Corporate Governance In Turkey – Big Steps Ahead

Article by Paul Wouters and Ali Kosklu

Introduction

There are various definitions of "Corporate Governance" ("CG"). CG is mostly considered as a set of processes, policies, laws that affect the way a corporation is directed / administered or controlled. It generally deals with the relationships / rights and obligations between the so-called "stakeholders" (shareholders, management, employees, board of directors, creditors and suppliers, regulators, environment and the community at large).

The importance of CG lies in its contribution both to business prosperity and to accountability. One prominent theme that is covered in CG is the accountability and fiduciary duty of the corporation and the directors of the corporation towards it’s’ stakeholders. Good mechanisms and guidelines have to be drafted and implemented to ensure the effective and reliable management within the corporation (avoiding conflicts of interest, abuse of position, guarantee compliance ...) and to protect the