|
What are the main issues faced by companies inTurkey in the field of corporate governance?
This is a relatively new issue for the Turkish marke
t and it started being discussed within TÅ“SIAD (Turkish Business Association) in 2000, which led to the preparation of the Turkish corporate governance code [published in 2002].
In 2003, the Turkish Corporate Governance Association was established; its mission is to raise awareness by training the various corporate players such as board directors and shareholders on how to enable good corporate governance based on existing principles, with the main issues in the Turkish business environment being transparency and board effectiveness.
What have been the main improvements following the creation of the Turkish Association of Corporate Governance?
In 2004, after more then four years of work on improving corporate governance at the national level, the Turkish Corporate Governance Association ordered a study on the state of corporate governance in Turkey from the Boston Consulting Group (BCG). The study showed that there have been several improvements with approximately 20% of the Turkish companies now being managed by effective boards. Nonetheless, the report also shows that there is still a long way to go, and improvements are needed in the field of transparency and board effectiveness. Many directors still need to be trained, but also the fundamentals of corporate governance need to be looked at, since an important number of Turkish companies do not really have boards, mainly family owned companies.
Following the issuance of the BCG study, a meeting was held in April 2005, and during two days the board members of the association's member companies discussed how to move forward. It was then decided that for the next two years the focus will be on promoting and implementing the principles. Many initiatives have been discussed, one of them being a new training programme to educate board members.
What are the objectives of such a training programme, and how will it fit in the often overbooked diary of directors?
The training program will only last three days, during which board directors will be invited to attend different sessions on key corporate governance issues and be given solutions on how to address them. Emphasis will be placed on the effectiveness of corporate governance and how to improve boards' structure and transparency.
The programme will be offered by a Turkish university, championed by the Corporate Governance Association of Turkey and rewarded by a certification. This is the first program of this kind in our country and will be open to 16 participants every term. We hope that in the near future similar programs will be made available in various Turkish cities. This should raise awareness of how to improve long-term conditions for investment as a result of more effective boards with a full understanding of corporate governance mechanisms.
How are Turkish companies addressing global competitiveness? Is good corporate governance one of their priorities?
This is an important issue raised by the global environment, and more particularly in a European context. Indeed, Turkey is also aiming at being part of the European Union (EU), and in economic terms this means that to be in line with the Europe Agreement signed by Turkey over a decade ago, and with other treaties as the Customs Union signed in 1996 with the EU, macroeconomic stability is now ensured and structural reforms and improvements in the business environment have been made.
Turkey is attracting foreign investors not only based on its low cost and qualified labor but also thanks to its efforts to ensure more transparency in the investment environment. To illustrate this, the Turkish Stock Exchange has implemented corporate governance listing requirements and careful attention is being given to corporate governance in the preparation of the new Turkish Commercial Code.
| 
