Please refer to the producer profile in the BSCI platform

Transkript

1 Auditee : Audit Date From : 27/04/2017 Audit Date To : 27/04/2017 Expiry Date of the Audit : Auditing Company : Auditor s Name(s) : Auditing Branch (if applicable) : Please refer to the producer profile in the BSCI platform Intertek Huseyin Ozkan(Lead), ONUR MENGU Intertek Turkey & Romania & Bulgaria This is an extract of the on line Audit Report.The complete report is available in the BSCI Platform. Access for entitled users only. All rights reserved. No part of this publication may be reproduced, translated, stored in a retrieval system, or transmitted, in any form or by any, means electronic, mechanical, photocopying, recording or otherwise, be lent, re-sold, hired out or otherwise circulated without the FTA s consent. This is an extract of the BSCI Audit Report, which is available in the BSCI Platform. Foreign Trade Association (FTA), The English version is the legally binding One. Page 1/22

2 Rating Definitions Page 2/22

3 Main Auditee Information Name of producer : DBID number : Audit ID : Address : TURGUT OZAL MAH. 68. SOKAK NO:42 ESENYURT Istanbul Province : Istanbul Country : Turkey Management Representative : EREN DIRIK Contact person: EREN DIRIK Sector : Non-Food Industry Type : Textiles, clothing, leather Product group : Apparel Product Type : Ladies' underwear Page 3/22

4 Audit Details Audit Range : Full Audit Follow-up Audit Audit Scope : Main Auditee Main Auditee & Farms Audit Environment : Industrial Agricultural Audit Announcement : Fully-Announced Fully-Unannounced Semi-Announced Random Unannounced Check (RUC) : Audit extent (if applicable) : Audit interferences or contingencies (if applicable) : No none none Overall rating : A Need of follow-up : If YES, by : Rating per Performance Area (PA) PA 1 PA 2 PA 3 PA 4 PA 5 PA 6 PA 7 PA 8 PA 9 PA 10 PA 11 PA 12 PA 13 B A A A A A A A A A A A A Executive summary of audit report TIC. A.S. (shortly Ferah A.S.) was founded in 1960, has moved to the current address since September 2016 and the audit was conducted at this address. There is also a sister company named as FERAH KONFEKSIYON IHRACAT SAN. VE TIC. LTD. STI. (shortly Ferah LTD. STI.) which there are only 21 accountants and 2 sales representative employees, they were also included into audit scope. FERAH KONFEKSIYON is located in a 5 floored building. Layout of the building is; 3rd floor: Lunch hall, Terrace hall, Administration offices 2nd floor: Sewing, Packing, Doctor room, Sampling, Administration offices 1st floor: another independent company (not in relationship with FERAH), finished good warehouse, fabric warehouse, cutting- -1st floor: boiler & compressor area, another independent company (not in relationship with FERAH) Basement floor: another independent company (not in relationship with FERAH) There are 3 different companies in the building which are independent from FERAH, not included into audit scope. FERAH LTD STI employees are located in 1st floor, other floors are used by FERAH A.S. Boiler & compressor area is only used by FERAH A.S. and separated from other companies. Their production is based in ladies' underwear. Page 4/22

5 Ratings Summary Auditee's background information Auditee's name : TUR. TIC. A.S. Legal status : Private Ownership Local Name : FERAH KONFEKSİYON SAN. VE TUR. TİC. A.Ş. Year in which the auditee was founded : 1960 Address : TURGUT OZAL MAH. 68. SOKAK NO:42 ESENYURT Contact person (please select) : EREN DIRIK Province : Istanbul Contact's edirik@ferah.com City : Istanbul Auditee s official language(s) for written communications : Region : Middle East/ North Africa Other relevant languages for the auditee : Turkish English Country : Turkey Website of auditee (if applicable) : GPS coordinates Total turnover (in Euros) : Sector : Non-Food Of which exports % : Industry : Textiles, clothing, leather Of which domestic market % : If other, please specify : N/A Production volume : pieces per month Product Group : Apparel Production cost calculation : Yes If other, please specify : N/A Lost time injury calculation cost : Yes Product Type : Ladies' underwear Auditee's employment structure at the time of the audit Total number of workers : 106 Total number of workers in the production unit to be monitored (if applicable) : 0 MALE WORKERS FEMALE WORKERS Permanent workers Temporary workers 0 0 In management positions Apprentices 0 0 On probation 0 0 With disabilities 0 2 Migrants (national citizens) 0 0 Migrants (foreign citizens) 0 0 Workers on the permanent payroll Production based workers 0 0 With shifts at night 0 0 Unionised 0 0 Pregnant - 4 On maternity leave - 0 Page 5/22

6 Finding Report Page 6/22

7 Performance Area 1 : Social Management System and Cascade Effect 1- Followup Audit [Audit Id ] Audit Date: 27/04/2017 PA Score: B Deadline date:27/10/2017 Based on objective evidence, the facility partially respects to performance area 1; İşletme objektif kanıtlara göre, performans alanı 1 e kısmen uygunluk göstermektedir PARTIALLY CORRECTED ST FOLLOW UP AUDIT BSCI PRINCIPLES 1.1. The facility should have an efficient management system to BSCI values are implemented. - There was a written procedure regarding management of current / future sub-contractors and suppliers that might be used. This procedure includes critical approval criteria and control system for subcontractors is available. - It was noted that the internal monitoring are conducted monthly. And follow up control for findings is performed. However; - There were issues that need to be corrected in PA 2, 7 and 12. Auditors answered this question as "Partially" due to fact that written procedures were available. KISMEN DÜZELTİLDİ TAKIP DENETIMI BSCI GEREKLILIKLERI 1.1. Bulgu: - Mevcut / ileride kullanabilecek tedarikçilerin, taşeronların ve fasonların yönetimine ilişkin yazılı bir prosedür oluşturulmuştur. Bu prosedürde kritik onay kriterleri belirlenmiştir ve alt üreticiler ve iç hizmet sağlayıcı için kontrol sistemi oluşturulmuştur. - İç denetimlerin aylık olarak gerçekleştirildiği görülmüştür. Ve tespit edilen bulguların takibi gerçekleştirilmektedir. Ancak; - Performans alanı 2,7 ve 12 de düzeltilmesi gereken bulgular olduğu not edilmiştir CORRECTED ST FOLLOW UP AUDIT Training records about BSCI code of conduct and social policy which was given to employees were reviewed and employees are aware of the related topics DÜZELTİLDİ TAKIP DENETIMI BSCI davranış kurallarına ve sosyal politikaya ilişkin çalışanlara bir eğitim verildiğine dair kayıt görülmüştür ve çalışanların konuyla ilgili farkındalık görülmüştür CORRECTED ST FOLLOW UP AUDIT - There was a written procedure regarding management of current / future sub-contractors and suppliers that might be used. This procedure includes critical approval criteria and control system for subcontractors is available. DÜZELTİLDİ TAKIP DENETIMI - Mevcut / ileride kullanabilecek tedarikçilerin, taşeronların ve fasonların yönetimine ilişkin yazılı bir prosedür oluşturulmuştur. Bu prosedürde kritik onay kriterleri belirlenmiştir ve alt üreticiler ve iç hizmet sağlayıcı için kontrol sistemi oluşturulmuştur CORRECTED ST FOLLOW UP AUDIT The facility has a proper evaluation system for doing overtime practices. Also, working hours were recorded for foremen and lunch hall employees. DÜZELTİLDİ TAKIP DENETIMI Firmanın kanuna uygun şekilde fazla mesai çalışmaları yapmak için uygun bir sistemi vardır. Ayrıca 6 formen ve yemekhane çalışanı için zaman kaydı tutulmaktadır. : Full Audit [Audit Id ] Audit Date: 13/01/2017 PA Score: E Deadline date:13/04/2017 Based on objective evidence, the facility partially respects to performance area 1; İşletme objektif kanıtlara göre, performans alanı 1 e kısmen uygunluk göstermektedir BSCI PRINCIPLES 1.1. The facility should have an efficient manaagement system to BSCI values are implemented. - There was a written procedure regarding management of current / future sub-contractors and suppliers that might be used. However there is no effective monitoring system for subcontractors in the facility yet. Additionally there is no approval criteria set in the procedure. - It was noted that the internal monitoring are conducted monthly. However the internal checks were not conducted effectively. The missing points were not noted and no CAP was prepared. - There were issues that need to be corrected in PA 1, 2, 4, 5, 6, 7, 11, 12 and 13. Auditors answered this question as "Partially" due to fact that written procedures were available. BSCI GEREKLILIKLERI 1.1. Page 7/22

8 Bulgu: - Mevcut / ileride kullanabilecek tedarikçilerin, taşeronların ve fasonların yönetimine ilişkin yazılı bir prosedür oluşturulmuştur. Fakat henüz alt üreticiler ve iç hizmet sağlayıcı için efektif bir denetim sistemi olmadığı olmadığı görülmüştür. Ek olarak prosedürde onay kriterleri belirlenmemiştir. - İç denetimlerin aylık olarak gerçekleştirildiği görülmüştür. Fakat iç kontrollerin etkin olarak gerçekleştirilmediği görülmüştür. Eksik konuların not alınmadığı ve düzeltici/önleyici aksiyon planı oluşturulmadığı görülmüştür. bir sistem oluşturulmamıştır. - Performans alanı 1, 2, 4, 5, 6, 7, 11, 12 ve 13 de düzeltilmesi gereken bulgular olduğu not edilmiştir. Denetçiler, bu soruyu yazılı olarak prosedürlerin mevcut olduğundan dolayı "Kısmen" olarak cevaplamıştır BSCI PRINCIPLES 1.2.A senior manager should be appointed to ensure that the BSCI values and principles are followed in a satisfactory manner. Finding: - Training records about BSCI code of conduct and social policy which was given to employees were reviewed. However it was observed that the effectiveness of the training was not measured, and the employees were not aware of the social policy. This question was rated as "partially" because there was responsible team for social compliance management system. BSCI GEREKLILIKLERI 1.2. Bulgu: - BSCI davranış kurallarına ve sosyal politikaya ilişkin çalışanlara bir eğitim verildiğine dair kayıt görülmüştür, fakat eğitimlerin etkinliğinin ölçülmediği ve çalışanların sosyal uygunluk politikası konusunda farkındalığı olmadığı görülmüştür. Denetçiler bu soruyu, sosyal uygunluk yönetim sistemi için sorumlu bir ekip olduğundan dolayı "Kısmen" olarak cevaplamıştır BSCI PRINCIPLES 1.3. There should be satisfactory evidence that the auditee has a good overview of the significant business partners and their level of alignment with the BSCI Code of Conduct. Finding: - There was a written procedure regarding management of current / future sub-contractors and suppliers that might be used. However there is no effective monitoring system for subcontractors and internal service providers in the facility yet. Additionally there is no approval criteria set in the procedure. This question was rated as partially because the facility started to establish an evaluation system for sub-contractors and suppliers based on their social compliance performance. BSCI GEREKLILIKLERI 1.3. Bulgu: - Mevcut / ileride kullanabilecek tedarikçilerin, taşeronların ve fasonların yönetimine ilişkin yazılı bir prosedür bulunmaktadır. Fakat alt üreticilerin denetlenmesine yönelik etkin bir uygulama mevcut değildir. Ek olarak prosedürde onay kriterleri belirlenmemiştir. Denetçiler bu soruyu, taşeronlar ve tedarikçiler için sosyal uygunluk performanslarına göre değerlendirme sistemi uygulamaya başladıklarından ötürü kısmen olarak cevaplamıştır BSCI REQUIREMENT 1.4. The should be satisfactory evidence that the auditee s workforce capacity is properly organized to meet the expectations of the delivery order and contracts. Finding: -It was noted that there is no evaluation system for doing overtime practices because 6 foremens' working hours were not recorded, and the subcontracted canteen employee (1) was not recording her/his exact clock-in and clock-out times. These times are printed out and employee signed them. Auditors answered this question as partially due to fact that the issue did not cover the majority of employees. BSCI GEREKLILIKLERI 1.4. Bulgu: - Firmanın kanuna uygun şekilde fazla mesai çalışmaları yapmak için uygun bir sisteminin olmadığı görülmüştür, çünkü 6 formen çalışanının çalışma saatleri kayıt altına alınmamaktadır, ve 1 adet taşerona yemekhane çalışanı giriş çıkış saatlerini kendi not etmemektedir. Bu giriş çıkış saatleri çıktı olarak alınmakta, çalışan bu saatlere imza atmaktadır. Denetçiler bu soruyu, durumun çalışanların çoğunluğunu kapsamadığı için kısmen olarak cevaplamıştır. Page 8/22

9 Performance Area 2 : Workers Involvement and Protection 1- Followup Audit [Audit Id ] Audit Date: 27/04/2017 PA Score: A Deadline date:27/07/2017 Based on objective evidence, the facility partially respects performance area 2. İşletme objektif kanıtlara göre, performans alanı 2 e kısmen uygunluk göstermektedir PARTIALLY CORRECTED ST FOLLOW UP AUDIT BSCI REQUIREMENT 2.2. There should be satisfactory evidence that the auditee defines long-term goals for protecting workers in line with the aspirations of the BSCI Code of Conduct. Finding: - It was noted that the vision and mission for protecting workers were defined in line with the aspirations of the BSCI Code of Conduct in the facility. Also, long term goals with a strategic plan is reviewed. However ; - The workers and workers representatives are not involved in defining goals. This question was rated as partially because the vision, mission and objectives for protecting workers were defined in line with the aspirations of the BSCI Code of Conduct. KISMEN DÜZELTİLDİ TAKIP DENETIMI BSCI GEREKLILIKLERI 2.2. Bulgu: - İşletmede çalışanları korumaya yönelik BSCI Davranış Kuralları uyarınca vizyon ve misyon belirlenmiştir. Ayrıca stratejik bir planla beraber belirlenmiş uzun dönemli hedefler belirlenmiştir. Ancak; İşletmede BSCI kuralları uyarınca belirlenen hedeflerin gerçekleştirilmesinde çalışanların ve temsilcilerin uygulamalara dahil edilmediği görülmüştür CORRECTED ST FOLLOW UP AUDIT Training records about rights and liabilities and the working rules of the facility which was given to employees were reviewed. Also, it was observed that the effectiveness of the training was measured with exam. DÜZELTİLDİ TAKIP DENETIMI Çalışanlara hak ve sorumlulukları ve işyeri kurallarına ilişkin eğitim verildiğine dair kayıt görülmüştür, eğitimlerin etkinliği sınav vasıtasıyla ölçülmüştür CORRECTED ST FOLLOW UP AUDIT It was reviewed that employee representatives and managers were informed about the BSCI Code and social system during the meetings, besides training regarding related topics is given to managers employee representative DÜZELTİLDİ TAKIP DENETIMI Çalışan temsilcileri ve yöneticilerin BSCI davranış kurallarıve sosyal uygunluk sistemi konusunda toplantılar sırasında bilgilendirildikleri; ayrıca ilgili konularla alakalı eğitim aldıkları görülmüştür. : Full Audit [Audit Id ] Audit Date: 13/01/2017 PA Score: D Deadline date:13/04/2017 Based on objective evidence, the facility partially respects to performance area 2 İşletme objektif kanıtlara göre, performans alanı 2 e kısmen uygunluk göstermektedir BSCI REQUIREMENT 2.2. There should be satisfactory evidence that the auditee defines long-term goals for protecting workers in line with the aspirations of the BSCI Code of Conduct. Finding: - It was noted that the vision and mission for protecting workers were defined in line with the aspirations of the BSCI Code of Conduct in the facility. Page 9/22

10 However long term goals with a strategic plan could not be reviewed. - The workers and workers representatives are not involved in defining goals. This question was rated as partially because the vision, mission and objectives for protecting workers were defined in line with the aspirations of the BSCI Code of Conduct. BSCI GEREKLILIKLERI 2.2. Bulgu: - İşletmede çalışanları korumaya yönelik BSCI Davranış Kuralları uyarınca vizyon ve misyon belirlenmiştir. Fakat stratejik bir planla beraber belirlenmiş uzun dönemli hedefler görülememiştir. - İşletmede BSCI kuralları uyarınca belirlenen hedeflerin gerçekleştirilmesinde çalışanların ve temsilcilerin uygulamalara dahil edilmediği görülmüştür. Denetçiler bu soruyu çalışanları korumaya yönelik vizyon, misyon ve hedeflerin BSCI Davranış Kuralları çerçevesinde belirlendiğinden ötürü kısmen olarak cevaplanmıştır BSCI PRINCIPLES 2.3 Auditee should take specific steps to make workers aware of their rights and responsibilities Finding: - Training records about rights and liabilities and the working rules of the facility which was given to employees were reviewed. However it was observed that the effectiveness of the training was not measured. This question was rated as partially because the employees were generally aware of their legal rights. BSCI GEREKLILIKLERI 2.3 Bulgu: - Çalışanlara hak ve sorumlulukları ve işyeri kurallarına ilişkin eğitim verildiğine dair kayıt görülmüştür, fakat eğitimlerin etkinliğinin ölçülmediği görülmüştür. Denetçiler bu soruyu, çalışanların genel olarak yasal haklarının farkında olduğundan ötürü kısmen olarak cevaplamıştır BSCI PRINCIPLES 2.4. Auditee should build sufficient competence among managers, workers and workers representatives to successfully embed responsible practices in the business operation. Finding: It was reviewed that employee representatives and managers were informed about the BSCI Code and social system during the meetings, however there is no continuous system for capacity building of the workers representatives, managers and other decision-makers. This question was rated as partially because employee representatives and managers were informed about the BSCI Code and social system however there is no systematical plan. BSCI GEREKLILIKLERI 2.4. Bulgu: Çalışan temsilcileri ve yöneticilerin BSCI davranış kurallarıve sosyal uygunluk sistemi konusunda toplantılar sırasında bilgilendirildikleri; fakat çalışan temsilcileri, müdürler ve karar vericilerin kapasite geliştirmelerine yönelik sürekli bir sistemi olmadığı görülmüştür. Denetçiler bu soruyu çalışan temsilcileri ve yöneticilerin BSCI davranış kuralları ve sosyal sistem konusunda bilgilendirildikleri fakat sistematik bir plan olmadığından ötürü kısmen olarak cevaplamıştır. Performance Area 3 : The rights of Freedom of Association and Collective Bargaining 1- Followup Audit [Audit Id ] Audit Date: 27/04/2017 PA Score: A Deadline date: It was a follow up audit. So, this PA is not included into scope of audit. : Full Audit [Audit Id ] Audit Date: 13/01/2017 PA Score: A Deadline date: Page 10/22

11 Performance Area 4 : No Discrimination 1- Followup Audit [Audit Id ] Audit Date: 27/04/2017 PA Score: A Deadline date: CORRECTED ST FOLLOW UP AUDIT The training about disciplinary actions under the legal regulation and the facility's disciplinary code and procedure( ) DÜZELTİLDİ TAKIP DENETIMI Çalışanlara ve temsilcilere yasal mevzuat altında disiplin uygulamaları ve disiplin yönetmeliği( ) konusunda eğitim verilmiştir. : Full Audit [Audit Id ] Audit Date: 13/01/2017 PA Score: B Deadline date:13/04/2017 Based on objective evidence, the facility partially respects to performance area 4 İşletme objektif kanıtlara göre, performans alanı 4 e kısmen uygunluk göstermektedir BSCI PRINCIPLES 4.3. Auditee should take the necessary preventative and/or remedial measures so workers are not harassed or disciplined on grounds of discrimination as listed in the BSCI Code. Finding: -The training about disciplinary actions under the legal regulation, however a training about the facility's disciplinary code and procedure is not given yet. This question was rated as partially because the gaps noted were minor and non-systematical. BSCI PRENSIPLERI 4.3. Bulgu: -Çalışanlara ve temsilcilere yasal mebzuat altında disiplin uygulamaları konusunda eğitim verilmiş, fakat firmanın disiplin yönetmeliği prosedürüne ilişkin eğitim verilmediği görülmüştür. Denetçiler bu soruyu sistematik olmayan ve minor konuların varlığından ötürü kısmen olarak cevaplamıştır. Page 11/22

12 Performance Area 5 : Fair Remuneration 1- Followup Audit [Audit Id ] Audit Date: 27/04/2017 PA Score: A Deadline date: CORRECTED ST FOLLOW UP AUDIT 1) Subcontracted lunch hall employee is employed by the facility itself. And all payments of this employee is paid through official payroll submitted to the social insurance agency. 2) Subcontracted employee is employed by the facility itself. A copy of payslip is given to related employee monthly. DÜZELTİLDİ TAKIP DENETIMI 1) İşletme taşeron yemekhane çalışanını kendi bünyesinde işe almıştır. Ve bütün ödemelerinin resmi bordro üzerinden ödendiği görülmüştür. 2) İşletme taşeron yemekhane çalışanını kendi bünyesinde işe almıştır. Maaş bordrosunun bir kopyasının ilgili çalışana aylık olarak verildiği görülmüştür. : Full Audit [Audit Id ] Audit Date: 13/01/2017 PA Score: A Deadline date:13/04/2017 Based on objective evidence, the facility partially respects to performance area 5 İşletme objektif kanıtlara göre, performans alanı 5 e kısmen uygunluk göstermektedir 5.5-1) Law: In accordance with Social Insurance and General Health Insurance Law; #5510/2006, Rev: , Art. 80. The social insurance premiums of the employees are calculated and paid based on gross total wage paid to the employees in the related month. Finding: According to wage records; 1 subcontracted canteen worker's wages are paid through official payroll submitted to the social insurance agency however her overtime wages are paid by cash through unofficial payroll. 2) Law: In accordance with Turkish Labour Law # 4857 / 2003, ARTICLE 37-The employer is obliged to issue a slip to the worker indicating the each payment effected in the working place or deposited in the bank account, complete with the signature and logo (seal) of the enterprise. This slip should also indicate the due date of payment and related payment period, including the breakdown of other extras to be added to the basic wage amount such as overtime, weekend, official and religious holiday work pays and tax, insurance premium, alimony and attachment deductions and set-off of advances. Finding: It was noted that 1 subcontracted canteen worker is not given a copy of payslip monthly. Auditors noted that compliance was provided for majority of employees. 1) Kanun: Sosyal Sigortalar ve Genel Sağlık Güvenlik Kanunu Madde 80. Bulgu: İşletmede 1 taşeron yemekhane çalışanının maaşının sosyal sigorta bordrosu üzerinden ödendiği ancak fazla mesainin tamamı gayri resmi bordro üzerinden ödendiği görülmüştür. 2) Kanun: TÜRK İŞ KANUNU # 4857 / 2003,Madde 37 Bulgu: Ödeme kayıtlarına göre; işletmede bulunan 1 taşeron yemekhane çalışanına maaş bordrosunun bir kopyasının aylık olarak verilmediği görülmüştür. Denetçiler bu soruyu, çalışanların çoğunluğunda uygunluğun olduğundan ötürü kısmen olarak cevaplamıştır. Page 12/22

13 Performance Area 6 : Decent Working Hours 1- Followup Audit [Audit Id ] Audit Date: 27/04/2017 PA Score: A Deadline date: CORRECTED ST FOLLOW UP AUDIT 1) The subcontracted lunch hall employee was employed by the facility itself. There was no holiday working practice that is not paid in accordance with the law since initial audit. 2) The subcontracted lunch hall employee was employed by the facility itself. Related worker's hourly wage is calculated as salary/225 in accordance with the law. 3) Time records are kept for 6 foremen' and 1 lunch hall employee. Overtime working hours and wages for these employee are verified from the records. DÜZELTİLDİ TAKIP DENETIMI 1)Yemekhane çalışanı işletme tarafından bünyeye alınmıştır. İlk denetimden sonra kanuna göre ödenmeyen resmi tatil çalışması görülememiştir. 2)Yemekhane çalışanı işletme tarafından bünyeye alınmıştır. İlgili çalışanının saatlik ücreti saat/225 şeklinde hesaplandığı görülmüştür. 3) İşletmede 6 formen çalışanın ve yemekhane çalışanının çalışma saatleri kayıt altına alınmaktadır. Bu çalışanların fazla mesai çalışmaları ve fazla mesai ödemeleri kayıtlardan doğrulanmıştır. : Full Audit [Audit Id ] Audit Date: 13/01/2017 PA Score: C Deadline date:13/04/2017 Based on objective evidence, the facility partially respects to performance area 6 İşletme objektif kanıtlara göre, performans alanı 6 e kısmen uygunluk göstermektedir 6.2-1) Law: The Turkish Law For National Festivals and General Holidays #2429 (17/3/1981), Article 1, October 29 is a national holiday which The Republic established. This festival begins from October 28 after 13:00 and continues during the October 29. In October 29, facilities must be closed. Finding: It was noted that 1 subcontracted canteen worker performed overtime practice in 28th October 2016 after 13:00 (national holiday) and this overtime practice was not paid as an overtime wage to her. 2) Law: In accordance with the Turkish Labour Law 4857,Article 63 the number of hours to be worked per a week is 45 in total. This is explained as: 7.5 hrs/day x 6 days = 45 hrs per week. The calculation of salary and overtime wages is always done on this basis which is 7.5 hrs/day x 30 days of month= 225 hrs /month. (please note that the all weekends and holidays are also paid as if employees work. So 30 days are paid according to the law) Finding: 1 subcontracted canteen worker's hourly wage is calculated as salary/240 instead of salary /225. 3) Law: In accordance with the Turkish Regulation on Working Hours Related to Labor Law, No: 25425, Date: , Art. 9; The employer should document the working hours of employees appropriately. Finding: 6 foremens' working hours were not recorded and the 1 subcontracted canteen employee's working hours was not recording her exact clock-in and clock-out times. These times are printed out and employee signed them. Therefore these 6 foremen' overtime working hours and wages and 1 subcontracted canteen worker's overtime wages and overtime working hours could be verified from the records. Auditors noted that compliance was provided for majority of employees. 1) Kanun: ULUSAL BAYRAM VE GENEL TATİLLER HAKKINDA KANUN Kanun No. 2429, R. Gazete No , R.G. Tarihi: Madde 1 Bulgu: İşletmede taşeron olarak çalışan 1 yemekhane çalışanının 28 Ekim :00 sonrası(resmi tatil) fazla mesai çalışması yaptığı ancak bu mesai çalışmasının çalışana fazla mesai olarak ödenmediği görülmemiştir. 2) Kanun: TÜRK İŞ KANUNU # 4857 / 2003, Madde 63 Bulgu: 1 taşeron yemekhane çalışanının saatlik ücretinin maaş/225 yerine saat/240 şeklinde hesaplandığı görülmüştür. 3) Kanun: İş Kanununa İlişkin Çalışma Süreleri Yönetmeliği ( tarihli, sayılı Resmi Gazetede yayımlanmıştır.) Çalışma Süresinin Belgelenmesi Madde 9 Bulgu: İşletmede 6 formen çalışanın çalışma saatleri kayıt altına alınmamaktadır ve 1 adet taşeron yemekhane çalışanı giriş çıkış saatlerini kendisi not etmemektedır. Bu giriş çıkış saatleri çıktı olarak alınmakta, çalışan bu saatlere imza atmaktadır. Bu nedenle 6 foremen çalışanın ve 1 taşeron yemekhane çalışanının fazla mesai çalışmaları ve fazla mesai ödemeleri kayıtlardan doğrulanamamıştır. Page 13/22

14 Denetçiler bu soruyu, çalışanların çoğunluğunda uygunluğun olduğundan ötürü kısmen olarak cevaplamıştır. Page 14/22

15 Performance Area 7 : Occupational Health and Safety 1- Followup Audit [Audit Id ] Audit Date: 27/04/2017 PA Score: A Deadline date:27/10/ NOT CORRECTED ST FOLLOW UP AUDIT LAW: Regulation for facility opening and operating permit ( 10/8/2005), II. Section Art. 6 (Changed first clause: 19/3/ /11882 K.) It is not allowed that the facility are not opened and operated without Opening and Operating Permit that is taken from local authorities properly FINDING: Opening and Operating License (for current address) (for the building which operates in since September 2016) was not available. Auditors answered this question as No due to importance of related document. DÜZELTİLMEDİ TAKIP DENETIMI KANUN: İŞYERİ AÇMA VE ÇALIŞMA RUHSATLARINA İLİŞKİN YÖNETMELİK (10/8/2005) No : II. Bölüm, Madde 6- (Değişik birinci fıkra: 19/3/ /11882 K.) BULGU: İşyeri Açma ve Çalışma Ruhsatı (güncel adres için) (Eylül 2016'dan itibaren faaliyet gösterdiği bina için) görülememiştir PARTIALLY CORRECTED ST FOLLOW UP AUDIT LAW: In accordance with Maintenance and Operation Regulation for Elevators (No.27058, Date: ) Art.10 /1 (Revision : RG-5/11/ ) 1) The administration of the building where the lift is located should provide annual maintenance of the lift conducted by A type institution at the end of the first year the lift is supplied and at least once a year afterwards. In accordance with Turkish Regulation about Occupational Health and Safety circumstances using work equipment (25/04/2013) Addition III - Related Matters for Maintenance, Repairs and Periodical Checks Art Periodical check period and check criteria for pressure vessels and installments are stated on Table 1 provided that the criteria stated in Art are reserved. Table 1 Equipment: Steam Boiler, Heating Boiler, Compressor Check Period (Max): 1 year Art.1.9. In case when non-compliance points are detected in terms of occupational health and safety and operating of the work equipment is inappropriate if these points are not corrected; the work equipment shall not be used until these points are corrected. FINDING: Annual periodic inspection report for 1 compressor (by authorized machine engineer) was reviewed. However; annual periodic inspection report for 1 lift (by authorized A type inspection firm) - which of them are in common usage area of the building - were not available. Management stated that due to fact that it was under building owner initiative, improvement could not be provided. Auditors answered this question as partially due to fact that the results of periodic inspection reports of boiler, expansion tank and air pressure tank. KISMEN DÜZELTİLDİ TAKIP DENETIMI KANUN: ASANSÖR BAKIM VE İŞLETME YÖNETMELİĞİ R.Gazete No R.G. Tarihi: , MADDE 10 - (1) (R.G ) MADDE: İŞ EKİPMANLARININ KULLANIMINDA SAĞLIK VE GÜVENLİK ŞARTLARI YÖNETMELİĞİ, R.Gazete No: R.G. Tarihi: , EK-III BAKIM, ONARIM VE PERİYODİK KONTROLLER İLE İLGİLİ HUSUSLAR, BULGU: Binanın ortak kullanım alanında bulunan 1 adet kompresöre (yetkili makine mühendisi tarafından) fenni muayene raporu görülmüştür. Ancak 1 adet asansör için (yetkili A tipi muayene kuruluşu tarafından) yıllık fenni muayene raporu görülememiştir. Yönetim; bina sahibinin insiyatifinde olduğu için bir gelişme sağlanamadığını belirtmiştir. : Full Audit [Audit Id ] Audit Date: 13/01/2017 PA Score: A Deadline date:13/07/2017 Based on objective evidence, the facility partially respects to performance area 7 Page 15/22

16 İşletme objektif kanıtlara göre, performans alanı 7 e kısmen uygunluk göstermektedir LAW: Regulation for facility opening and operating permit ( 10/8/2005), II. Section Art. 6 (Changed first clause: 19/3/ /11882 K.) It is not allowed that the facility are not opened and operated without Opening and Operating Permit that is taken from local authorities properly FINDING: Opening and Operating License (for current address) (for the building which operates in since September 2016) was not available. Auditors answered this question as No due to importance of related document. KANUN: İŞYERİ AÇMA VE ÇALIŞMA RUHSATLARINA İLİŞKİN YÖNETMELİK (10/8/2005) No : II. Bölüm, Madde 6- (Değişik birinci fıkra: 19/3/ /11882 K.) BULGU: İşyeri Açma ve Çalışma Ruhsatı (güncel adres için) (Eylül 2016'dan itibaren faaliyet gösterdiği bina için) görülememiştir. Denetçiler bu soruyu; ilgili dökümanın öneminden dolayı "hayır" olarak cevaplamıştır LAW: In accordance with Maintenance and Operation Regulation for Elevators (No.27058, Date: ) Art.10 /1 (Revision : RG-5/11/ ) 1) The administration of the building where the lift is located should provide annual maintenance of the lift conducted by A type institution at the end of the first year the lift is supplied and at least once a year afterwards. In accordance with Turkish Regulation about Occupational Health and Safety circumstances using work equipment (25/04/2013) Addition III - Related Matters for Maintenance, Repairs and Periodical Checks Art Periodical check period and check criteria for pressure vessels and installments are stated on Table 1 provided that the criteria stated in Art are reserved. Table 1 Equipment: Steam Boiler, Heating Boiler, Compressor Check Period (Max): 1 year Art.1.9. In case when non-compliance points are detected in terms of occupational health and safety and operating of the work equipment is inappropriate if these points are not corrected; the work equipment shall not be used until these points are corrected. FINDING: Annual periodic inspection reports for 1 compressor (by authorized machine engineer) and 1 lift (by authorized A type inspection firm) - which of them are in common usage area of the building - were not available. Management stated that due to fact that it was under building owner initiative, improvement could not be provided. Auditors answered this question as partially due to fact that the results of periodic inspection reports of boiler, expansion tank and air pressure tank. KANUN: ASANSÖR BAKIM VE İŞLETME YÖNETMELİĞİ R.Gazete No R.G. Tarihi: , MADDE 10 - (1) (R.G ) MADDE: İŞ EKİPMANLARININ KULLANIMINDA SAĞLIK VE GÜVENLİK ŞARTLARI YÖNETMELİĞİ, R.Gazete No: R.G. Tarihi: , EK- III BAKIM, ONARIM VE PERİYODİK KONTROLLER İLE İLGİLİ HUSUSLAR, BULGU: Binanın ortak kullanım alanında bulunan 1 adet kompresör (yetkili makine mühendisi tarafından) ve 1 adet asansör için (yetkili A tipi muayene kuruluşu tarafından) yıllık fenni muayene raporu görülememiştir. Yönetim; bina sahibinin insiyatifinde olduğu için bir gelişme sağlanamadığını belirtmiştir. Denetçiler bu soruyu; kazan, genleşme tankı ve hidroforun fenni muayene raporlarının sonucu uygun olduğundan ötürü kısmen olarak cevaplamıştır. Performance Area 8 : No Child Labour 1- Followup Audit [Audit Id ] Audit Date: 27/04/2017 PA Score: A Deadline date: It was a follow up audit. So, this PA is not included into scope of audit. : Full Audit [Audit Id ] Audit Date: 13/01/2017 PA Score: A Deadline date: Page 16/22

17 Performance Area 9 : Special protection for young workers 1- Followup Audit [Audit Id ] Audit Date: 27/04/2017 PA Score: A Deadline date: It was a follow up audit. So, this PA is not included into scope of audit. : Full Audit [Audit Id ] Audit Date: 13/01/2017 PA Score: A Deadline date: Performance Area 10 : No Precarious Employment 1- Followup Audit [Audit Id ] Audit Date: 27/04/2017 PA Score: A Deadline date: It was a follow up audit. So, this PA is not included into scope of audit. : Full Audit [Audit Id ] Audit Date: 13/01/2017 PA Score: A Deadline date: Page 17/22

18 Performance Area 11 : No Bonded Labour 1- Followup Audit [Audit Id ] Audit Date: 27/04/2017 PA Score: A Deadline date: CORRECTED ST FOLLOW UP AUDIT The training about disciplinary actions under the legal regulation and the facility's disciplinary code and procedure( ) DÜZELTİLDİ TAKIP DENETIMI Çalışanlara ve temsilcilere yasal mevzuat altında disiplin uygulamaları ve disiplin yönetmeliği( ) konusunda eğitim verilmiştir. : Full Audit [Audit Id ] Audit Date: 13/01/2017 PA Score: A Deadline date:13/04/2017 Based on objective evidence, the facility partially respects to performance area 11 İşletme objektif kanıtlara göre, performans alanı 11 e kısmen uygunluk göstermektedir BSCI PRINCIPLES Auditee should establish all applicable disciplinary procedures in writing and has explained them verbally to workers in clear and understandable terms. Finding: The training about disciplinary actions under the legal regulation, however a training about the facility's disciplinary code and procedure is not given yet. This question was rated as partially because the gaps noted were minor and non-systematical. BSCI GEREKLILIKLERI Bulgu: Çalışanlara ve temsilcilere yasal mevzuat altında disiplin uygulamaları konusunda eğitim verilmiş, fakat firmanın disiplin yönetmeliği prosedürüne ilişkin eğitim verilmediği görülmüştür. Denetçiler bu soruyu sistematik olmayan ve minor konulardan ötürü kısmen olarak cevaplamıştır. Page 18/22

19 Performance Area 12 : Protection of the Environment 1- Followup Audit [Audit Id ] Audit Date: 27/04/2017 PA Score: A Deadline date:27/07/2017 Based on objective evidence, the facility partially respects performance area 12 İşletme objektif kanıtlara göre, performans alanı 12 e kısmen uygunluk göstermektedir NOT CORRECTED ST FOLLOW UP AUDIT Law: Regulation about the obligatory permits and licenses according to the Environment Law( ) No: 27214, Article 4; facilities subject to environment permit or to environment permit and license are classified as below regarding to their impact to environment; 1- Facilities which have contaminating impact to environment at high level (Appendix 1) 2- Facilities which have contaminating impact to environment (Appendix 2) Facilities which listed at Appendix 1 or 2 are required to obtain environment permit or to environment permit and license. Finding: It was noted that there is no environmental permit/ exemption letter for environmental permit in the facility. Auditors answered this question as partially due to the fact that environmental impact of the facility is low DÜZELTİLMEDİ TAKIP DENETIMI Kanun: ÇEVRE KANUNUNCA ALINMASI GEREKEN İZİN VE LİSANSLAR HAKKINDA YÖNETMELİK( ) No: Çevre iznine veya çevre izin ve lisansına tabi işletmeler MADDE 4 Bulgu: İşletmede çevre izni/ çevre izni kapsam dışı yazısı bulunmamaktadır. Denetçi bu soruyu, çevresel etkilerin azlığından dolayı kısmen olarak cevaplamıştır. : Full Audit [Audit Id ] Audit Date: 13/01/2017 PA Score: A Deadline date:13/04/2017 Based on objective evidence, the facility partially respects to performance area 12 İşletme objektif kanıtlara göre, performans alanı 12 e kısmen uygunluk göstermektedir Law: Regulation about the obligatory permits and licenses according to the Environment Law( ) No: 27214, Article 4; facilities subject to environment permit or to environment permit and license are classified as below regarding to their impact to environment; 1- Facilities which have contaminating impact to environment at high level (Appendix 1) 2- Facilities which have contaminating impact to environment (Appendix 2) Facilities which listed at Appendix 1 or 2 are required to obtain environment permit or to environment permit and license. Finding: It was noted that there is no environmental permit/ exemption letter for environmental permit in the facility. Auditors answered this question as partially due to the fact that environmental impacts of the facility is low. Kanun: ÇEVRE KANUNUNCA ALINMASI GEREKEN İZİN VE LİSANSLAR HAKKINDA YÖNETMELİK( ) No: Çevre iznine veya çevre izin ve lisansına tabi işletmeler MADDE 4 Bulgu: İşletmede çevre izni/ çevre izni kapsam dışı yazısı bulunmamaktadır. Denetçiler bu soruyu, işletmenin çevresel etkilerinin azlığından ötürü kısmen olarak cevaplamıştır. Page 19/22

20 Performance Area 13 : Ethical Business Behaviour 1- Followup Audit [Audit Id ] Audit Date: 27/04/2017 PA Score: A Deadline date: CORRECTED ST FOLLOW UP AUDIT -Training records about anti bribery and anti corruption policy which was given to employees were reviewed. Also, it was observed that the effectiveness of the training was measured with exam, and the employees were aware of the anti bribery and anti corruption policy. -Risk assessment about anti-bribery and anti corruption issues is performed on April DÜZELTİLDİ TAKIP DENETIMI -Anti-rüşvet ve anti-yolsuzluk politikasına ilişkin çalışanlara bir eğitim verildiğine dair kayıt görülmüştür, eğitimlerin etkinliğinin sınavla ölçüldüğü ve çalışanların anti-rüşvet ve anti-yolsuzluk politikası konusunda farkındalığının bulunduğu görülmüştür. -İşletmede anti rüşvet ve yolsuzluk ile ilgili risk analizinin Nisan 2017 de yapıldığı görülmüştür. : Full Audit [Audit Id ] Audit Date: 13/01/2017 PA Score: A Deadline date:13/04/2017 Based on objective evidence, the facility partially respects to performance area 13 İşletme objektif kanıtlara göre, performans alanı 13 e kısmen uygunluk göstermektedir Law: BSCI PRINCIPLES Auditee should actively oppose any act of corruption, extortion or embezzlement, or any form of bribery in its activities as a business enterprise. Finding: -Training records about anti bribery and anti corruption policy which was given to employees were reviewed. However it was observed that the effectiveness of the training was not measured, and the employees were not aware of the anti bribery and anti corruption policy. -- There is no risk assessment about anti-bribery and anti corruption issues. Auditors answered this question as partially due to fact that training records were available. Kanun: BSCI PRENSIPLERI Bulgu: - Anti-rüşvet ve anti-yolsuzluk politikasına ilişkin çalışanlara bir eğitim verildiğine dair kayıt görülmüştür, fakat eğitimlerin etkinliğinin ölçülmediği ve çalışanların anti-rüşvet ve anti-yolsuzluk politikası konusunda farkındalığı olmadığı görülmüştür. -İşletmede anti rüşvet ve yolsuzluk ile ilgili risk analizinin yapılmadığı görülmüştür. Denetçiler bu soruyu, eğitim kaydı görüldüğünden ötürü kısmen olarak cevaplamıştır. Page 20/22

21 Summary Audit Type Date Audit Id PA1 PA2 PA3 PA4 PA5 PA6 PA7 PA8 PA9 PA10 PA11 PA12 PA13 Overall Rating Follow-up Audit 27/04/ B A A A A A A A A A A A A A Full Audit 13/01/ E D A B A C A A A A A A A D Page 21/22

22 Producer Photos Photo of the canteen (if applicable) lunch hall.jpg Photo first aid facilities doctor room.jpg Photo of the inside of the main production hall sewing.jpg External photo(s) of the production unit(s) external view.jpg Photo first aid facilities first aid kit.jpg Photo of the inside of the main production hall warehouse.jpg Photo of the code of conduct on display BSCI COC posted 1.JPG Photo of the inside of the main production hall cutting.jpg Photo of the sanitary facilities WC.JPG Photo of the code of conduct on display BSCI COC posted 2.JPG Photo of the inside of the main production hall packing.jpg Photo of fire safety equipment fire hose reel.jpg Page 22/22