The Impact of Corporate Sustainability Index on BIST Sustainability Index

Abstract

Mass production, which started with the industrial revolution, caused both the unconscious consumption of the resources and the damages to the ecological system after the production. In this respect, the concept of sustainability, which is one of the most important conception of responsibility, is gradually gaining value in terms of protecting resources and transferring them to future generations. (Mori and Christodoulou, 2012: 94-106). Sustainability In the first place, it has started to be used mostly in the management of natural resources; later, it was used in different fields such as sectoral practices and energy tourism (Diaz - Baltciro, Voces, Romero, 2011: 761-773).
 Today, the expectations of the society from the enterprises have changed compared to the past. These changing expectations lead businesses to new searches. The most important concept that guides these quests is to be sustainable. The concept of sustainability for enterprises gains a new dimension in the form of corporate sustainability”.
 For corporate sustainability, it is possible for organizations to achieve individual results only to a certain extent. Because companies are affected to a great extent by all kinds of economic, social and even cultural formations occurring in their environment (Kuşat, 2012: 238).
 The most important benefit of sustainability indices is that it leads to improvements in transparency without the need for regulations, better understanding of the social and environmental impacts of companies and guiding them to reduce the negative effects of company activities.
 The BIST Index serves as a guide for companies on what to measure, what needs to be developed and what can be explained. Thus, it creates opportunities for companies to see social and environmental risks and opportunities and to manage their sustainability performances correctly. The index, on the other hand, provides information to investors and the community about the sustainability performance of companies.
 The aim of this study is whether the BIST Sustainable Index makes a difference for companies compared to BIST 100. "Does the BIST Sustainability Index really make a difference?" will be examined. In this context, data between 2014-2018 of BIST Sustainability and BIST 100 index will be examined. Based on the results obtained in the study, it shows that there is no strong evidence of the impact of inclusion in the BIST Sustainability Index on the stock returns of companies. At the same time, the BIST Sustainability Index has been shown to have similar returns to the BIST 100 Index.
 Key Words: Sustainability Index, BIST, Corporate.

A systematic literature review on corporate sustainability: contributions, barriers, innovations and future possibilities

“…A large part of the CS contributions are linked to the improvement in environmental management related to areas close to the organizations, where the increments may be related to cultivation and preservation in high standard environments, continuous control of environmental pollution, protection for threatened plants and animals, implementation of successful environmental protection programs, optimal use of resources and anticipation of possible problems related to the environment (Vardari et al, 2020 ). CS improves business performance and reputation, reducing or eliminating risks and linking operations to results that can improve the common good (Wilshusen & MacDonald, 2017 ).…”

“…CS can be defined as the adaptation of economic, environmental and social factors to the activities and mechanisms of corporate decision-making, together with principles of corporate governance and risk management applied to these issues (Vardari et al, 2020 ), seeking sustainable development while minimizing risk and increasing the value of a company, including shareholder value (Lee, 2019 ). It results from a complementary and connected relationship between the organizational capacities that affect its strategic dimension and the socio-environmental practices that contribute to its operational dimension (Mohammadi et al, 2018 ).…”

Formação de Joint venture pelas distribuidoras de combustíveis como estratégica para vantagem competitiva

“…A produção em massa possibilitou à sociedade maior acesso a serviços e produtos, mas ampliou a degradação planetária com o aumento da emissão de Gases de Efeito Estufa (GEE), ocasionados pelo uso de combustíveis fósseis, por exemplo (CHAIYAPA, ESTEBAN, KAMEYAMA, 2018). Há um aumento na conscientização ambiental dos consumidores, e as organizações precisam alinhar suas ações com as demandas do meio ambiente (TETTEH et al, 2021), de modo a proteger os recursos e assegurá-los para as gerações futuras (VARDARI, LUAN, GASHI, 2020).…”