Corporate Governance Compliance Rating

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RATING SUMMARY 

Following the onsite examinations of the documents, interviews held with executives and persons involved, as well as other reviews carried out in Society Headquarters, the process of rating the compliance of DARÜŞŞAFAKA Society with the Corporate Governance Principles has been concluded in accordance with the Non-Governmental Organizations Corporate Governance Compliance Rating Methodology developed by Kobirate International Credit Rating and Corporate Governance Services Inc.

Within the scope of the rating, after 278 criteria under the headings of Shareholders, Public Disclosure and Transparency, the Stakeholders and the Board of Directors were examined and assessed based on the methodology for “Non-Governmental Organizations” developed by Kobirate International Credit Rating and Corporate Governance Services Inc., the Corporate Governance Compliance Rating Grade of DARÜŞŞAFAKA SOCIETY has been established as 8,64. This result signifies that DARÜŞŞAFAKA has achieved a considerable level of compliance with Corporate Governance Principles issued by the Capital Markets Board (CPM) and indicates that it has a well-established  sense and culture of accountability to its members, donors, beneficiaries and all other stakeholders as well as the public; however, the result also points out that, although it does not pose major risks, there is room for improvement in terms of corporate governance practices. 

A brief overview on the main headings addressed as part of the rating process sets forth that;
In respect of Shareholders’ Section, DARÜŞŞAFAKA has achieved a grade of 87.84.

In Non-Governmental Organizations (NGO), shareholders group is composed of NGO members and partially, of donors. For the purposes of this section, in an overall sense, a high level of compliance by the Society with the CPM’s Corporate Governance Principles has been observed. 

The positive indicators are as follows: A robust relation with members is maintained, whether the member registry book is up-to-date is monitored, a manager and a unit has been assigned with a view to ensuring that people have adequate access to information, due regard is paid to the members as they exercise their right to information and examination, the process of invitation to and organization of general assembly meetings are carried out in accordance with the relevant procedure, and it is ensured that the voting process in the general assembly is conducted in adherence to the Society’s By-Laws. 

It is appreciated that, having scored 83.67 in the Public Disclosure and Transparency section, the Society has developed a disclosure policy and made it public, and provided access on its website to a great deal of up-to-date data regarding the Society, to which the principles refer and which the members, donors, beneficiaries and all other stakeholders could use. The corporate website of the Society and the annual activity reports have ensured compliance with corporate governance principles to a great extent. 

In the Stakeholders’ Section, Darüşşafaka has received a grade of 83.33.

Stakeholders of the Non-Governmental Organizations (NGO) are primarily composed of beneficiaries and non-member donors as well as NGO employees and members of the public. 

In this section, the Society has achieved considerable extent of compliance with the CPM’s Corporate Governance Principles. It has been observed that highly comprehensive and far-reaching policies have been produced for beneficiaries and donors. The procedures to be followed in the course of the Society’s procurement of goods and services have been laid down in the regulation; an Asset Management Commission has been set up with a view to safeguarding and appraising the Society’s assets, and the relevant working principles have been established. For the staff, a Personnel Regulation has been issued, which regulates staff-related matters such as recruitment, payment, performance appraisal, leaves and social rights. 

There is a comprehensive code of ethics which all members, managers and staff are obliged to abide by; in an effort to ensure that they act in line with these rules, all relevant individuals have been duly informed.

As for the Board of Directors Section, DARÜŞŞAFAKA’s grade is 88.50 indicating that it has achieved a very good level of compliance with the CPM’s Corporate Governance Principles. 

It is confirmed that the Board of Directors has set the strategic goals with a view to fulfilling the objectives set forth in the Society’s By-Laws. The goal of the Society has been presented in a clear, informative and motivating manner for various stakeholders including the members, beneficiaries, volunteers, donors, employees, the media and all levels of society. An internal control mechanism has been established and its efficient operation has been ensured. 

The positions of Board of Directors Chairman and General Secretary are held by different persons, and the general secretary is not a member to the Board of Directors. By adopting such a practice, segregation between honorary and professional management has been ensured. 

Supervisory and corporate governance commissions, to which the principles refer, have been established, and their working principles have been set out in writing in relevant documents. In addition to these two main commissions, five other commissions dedicated to consolidating the efficient and dynamic management of the Society have been identified; the structure and tasks of these commissions are addressed in the relevant parts of the foregoing report.