- SABANCI HOLDING CHAIRWOMAN GÜLER SABANCI SPOKE AT THE “THE IMPACT OF CORPORATE GOVERNANCE IN FORMATION OF MARKET VALUE OF CORPORATIONS” PANEL IN THE INTERNATIONAL CORPORATE GOVERNANCE SUMMIT...
- SABANCI HOLDING CHAIRWOMAN GÜLER SABANCI: “CORPORATE GOVERNANCE IS NOT THE NEXT PHASE OF GOOD MANAGEMENT, RIGHT GOVERNANCE. CORPORATE GOVERNANCE IS NOT AN EVOLUTION. IT’S A REVOLUTION.”
- “CORPORATE GOVERNANCE REQUIRES TRUST. FOREMOST COMPONENTS OF TRUST ARE TRANSPARENCY, FAIRNESS AND DEFINITION OF RESPONSIBILITIES."
- “CORPORATE GOVERNANCE WILL INCREASE A CORPORATION’S COMPETITIVE STRENGTH.”
- “CORPORATE GOVERNANCE INTRODUCED A NEW GENERATION OF BOSSES WHO RECONCILE, ASK OTHERS FOR OPINIONS, DISCUSSES. WE ARE NOW LEAVING OUR OVERUSE OF SELF-ESTEEM ASIDE. WE FOCUS ON THE BUSINESS ITSELF.”
- “WE HAVE ADOPTED THE CORPORATE GOVERNANCE APPROACH AT SABANCI. IT WILL BE MUCH BETTER WHEN CAPITAL MARKETS DEEPEN AND IT BECOMES THE NORM IN BUSINESS.”
- “WE PUT OUR CORPORATE RULES FORWARD WHEN WE ENTER A PARTNERSHIP AND THE OTHER PARTY DOES THE SAME, OUT OF WHICH COMES A COMMON LANGUAGE.”
- “WE OFFERED TEKNOSA TO THE PUBLIC IN 2012. WE WILL OFFER AVIVASA IN 2014 ONCE THE NEW REGULATIONS IN INDIVIDUAL PENSION PROGRAMS ARE IN EFFECT”
Sabancı Holding Chairwoman Güler Sabancı spoke at the “The Impact of Corporate Governance in Formation of Market Value of Corporations” panel in the 5th International Corporate Governance Summit organized by Turkish Association of Corporate Governance at Sabancı Center. Sabancı said that corporate governance arose from the aftermath of financial crises in the 90s and corporate scandals in the 2000s and continued “These scandals showed us the significance of financial management and control. The Sarbanes-Oxley Act was put into effect in the US in 2002 to obligate corporations to set up and assess internal audit and control systems.”
Sabancı stressed the significance of corporate governance and said: “At the core of corporate governance lie transparency, fairness, responsibility and accountability. What’s important here is this: Corporate governance is not an natural evolution of principles put forward by modern management sciences, but a solution necessarily rising out of the financial crises and corporate scandals.”
In other words, corporate governance, which is the topic of today, is not the next phase of good management, right governance. Corporate governance is not an evolution, but a revolution!
The purposes of corporate governance are also clear statements of the significance and relevance of this management philosophy. Corporate governance sharpens a corporation’s competitive edge. Corporate governance maintains continuity, allows for more efficient use of resources, promotes a professional management understanding and prevents conflicts of interest in management.
As Sabancı, we met our first 50-50 partnership with an understanding of corporate governance in the 80s. The new definition of a boss in corporate governance is the one of reconciliation, consulting, discussing and listening to committees for opinions. 50-50% partnerships are also like this. We leave egos aside. We focus on the business itself. We were ready when Sabancı Holding became public in 1997. Then, the late Sakıp Sabancı had told us that our responsibility was now greater. We continued this understanding of responsibility.
We made Teknosa public in 2012. It’s value was hidden before that. Now it’s public. It found its real value. We plan to make Avivasa public in 2014. Every company is unique. We want to disclose the hidden value. We find the new regulations in individual pensions very positive. We will offer Avivasa to the public once these new regulations are in effect and work flawlessly.
As Sabancı Holding, we have adopted the corporate governance approach. This is now the core of the business. It will be much better when we stop needing panels like this, when capital markets deepen, and it becomes the norm of business..
As a matter of fact, principles of corporate governance are mere tools and not goals for a more successful, efficient management approach that attracts investors.
Foreign investors come here for longer term goals. This makes trust even more significant. Business ethics and and business culture are two most fundamental elements of corporate governance. We put forward our corporate rules when entering a partnership and the other party puts forward theirs, creating a common language.
I call what Turkey needs the double-six formula: six percent growth, six percent current deficit. How do we achieve this? Let’s do industrial planning. We have the energy issue. We need and make investments in that area to decrease the current deficit. This is a whole. We need capital to reach the goals set for 2023. This lies in modern management principles, efficiency and sustainability.”