Workplace Code of Conduct

 RESPONSIBLE PURCHASING POLICY

In 2005, Arçelik A.Ş. turned out to be among the first companies to sign the Corporate Social Responsibility Code of Conduct issued by the European Committee of Domestic Equipment Manufacturers (CECED). Arçelik A.Ş. is also affiliated with the Koç Group, a signatory to the UN Global Compact, and a member of the Ethics & Reputation Society.

In this respect, as a requirement of our responsible purchasing policy, we expect from our suppliers to act as follows:

  · Follow the "code of conduct" in their own business conditions also definitively

  · Communicate "code of conduct" to all of them are employees and assure them to take notice of the rules as required thes

  · Make a "code of conduct" available at locations where employees can access all the time

 Arcelik's Codes of Business Conducts for emphised suppliers are under the titles of:

   · Legal practices

  · Working conditions

  · Codes of conduct

  · Occupational health and safety and

  · Environment

 You can see details at The Following Link  

 Arcelik Workplace Code of Conduct for Suppliers

 PRINCIPLES OF IMPLEMENTATION

As far as all contracts signed with the suppliers are concerned, environmental and business ethics conditions are stated with a reference to the corporate policy. In line with the corporate policy, the suppliers receive training on compliance with the Arçelik Code of Business Conduct for Suppliers to identify corrective/preventive actions for their nonconformities while the improvements made are monitored through follow-up audits. The responsibility for this process is Arçelik A.Ş. Purchasing Director. Arçelik A.Ş. has the right to terminate the contract with any supplier or ask the supplier to terminate the contract with its employees that violate the laws or act in ways that conflicts with the laws.

If you wish to share a suspicious behavior or a breach of the code of business conduct with us, you can use methods & The Following:

Phone: +90 (212) 314 33 30, +90 (212) 314 33 63, +90 (212) 314 39 98

e-mail: purchasing@arcelik.com

Arçelik shall maintain confidentiality on a person who asked for recommendation in good faith, he reported any suspicious behavior or possible breach of the code of business conduct of the Supplier, and shall not tolerate any penalties imposed or retaliations against the person in question.

ETHICAL PURCHASING PROGRAMME

 Code Of Conduct Training 

In an effort to ensure a more active communication for its expectations from suppliers regarding sustainability issues, Arçelik A.Ş. has a business conduct e-learning program. Available both in Turkish and English, the program can be viewed at

http://www.arcelikas.com/UserFiles/file/SatinAlmaEgitim/7880/7880/start.htm (TR) and

http://www.arcelikas.com/UserFiles/file/SatinAlmaEgitim/8070/8070/start.htm (EN)

Supplier Business Transparency Project (BTP) Program

Business Transparency Project, which was conducted by Arçelik A.Ş. to raise awareness in suppliers about sustainability, was deemed worthy of the "Best Contribution to Corporate Responsibility" award at the Supply Management Awards organized by the Chartered Institute of Purchasing & Supply (CIPS), which assesses Europe's best procurement practices, and the ProcureCon in 2017. As part of the Business Transparency Project, which started with the support of GRI (Global Reporting Initiative) and completed in 2016, we accompanied 12 of our suppliers in preparing their sustainability reports in order to enhance the corporate sustainability performance of our suppliers, to ensure that they reach a level where they can conduct sustainability reporting practices and to help them achieve international recognition. 

Code Of Conduct Audit - Reporting

In 2017, 44 suppliers in total, of which 23 from Turkey and 21 from international operations, were audited for code of conduct and occupational safety through the agency of an independent institutions. As a result of the audits, 375 areas open for improvement were identified in total. Firms that completed follow-up audit in 2017 corrected 50% of the incompatibilities. Approximately 40 supplier audits are planned for 2018.

All recently engaged supplier companies at Arçelik A.Ş. make self-evaluations under the headings of Quality, Environment and Code of Conduct. In 2017, a total of 144 companies were introduced. Moreover, Environmental, Occupational Health and Safety, and Code of Conduct issues are evaluated within the quality audits of our current companies. In the same period, quality audits were held for 157 suppliers, which constitute 15% of our total number of suppliers. In the reporting period, the total number of suppliers that passed the business ethics evaluation was 340, which constitute 20% of our total number of suppliers. The "Supplier Sustainability Index" project was launched in 2017 to subject all of our suppliers to this assessment. With this project, suppliers with risk and high risk will be determined, Sustainable Supplier targets will be set, and necessary actions will be taken in this direction. The project is planned to be completed by the end of 2018.

Conflict Minerals Management

“Conflict Minerals” project that was launched in 2016 in line with Arçelik A.Ş. responsible purchasing principles, continued in 2017.  In the reporting period, ‘Arçelik Conflict Minerals Policy’ was formed and a survey regarding 3TG use was sent to suppliers and responses were subjected to evaluation. Besides, an independent institution audited five suppliers on-site.

Supplier Innovation

With the practice we actualized in the reporting period, our Purchasing and R&D units have formed a joint working group to promote the participation of our suppliers in innovation and to monitor supplier innovation studies. As part of the practices led the by team, innovation and technology days were organized for our suppliers to share their innovative ideas and product roadmaps, while collaborations were made with universities to provide them with trainings in innovation and to ensure they profit from the incentives. The working group plans to create value through joint projects that will be made in this regard in the forthcoming period and to materialize their outputs. 

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