Bıst-100 Companies Score Poorly On Transparent Reporting

Research results indicate that BIST-100 companies scored poorly at an average of 28 percent in the transparent reporting on anti-corruption programmes, according to a Transparency International Turkey study.

The study on "Transparency in Corporate Reporting" assessed the largest publicly-listed companies established in Turkey and included in the BIST-100 index of Borsa Istanbul for their transparency performance in the following three dimensions based on their corporate reporting.

Transparency International Turkey research team, Emre Dönmez, Ezgi Kayar, Özlem Zıngıl, prepared the study, under the "Multi-Stakeholder Approach for Transparency in Corporate Environment" project, with assistance from the British Embassy Prosperity Fund, the Dutch Embassy Matra Programme and Turkish Industry and Business Association (TUSIAD).

"Recalling the average score of 70 percent on this dimension in the 2014 global research on multinational companies by Transparency International employing the same methodology as the present study, it is obvious that BIST-100 companies need to be more transparent in reporting on anti-corruption programmes" said in the study.

It could not be claimed that BIST-100 companies had a systemic problem of corruption based solely on the study's findings, said in the study, which said the study only reviewed the transparency performance of companies.

"It is well possible that while having effective anti-corruption practices, a company does not make transparent disclosures on the issue. We believe however that companies with good transparency performance accord greater importance to managing corruption risks" it said.

Risks of corruption should be defined and detailed information on policies and programmes implemented for combating corruption and bribery should be disclosed on corporate websites and had to be updated regularly, stated in the recommendation part of the study.

To improve organisational transparency, the information on operations in other countries should be disclosed in addition to the information on countries of incorporation of affiliates and subsidiaries, it recommended.

"It should be a legal requirement that companies formulate anti-corruption programmes and disclose them transparently to the public" the study recommended to the public authorities.

The civil society organisations should urge governments to take steps to require companies to report more transparently, it added. "They should engage in cooperation and exchange experience with those civil society organisations engaged in transparency in the private sector." - Istanbul