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 Sustainability Index

In order to evaluate the sustainability activities of our suppliers, the “Sustainable Supplier Index” project was realized in 2018. With this project, it is aimed to identify high risk and risky suppliers in terms of sustainability. Suppliers are evaluated in economic, environmental and social categories. In 2018, 36% of suppliers covered were evaluated. 10% of the suppliers evaluated are in the risky category. These suppliers were included in the 2019 business ethics audit plan. In addition, environmental, business ethics and occupational and safety training will be provided to our suppliers in 2019. 

Code Of Conduct Audit - Reporting

In 2018, 19 suppliers in total, of which 13 from Turkey and 6 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, 224 areas open for improvement were identified in total. Firms that completed follow-up audit in 2018 corrected 60% of the incompatibilities. Approximately 30 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 2018, a total of 91 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 169 suppliers, which constitute 9% of our total number of suppliers. In the reporting period, the total number of suppliers that passed the business ethics evaluation was 279, which constitute 16% of our total number of suppliers.

Conflict Minerals Management

In line with our responsible purchasing principles, “Conflict Minerals ” project was launched in 2016. Within the scope of the project, Arçelik Conflict Minerals management system was established and 3TG questionnaires were sent to all relevant suppliers and responses were evaluated. In addition, a total of 5 suppliers were audited on-site by an independent organization. Arçelik Conflict Minerals Policy can be accessed on the Arçelik supplier web site.

Supplier Innovation

Arçelik A.Ş. aims to carry out joint R & D activities with its suppliers through its Supplier Innovation Program and to design products, technological innovations and services that will carry the institutions and society to the future as a result of these activities. In this context, an innovation workshop was held at Arçelik Garage, a new generation R & D Center. More than 200 ideas emerged with 80 participants and 14 presentations were made in 2018. This program, which will continue in the following years, is also aimed to strengthen the innovation capabilities of the suppliers and to develop ve Arçelik - Supplier ov joint innovation cooperation.

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