SUPPLY CHAIN ETHICS

Vestel Group of Companies (“Vestel”) expects its suppliers to adopt the values of Vestel and abide by all the applicable laws. Additionally, Vestel expects its suppliers to be in conformity with the following principles, which are also adopted by the Global Compact and published in the purchasing portal concerning its responsibilities towards its stakeholders and the environment:

  • to abide by all the applicable laws,
  • to fight against corruption,
  • to respect the fundamental human rights of their employees,
  • to abide by the law that prohibits child labor,
  • to be accountable for the health and safety of their employees,
  • to be in compliance with the applicable laws and international standards concerning environmental protection.

In order to do business with Vestel, our business partners (and their suppliers, manufacturers and sub-contractors) are required to respect, protect and improve the below-mentioned fundamental rights of their employees whom they directly or indirectly employ. Our suppliers should comply with all the applicable national laws and requirements, minimum industrial standards and International Labor Office (“ILO”) and United Nations (“UN”) Conventions.

Within this scope, Vestel has established the following “Principles of Business Ethics for Suppliers” for its own suppliers and shared these principles with its suppliers via its “satinalma.vestel.com.tr” and “supplier.vestel.com.tr” websites:

1. Legal Compliance: Compliance with all the applicable national laws and regulations, minimum industrial standards, ILO and UN conventions and all other material legal requirements. The strictest rule will apply.

2. Voluntary Labor: Labor should be voluntary. Child labor, forced labor, repayment by workmanship, working in prison or apprenticeship pattern shall not be tolerated. Workers should allow ID controls. Suppliers should provide non-business days to their workers; they must ensure that working hours are in compliance with the local regulations and are not excessive.

3. Anti-discrimination: Discrimination on the basis of gender, age, religion, race, sect, social position, physical structure, ethnic origin, nationality, political view, sexual preference or any other personal characteristics should not be tolerated in the practices related with recruitment, pricing, training opportunity, promotion and retirement.

4. Rude behavior or inhuman treatment: Physical abuse or discipline application, physical abuse threat, sexual or other kinds of disturbance, verbal abuse or other types of intimidation forms are prohibited.

5. Remuneration: Wages and social benefits paid for a standard work week should at minimum be in accordance with the national standards set by the laws or established criteria in the sector whichever is higher. Information about wages and employment conditions should be provided before recruitment and details of the wages should be given to all employees in a written and explicit form in every pay period. No deduction can be made from the wages other than those stipulated by the national laws either as a discipline method or without obtaining the approval of the employee.

6. Health and Safety: Suppliers should provide their employees a healthy and safe working environment, and where applicable, healthy and safe dwelling opportunities. Suppliers should take precautions to prevent workplace hazards.

7. Environment: Suppliers should ensure that their production facilities are in compliance with the national and local environmental laws (including all the laws concerning air emissions, waste water, toxic substances and dangerous waste disposal). Suppliers should verify that all their input materials and components are procured according to the international conventions and protocols in addition to local laws and regulations.

8. Gifts and entertainment: Suppliers should not offer gifts or entertainment to the shareholders and employees of Vestel.

9. Conflict of interest: Suppliers should not enter into activities which shall create conflict of interest with the shareholders of Vestel.

10. Anti-corruption: Suppliers should not be involved in, permit and tolerate bribery, corruption or unethical acts with the public officials or individuals in the private sector.

Vestel expects its suppliers, from which materials and services are procured, to comply with these rules.

With this in mind, Vestel Elektronik launched the Risk Assessment Project for improving the environmental/occupational health and safety and the working conditions of its nearly 450 suppliers in 2017. Using the Country Risk Classification, the List of Least Developed Countries (as of June 2017 – United Nations Committee for Development Policy), technology usage and industry details and the pre-evaluation audit results, the Company divided its suppliers into Low Risk, Medium Risk and High Risk categories. In 2019, Vestel Elektronik will continue its efforts in evaluating and improving its suppliers and increasing their levels of awareness.