Modern Slavery Statement for the Financial Year Ended 31st December, 2019
Introduction from the Managing Director of Beko plc
Beko plc published its first Modern Slavery Statement in September 2017. We are committed to monitoring and improving our practices to combat slavery and human trafficking. This publication marks our third year of our Modern Slavery Statement. Our third statement highlights procedures we continually put in place to improve our procedures against slavery and human trafficking.
Our Organisation's structure
Beko plc (“we”, “us” or “our”) is a part of the Arcelik A.Ş. Group, which was founded in Turkey in 1955. Arçelik A.Ş. (the “Parent Company”) has more than 60 years’ experience in consumer durables and is one of the largest household appliance producers in Europe. It is also one of the leading home-appliance brands in Turkey, offering extensive and innovative ranges of both home appliances and consumer electronics.
With over 30,000 employees around the world, our parent company has 23 production plants in 9 countries and carries out sales and marketing operations in 34 countries while offering products and services to almost 150 countries with its 12 brands. In 2019, our Parent Company had a global annual turnover of 5,032 million Euros.
Our ultimate parent company is Koç Holdings A.Ş. (“Koç”). Koç was founded in 1926 with its head office situated in Turkey. It is Turkey’s biggest industrial and commercial conglomerate and continues to be one of the top 500 largest companies in the world.
Our business
In the United Kingdom, our head office is based in Watford. We employ over 200 people throughout the United Kingdom and Ireland. Our business was incorporated in England and Wales on 22 August 1989 with registration number 02415578. We are responsible for the sale and distribution of home appliances (including but not limited to fridges, fridge-freezers, range-cookers, cookers, washing machines and dishwashers) to major retailers and distributors in the United Kingdom and Ireland. These currently include our Beko, Grundig, Leisure, Blomberg and Flavel brands. We have expanded our product repair service offered through our in-house and external Authorised Service Agents for all our major domestic appliances. In addition, we have launched our Small Domestic Appliances range mainly in our Beko and Grundig brands.
Our supply chains
Our supply chain relates to the logistics of the import, sale and distribution of our products including our warehouses and our employees.
Our policies on slavery and human trafficking
We continue to be committed to ensuring that there is no modern slavery or human trafficking in our supply chains or in any part of our business. Our Anti-Slavery Policy reflects our commitment to acting ethically and with integrity in all our business relationships and to implementing and enforcing effective systems and controls to ensure slavery and human trafficking is not taking place anywhere in our supply chains.
For more details about our requirements from our suppliers, including related policies, audit outcomes and targets, please see:
- https://www.arcelikglobal.com/en/company/supply-chain/supply-chain/
- https://www.arcelikglobal.com/en/company/supply-chain/business-ethics-audits-reporting/
- https://www.arcelikglobal.com/en/company/supply-chain/our-sustainability-roadmap-with-our-suppliers/
- Sustainability Report, pages 44, 45 and 46 - https://www.arcelikglobal.com/media/5547/arcelik_online_eng_1606.pdf
Due diligence processes for slavery and human trafficking
As part of our initiative to identify and mitigate risk, our Parent Company has in place systems to:
- Identify and assess potential risk areas in our supply chains.
- Mitigate the risk of slavery and human trafficking occurring in our supply chains.
- Monitor potential risk areas in our supply chains.
- Protect whistle blowers.
- Maintain an anti-bribery policy.
Supplier adherence to our values and ethics
We have a zero tolerance to slavery and human trafficking. To ensure all those in our supply chain and contractors comply with our values, we have in place a rigorous supply chain compliance programme jointly with our Parent Company. This includes a detailed audit questionnaire which we will continue to provide to new suppliers who will be providing lengthy services and for on-going audit purposes as appropriate.
Our Parent Company revised its code and published Global Code of Conduct and related Code Policies in 2019 in order to respond to new needs as the Company grows globally. The Company has a dedicated Global Ethics Committee which is responsible for the functioning and smooth implementation of the Global Code of Conduct and related Policies.
Global Ethics Committee is a council consisting of CEO (Chair), CFO, Chief Legal and Compliance Officer, Human Resources Director, and relevant Assistant General Manager(s).
Further details about our Global Compliance Program including Global Responsible Purchasing Policy are available from: Global Code of Conduct
At subsidiary level, our Company Secretary jointly with our Director of Human Resources have been charged with the responsibility of ensuring our adherence to the Modern Slavery Act 2015 (the “Act”).
Training
To ensure a high level of understanding of the risks of modern slavery and human trafficking in our supply chains and our business, our Parent Company equips its employees with skills and knowledge to enhance their awareness level. As of 2019, we created the Supplier Training Platform in order to inform our suppliers about the sustainability efforts in the world and to share the requirements of Arçelik, national and international regulations in more detail on sustainability issues. Business Ethics and Working Conditions Training were given in 2019 with the participation of our suppliers and all purchasing personnel. It is emphasized in this training that our suppliers have to comply with the rules of the Modern Slavery Act.
Please see Supplier Trainings on page 45 of 2019 Arçelik Sustainability Report: https://www.arcelikglobal.com/media/5547/arcelik_online_eng_1606.pdf
Our effectiveness in combating slavery and human trafficking
Our Parent Company has appointed an independent third party, TUV Rheinland, to conduct an externally facilitated review to bring insights on ways to tackle slavery and human trafficking.
Between 2015-2020, our 130 suppliers from high and medium risk countries were audited for code of conduct and occupational safety through the agency of an independent institution. Approximately 30 supplier audits are planned for this financial 2020.
Future steps
Following a review of the effectiveness of the steps we have taken jointly with our Parent Company during the year to ensure that there is no slavery or human trafficking in our supply chains we will endeavour to tackle Modern Slavery issues as a continuous process.
In addition, we will continue to monitor our adherence to the Act by reviewing our policy annually.
This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes our Group's slavery and human trafficking statement for the financial year ending 31st December 2019.
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Teresa Arbuckle
Managing Director - Beko plc
2020