Corporate Governance principles first entered our lives in 1999 with the Organization for Economic Cooperation and Development OECD. Both the global economic crises and various irregularities at the level of companies have made it necessary to implement the Corporate Governance approach at the level of all institutions. The principles published by the OECD in the form of recommendations aim to ensure the sustainable success of companies; after publicly traded companies, the sphere of influence of the concept of corporate governance has expanded to include closed companies, family businesses, public enterprises, non-governmental organizations, sports clubs and finally political parties.

The main purpose of institutionalization and corporate governance is to create a 'system' in which the continuity of an organization does not depend on the existence of certain individuals. Generally, the institutionalization of a company is considered in two dimensions: Institutionalization and Corporate Governance. In this respect, it is necessary to explain the difference between these two concepts.

Establishing an organization in line with the objectives;

Writing job frames / job descriptions;

Establishing internal regulations;

Determining authorities, responsibilities and roles; distributing authorities in accordance with responsibilities. Institutionalization, in short, aims to make operational affairs run more smoothly.

Creating a family constitution;

Determination of family management relations;

Balancing the interests of shareholders and non-shareholders, management and nonmanagement family members;

Establishing a family council/board;

Conflict management;

Establishing a succession plan;

Drafting a shareholder agreement.

Corporate Governance Principles Corporate governance is based on four fundamental principles. These are fairness, transparency, accountability and responsibility.

Basic Principles of Corporate Governance

Fairness

The principle of fairness refers to the equal treatment of all shareholders by the company management. The protection of the rights of shareholders, including minority shareholders and foreign shareholders, is analyzed under this principle.

Responsibility

The principle of responsibility means that companies should operate in compliance with laws and regulations while creating value for shareholders. However, it does not consider laws sufficient in terms of responsibility; therefore, it goes beyond legal obligations in corporate governance principles.

Transparency

It encourages all practices to be carried out within a transparent structure through the processes of setting targets, realization of activities and subsequent auditing of activities. It sets forth the sharing of accurate and clear information by companies/institutions at the right time as a requirement of corporate governance.

Accountability

Corporate governance should ensure effective oversight of management by the board of directors and that the board is accountable to the company and its shareholders.