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

Year 2012, Volume: 4 Issue: 1, 21 - 29, 01.06.2012

Aysegul Ozbebek Tunc Gokce Akdemir Omur Esra Nemli Caliskan

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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