Article 1 – Corporate Governance in Turkey

In the evolving world, firms face competition from both domestic and international market.
Corporate governance involves a set of relationships amongst the company’s management, its
board of directors, its shareholders, its auditors and other stakeholders

Principles

1. Ensuring the basic for an effective corporate governance framework

In this, openness and fairness of the market is emphasized and underlines the fact regulations
can be done with legal elements to allow flexibility. For example, in terms of the size of the
company and its conditions

2. Shareholder’s rights and fair treatment

This is to identify the role of shareholders and to minimize the conflicts of the shareholders
which incorporate the importance of fair and effective price in the equity market.

3. Public disclosure and transparency

It’s to identify the key areas of public disclosure. For example, financial and operational
results, company objectives, large shareholding, compensation, related party transactions,
etc...

4. Responsibilities of board of directors

It provides guidance on the core functions of the board of directors. For example, addressing
the corporate strategy, selecting the top management, determining the remuneration, ensuring
the integrity of the company's accounting and financial reporting system

Functions

Accountability keeping the company accountable to

stakeholders, investors
Transparency Transparent about company’s earnings,
success and failures
Ethics Holding the company to a high ethical
standard
Company Vision Guiding the company towards future’s goal

Arrangement for improving corporate governance

  Principles and Procedures for Correction of Financial Statements in High Inflation
Periods
 Principles of Public Disclosure of Special Cases has been prepared
 International Accounting Standards have been used
 Amendment on the Independent Audit

Articulation of own thoughts on the article

After reading this article I understand corporate governance is the combinations of rules and
processes in which the business operate and ethics on business is very important as the
company’s reputation will be for life. The board of directors is in charge for creating the
framework for it that best aligns business to conduct with its objectives. Ethics on business is
very important as the company’s reputation will be for life.

Reference

https://www.sciencedirect.com/science/article/pii/S1877050919313018
Article 2 – corporate governance and public sector entities

Corporate governance is the way in which an organization is lead and controlled with the
purpose of accomplishing its responsibilities successfully and bringing added value.

Principles

1. Openness – it is the foundation element for the level of trust which needs to exist
between the business and the interested parties
2. Integrity – it should be present a balanced picture of the state of the company’s affair
3. Accountability - the Boards of directors are accountable to their shareholders and both
have to play their part in making that accountability effective

Ensuring adequate framework for

effective implementation of
corporate leadership
Shareholder’s Equal treatment of
right all shareholders

Functions

Stakeholder’s role The Board of

in corporate Directors
Information and
governance responsibilities
transparency

Characteristics of CG

 The shareholders-directors-managers relations

 The dimensions of conformity-performance-accountability
 The corporate legislation and regulation – final accounts – ethical standards
 The external audit
 The Auditing Committee
 The internal audit
 Performance, commitment and abilities

Principles of corporate governance in UK public sector

 Selflessness Holders of public office should take decisions solely in terms of the public
interest.
Integrity Holders of public office should not place themselves under any financial
or other obligation to outside individuals
Objectivity In carrying out public business holders of public office should make
choices on merit
Accountabilit Holders of public office are accountable for their decisions and actions to
y the public
Openness Holders of public office should be as open as possible about all the
decisions and actions that they take
Honesty Holders of public office have a duty to declare any private interests
relating to their public duties
Leadership Holders of public office should promote and support these principles by
leadership and example

Articulation of own thoughts on the article

Corporate governance is the system by which companies are directed and controlled, and is
never far from the spotlight, particularly in the UK’s present political landscape.  For
example, there is now near universal acceptance of the desirability of separating the role of
chairman and chief executive which was common when the Cadbury Code was introduced in
1992.

Reference

https://www.sciencedirect.com/science/article/pii/S2212567115008795