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

In 2016, we have completed the ‘Business Transparency Project’, which we started with the support the Global Reporting Initiative in 2015. As part of the project that we actualized in order to enhance the corporate sustainability performance of our suppliers and to ensure that they reach a level where they can conduct sustainability reporting practices, we accompanied their reporting processes, organizing workshops and trainings aimed at our suppliers. Within the scope of the project, 12 of our supplier published their sustainability reports in 2016, thereby achieving international recognition. 

Code Of Conduct Audit 

Acting as the key reference for Arçelik A.Ş. to generalize its responsibility approach that encompasses issues such as bribery, corruption, forced labor, child labor and discrimination throughout its value chain, the Supplier Code of Conduct features expectations from suppliers under the main titles of legal practices, working conditions, code of conduct, occupational health and safety, and environment. In 2016, 38 suppliers in total, of which 21 from Turkey and 17 from international operations, were audited for code of conduct and occupational safety through the agency of an independent institution. When choosing the suppliers to be audited, firstly the region, purchasing volume and product criterias are taken into consideration. SEDEX audit standard is used in audits.  The nonconformities detected at the end of the audit have been agreed with the supplier.

Reporting

As a result of the audits, 351 areas open for improvement were identified in total, while follow-up audits will be conducted for 12 suppliers in light of the critical improvements defined, in 2017. Areas open for improvement focused mainly on fire prevention measures and fire exits, measures for employee health and working hours, while 73% of the nonconformities were dealt with by the suppliers after the follow-up audits. In the event that child labor, forced labor, or bribery cases are identified during the audits, collaboration with the supplier is discontinued. During the reporting period, no incidents as such were determined. Audits involving code of conduct and occupational safety will also continue in 2017.

All recently engaged supplier companies at Arçelik A.Ş. make self-evaluations under the headings of Quality, Environment and Code of Conduct.

In 2016, a total of 180 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 203 suppliers, which constitutes 20% of our total number of suppliers. 

Arçelik A.Ş. plans to constitute a Supplier Sustainability Index to monitor the sustainability performances of all its strategic suppliers and a “Sustainable Supplier” category, by the year 2018, as well as set a numerical target for the year 2020.

Conflict Minerals Management

As Arçelik A.Ş., in line with our responsible purchasing principles, we have started “Conflict Minerals” project in 2016. With the project, ‘Arçelik Conflict Minerals Policy’ was formed and studies were carried out to establish ‘Arçelik Conflict Minerals Management System’. In 2016, the first phase of the project, materials and components that carry risk with regards to 3TG were determined. 100 suppliers that were determined for pilot practice were provided with surveys regarding 3TG use and were asked to answer following the necessary trainings. Again, within the scope of pilot practice, one supplier was audited on site by an  independent  organization. In the upcoming period, the studies will be expanded to all Arçelik A.Ş. suppliers that carries risk. In 2017, we plan to conduct on-site audit to four suppliers.

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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