Corporate Governance and Sustainability Center, believes that all companies listed or private, big or small play vital role in the overall economy. It is a shared responsibility too.

It is also important for the not-for profit institutions to be accountable and transparent. Mission is what distinguishes nonprofits from their for-profit counterparts.  Nonprofits have missions instead of owners or shareholders.
Therefore good corporate governance is an essential element for sustainable economic growth in a market economy. The prerequisite of sustainability for future generations is good governance with right strategies.

Family-owned companies have long been the backbone of the economy of Turkey too, like everywhere else. Family companies should understand and accept the fact that they are not immune from the problems their competitors face, be they widely-held, state owned, and alike. The most effective tool for making a family-owned business work is to have a well-set governance structure.
To govern the relationship between shareholders, family members and managers, some family-owned and family –controlled companies write family constitutions. The family constitution, or family charter makes explicit some of the principles and guidelines that shareholders will follow in their relations with each other, other family members, and company managers.
CGS Center believes that, in addition to the family constitutions, governance and managerial infrastructure is also highly important for the sustainability of the family business. From that end, managerial functions such as;
• marketing and sales
• accounting and finance
• auditing and internal control
• HR and organizational design are eminent also from a value chain approach perspective.

Board of directors is the key corporate governance mechanism on the way to sustainability for companies that have a strong management infrastructure. In case of family-owned companies a well-organized family-business relationship is also a critical factor. Strong boards can be a source of strength to management, essential for a strong corporate.
In order to fulfill their responsibilities, board members should have access to accurate, relevant and timely information. To be effective in management oversight, information disclosed on the members of the board and senior executives and their compensation should be transparent.

Structure and the composition of the boards vary in each country, depending upon the legislations, the codes adopted, the structure of the companies and even the culture. With the growing importance of good corporate governance practices and the increasing role of boards in the governance framework, CGS Center assists companies to draft their corporate governance guidelines, incorporate risk management systems, set up their strategies on the way to growth.

Private sector expenditure and financing decisions could be based on either debt financing or equity financing. While latter one is realized through capital shareholders and are required to distribute most of their profits as dividends, bank borrowing allows the corporations to retain the majority of their profits internally, as retained earnings, which allows them to make riskier investments, but with limited growth opportunity. On the other hand, key driver of corporate performance is investor pressure and oversight. The financial markets’ view of corporate governance performance can be a major influence on a company’s stock price

CGS Center, assists companies with good governance structure to reach out cheaper capital through its corporate finance advisory services.