The concept of corporate governance entered the debate with the Polly Peck scandal in the United Kingdom and was then discussed far more widely after the WorldCom and Enron failures in the United States. It spans a broad field, from the financial sector to government and civil society, and refers to rebuilding management so that it is more controlled and more durable. In the widest sense, it is the regulation of how any institution that people form to achieve a purpose is managed.
In a globalised and increasingly competitive Türkiye, growing family businesses often find that the family alone cannot meet the company’s needs in management and capital. They turn to professional managers and develop new financing models.
Companies can finance investment through bank loans, an IPO on the SME market or on Borsa Istanbul, a foreign investor partner or a domestic investor partner. For every one of these routes, applying corporate governance principles matters. Corporate governance is the system by which businesses are directed and controlled, and by nature it is a matter of process management.
Our areas of expertise
- Board advisory
- Drafting family and corporate constitutions
- Product portfolio analysis
- Product efficiency services
- R&D centre advisory
- Turquality and brand advisory
- Structuring of procurement and supply chain management
- Human resources advisory
- Institutionalisation advisory
- Strategic business plan preparation
- Reporting services
- Building a management reflex within the company
- Preparing projects for support and incentives from TÜBİTAK, KOSGEB, development agencies, EU funds and the relevant ministries
The corporate governance framework
An effective governance structure rests on the following elements:
- An effective and independent board of directors
- A proactive audit committee
- A remuneration committee that aligns executive pay with shareholder value
- An effective internal control structure
- Appropriate codes of ethical conduct
- Clear policies and procedures with the authority to enforce them
- Effective risk management
- An objective and adequate internal audit function
- Independent and effective external audit
- Systems that ensure transparent disclosure, effective communication, accountability and measurability
Hector Kurumsal advises clients through the governance process with its specialist team, giving them a working system.
