Corporate Governance and Institutionalization
VEZIN CORPORATE GOVERNANCE AND INSTITUTIONALIZATION SERVICES
Institutionalization is the creation of a structure that allows businesses to continue and develop their activities without being dependent on the existence of people. In other words, institutionalization is the ability of companies to carry out their activities effectively without any disruption, without being dependent on bosses, leading managers and critical personnel, thus ensuring their continuity.
The most distinctive features of our institutionalized companies are:
• The basic objectives, vision and mission of the business have been determined.
• An organizational structure and organization chart suitable for the purpose of the company has been created.
• Job and task definitions are clear.
• Policies, procedures and instructions that must be followed in the company have been established.
• Workflows of all business units were determined and documented.
• Authorities and responsibilities are determined objectively and clearly.
• Authorities and responsibilities are given to the right people.
• An effective and fair recruitment, placement and promotion system has been established.
• A fair and balanced performance evaluation system has been established.
• There is an effective internal and external audit system
One of the main goals of companies, especially family businesses, is sustainability, that is, ensuring the continuity of the companies and passing them on to the next generations. It is known that the average lifespan of family businesses in our country is 25 years, 30% of which can be passed on to the second generation, 12% to the third generation and only 3% to the fourth generation. It is of great importance for businesses to ensure their sustainability and to institutionalize in a healthy way. Institutionalization becomes even more important, especially for our companies that have decided to grow and have begun to experience the difficulties of growth.
As Vezin, we provide the following services during the institutionalization process of your company:
INSTITUTIONALIZATION SERVICES
• Reviewing/determining the strategic objectives, vision and mission of the business
• Reviewing/creating the company's organizational structure and organizational chart
• Creating job and task descriptions of the personnel
• Reviewing existing policies, procedures and instructions, making improvements and creating missing policy procedures
• Reviewing the current workflows of business units and creating and documenting workflows according to the required target structure.
• Creating authority and responsibility matrices
• Reviewing recruitment, placement and promotion systems and identifying improvement areas and suggestions
• Establishing a performance evaluation system.
• Reviewing the internal audit function and identifying areas for improvement
DETERMINING THE INSTITUTIONALIZATION ROADMAP
We help our businesses that aim to become institutionalized by determining what needs to be done in this process and creating an institutionalization road map.
Within the scope of this service, we carry out the following work:
• First stage: Analysis of the Current Situation:
We analyze the current situation of your company (organizational structure, organization chart, workflows, roles and responsibilities, etc.) in terms of institutionalization and identify areas for improvement, gaps and risks.
• Second Stage: Determination of the Institutionalization Road Map:
We create your institutionalization road map by determining together with you the steps that need to be taken towards institutionalization.
• Third Stage: Follow-up of Institutionalization Actions:
Monitoring whether the action plans determined in the road map regarding the improvement areas determined in the first stage have been completed effectively and providing support in matters needed.
EVALUATION OF COMPLIANCE WITH CORPORATE GOVERNANCE PRINCIPLES
Research shows that compliance with corporate governance principles provides many benefits to our companies. Lower cost of capital, more financing opportunities, resilience to financial crises, competitive advantage over competitors, increase in company value and reputation, and decrease in corruption are some of these benefits.
Companies whose shares are traded on the stock exchange can be included in the corporate index if their corporate governance principles compliance rating scores are above the determined level.
Compliance rating with corporate governance principles is the activity of questioning the compliance of companies with corporate governance principles and rating them according to the level of compliance with the determined criteria. Discounts are applied by Borsa Istanbul to companies included in the corporate governance index. Compliance rating with Corporate Governance Principles must be made by rating agencies authorized by CMB.
As Vezin, we carry out an evaluation study similar to the evaluation carried out by corporate governance rating companies on publicly traded companies in order to identify deficiencies and take necessary actions before the rating activity of the corporate governance rating company.
Actions regarding the incompatibilities detected in the evaluation are determined.
AUDIT COMMITTEE CONSULTANCY
Public companies whose shares are traded on the stock exchange must form an audit committee. Audit Committee, on behalf of the board of directors; It is responsible for overseeing the company's accounting system and practices, the functioning of the internal control system, public disclosure of financial information, the effectiveness of internal audit and independent audit activities and compliance with ethical rules.
We provide consultancy services to Audit Committees on the issues they need so that they can effectively fulfill their responsibilities. In this context, We provide training to the audit committee members; in relevant fields such as internal audit, independent audit, corporate risk management, corporate governance, institutionalization, internal controls, financial reporting, fraud incidents, reporting lines, ethical rules, compliance management, sustainability, etc.
We ensure the preparation and review of the Audit Committee regulation. We help audit committee members make accurate and timely decisions by conducting detailed examinations of the issues they need to make decisions in the companies they are in.
We conduct investigations and investigations on behalf of the audit committee on necessary issues. As an audit committee member, we are always here for you when you need us.