Assessing the influence of corporate governance on corporate social responsibility perceptions between firms in Turkish governance and main stock exchange indexes

Abstract

Corporate social responsibility (CSR) has increasingly gained importance in the globalized business world. CSR is crucial for long-term corporate sustainability and tackling large-scale issues including resource constraints and climate change. Today's competitive landscape prompts firms to differentiate through CSR initiatives while protecting profit margins. Consequently, CSR becomes pivotal for investors and other stakeholders. Previous research indicates firms with robust corporate governance exhibit enhanced CSR relative to peers. Multiple studies also link superior financial performance to socially conscientious firms. The current study aimed to comparatively analyze CSR perceptions between organizations listed under Turkey's Corporate Governance and BIST 100 stock exchange indexes. Analytical procedures were employed to evaluate 108 unique annual reports from both indexes published between 2015-2020. Results suggest that firms with governance guidelines in place adopt a more comprehensive CSR-oriented strategic profile than counterparts solely governed by national commercial regulations. Specifically, organizations subjected to additional listing prerequisites communicated CSR values through a more embedded framework attentive to economic, environmental and social dimensions of activity. In contrast, reportage from the BIST 100 frequently portrayed CSR as ancillary public relations with inadequate consideration for stakeholder interests or long-term impacts. This evaluation offers insight for policymakers seeking to stimulate CSR culture through strengthened compliance directives.