1. Purpose
With this policy we, as Migros, present all of the rules that we expect our suppliers to comply with in light of our responsible sourcing principles, as well as our policy for conducting supplier audits. .

Migros publishes its Responsible Sourcing Policy on the website, as well as all online and mobile platforms that it uses for communicating with suppliers

2. The Principles that Suppliers are expected to Comply with
Migros procures services from companies that have been established according to laws and operate with respect for laws and makes payments to all companies, including agencies, that they are involved in representation/proxy and business partnership relations with in compliance with laws.
  • As Migros we expect the suppliers that we work with;
    • To be respectful to human rights principles,
    • To comply with national and international ethical rules,
    • To comply with work health and safety rules,
    • To protect the environment and natural resources,
    • To act according to all national and international regulations in all processes they provide like products and services, commercial, logistic, production and financial work and human resources.
  • We, as Migros, expect all our suppliers to not only comply with mandatory requirements but also to work on constantly improving themselves over time in the scope of the “Migros Quality Protocol” and we provide all the information support that suppliers may need.

2.1 Compliance with the Human Rights Principles
As Migros we are a member of the Consumer Goods Forum – CGF Board of Directors. The CGF board of directors accepts responsible forms of working that comply with and encourage human rights and reasonable working conditions in parallel with the United Nations Guideline Principles on Professional Life and Human Rights and the ILO Declaration and Basic Principles and Rights in Professional Life. Within the scope of Social Sustainability work the board has focused on its members complying with supply chain labor standards and developing solutions to the issue of members preventing forced labor and abuse in their supply chains. As Migros we not only comply with the international principles of Human Rights as a CGF member but we take on responsibility and demand that our suppliers comply with these standards as well.

2.1.1 The Freedom to Organize and the Right to Collective Labor Contracts
Our suppliers must respect the rights of their employees to join or not join unions and their freedom to organize and must act in accordance with all local and national laws regarding collective labor contracts.

2.1.2 Prevention of Forced Labor and Abuse
Our suppliers must prohibit any kind of forced labor and abuse including labor under imprisonment, labor under military, slavery or human trafficking and must act in compliance with national and international laws concerning forced labor and abuse.

2.1.3 Child Labor
Our suppliers must act in compliance with national and international laws and regulations concerning the prohibition of child labor.

2.1.4 Combating Discrimination
Our suppliers must prevent discrimination and verbal and physical harassment in the work place. Discrimination must be prevented in all employment activities. Processes that are based on talent, performance and experience should be implemented. Our suppliers must act in compliance with national and international laws and regulations concerning discrimination and harassment.

2.1.5 Work Hours & Salaries
Our suppliers must act in complete compliance with laws and regulations concerning salaries, overtime and other benefits.

2.2 Compliance with Codes of Conduct (Combating Bribery and Corruption)
Our suppliers must not act in any way that could compromise the mutual trust in their business relations against employees, stakeholders, business partners, suppliers, customers, rivals, the environment and the community.

Our suppliers are obligated to keep the information they have learned about Migros during their business relations with us as confidential. They may not share this information without the permission of Migros Ticaret A.Ş. with any private individual or legal entity.

Any connection between our suppliers and corruption, money laundering or bribery incident is unacceptable. Our suppliers must not offer gifts, monetary benefits or invitations to civil servants or other representatives of public agencies that would influence their objectivity or violate existing laws.

They may not offer any gifts, benefit or aid to Migros Ticaret A.Ş. employees or other suppliers they work with that would influence their objectivity and possibly be considered a bribe. Therefore, the offer to employees of any special organization, holiday or arrangement other than business meals cannot be accepted. Other than the chocolates and daybooks that are presented at holidays and New Year the presentation of large gifts is prohibited.

2.3 Compliance with Occupational Health and Safety Rules
Our suppliers must provide their employees with a safe and healthy working environment. They must act in compliance with all national and international laws, regulations and rules concerning health and safety.

2.4 Protection of the Environment and Natural Resources
For the purpose of yielding a healthier and more livable environment to future generations, we expect all of our suppliers to keep their environmental impact under control and place importance on production and efficient use of resources.

2.5 Constant Improvement Principle
In line with the “Migros sustainability strategies,” in addition to monitoring the “Good Quality and Safe Product” production of our suppliers, we follow their performance concerning employee rights, work health and safety, work conduct, environmental impact and safe production. In this context, we are audited by audit companies that are certified as per ISO 17020 regarding the requirements of product risk analysis covered by the Migros Protocol. Audits comprise both those that are announced with prior notice and those where no prior notice is given. We expect our suppliers to constantly improve their audit performance and we provide assistance and guidance to our suppliers to contribute to their constant improvement.

During the procurement of local, national and international products we provide support for constantly developing our suppliers though guidance on product quality and compliance with legal regulations.

Migros supports its suppliers to develop products that are produced according to sustainability principles. In this regard, we determine suppliers with national and international certificates and encourage those of our suppliers who are not certified to start the process.

Production in accordance with sustainability principles is supported and importance is placed on products that have certifications for palm oil, cocoa, soy, coffee, paper and wood products.

3. Supplier Selection Processes
Before deciding to work with our business partners, we conduct a thorough review and investigation of financial, legal and ethical risks and opportunities associated with companies. We investigate the commercial history of related companies through official registrations and bribery, corruption and ethics through digital platforms. In addition to these studies, supplier candidates are pre-audited through quality control criteria and question lists used in the existing supplier audits and the decision to work with them is taken according to the results of these audits. Candidate suppliers undergo both product safety audits and ethical/social audits. We do not work with the candidate supplier who fail these audits

We don't cooperate with the supplier companies when we ascertain their noncomplaince with national laws, regulations and international norms within the scope of bribery, corruption and ethics, and with our company's Anti-Bribery and Anti-Corruption Policy and Code of Ethics. We also add these companies to our Black List.

4. Supplier Audits and Product Inspections
As Migros, we follow a special audit program for our suppliers and inspect the production facilities of our suppliers in line with a Migros protocol that has been prepared especially with independent externaloutside companies.

Suppliers’ product safety practices are audited under the ‘BRC Global Market’ audit control list recognized by GFSI (Global Food Safety Initiative). Operational activities of suppliers are monitored and their impacts on humans and the environment and sensitivity to ethical and social issues are audited in the context of SEDEX criteria which includes environmental management, occupational health and safety, ethical and social compliance requirements. According to their success in the audits, suppliers approved by Migros were evaluated in three categories as “Gold”, “Silver” and “Bronze” and also they had the opportunity to announce their successes on the GC Portal.

Our supplier companies that do not achieve a sufficient number of points as a result of the audits are issued a warning and requested to correct the issues that are deemed insufficient. Suppliers that fail to achieve an improvement in 3 consecutive audits are no longer purchased from and the commercial relationship is terminated.

We use global standards as our guide for product safety and aim to provide products in healthy conditions to maintain the unconditional trust of our customers. In this context, not only do we inspect production facilities, but we also inspect all of the stages of procurement until the product reaches the consumer through using both the laboratories we have established within the Distribution Centers and contracted Accredited Outside Laboratories. As a result of these inspections, products that conform to legal regulations and the Migros standards are presented for sale. All of our stores are inspected without notice by our own staff and Independent Outside Companies to maintain the continuity of the Quality Management System

Migros Ticaret A.Ş. last amendment date: 18.06.2020