Business Ethics Audits &Reporting

As part of our Code of Conduct and Global Responsible Purchasing Policy, we carry out auditing activities for our suppliers. Audits check whether our suppliers comply with Arçelik’s expectations in areas including compliance with human rights and environmental laws.

A comprehensive audit covering ESG topics are aligned with Business Social Compliance Initiative (“BSCI”) and the Suppliers Ethical Data Exchange (“SEDEX”) and Responsible Business Alliance (“RBA”) carried out by third-party independent auditors with relevant certificates. Within the scope, the compliance of our suppliers with Arçelik Global Responsible Purchasing Policy is assessed, which include Arçelik’s expectations for legal practices, working conditions, ethical rules, occupational health and safety, and the environment.

The following headings are covered during the business ethics audits:

• Child labour

• Discrimination

• Forced labour

• Environment

• Freedom to Form Unions

• Occupational Health and Safety

• Business Ethics Policy and Management Systems

• Fees and Side Benefits

• Operating Hours

In case of at least one of the following nonconformities as a result of the audit, cooperation with the supplier is terminated:

• Child labor

• Forced labor

• Harassment case

• Bribery case

• Discrimination

If a supplier has been audited by a third party other than Arçelik’s own audit process, an up-to date business ethics audit report taken within the last two years from the independent institution is accepted. The format of the report must be approved by Arçelik. In that case, audit is not planned for the relevant supplier within that year.

For results of supplier assessments, please visit Arçelik Sustainability Reports.

For further information about Supplier Business Ethics which are part of Supplier ESG Program, please visit the Program.

We require full compliance with Arcelik Global Responsible Purchasing Policy in these audits. Additionally, Human Rights Due Diligence Process includes the identification, prevention and mitigation actual and potential adverse impacts of salient human rights issues considered relevant for Arcelik’s operation network in the entire value chain.