ISTANBUL STOCK EXCHANGE SUSTAINABILITY INDEX (ISESI): A NEW WAY OF SUSTAINABILITY REPORTING FOR TURKISH COMPANIES

Abstract

As the world becomes more global, fast-paced and hypercompetitive, competitive advantage increasingly depends on success in managing paradoxical issues concerning the world. In order to overcome these dilemmas, companies change their paradigm about environment and seek to promote responsible corporate citizenship so that business can be part of the solution to the challenges of globalization. As sustainability issues become more essential, reporting necessities were emerged and a number of sustainability indexes were developed. These indexes provide a global benchmark to make comparisons between companies for responsible investors, final consumers, other stakeholders, etc. Companies want to be members of Sustainability Indexes (SIs) in order to realize such benefits as having competitive advantage, creating added value, having sales growth and increasing firm value in the long-term. The Istanbul Stock Exchange (ISE) and Turkish Business Council for Sustainable Development (TBCSD) launched the Istanbul Stock Exchange Sustainability Index (ISESI) Project in August 2010. The Project’s aim is to review the companies listed on the ISE based on their management of sustainability issues and to create an index that will demonstrate the sustainability leadership of Turkish companies. In this context, the objective of this study is to explore the expectations of companies from Istanbul Stock Exchange Sustainability Index (ISESI) currently in draft and to make predictions about its future contributions. We try to find an answer to the question that what difference will ISESI make for Turkish companies’ sustainability efforts.

Keywords

• Sustainability reporting, sustainability indexes (SIs), Istanbul Stock Exchange Sustainability Index (ISESI), competitive advantage.

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