“Turkey has a strong regulatory framework for corporate governance. Disclosure to the market by listed companies is improving, and international standards for accounting and auditing are being introduced… But some challenges remain. Family-controlled groups of companies are a common feature of the Turkish business scene, often with a high degree of cross-ownership between companies. Controlling shareholders often play a leading role in the management and strategic direction of company groups, many of which include companies that are listed on the Istanbul Stock Exchange. This is not a problem in itself. Without effective safeguards, however, there is potential for abuse, for example in situations where controlling shareholders impose commercial conditions that go against the interests of the company as a whole and minority shareholders.” This extract was taken from the OECD Report on the state of corporate governance in Turkey in 2006.

Much has changed since then! The Turkish Commercial Code (TCC), which entered into force in July 2012, provides new standards regarding establishment and governance of commercial companies, and new principles that comply with international corporate governance and auditing standards, such as international trade, finance, industry, and transparency of companies in terms of accounting and financial reporting.

In addition, after the enactment of Capital Markets Law at the end of 2012 which introduced substantial amendments to the functioning of Turkish capital markets, the rules and procedures regarding corporate governance principles and related-party transactions for public companies have been renewed accordingly. Borsa Istanbul (BIST) is one of the five exchanges that signed the foundation document of the United Nations Sustainable Stock Exchanges Initiative (SSE) in 2012. Since then, BIST has been active in corporate governance and sustainability initiatives and supports the sustainable finance ecosystem by introducing new sustainability-themed products and serving as a strategic facilitator of sustainable growth in Turkiye. With its strong organization structure, inclusive national and international partnership approach and goal-oriented collaborations; Integrated Reporting Association Turkey (ERTA); as the official national association founded with the aim of enabling companies to report their non-financial information in an appropriate manner with financial information; has set its sights on “Integrated Thinking Approach” and been contributing effectively to the corporate governance studies and the related regulatory framework in Turkey since 2015.

In this recording, you will find out more about the recent developments and  planned future goals.