Relations with stakeholders in Turkey: the sample of ISE‐50 Index

Abstract

PurposeThe purpose of this paper is twofold: to examine to what extent the companies could adapt the corporate governance principles of the Capital Markets Board (CMB) to their own structures in terms of stakeholder relations; and second, to raise awareness of the deficiencies related to these relations.Design/methodology/approachThe companies listed in ISE‐50 Index in the fourth quarter of 2010 were examined. The corporate governance principles compliance reports, activity reports and articles of associations of the companies that should be issued were examined to obtain the data. The research findings have been studied under five subtitles: company policies relating to stakeholders; promoting the participation of stakeholders in the management; human resources policies; relations with the customers and suppliers; ethical rules and social responsibility.FindingsIt is found that the companies have not taken any action for the representation of the employees in the board of directors. Also, it is seen that most of the companies, when any interest group is privileged, do not make the confidential business information obtained due to such privilege used so as to violate the equal opportunity principle. There are difficulties in paying attention to the confidentiality of the confidential business information related to the customers and suppliers.Practical implicationsThe findings of this study can indicate that, effective handling of applications reflecting the perception related with the stakeholders of the corporate governance could only be probable if CMB corporate governance principles “practice and specify what you do not practice” have become compulsory.Originality/valueThe paper provides useful information on the relationships of the companies listed in the ISE‐50 Index with stakeholders.