When this article was being written, there was a couple of contemporary disagreements that focused on money selling their investments in organizations saw by their staff as lacking corporate social obligation Due to the absence of social responsibility by companies, investment funds and assets managers have been influenced to base their decision on urge companies to focus on matters that has to do with the society as well as the environment. When these companies take into consideration these decisions, this is called social responsibility investment (SRI). The SRI has two main forms; first, funds owned and managed by the public division use the social standards or criteria. Second, governments in several countries are implementing indirect governing approaches, instead of making companies invest in certain ways.
In Turkey, the situation is a little bit different for various reasons. First of all, Turkey is one of the countries that collects a huge amount of portfolio investment from other countries and has an accumulative amount of direct foreign investments. Therefore, the Turkish companies are pressured to obey and fulfill all the necessities of foreign institutional financiers. In addition, the Turkish consultants play an important role in delivering incentives for the local investors in order to implement these necessities. Secondly, according to the international markets the Turkish markets are considered underdeveloped due to the many regulations adopted in the past influenced the capital market’s growth negatively. Consequently, the Turkish government needs to establish more rational and reasonable regulations until the market is developed. Third, lobby groups focused on socially responsible investments in many of the developed countries, however in Turkey these groups are not as developed as they are in other countries. As a result, the authorities in Turkey do have as much feedback as other countries but have more opportunity in applying regulations.
This paper focused on the disagreement of the basic meaning of SRI as well as how various regulatory approaches in different countries affect the identification and operation of international good practices in SRI in the Turkish private pension system.
This paper is divided into 5 sections; section 1 is an introduction of SRI, section 2 discusses the different SRI trends in many countries and depicts the increase in SRI assets under management, section 3 discusses the SRI problems in relation to the private pension funds, section 4 considers the regulatory issues, and section 5 offers many questions to the Turkish governors.