Corporate Governance Assessment

The effectiveness of corporate governance structures is a determining factor for companies’ access to financial markets, investor confidence and long-term performance in a rapidly changing global competitive environment. The transparent, auditable and stable functioning of companies’ governance structures is critically important for ensuring trust among financial markets and all stakeholders associated with the company. Therefore, corporate governance practices are considered a fundamental assessment area in terms of companies’ risk management capacity and financial resilience.

Corporate governance refers to companies managing their relationships with shareholders, the board of directors, employees, customers, suppliers and society within the principles of fairness, transparency, accountability and responsibility. The alignment of corporate structures with these principles and the quality of governance are also prerequisites for sustainable profitable growth and for being an institution that creates value for its stakeholders. Companies with high corporate governance competence are assessed by investors and financial institutions as having a lower risk profile and can present their performance in a comparable way across the sector. In this framework, corporate governance assessment is based not only on policies and statements, but also on the level of implementation and the functioning of governance structures.

OECD Corporate Governance Principles and country-specific regulations form the basis of CGE corporate governance assessment, and these principles are used as references in determining the scope of assessment and structuring indicators. The performance score obtained as a result of CGE’s independent corporate governance assessment provides input for disclosure to stakeholders, while also creating a basis for planning and actions to improve corporate governance competence.

Corporate Governance Assessment

The CGE Evaluation process also determines your organization’s relative position against good practices monitored domestically and internationally, helps monitor the development trend each year, and provides benchmarking information among sectoral organizations and other institutions. This comparative structure provides decision support for the board of directors and senior management in prioritizing areas for improvement.

The Corporate Governance performance score provides a structured indicator for investors and other stakeholders to assess the level of corporate governance; it serves as a reference for presenting the company’s corporate governance structure during public offering and stock exchange listing processes.

Taking corporate governance principles into account, CGE analyzes whether companies have established the necessary control mechanisms, at what level they have established them if they have, and the reasons why they have not been able to establish them or have failed to do so. It grades the level of compliance with an internationally comparable methodology and reports online with actions recommended by our experts in areas open to improvement. Upon request, the assessment results present the institution’s current situation, strengths and areas requiring improvement within a holistic framework.

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