Arcelik has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental, health and safety (EHS) and social requirements of Turkey and Russia as well as the IFC environment and social policies and the environmental, health and safety guidelines.
- Commitment to quality and to performance
Arcelik has for many years had a very strong commitment to quality that is embodied in the company’s Total Quality Management (TQM) model and Total Productive Maintenance (TPM) program. The structured approach and deployment of the TQM business excellence model has brought Arcelik international recognition including the award of the European Quality Prize in 2000. The TPM program is very detailed, has been effectively used by Arcelik since the mid-1990s, and is certified by the Japanese Institute of Productive Maintenance (JIPM). TPM continues to be implemented in all Arcelik’s manufacturing plants. In addition, all Arcelik plants have: (1) ISO 9001 (Quality) certification with this certification provided by the Turkish Standards Institute; and (2) successful implemented the 6 Sigma quality program.
Arcelik is a member of the European Committee of Domestic Equipment Manufacturers (CECED) and is committed to producing energy efficient appliances that fully comply with EU norms. In February 2004, Arcelik won an award in the ‘Energy Plus’ Competition organized by the EU Energy Commission with it’s new ‘the world’s least energy consumption refrigerator model’. Product manufacture and development also benefits from Arcelik’s product Life Cycle Assessments (LCA) activities.
Arcelik has a detailed Environmental Policy that states that the company is committed to be environmentally conscious in product development, packaging, and manufacturing operations. The Policy is explicit about minimizing the environmental impact of their operations, meeting all regulatory EHS requirements, recycling and reusing materials, energy and eco-efficiency, adopting safe work practices, training of employees and suppliers and monitoring performance.
All seven of Arcelik’s manufacturing plants in Turkey have achieved a single ISO 14001 (Environmental Management) certification, with Societe Generale de Surveillance (SGS), the world’s leading inspection, verification, testing and certification company, providing this certification. As a result of earlier investments, IFC receives copies of the SGS audits carried out annually at each of the 7 plants as part of the requirements to maintain this ISO certification – the most recent of these independent audit reports (early in CY2004) indicate Arcelik’s excellent EHS performance. Arcelik actively work with their suppliers to improve their quality, efficiency and EHS performance. Suppliers are encouraged to obtain both ISO 9001 (Quality) and ISO 14001 (Environmental Management) certifications and achieving these certifications is part of Arcelik’s supplier selection criteria.
- New Russian plant
With regard to the proposed new manufacturing plant in Russia, a site for the plant has not yet been finally selected but a site in an industrial zone near to Moscow is probable. Once the site is selected Arcelik has agreed to provide IFC with a mini-Environmental Impact Assessment (EIA) prepared with a third party organization. This organization will be invited by Arcelik amongst the firms who are familiar with Arcelik operations and processes. The final outcome of the assessment must be acceptable to IFC. The final decision on the scope and extent of the mini-EIA will have to wait until Arcelik makes a decision on the plant site. The scope and content of the mini-EIA will then be agreed between Arcelik and IFC. Arcelik has committed that the new plant will adopt all the quality and EHS performance standards of their Turkish operations as well as fully complying with all the Government of Russia’s requirements. Arcelik will commence periodic annual reporting on EHS performance after full production starts, following the excellent example of their Turkish and Romanian operations.
- Social and community issues
Arcelik is very active in the community with the commitment to ‘conscientiously strive to raise social standards’ (see Arcelik’s CY2003 Annual Report) and actively supports the youth of Turkey and their education through the ‘Standing United for Education Project of Areclik’. In 2004 this project, which supports educational and self-development, helped 290 schools and approximately 200,000 students in 60 Turkish cities. In addition, the Koc Group is extremely active in a wide variety of community and social programs through the Vehbi Koc Foundation which was established in 1969. The Foundation focuses on education, health care, culture, sport, and the environment and strives to improve the daily lives of people living in Turkey. In addition to offering about 2,000 scholarships per year, establishing Koc University and the American Hospital, supporting many cultural and sports institutions, the Foundation also provides support to many other non-government organization (NGOs) such as the Turkish Education Foundation, the Family Health and Planning Foundation of Turkey and TEMA, the Turkish Foundation to Control Soil Erosion and the Conservation of Natural Assets.