “selfishly”. They must be made to understand that, CSR is no longer a social issue on its own but overlap with economic gains, i.e. determine the profit of the enterprise. She stressed that, the societies have evolved and do apply pressure on businesses, where converting many enterprises to adopt principles of ILO She has especially pointed out that, in the 2000s there has been application of positive pressure for enterprises to adopt CSR as their common practice. Nowadays, this positive pressure has become an element for competitiveness on global scale. Adaptation of CSR by the leading multi-national businesses added momentum for others to follow suit. It has put forward by Ms Aslantepe that, Turkey has signed more than 80 of ILO’s agreements within the framework of International Labour Agreement. She emphasised that, accepting these agreements of ILO is an important step forward towards achieving equitable competitive environment in businesses, highlighting the importance of meeting agreements in practice. A report initiated in 1977 and updated in 2006 indicate that, multi-national businesses should have a role in the development process as well as acting to alleviate discrimination in gender equality and improving labour conditions. In fact, Turkey does have an obligation to adhere to these agreements. Ms Aslantepe, especially pointed out that, although there is no formal plan in Turkey for implementation of CSR principles the Ninth Development Plan could be taken as a guiding path. In that, the Plan includes policies concerning industry and environment, human health and social responsibility. Hence, with respect to CSR, the JP will have crucial role. She explained that, the report that will be produced at the end of the programme will form a strategic guidance for the sector. In other words, it will be an important guide in terms of adaptation of ILO’s labour conditions in the textile sector. She also pointed out that even the multi-national firms had to go difficult processes such as Adidas in the adaptation of ILO’s labour standards, which are now become elements in determining the level of competitiveness in the global markets. Finally, it was stressed that; businesses must adopt policies to improve gender equality, sensitivity to environment, and adopting ILO’s labour standards that contribute towards implementing CSR.

Ulrika RICHARDSSON – GOLINSKY (Permanent Representative of UNDP)

A year ago at the Spanish Embassy the JP was embarked, and here today in Malatya, it gives me a great pleasure to give a start for the Joint Programme, she said. Ms Golinsky pointed out that UNDP, established in 1950 now operates in 160

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counties. In Turkey UNDP works towards achieving poverty alleviation, gender equality and sustainable development, which are all parts of MDGs. Hence, it is very important to contribute to Turkey’s competitive textile sector with respect to achieving MDGs. However, Ms Golinsky stressed that driving forces for competitiveness have evolved overtime. UNDP, which has also been involved in the GAP project, provides an exemplary experience for the JP. Under the GAP project, many textile firms had been visited and it was very pleasing to observe their interest, she added. In addition, the idea of organic textile production was exchanged with great interest. Ms Golinsky also stressed the fact that, Turkey has a unique production process; in that having self-sufficiency at all stages of production. Hence, emphasising this comparative advantage of the Turkey could be utilised in creating bigger sum than the total of the parts, through introduction of innovation. In her speech, she underlined the importance of ITKIB’s leadership in the Joint Programme in the establishment of VCMP. In the sense of creating leverage, it was stressed out that, the JP will play an important role in the implementation of other projects in Turkey. The GAP project which has overlapping aspects with the JP. ITKIB’s involvement in is this GAP project in establishing an organic cluster, strategy in empowering women, decent work conditions and energy renewal give strength to İTKİB and to the JP. Ms Golinsky concluded her presentation by emphasising on production of “know how products” which will exhibit a model for rest of Turkey.

c) Keynote Speakers

Kemal Sahin (President of Board of Director of Sahinler Holding)

Kemal Sahin founder and executive director of Sahinler Holding explained with examples, how his small textile business had grown to become a global actor. He explained clustering should be treated as being an important element for success. The success comes within and that human beings have the power make this happen. He stressed the attitude of human beings towards success determine the outcome. Combination of knowledge and skills with a focused and diligent mind, constitute the parts of the equation for success, he explained. As a successful businessman, he gave seven tips to success. These can be outlined as; Pro-activity, being independent with dependency; Vision; giving priority in the right order; team work; synergy; knowing how to rest; and healthy living underlining that, there is no such thing as coincidence, neither in success nor failure. An important determinant for success he said is the culture of the firm. This had a great impact on the capacity of his exports from Turkey, becoming one of the top textile exporters in Turkey. The first rule he said in selling, is to understand the market that you want to sell. This golden rule is being market orientated together with being trustworthy. Sahinler Holding the biggest T-Shirt exporter of Turkey, he said owes its success to adhering strictly to these tow principles. Mr. Sahin emphasised the firms’ culture as being an important determinant for success. In his firm there is a harmonisation of German and Turkish culture, which he said, is a good blend. He said that, punctuality, trust, transparency are important factors that must be established in businesses. The win-win principle pursued by Sahinler Holding, acts a motivating factor for success.

d) Interactive presentation of the Joint Programme given by Dr.Inci ATAÇ-RÖSCH ( Director of Joint Programme), Damla TASKIN ( UNIDO Joint Programme Director), Özge BERBER - AĞTAŞ (ILO- Joint Programme Director), Murat GURSOY (UNDP- Programme Expert), Vedat KUNT (UNIDO)

Dr. İnci Atac Rösch

Dr. Rösch outlined the aims, targets and the expectations of the Joint Programme. She has explained that, the ultimate aim of the programme is to provide social and economic support to the entrepreneurs, especially the women entrepreneurs in the chosen provinces. Hence the aim is to improve the production and innovation capacities of the SME’s in the textile sector in the chosen provinces of Malatya, Kahramanmaras, Gaziantep and Adıyaman. An important aim is to establish a sustainable network and value chain among the sector. Dr. Rösch explained the implementation of Value Chain Management Platform (VCMP), cluster development and development of Corporate Social Responsibility (CSR) capacities in the textile sector as the targets of the programme. In that the programme aims to; (i) increase productivity and technology usage through the establishment of VCMP for the textile industry; (ii) cluster development in the textile industry through establishment of sustainable business network and value chain; (iii) establishment of innovation, research, and advisory centre (IRAC) for the SMEs ; (iv) preparation of a report with regards SMEs sustainability in the textile sector within the framework of CSR ; (v) organisation of training activities that will contribute to SMEs sustainability with regards to CSR, decent work, social conduct, sustainability, gender equality and environmental issues ; (vi) strategic report on CSR for the textile sector to be submitted to the Ministry of Industry and Commerce; (vii) increasing environmental awareness in the textiles industry. These expectations explained by Dr. Rösch are important tangible outcomes of the programme. In empirical terms it has been indicated that, the programme aims to educate minimum 750 people including managers and administrators. Dr. Rösch explained that, at the end of the Joint Programme, a national congress will be held, where results of the project will be disseminated.

In this session comments/ contributions and discussions were raised /initiated by the participants and JP directors of the UN Agencies. The following points summarize the issues raised during the discussion session of the conference:

Ali Ersoy from Sonsöz Newspaper- Malatya, raised the issue which textile firms are eligible to l benefit from the programme, which was answered by Dr Rösch indicating that regardless of their establishment year all SMEs will benefit.

Sait Kabaday, General Secretary of Malatya Chamber of Commerce and Industry explained that in the previous years, efforts had been made to carry out a similar project together with the chamber of commerce of Gaziantep, where it was believed it will be a solution for unemployment, but unfortunately it failed. Hence, our expectations from this project is high and do hope it will provide a solution to the problems of the textile sector.

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İsmet Toröz from Textile Vocational School at Inonu University explained that, textile is an old industry in Malatya, going back to 1960s. The school had been active in developing relationship with the industry he explained. And that this programme will be serving a crucial purpose in contributing towards developments in the textile sector. He put forward that, the programme have similar features and objectives with the work at the textile school. Hence, it is important that this school becomes a centre to deliver the required service for the sector, stating that he aims to development of a fruitful collaboration.

Upon raising the issue of reason in selecting Malatya as the centre for the programme’s activites by Seda Özgür From Kahramanmaraş Chamber of Commerce, Dr Rösch indicated that there is no discrimination in the selection and all four provinces will be treated on equal terms. In addition also put forward by Murat Gürsoy that all other provinces especially Kahramnmaraş and Gaziantep are executing other funded projects.

Ali Kemal Çetin from Fırat Development Agency-Malatya said they will be happy to provide assistance in investment and believe that it will be an added value for the programme. He further raised the question with regards to VCMP, asking what would be differing features between VCP and other portals such as Kompass, Alibaba and Euro pages. Murat Gürsoy explained that the said platforms are very different platforms in vision. They are more relevant for the Western style of business. For example if a firm in İstanbul needs to search for firms in the less developed areas to produce the products, then the value chain in this sense provides an essential tool with an assertive vision. In that, formation of network supported technology throughout the chain, a picture of the business could be seen on real time basis. Hence, this transparent system of network will provide the businesses to be in tight relationship with each other.

Özge Berber Ağtaş, from ILO put forward that, worker circulation in the textile sector is higher than the other sectors, hence it becomes more important for rights of the workers to be protected.

Damla Taskın from UNIDO inserted that; balance should be established between the partners in the industry (private sector) and the stakeholders (local actors) in the community in order to achieve sustainability. Although, this is a challenging process, it can be achieved through establishing appropriate interaction with the relevant actors.

Dr. Inci Ataç Rosch discussed the importance of needs assessment in identifying the current situation of the textile sector. Hence, training activities and consultancy services will be designed and delivered in accordance with the findings. These activities will be important determinants of sustainability after the project’s funding cease.

Vedat Kunt highlighted clustering as an important component of the programme, indicating that cluster formation requires both effort and patience, as its outputs is not easily produced.

An important question raised by Yalçın Karataş from Önder Textile, asked how the objectives of the programme explained would be achieved. Dr. Rösch stressed that the programme is only the start the programme aims to create awareness. If awareness among the sector is achieved, it will be the first step to develop other aspects. Özge Berber Ağtaş inserted also that, multi-national firms will apply pressure to adopt CSR principles as otherwise their prestige is being jeopardised. She added that, together with ILO, common training activities will be delivered, stressing the importance of using local trainers, whom understand the cultural perspectives of the trainees.

Dr. Rösch elaborated on the training activities the programme will deliver. In that the important stage of the Programme will be to undertake analytical survey in order to determine requirements, with respect to gender equality, sensitivity to environment and CSR in the textile sector. Evaluation of this survey will be backed up by a report forming the bases for the design of training activities. Firstly, training for trainees will start, expectedly in spring and subsequently in autumn training activities will follow. The programme will conduct a research on needs assessment. Here, the aim is to determine the needs of the SMEs in the textile sector, which will form the bases of the platform. At all stages of the study, participatory approach will be employed.

Yalçın Karataş inquired how he could adopt CSR in his firm as for this government incentives are necessary he claimed. Gülay Aslantepe inserted that, health and safety regulations are the main features of CSR. It is important to align with the employees in the firm, providing a human face, for example to have a library in the firm.

.

Based on a discussion on how a VCMP will be formed, Jale Tuncel from ITKIB explained that, after the initiation of the project, value will be created both by the market and by the clients. Firms will be categorised, which will lay the picture as to how the rings of the chain will be formed. She added that in order for this system to be sustainable, it is important have a research centre where value is added in an electronic environment and it will be meaningful when it meets the costumers.

It was also raised by Yalçın Karataş; businesses from the developed cities should establish workshops in these less developed provinces. In this way, they will set an example for the firms in the sector to follow. It was insisted that, it is the culture of the enterprises that should change and having a practical guidance would be beneficial.

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Action Items Description Responsible Party Deadline

3

Conclusions Based on the presentations and discussions the preliminary findings of the inception conference can be summarized as below:

It has been agreed that the textile sector in Turkey requires assistance in achieving development in order to compete and to integrate into value chains.

It has been emphasised that, the success and sustainability of the programme depend on the support and commitment provided by the relevant local actors from the four provinces.

Needs assessment study is essential in determining the requirements of the textile sector

Vocational textile school at İnönü university showed willingness to collaborate with the programme

The Governor of Malatya illustrated his support for the programme

Achievement of social and economic development through establishment of sustainable linkages has been accentuated

The importance of adopting the concept of Corporate Social Responsibility (CSR) as an element of competition for the textile sector has been emphasised

Joint training programs (time-wise) will be prepared for the textile sector on CSR, sustainability, social conduct, gender and environmental issues.

Assessment studies on CSR, sustainability, social conduct, gender and environmental issues will be carried out as surveys and desk reviews before the training programs are initiated. A single CSR report will be produced and disseminated.

Involvement of the three UN institutions and support of ITKIB had been highlighted as adding crucial strength to the programme

It has been delivered to the audience that the ultimate aim of the programme is to meet the Millennium Development Goals of the UN

Establishment of Value Chain Management Portal (VCMP) introduced and important initial feedback has been received from the participants

Research and Advisory Centre, be established as a multi-disciplinary centre which will serve the textile sector in a number of fields, including innovation research in textile industry, CSR, sustainability, social conduct, environmental and gender issues, decent work, clustering and VCMP.

Action Items Description Responsible Party Deadline

Visit to each province JPM December/January

Attachments

Description # of Pages

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ANNEX 2: JP MANAGEMENT AND COORDINATION

UN-Joint Programme “Harnessing Sustainable Linkages for SMEs in Turkey’s Textile Sector” is designed to raise the profile of the Turkish textile and apparel industry, which needs major transformation and paradigm shift.

Its accomplishment will necessitate the active participation and contributions of many stake holders.

Therefore, management and coordination structure and activities are crucial for the successful completion of the programme.

The national implementing partner for the JP will be the “General Secretariat of İstanbul Textile and Apparel Exporters Association” (İTKİB), who will implement the actions proposed in the JP with the support of participating UN Agencies, i.e. United Nations Development Programme (UNDP), United Nations Industrial Development Organization(UNIDO), International Labour Organization (ILO) and in collaboration with national and local stake holders, including government institutions at national and local level, representatives of trade unions and employers’ organizations, NGOs and private sector representatives.

Since the management and coordination is a complex structure, it will be carried on at various levels. The management and coordination arrangements will follow the guidelines of the Multi Donor Trust Fund Operational Guidance Note for the participating UN organizations (MDG-F, March 2009 version).

Accordingly, management structure is as follows:

Resident Coordinator

The UN resident coordinator (RC) is ultimately responsible for facilitating collaboration among participating UN agencies to ensure that the JP is on track and its results are being delivered.

The resident coordinator will exercise its authority over the programme by taking leadership of the overall programme design, ongoing programmatic oversight of the Fund’s activities by chairing the National Steering Committee meetings. The RC will establish committees at two levels:

1. National Steering Committee

2. Programme Management Committee

National Steering Committee (NSC)

The NSC is composed of non-implementing parties to allow independence and includes a representative of the Turkish Government, a representative from the Government of Spain and UN resident Coordinator. NSC will meet twice a year, on January and June.

Programme Management Committee (PMC)

The PMC consists of participating UN Agencies, i.e. United Nations Development Programme (UNDP), United Nations Industrial Development Organization, (UNIDO), International Labour Organization (ILO), State Planning Organization (SPO), Ministry of Industry and Trade (MoIT), Undersecretaries of Foreign Trade (UFT), İTKİB, Ministry of Labour and Social Security ( MoLSS) and Governors and Regional Development Agencies of all provinces. PMC will meet quarterly, on September, December, March, June but whenever necessary additional meetings can be organized upon request. PMC will provide operational coordination to the JP and will be chaired by the RC.

Technical Advisory Committee (TAC)

TAC will be jointly coordinated by PMC and JP, in order to provide technical oversight for the JP and review, evaluate the training programs and select SMEs in textile and apparel sector which are eligible for further support of the programme. It will consist of 8-10 technical experts from relevant organizations such as MoIT, MoLSS, UFT, IGEME, MoLSS, İTKİB, TÜTSİS, DİSK TEKSTİL, TEKSİF, Öz İplik İş, Kalder, KOSGEB, TUBİTAK, İstanbul Technical University, Governor Office of Malatya CSR Association of Turkey, and other stake holders who have competence in the fields of textile and apparel sector in Turkey, value

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chains and clustering, competitiveness, sustainable development and corporate social responsibility, human rights, information and communication technologies (ICT). It will meet regularly on February, July, and November.

UN-Agencies Coordination Meeting (CM)

CM meeting will consist of participating UN Agencies, i.e. United Nations Development Programme (UNDP), United Nations Industrial Development Organization (UNIDO), International Labour Organization (ILO), and İTKİB and be organized every month by the JP at UN premises.

Coordination with MDGF

MDGF meetings will be organized by UN as often as necessary.

Local Partners Coordination Meetings (LPCM)

LPCM meeting will take place every three and the participants will consist of local stake holders from particularly representatives from Governotes and Regional Development Offices, Local Chambers of Commerce and Industries of Malatya, Kahramanmaraş, Gaziantep and Adıyaman, as well as labour unions and employers’ associations together with participating UN Agencies, i.e. United Nations Development Programme (UNDP), UNIDO United Nations Industrial Development Organization, ILO International Labour Organization, and İTKİB and be organized quarterly at local level by JP, on October, January, April, July.

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ANNEX 3: JP MONITORING FRAMEWORK

There is an M&E system in place, the baseline is established and the results will be evaluated accordingly. M & E expert will be employed by the JP in order to evaluate the results. In addition to the regular monitoring framework, the results of the various outputs of the JP can be monitored and evaluated by the increased involvement and ownership of ITKIB. Ownership of ITKIB will also ensure the sustainability of the JP not only for following the results of the JP, but for supporting further development of the textile sector especially at the pilot provinces as well.

All these efforts related to training and counseling programmes are not only targeting quantity but definitely capacity building related to competitiveness of SMEs. That is to say that the required skills and competencies in order to start exporting or cooperate with exporting companies will be addressed through our activities and they will not remain merely as project activities but will target practicality and applicability. Multinational Brands require the Value Chain to comply with various standards related to CSR and our project activities concentrate on various aspects of CSR to ensure cooperation of the SMEs with multinational brands and also build own skills and competencies.

In addition, following approach will be used for all training activities under related outputs of the JP:

a) All training activities (on VCMP, clustering and CSR) will be evaluated by the participants and the results will be reported to ITKIB.b) ITKIB can provide an “Impact Assessment Study” after the completion of the JP.

Expected Results # Indicators Means of Verification Collection Method and Frequency

Responsibilities Risks and Assumptions

Outcome 1: Productivity and innovation capacities of the SMEs in the Turkish textile and apparel industry especially in poor and vulnerable areas strengthened through enhanced collaboration and networking for increased competitiveness.

1.0.a Indicator: Exports of TA products (US$)Baseline: 17% (Share of T/A in total exports)Target: 19% (Share of T/A in total exports)

UFT export statsMoIT reportsTURKSAT stats

Official Public Statistical DataAnnual

ITKIB is officially mandated to record exports data of T/A products of its members.

Instability in macro-economic environment may decrease SMEs’ interest in networking and collaboration

Output 1.1: An online Value Chain Management Platform (VCMP) activated by İTKİB and utilized by T/A value chain actors

1.1.1 Indicator: Number of SMEs registered for VCMPBaseline: Pilot application for two big exporters

Members’ database of the VCMPProgress reports

Accumulation of data during implementation of VCMP

UNDP/ITKIB Disagreement between ITKIB and CISCO (developer of the Platform) on management modalityTechnological problems

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Target: 1000 SMEs registered in the platform at the end of the third year, 50% being from RCOP region

Progress reportsQuarterly

may defer activation of the portal

1.1.2 Indicator: Number of VCMP usersBaseline: Pilot application for two big exportersTarget: 1000 SMEs registered in the platform at the end of the third year, 50% being from RCOP region

VCMP logs Accumulation of data during implementation of VCMPProgress reportsQuarterly

UNDP/ITKIB Lack of interest from the SMEs to register and utilize the VCMP

1.2 the capacity of national SME support and advisory institutions in the field of clustering and business linkage development are enhanced; clustering and networking case study is conducted in Malatya and neighboring provinces

1.2.1 Indicator: Number of women and men experts from institutions such as IGEME, ITKIBBaseline: Number of experts from business support institutions received trainingTarget: 25 experts from cluster agents preferably from IGEME, ITKIB and capacities of 4 business support organizations developed

Participation list of meetings and training sessions

Progress reportsQuarterly

Register of participants attending meetings and training sessions

UNIDO It is assumed that the agencies working on clustering will cooperate for the harmonisaiton of cluster efforts

1.3 An SME Sustainable Competitiveness Centre is established and activated

1.3.1 Indicator: Number of SMEs receiving advisory services from SCCBaseline: SCC established and operationalized in the first yearTarget: Min. of 20 SMEs receive consultancy at the end of first year, 50 SMEs en of second year focusing on

Registers for SCCSubmitted projects for support

Database of the companies requiring support will be kept by SCC

UNDP/İTKİB University facilities will be allocated to SCC, selected Academics will devote considerable time to training to be held in Spain and for consultancy services to be provided

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women

2. sustainable development, CSR principals and gender equality are integrated into the business processes and practices of the Turkish SME’s in textile sector for increased competitiveness

2.0a Indicator: Ratio of registered employment especially women, in T/A sector, the number of Global Compact signatories and number of T/A companies reporting on CSR/sustainabilityBaseline: 30% increase in the ratio of registered employment and 35 % increase in the ratio of registered women in T/A, 4 T/A companies in GC signatory and 1 company reporting on CSRTarget: 35% increase in the ratio of registered employment and 38 % increase in the ratio of registered women in T/A, 100 T/A companies in GC signatory and 5 companies reporting on CSR

MoLSS stats and reports

Global compact (GC) network signatories information

İTKİB and other sector reports

MoLSS website and other data sources

GC local network information available via UNDP private sector

UNDP/İTKİBILOUNIDO

Macro-economic conditions and political climate remains stable. The government and other partners remain committed to programme priorities. Government adopts CSR and sustainable development principles as part of textile and apparel sector strategies.

2.1 an assessment report on sustainable development and MDG awareness as well as on gender sensitive, social and environmental conduct among Turkish SMEs in textile and apparel sectors is prepared and launched by İTKİB and consequently shared with MoIT, UFT and SMEs

Indicator: Number of copies of CSR Assessment report in T/A prepared and distributed. Number of firms participated in surveys Baseline: no report on CSR issuesTarget: 2000 copies of report prepared and distributed to SMEs

Registers of survey and resulting situation analysis and report

Report and situation analysis available

Survey results will be converted to electronic format for analysis

Reports will be printed and also will be made available electronically and disseminated via existing networks.

UNDP/İTKİBILOUNIDO

SMEs will cooperate in the surveys and be willing to provide data

2.2 awareness building strategy on sustainable development, and

Indicator: Number of women and men who Registers of training Survey results will be

UNDP, UNIDO, ILO with the support of İTKİB

SMEs will be interested in and attend the training

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gender sensitive, social and environmental conduct ( with respect to climate change implicaitons )of selected SME enterprises is implemented

received training and able to apply their knowledge in their workplace Baseline:Target: Throughout the CSR awareness building activities of JP 15 people from core project staff and at least 1”5 trainers are to be trained in addition to the target group of 750 workers and managers and 10 people from related oranisations.

programmes and feedback surveys with participants

Training reports

converted to electronic format for analysis. Attendance sheets of training programmes will be kept for the implementing agency

Training reports will be kept by the implementing partner

programmes

2.3 a CSR strategy for textiles and clothing sector is developed, implemented in selected firms and submitted to MoIT for consideration to be integrated into textile strategy

Indicator: Availability of a CSR strategy for the sector, a CSR management and reporting tool in local language. Number of firms/experts participating in expert group and focus group meetings, number of SMEs and experts participating training programmesBaseline: noneTarget: CSR strategy for T/A prepared and submitted to MoIT. CSR management and reporting tools for the sector. Min. 20 large firms participating in expert group meeting, 10 large companies participating in focus group meeting. At least 15 SMEs participating in pilot phase, 40 national experts in training seminars focusing on equal participation of men and

Minutes of expert group and focus group meetings. Attendance sheets of training sessions

Minutes of meeting will be prepared and distributed to participants after each meeting. Attendance will be registered for each training session

-ITKIB and other local institutions. In the organisation of the CSR strategy, meetings and training pogrammes

SMEs will show interest in group meetings and training programmes

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women

2.4 awareness of national authorities on the impact of textile and apparel sector on environment is developed and strengthened

Indicator: A gender sensitive policy advocacy note on the impact of textile and clothing sectors on environment is elaboratedNumber of industry representatives attending conferenceBaseline: NoneTarget: 1 gender sensitive policy note on environmental impact is prepared and submitted to MoIT and Min. of Environment and ForestryMinimum 80 representatives from the industry attend the conference where equal participation of women and men will be promoted

conference registers

Adoption of policy note by MoIT and/or other national bodies to be incorporated in national policies related to textile and clothing sector

Conference registers will start at least one month prior to convention

UNDP- İTKİB Relevant parties will show interest in the Conference and the subsequent meetings

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ANNEX 4: BUDGET & WORK PLAN

Excel Worksheet for the Budget and Outputs is attached with the report.

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ANNEX 5: RISK ASSESSMENT MATRIX

# Description Date identified

Type Impact (I) & Probability (P) Countermeasures Submitted By Last Update Status

1 Instability in macro-economic environment may decrease SMEs’ interest in networking and collaboration

2009 Economic Potential Effect: The outcome may not be achieved.Impact: 5/5Probability: 1/5

Increased efforts on communication of benefits of networking and collaboration by engaging leader firms and role models

JPM March 2011 No change

1.1(a) Lack of interest from the SMEs to register and utilize the VCMP

March 2011 Strategic Potential Effect: The VCMP will be underutilizedImpact: 5/5Probability: 2/5

A comprehensive promotional campaign (Activity 1.1.1.3) during the launch of the portal.Engagement of buyer firms into the portal as a selling point to the SMEs

JPM March 2011 No Change

1.1(b) Technological problems may defer activation of the portal

March 2011 Technological Potential Effect: The VCMP will not be launched in a timely mannerImpact: 4/5Probability: 1/5

Increased coordination with CISCO (the developer of the Programme).

JPM March 2011 No Change

1.1.(c) Disagreement between ITKIB and CISCO (developer of the Platform) on management modality

March 2011 Strategic Potential Effect: The VCMP will not be launched in a timely mannerImpact: 5/5Probability: 1/5

Increased coordination with CISCO (the developer of the Programme).

JPM March 2011 No Change

1.2 Lack of interest from the SMEs to engage in clustering initiatives

March 2011 Strategic Potential Effect: The clustering initiatives will have a lower impactImpact: 3/5Probability: 2/5

Better integration of clustering activities with other elements of the JP (e.g. support scheme)

JPM March 2011 Increasing

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# Description Date identified

Type Impact (I) & Probability (P) Countermeasures Submitted By Last Update Status

1.3(a) Redundancies with existing SME support and advisory centers and units may decrease interest of SMEs to the services of the SCC

March 2011 Strategic Potential Effect: SCC will have an crucial implications and form network with other centresImpact:4/5Probability:3/5

Negotiations and moderation can be carried out with the University and İTKİB which in turn will result in a protocol signed between İTKİB and the University

JPM March 2011 No Change

1.3(b) Difficulties in assigning staff dedicated to the operations of the SCC

March 2011 Economic Potential Effect: Relevant staff will be selectedImpact: 2/5Probability:2/5

Selected Academics will devote considerable time to training to be held in Spain and for consultancy services to be provided

JPM March 2011 No Change

1.4 SME grant schemes implemented by the development agencies may decrease demand for the JP support scheme

March 2011 Economic Potential Effect: Grant scheme will have a greater impactImpact: 5/5Probability: 5/5

In order to ensure this, the support scheme will be promoted through existing networks and through local media.

JPM March 2011 No Change

2 Instability in macro-economic environment may decrease SMEs’ interest in CSR enhancement

March 2011 Economic Potential Effect: In time awareness on CSR will have implicationsImpact: 1/5Probability:3/5

National stake holders such as State Planning Organization, MoIT, UFT and İTKİB have been involved in the planning of this joint programme. Besides a National Textile, Clothing and Leather Sector Strategy is developed and adopted which is in parallel with this JP.A close cooperation and contact with the Government partners are essential.

JPM March 2011 No Change

2.1 Lack of interest by the SMEs to engage in analysis and/or reluctance to provide data

March 2011 Economic Potential Effect: Unrealistic situation will be reflected impacting design of trainingImpact:2/5Probability:3/5

Most appropriate survey method should be selected and the survey itself should be designed to be user friendly. Sensitivities of SMEs should be taken into consideration

JPM March 2011 Increasing

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# Description Date identified

Type Impact (I) & Probability (P) Countermeasures Submitted By Last Update Status

2.2 (a)

Lack of interest by SME managers and employees to be engaged in training and counseling activities

March 2011 Economic Potential Effect: Inability to create the intended awarenessImpact: 2/5Probability:3/5

Announcement of the training programs should be carefully designed oral and more personal methods as well as written invitations should be used.

JPM March 2011 Increasing

2.2 (b)

Difficulties in assigning candidates dedicated to take part in training of trainers programme

March 2011 Economic Potential Effect: Lack of awareness impactImpact: 3/5Probability:2/5

Introduction of incentive/reward mechanism such employment in SCC and cluster work or selecting candidates from other consultancy institutions

JPM March 2011 No Change

2.3 Difficulties SMEs to show interest

March 2011 Social/Economic Potential Effect: Programme not achieving its objectivesImpact: 4/5Probability:2/5

Announcement of the group meetings training pro-grams should be carefully designed oral and more personal methods should be used as well as written invitations. Should be used SMEs should be persuaded, where necessary about the importance of the group meetings and participation

JPM March 2011 Decreasing

2.4 Lack of interest of relevant parties showing interest in the conference and the subsequent meetings

March 2011 Social/Economic Potential Effect: Having a adverse effect on whole of the projectImpact:5/5Probability:2/5

An intensive communications strategy has been developed during the inception period in order to explain the benefits of the programme and disseminate the results and findings

JPM March 2011 Decreasing

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ANNEX 6: PROJECTS AND PROGRAMMES FOR COOPERATION

Title of the Project Status Funding Source

Brief Description Potential Areas of Cooperation

Expansion of EU Business Centers Network (Phase 2)

Completed EU The project facilitated establishment of business development centers in several provinces of Turkey, including in Malatya. The beneficiary of the Project was TOBB, with provincial chambers hosting the business centers (ABIGEMs).

Malatya ABIGEM renders business support and advisory services to the SMEs in Malatya and neighboring provinces. The Sustainability Competitiveness Centre should be designed and activated in such a fashion that the SCC capitalizes on the existing capacity of Malatya ABIGEM and avoids any duplication or redundancy.

Technical Assistance for Empowering SMEs for Networking and Regional Cooperation

Ongoing EU/TR The project supports the Undersecretariat for Foreign Trade (UFT) on improving networking and cooperation between the Regional Competitiveness Operational Programme (RCOP) and non-RCOP Regions.The project will facilitate development of inter-regional and regional cooperation and networking strategies, designing and execution of intra- and inter-regional pilot actions, development of cluster tools to be used by regional actors and establishment of an online knowledge management system, national benchmarking system and local cluster info-spots within the local institutions (chambers, exporters’ unions, organized industrial zones etc.) in Çorum, Samsun, Kahramanmaraş, Gaziantep and Trabzon.

The EU/TR-funded

Promotion of Registered Employment in the T/A Industry in Southeast Anatolia

Ongoing EU/TR The project is funded within the scope of IPA4 (Human Resources Development), and aims at promoting registered employment in the T/A industry in Adiyaman, Gaziantep, and Kahramanmaras. UNDP implements the project in partnership with ILO, Southeast Anatolia Project Regional Development Administration, ITKIB, Gaziantep Chamber of Commerce, and Kahramanmaras Chamber of Commerce and Industry.

The project will produce tools for raising awareness of the T/A SMEs; as such there are clear complementarities between the project and the JP.

UNDP/IBM Corporate Service Corps Program

Ongoing IBM/TR IBM Corporate Services Corps have conducted needs assessment on SMEs in Malatya with regard to value chain management platform to be established within the scope of the JP.

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Title of the Project Status Funding Source

Brief Description Potential Areas of Cooperation

Development of Cluster Support Programme for the Ministry of Industry and Trade

Ongoing TR The project is implemented by the Ministry of Industry and Trade in cooperation with UNDP. The project will produce a programme, through which the MoIT will support clusters in Turkey

UNDP has included the target regions of the JP into the scope of the field analyses conducted within the scope of the project. The clustering initiatives to be launched within the scope of the JP may benefit from the Cluster Support Programme.

Promoting Registered Employment Through Social Dialog and Training

Ongoing EU The project is implemented by Öz-İplik–İş in partnership with the Chamber of Commerce and Industry of Malatya. The project aims to contribute to increase the rate of registered workers in textile industry by providing vocational training and awareness raising activities.

The project will produce tools and carry out training seminars for raising awareness of the workers; as such there are clear complementarities between the project and the JP.

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ANNEX 7: COMMUNICATION MATRIX

Strategy Goal: Increase networking and collaboration among T/A value chain actors and accelerate progress towards MDG1, MDG3 and MDG7 by raising awareness, strengthening broad-based support and action and increasing engagement in MDG related policy and practice in Turkish T/A industry

Outcomes Outputs Key Messages Targets Means Indicative Activities Cost $

Increase networking and collaboration among T/A value chain actors

Increased Membership to the Value Chain Management Platform

Value proposition of VCMP in terms of building real time linkages between buyers and sellers

T/A TNCs T/A SMEs

Meetings with TNCs, Seminars with SMEs, 1.1.2.1

1.1.2.3

Increased SME engagement in clustering initiatives

Sustainable cluster chains can be achieved

T/A SMEs Needs assessment Group meetings with

T/A SMEs Seminars with T/A

Seminars

1.2.1.1 1.2.1.2 1.2.2.2 1.2.2.3

Increased utilization of SCC services

Improving advisory services for competitiveness

T/A SMEs Training activities for T/A SMEs and Employees

1.3.1.5

Support scheme implemented

Importance of good governance, transparency, accountability and fairness

T/A SMEs Selection according to dedication to activities and needs identification

1.4.1.5

Increased awareness on CSR (in particular MDG1, MDG3, MDG7 and MDG8)

Report on CSR in Turkish T/A

Adaptations of CSR principles would contribute to competitiveness

T/A SMEs T/N SMES National authorities( MoLSS,

MoI)

Gathering statistical information

Needs assessment surveys

2.1.1.1 2.1.1.4 2.1.2.1 2.1.2.5 2.1.3.1 2.1.3.4

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Strategy Goal: Increase networking and collaboration among T/A value chain actors and accelerate progress towards MDG1, MDG3 and MDG7 by raising awareness, strengthening broad-based support and action and increasing engagement in MDG related policy and practice in Turkish T/A industry

Outcomes Outputs Key Messages Targets Means Indicative Activities Cost $

Development of awareness- raising strategy

T/A SMEs T/N SMES National authorities( MoLSS,

MoI)

Meetings Surveys Statistical

information

2.2.1.1 2.2.1.3 2.2.2.1 2.2.2.3 2.2.3.1 2.2.3.3

CSR advocacy strategy developed

CSR as competitiveness tool

T/A SMEs T/N SMES National authorities( MoLSS,

MoI)

Meetings with T/A SMEs

Surveys Statistics

2.3.1.1 2.3.1.2

Sustainable and responsible competiveness agenda created for T/A industry on national bases

Linkage between sustainability and competitiveness emphasised

T/A SMEs T/N SMEs TAC Members National authorities

Meetings with T/A SMEs

Surveys Statistics

2.4.1.1 2.4.2.2

Promote JP activities through media

Increased awareness about the aims, targets and expectations of the programme

Importance of the JP

T/A SMEs Local Actors Stakeholders

Press Brochures, leaflets Posters Local TV Channels

25.000

Promote national and local ownership and capacity building

Increase probability of sustainability through increased local support

Increasing sense of the state of belonging for the JP

T/A SMEs Local Actors/Institutions Stakeholder Members of TAC

Press Brochures, leaflets Posters Local TV Channels Invitation to

meetings Visits

20.000

Total Budget 45.000

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ANNEX 8: FORMATION OF TECHNICAL ADVISORY COMMITTEE (TAC)

TAC has been envisaged as a set of platform for focused discussions, on key issues related to the objectives of the JP, as well as the report which will be prepared on corporate social responsibility in textile sector. It will provide technical advice to support JP implementation. TAC is comprised of a core membership, and a wider network of scientific community, ministerial staff and other stakeholders might be invited to attend meetings with respect to the agenda. The core membership of TAC will consist of 12-15 distinguished experts in their relevant fields.

The major topics stated in the JP document include inter alia

i. value chain management portal,

ii. clustering in textile sector

iii. establishment of a research and advisory center

iv. textile sector support programme

v. CSR report

vi. Sustainability

vii. Social conduct

viii. Gender sensitivity

ix. Environmental conduct

Members of the PMC will not serve on the TAC except technical experts from relevant organizations. This committee will be jointly coordinated by the PMC and the Programme Manager of the Joint Programme, and will consist of about 12 - 15 experts.

TAC core members will be selected among the competent nominees recommended by the PMC to be approved by the NSC.

TAC members will carry out the tasks below:

Provide technical guidance on implementation of the JP

Act as the selection committee of the Support Programme of the JP under Outcome 3,

Provide technical guidance on monitoring and evaluation of the awarded Grants Projects

Provide technical guidance on the process of development of Corporate Social Responsibility Report

Participate actively in the key events of the JP

Assist training activities of the JP

TAC will consist of 8 technical experts from relevant organizations such as MoIT, UFT, IGEME, MoLSS, İTKİB, KOSGEB, TUBITAK, Governorate of Malatya, İstanbul Technical University TÜTSIS, DİSK TEKSTİL, TEKSİF, Öz İplik İş, Kalder, CSR Association Turkey, and other stake holders who have competence in the fields of textile and apparel sector in Turkey, value chains and clustering, competitiveness, sustainable development and corporate social responsibility, human rights, information and communication technologies (ICT). It will meet regularly on February, July, and November.

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Table20: Technical Assistance Committee

VCMP Clustering Research, advisory center

Support scheme

CSR Sustainability Social conduct Gender Environmental conduct

MoIT Serdar ATAYETER Tolga ARICAN Gülşah YILMAZ Ramazan ÖZKER

MoLSS

UFT Emrah SAZAK Esin AÇIKGÖZ Hürol KARLI

İTKİB

IGEME Ebru GÜLSOY

KOSGEB Ayşe ÖĞÜNÇ

TUBITAK

Governor’s office of Malatya Sait KABADAYI Abdullah DURAN

TÜTSİS Ceren ERMİŞ

DİSK-TEKSTİL

TEKSİF Adnan ATEŞ AsalettinASLANOGLU

Özİplik-İş PınarPEHLİVANOĞLU

KALDER

CSR Association Turkey

İstanbul Technical University

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