Twentieth International Conference on Environmental, Cultural, Economic & Social Sustainability

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. Today, the expectations of society from 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”. 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 Sustainability 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 to show whether the Borsa Istanbul (BIST) Sustainable Index makes a difference for companies for Turkish companies. The paper seeks to find answers for the following questions; does the BIST Sustainability Index really make a difference, does it effect firms’ financial performances, and lastly does it effect firms’ sustainability management strategies?