About Integrated Reporting Turkey

Who Are We?

Today, company performance is no longer measured by the profits generated. Investors, having seen that environmental, social and governance risks and uncertainties faced by companies directly affect company sustainability, have started to demand information on companies’ non-financial performance.

This has led companies to introduce non-financial reporting in addition to financial reporting. Non-financial reports include corporate governance compliance statement, corporate social responsibility report, sustainability report, etc., covering more comprehensive and detailed information about a company.

History of Integrated Reporting

Integrated reporting dates back to the appointment of Mervyn King by Nelson Mandela in 1994 to establish the King Committee in order to encourage transparency and information sharing, and to alleviate the lack of confidence in South African institutions. In this process, thanks to the King I, King II and King III reports, issued in, respectively, 1994, 2002 and 2009, have led companies to report the results of their social, environmental and financial responsibilities, and report non-financial information in addition to financial information. After the King reports, the Johannesburg Stock Exchange required all listed companies to issue integrated reports, and for those failing that, to explain the reasons therefor (report or explain). Consequently, South Africa was the first country to order integrated reporting for listed companies.

International Integrated Reporting Council

Global studies on integrated reporting institutionalized as International Integrated Reporting Council (IIRC) was established in 2010. IIRC defines its long term vision as “a world where corporate reporting is used as a reporting norm in the public and private sectors, and integrated thinking is widespread”. IIRC determined its mission as “preparing an internationally accepted integrated reporting framework that will guide companies to prepare for integrated reporting and issued its first discussion document in 2011. International IR Framework, finalized in consideration of the views of the private and public sectors, civil society representatives and academicians, was published in December 2013. Businesses that start integrated reporting take this Framework as basis.

Integrated Reporting Studies in Turkey

Corporate Governance Association of Turkey (TKYD) and SKD Türkiye (Sustainable Development Society Turkey) created a working group in 2011 and studies were initiated to raise awareness on integrated reporting in Turkey. In this process, TKYD was IIRC’s contact point in Turkey. In 2013, Garanti Bank and Çimsa were the first member companies from Turkey to join IIRC for the purpose of Integrated Reporting. In 2015, during Turkey’s G20 Presidency, thanks to the contributions of ARGE Danışmanlık (Consultancy), elected as B20 Information Partner, and Argüden Yönetişim Akademisi (Corporate Governance Academy), a member and C20 Corporate Governance, Integrated Reporting was among the issues suggested to the world leaders.

“Kurumsal Raporlamada Yeni Dönem: Entegre Raporlama” (New Era in Corporate Reporting: Integrated Reporting), authored by Prof. Dr Güler Aras and Gaye Uğur Sarıoğlu, and published by Turkish Industry and Business Association (TÜSİAD) in 2015 was the first guide to integrated reporting in Turkish. The guide offers information on integrated reporting, its advantages, and the discussions on integrated reporting in addition to its development, significance for businesses, Integrated Reporting International Framework, risks, opportunities and world practices.

Foundation of ERTA

Following the publication of the guide by TÜSİAD and the inaugural conference organized to promote Integrated Reporting on October 21, 2015, Integrated Reporting Turkey Network (ERTA) was founded. The platform is chaired by Prof. Dr. Güler Aras (Independent Founding Member) and its members are TÜSİAD, TKYD, Borsa İstanbul, IIRC Turkey Ambassador, Argüden Yönetişim Akademisi, Global Compact Network Turkey, Garanti Bank, SKD Türkiye and Çimsa. ERTA aims at ensuring that businesses report their non-financial information in integration with financial information and promoting integrated thinking. Please click for ERTA presentation.

 
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