Sustainability Reporting and Performances of the Companies in the Istanbul Stock Exchange Sustainability Index
In today's business world, in which it is difficult to survive, the economic life of products, services or knowledge is considerably reduced. Competitors produce similar products or extra-featured ones instantly. In this environment, the contribution of companies to the social and economic environment is a preferred criterion by consumers alongside products or services. Therefore, consumers need to obtain more detailed information about companies. Besides, this drastic change in the market encourages companies to become sustainable. Sustainable business means the company puts consumed products back. Corporate sustainability, corresponds to sustainability at the level of the company, and gives equal importance to company growth and profitability together with environmental and social issues. The BIST Sustainability Index started to be calculated by the Istanbul Stock Exchange (BIST) in 2014 to evaluate the sustainability performance of companies in Turkey. The main objective of this study is to present the importance of sustainability reports in Turkey. To this aim, the performances of 15 companies in the BIST Sustainability Index were compared the periods before and after entering the index. On the other hand, sustainability reporting practices should be encouraged to increase studies on this issue. In this context, to remain on the agenda of the issue is a further objective of this study. To achieve these objectives, the financial data of the companies in the period before and after entering to the BIST Sustainability Index were analyzed using t-test in Statistical Package for the Social Sciences (SPSS) package. The results of the study showed that no significant difference between the performances of the companies in terms of the net profit margin, the return on assets and equity capital in these periods could be found. Therefore, it can be said that insufficient importance is given to sustainability issues in Turkey. The reasons for this situation might be considered as a lack of awareness due to the recent introduction and calculation of the index. It is expected that the awareness of firms and investors about sustainability will increase, and that they will demonstrate the necessary importance to this issue over time.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1131413Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 794
 D. Altunbaş, Kentsel Sürdürülebilirlikte Yerel Yönetimlerin Rolü: İzmir Büyükşehir Belediyesi Örneği, (Unpublished Master Thesis) Çanakkale Onsekiz Mart Üniversitesi Sosyal Bilimler Enstitüsü, (2008).
 WCED, Report of World Commission on Environmentel and Development, Development and İnternational Economic Co-Operation, 1987.
 D. Tandoğan and H. Özyurt, “Bankacılık Sektörünün Ekonomik Büyüme ve Sürdürülebilirlik Ekonomik Kalkınma Üzerine Etkisi: Türkiye Ekonomisi Üzerine Nedensellik Testleri (1981-2009)”, Marmara Üniversitesi İİB Dergisi, 25 (2), pp.49-80, 2013.
 URL,http://borsaistanbul.com/datum/surdurulebilirlik/SURDURULEBILIRLIK_OZET_BILGILER.pdf, Accessed on 11/09/2016.
 D. D'Angela, A Study of the Market’s Reaction to Superior Sustainability Reporting as Demonstrated by the Financial Performance of Publicly Traded Companies, Lawrence Technological University, Doctor of Business Administration, 2008.
 D. Chang and L. Kuo, “The Effects of Sustainable Development on Firms’ Financial Performance – an Empirical Approach”, Sustainable Development, (16), pp.365-380, 2008.
 T. Yi and C. Yu, Research on Sustainability Reporting in Hong Kong, An Honours Degree Project Submitted to the School of Business in Partial Fulfillment of the Graduation Requirement for the Degree of Bachelor of Business Administration, (2010).
 S. Vijfvinkel, N. Bouman and J. Hessels, “Environmental Sustainability and Financial Performance of SMEs”, Scientific Analysis of Entrepreneurship and SMEs, pp.3-47, 2011.
 R. Ameer and R. Othman, “Sustainability Practices and Corporate Financial Performance: A Study Based on the Top Global Corporations”, Jounal of Business Ethics, (108), pp.61-79. 2012.
 J. Lee and N. Pati, “New Insight on the Operational Links between Corporate Sustainability and Firm Performance in Service Industries”, IJBIT, (4), pp.80-93, 2012.
 N. Vitezic, T. Vuko and B. Mörec, “Does Financial Performance have an Impact on Corporate Sustainability and CSR Disclosure –A Case of Creation Companies”, Journal of Business Management, (5), pp.40-47, 2012.
 K. Bachoo, R. Tan and M. Wilson, “Firm Value and the Quality of Sustainability Reporting in Australia”, Australiana Accounting Research, 64 (23), pp.67-87, 2013.
 H. Aracı and F. Yüksel, “Şeffaflık ve Hesap Verilebilirliğin Sağlanmasında Sürdürülebilirlik Raporları: BİST Sürdürülebilirlk Endeksi’ndeki Şirketlerin Sürdürülebilirlik Raporlarının İncelenmesi”, Muhasebe Bilim Dünyası Dergisi, (18), pp.103-131, 2016.
 URL, https://www.globalreporting.org/resourcelibrary/Turkish-G3-Application-Levels.pdf, Accessed on 13/10/2016.
 S. Önce, A. Onay and G. Yeşilçelebi, “Kurumsal Sürdürülebilirlik Raporlaması ve Türkiye’deki Durum”, Journal of Economics, Finance and Accounting, 2 (2), pp.230-252, 2015.
 URL, http://database.globalreporting.org/search, Accessed on 10/09/2016.
 Z. Özdemir and Z. Pamukçu, “Kurumsal Sürdürülebilir Raporlama Sisteminin Borsa İstanbul Sürdürülebilirlik Endeksi Kapsamındaki İşletmelerde Analizi”, Mali Çözüm Dergisi, pp.13-35, March-Apr. 2016.
 URL, http://www.borsaistanbul.com/endeksler/bist-pay-endeksleri/surdurulebilirlik-endeksi, Accessed on 10/09/2016.