Social Re-Audit Report

Social Re-Audit Report January 2009 BSCI 8-01/09 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 authority. Copyright 2004 by FTA Foreign Trade Association, Brussels gsm Global Sustainable Management GmbH, Cologne Migros-Genossenschafts-Bund, Zürich Systain Consulting GmbH, Hamburg

Social Re-Audit Report 19/04/2012 25327 Page 2 of 14 Social Re-Audit Report Factory Name: Factory Address: NAMIK KEMAL MAH. DEGIRMEN SOK. NO:53, UMRANIYE/ ISTANBUL/ TURKEY Management Representative: CANAN AKGUNDUZ - COMPANY SHAREHOLDER Audit Results for BSCI Social Requirements Part B: Audit Results for Best Practice for Industry Part C: Good 1 Improvement Needed Non-compliant Good Improvement Needed Audit initiated by: BSCI Member : Supplier: Auditing Company Name: Audit report number: INTERTEK AU112484 DBID number: 25327 Lead Auditor s name and SAAS certificate CANER ESIYOK - 4236 number: Auditing Company Address: Merkez Mah. Sanayi Cad. No:23 Altındag Plaza Yenibosna 34197 Istanbul-Turkey Audit Date: 19/04/2012 Date of the new BSCI to be started: (3 years from the initial audit) Number of Initial audits performed at this facility (Cycle number 1, 2, 3..): Agreed date for closing the CAP (if applicable): 21/06/2014 3 NA Date, Signature & Stamp: 19/04/2012 CANER ESIYOK 1 Due to the sampling nature of the auditing exercise, absence of findings during an assessment does not assure the full compliance of the facility nor does it guarantee that violations may not appear in the future. BSCI and the auditing company do not accept responsibility for conditions at other locations that may be used in the supply chain of the relevant product or service since this report covers the production site listed under audited company only. Copyright 2004 The English version is the legally binding one. BSCI 8-01/09

Social Re-Audit Report 19/04/2012 25327 Page 3 of 14 Lead-Auditor CANER ESIYOK Additional Auditor Audit Date 19/04/2012 Number of man days applied 1 MANDAY First Re-audit Second Re-Audit A. Master Data For full details on the business structure of the company, see complete Master Data in the Audit Questionnaire. Location of audited Company Basic Data Name of Company TEKS PRO PROMOSYON TEKSTIL URUNLERI SAN. VE TIC. LTD. STI. Year of foundation 08.07.2010 http://www. tekspro.com.tr Legal status PRIVATE OWNERSHIP Street NAMIK KEMAL MAH. DEGIRMEN SOK. NO:53, UMRANIYE Language(s) spoken in company City ISTANBUL Total production capacity per month Zip Code 34230 Contact Person TURKISH 100.000 pcs Country TURKEY Name CANAN AKGUNDUZ Phone 00 90 216 505 74 34 Position / Language COMPANY SHAREHOLDER/ TURKISH Fax 00 90 216 505 74 39 Phone 00 90 216 505 74 34 DBID Number 25327 E-mail canan.akgunduz@tekspro.com.tr Business Activities Clothing: Construction Material: Electronic Groups: Eyewear (Glasses): Furniture: Leather Goods (except shoes): Machinery: Other hard goods: Shoes: Textiles: Toys: Textiles raw material or accessories Copyright 2004 The English version is the legally binding one. BSCI 8-01/09

Social Re-Audit Report 19/04/2012 25327 Page 4 of 14 Copyright 2004 The English version is the legally binding one. BSCI 8-01/09

Social Re-Audit Report 19/04/2012 25327 Page 5 of 14 B. BSCI Mandatory Social Requirements Date of Initial Audit: 21.06.2011 Date of First Re- Audit: 01.11.2011 Date of Second Re- Audit: 19.04.2012 B.1 Management Practice B.2 Documentation B.3 Working Time B.4 Compensation B.5 Child Labour / Young Employees B.6 Forced Labour / Prisoner Labour / Disciplinary Measures B.7 Freedom of Association / Collective Bargaining B.8 Discrimination B.9 Working Conditions B.10 Health and Social Facilities B.11 Occupational Health and Safety B.12 Dormitories B.13 Environment Initial Results First Re-audit Result Second Re-audit Results 2 1 0 NA 2 1 0 NA NR 2 1 0 NA NR Total Result for the current audit: Good Improvements Needed Non-compliant Remarks was established on 08.07.2010 and started production on 01.01.2011. It is a promotional textile work clothes manufacturer. The facility has only cutting and sample sewing processes itself and uses subcontractors for sewing and quality control- ironing-packaging operations. Total closed area occupied by the facility is 1.200 square meters in a 4 floor building. The facility operates on 3 floors of the 4 floor building and rented its basement floor to 2 companies (Mert Tas Dizayn- embroidery facility and Karaci Tekstil Muhammet Ali Karaci- sewing facility). Since these facilities has different owners, rental contacts of the basement floor of building, their own registration and legal status; these were not included in audit scope. Facility also uses these facilities for its embroidery and sewing processes when needed. A total of 18 employees are currently working in the facility, which includes 9 (2 male and 7 Please fill in under results 2 = Good 1 = Improvements Needed 0 = Non-compliant NA = Not Applicable No deviation from requirements or only minor deviations and full protection of employees is given Deviations in the minority of requirements and no crucial points Deviations in 50% or in the majority of requirements or/and in crucial points (double framed) Requirements do not match to the company structure Copyright 2004 The English version is the legally binding one. BSCI 8-01/09

BSCI Social Re-Audit 19/04/2012 25327 Page 6 of 14 Report female) administration staff and 9 (7 male and 2 female) blue collar employees. Payment is done 5th of each following month via bank account. Employees use finger print time recording system since June 2011. Working hours in the factory are from 08:30 to 18:30 including 1 hour lunch break and 2 times 15 minutes tea breaks, 5 days a week which is 42,5 hours a week (less than legal requirement- 45 hrs/ week). The facility exports 80% of its production to European countries. Please fill in under results 2 = Good 1 = Improvements Needed 0 = Non-compliant NA = Not Applicable No deviation from requirements or only minor deviations and full protection of employees is given Deviations in the minority of requirements and no crucial points Deviations in 50% or in the majority of requirements or/and in crucial points (double framed) Requirements do not match to the company structure Copyright 2004 The English version is the legally binding one. BSCI 8-01/09

Social Re-Audit Report 19/04/2012 25327 Page 7 of 14 Previous Corrective Action Plan (CAP) Part B BSCI Social Requirements Findings and Requested Improvements Implementation Date Fullfilled? Management Practice Documentation None None Working Time Compensation Child Labour / Young Employees None B.4.12- The facility has two sets of payroll. Only part of the normal salary is paid through the official payroll submitted to the government. The rest of the normal wage and all of the overtime wage is paid by cash through unofficial payroll. It is recommended that all normal and overtime wages should be paid through official payroll submitted to the government 01.01.2012 YES Forced Labour / Prisoner Labour / Disciplinary Measures Freedom of Association and Collective Bargaining Discrimination Working Conditions Health and Social Facilities Occupational Health and Safety Dormitories NA Environment Environment Copyright 2004 The English version is the legally binding one. BSCI 8-01/09

Social Re-Audit Report 19/04/2012 25327 Page 8 of 14 Current Re-Audit Corrective Action Plan (CAP) Part B BSCI Social Requirements Findings and Necessary Improvements Implementation Date Management Practice Documentation Working Time Compensation Child Labour / Young Employees Forced Labour / Prisoner Labour / Disciplinary Measures Freedom of Association and Collective Bargaining Discrimination Working Conditions Health and Social Facilities Occupational Health and Safety Dormitories NA Environment 19.04.2012 19.04.2012 CANER ESIYOK CANAN AKGUNDUZ Date / signature / stamp Auditor Signature / stamp Company Copyright 2004 The English version is the legally binding one. BSCI 8-01/09

Social Re-Audit Report 19/04/2012 25327 Page 9 of 14 Copyright 2004 The English version is the legally binding one. BSCI 8-01/09

Social Re-Audit Report 19/04/2012 25327 Page 10 of 14 C. Best Practice for Industry - Voluntary implementation but auditing is mandatory Date of Initial Audit: 21.06.2011 Date of First Re- Audit: 01.11.2011(however Cap C was not re-audited since facility did not show interest to take the corrective actions for CAP C and also there was non compliance points in CAP B) Date of Second Re- Audit: 19.04.2012 (however Cap C was not re-audited since facility did not show interest to take corrective action for Cap C) Initial Results First Re-audit Results Second Re-audit Results 2 1 NA 2 1 NA NR 2 1 NA NR C.1 Policy C.2 Planning and Implementation C.3 Management Review C.4 Control of Subcontractor / Suppliers / Sub-suppliers C.5 Control of Homeworkers C.6 Compensation C.7 Child Labour C.8 Evasion C.9 Outside Communication Ripe for SA8000 Certification with regard to audit results B and C YES NO Training and assistance necessary but SA8000 certifiable YES NO Please fill in under results 2 = Good 1 = Improvements Needed NA = Not Applicable No deviation from requirements Deviation from requirements Requirements do not match to the company structure Copyright 2004 The English version is the legally binding one. BSCI 8-01/09

Social Re-Audit Report 19/04/2012 25327 Page 11 of 14 Previous Corrective Action Plan (CAP) Part C Best Practice for Industry - Voluntary implementation but auditing is mandatory Findings and Requested Improvements Agreed Yes No Implemen- Tation date Fulfilled? Policy Not Re-Audited Planning and Implementation Not Re-Audited Management Review Not Re-Audited Control of Subcontractor / Suppliers / Subsuppliers Not Re-Audited Control of Homeworkers N/A Compensation Not Re-Audited Child Labour Not Re-Audited Evasion Not Re-Audited Outside Communication Not Re-Audited Copyright 2004 The English version is the legally binding one. BSCI 8-01/09

Social Re-Audit Report 19/04/2012 25327 Page 12 of 14 Current Re-Audit Corrective Action Plan (CAP) Part C Best Practice for Industry Findings and Necessary Improvements Agreed Yes No Implementation date Policy Not re-audited Planning and Implementation Not re-audited Management Review Not re-audited Control of Subcontractors / Suppliers / Sub-suppliers Not re-audited Control of Homeworkers NA Compensation Not re-audited Child Labour Not re-audited Evasion Not Re-Audited Outside Communication Not re-audited Cap C was not re-audited since facility did not show interest to take the corrective actions for CAP C. Date / signature / stamp Auditor Signature / stamp Company Copyright 2004 The English version is the legally binding one. BSCI 8-01/09

Social Re-Audit Report 19/04/2012 25327 Page 13 of 14 Remarks Cap C was not re-audited since facility did not show interest to take the corrective actions for CAP C. List of Re-Audit Attachments Obligatory Attachments Attached? 1. Employees Interview Sheet YES 2 Photos: outside factory compound, production floor, canteen, dormitories, display of the code of conduct, nursery, etc. 3 Child Labour Record Sheet N/A (no child labor noted) YES Required copies to be available as part of the audit pack, if no legal prohibition for collecting the record, according to local law. Available with the audit files? 4 Collective Bargaining Agreement N/A 5 Personnel File sample (DUE TO PRIVACY) 6 Time Record sample YES 7 Payslip sample (DUE TO PRIVACY) 8 Payment to Social Insurance Fund YES 9 Wage List sample (DUE TO PRIVACY) 10 Maternity Leave sample (DUE TO PRIVACY) 11 Work Rules YES 12 Documentation on Health and Safety Training YES 13 Documentation on Social Issues made by officials or other social audit N/A 14 Agreement with a union or other worker representative N/A 15 Authorization for exemptions from statutory regulations N/A 16 Copyright 2004 The English version is the legally binding one. BSCI 8-01/09

Social Re-Audit Report 17 19/04/2012 25327 Page 14 of 14 18 19 20 21 22 23 24 25 Copyright 2004 The English version is the legally binding one. BSCI 8-01/09

Audit Questionnaire 19/04/2012 25327 Page 31 of 38 Employees Interview Sheet Number Employees interviewed in total 6 Female employees interviewed Number 3 Employees aged < 18 years interviewed 0 Seasonal workers interviewed 0 Pregnant employees interviewed 0 Migrant workers interviewed 0 Apprentices interviewed 0 Interviews conducted on site 6 Disabled persons interviewed 0 Interviews conducted off site 0 Full time workers interviewed 6 Individual interviews conducted 6 Part time workers interviewed 0 Group interviews conducted 0 Language(s) used for employee interviews TURKISH Yes No Was an interpreter used? No. of interview Essentials (If the number of rows is not enough, please add pages as needed and include with the attachments). 6 6 employees were interviewed, selected at different sections. Weekly regular working hours for production employees is 42,5 hours. They freely go to the toilets and drink water. They are paid on time without any delay. There are happy with the good approach of management. No kind of forced labor, harrassment and abuse or discrimination in the facility. Meal and transportation are paid free of charge to all employees Copyright 2004 The English version is the legally binding one. BSCI 6-01/09

Audit Questionnaire 19/04/2012 25327 Page 32 of 38 Declaration of consent Company Auditor Name of Company Street TEKS PRO PROMOSYON TEKSTIL URUNLERI SAN. VE TIC. LTD. STI. NAMIK KEMAL MAH. DEGIRMEN SOK. NO:53, UMRANIYE Name of Audit Company Street INTERTEK TURKEY MERKEZ MAH. SAN. CAD. NO.23 ALTINDAG PLAZA YENIBOSNA City, Zip Code ISTANBUL, 34762 City, Zip Code ISTANBUL, 34197 Country TURKEY Country TURKEY Name of representative MRS. CANAN AKGUNDUZ- COMPANY SHAREHOLDER Name of Auditor MR. CANER ESIYOK 1. The company agrees that the auditor may take photos of the factory and factory compound as well as take copies of business documents. 2. The company agrees that the auditor may conduct confidential interviews with employees which are chosen freely without any influence by the company. 3. The company agrees that all audit information can be recorded in a database. 4. The company agrees that the auditor may pass the Audit Questionnaire, Social Audit Report, Social Re-Audit Report and annexes directly to the company s retail customer or company s retail customer s local office / agency being a member of the Business Social Compliance Initiative. 5. The company agrees that data can be passed to third parties, but only within the framework of the Business Social Compliance Initiative. This refers to the following situations: a) Dialogue and cooperation with NGOs and other stakeholders at BSCI meetings for sustainability of BSCI b) Cooperation with these stakeholders and the BSCI Secretariat to find solutions in connection with the BSCI Complaint Mechanism. Data passed to these parties is treated confidentially by them. Auditing company and the BSCI Secretariat are not liable in case of misuse by other parties. 6. The Company agrees that the audit can be subject to a surveillance measure. This surveillance serves to ensure audit quality in the BSCI system. Surveillance audits focus on the auditing company performing the assessment and have no incidence in the performance or results of the social audit conducted at the company. The company agrees that in this case, access to the entity selected to survey the auditors will be allowed. Date and signature company: Copyright 2004 The English version is the legally binding one. BSCI 6-01/09

Audit Questionnaire 19/04/2012 25327 Page 33 of 38 Production Unit Record Sheet Production Unit No. 1 Name Street KARACI TEKSTIL- MUHAMMET ALI KARACI NAMIK KEMAL MAH. DEGIRMEN SOK. NO:53, KAT:-1, UMRANIYE City, Zip Code, Country ISTANBUL, 34762 Phone/ Fax Not Provided E-mail Not Provided Contact Person MR. ALI KARACI Active for the supplier since (date) 6 MONTHS Own unit (share of Subcontractor (share of x (25% sewing process for knitted products) Supplier / Sub-Supplier (mark with a cross) Social audited Yes No If yes Audit Company Audit Number Date of Audit Result Associated with BSCI? Production Unit No. 2 Name Street City, Zip Code, Country EMİRHAN TEKSTIL CUMHURITEY CAD. PAPATYA SOKAK. NO:2, CEKMEKOY ISTANBUL Phone/ Fax 0090 537 427 05 65 E-mail Not Provided Contact Person MR. METIN ABACI Active for the supplier since (date) 6 MONTHS Own unit (share of Subcontractor (share of X (100% sewing process for woven products) Supplier / Sub-Supplier (mark with a cross) Social audited Yes No If yes Audit Company Audit Number Date of Audit Result Associated with BSCI? Copyright 2004 The English version is the legally binding one. BSCI 6-01/09

Audit Questionnaire 19/04/2012 25327 Page 34 of 38 Production Unit No. 3 Name Street City, Zip Code, Country DOGAN GIYIM- OMER TAHMAZ GULLUBAGLAR MAH. ANKARA CAD. NO:240, KAT:4, PENDIK ISTANBUL Phone/ Fax 0090 216 307 26 27 E-mail Not Provided Contact Person MR. DOGAN TAHMAZ Active for the supplier since (date) 6 MONTHS Own unit (share of Subcontractor (share of X (50% sewing process for knitted products+ 100% packaging) Supplier / Sub-Supplier (mark with a cross) Social audited Yes No If yes Audit Company Audit Number Date of Audit Result Associated with BSCI? Production Unit No. 4 Name Street City, Zip Code, Country MELISA TEKSTIL - COSKUN KARAMAN ALTINSEHIR MAH., AKASYA SOK., NO:4/3 ISTANBUL, NOT PROVIDED, TURKEY Phone/ Fax 0090 216 415 19 49 E-mail NOT PROVIDED Contact Person COSKUN KARAMAN Active for the supplier since (date) 2012 Own unit (share of Subcontractor (share of (25% sewing process for knitted products) Supplier / Sub-Supplier (mark with a cross) Social audited Yes No If yes Audit Company Audit Number Date of Audit Result Associated with BSCI? Copyright 2004 The English version is the legally binding one. BSCI 6-01/09

Audit Questionnaire 19/04/2012 25327 Page 35 of 38 Production Unit No. 5 Name Street MERT TAS DIZAYN TEKSTIL NAMIK KEMAL MAH. DEGIRMEN SOK. NO:53, KAT:-1, UMRANIYE City, Zip Code, Country ISTANBUL, 34762 Phone/ Fax E-mail Contact Person Active for the supplier since (date) Own unit (share of Not Provided Not Provided MR. UGUR KURT 6 MONTHS (EMBROIDERY PROCESS) Subcontractor (share of Supplier / Sub-Supplier (mark with a cross) Social audited If yes Audit Company Audit Number Date of Audit Result Associated with BSCI? Yes No Production Unit No. 6 Name Street City, Zip Code, Country SEREF FERMUAR SAN. VE TIC. LTD. STI. MERCAN MAH. MERCAN CAD. CAFERIYE HAN. KAT:2, NO:27, MERCAN ISTANBUL Phone/ Fax 0090 212 452 80 06 E-mail Contact Person Active for the supplier since (date) Own unit (share of Not Provided MR. MEHMET 6 MONTHS (ACCESSORIES) Subcontractor (share of Supplier / Sub-Supplier (mark with a cross) Social audited If yes Audit Company Audit Number Date of Audit Result Associated with BSCI? Yes No Production Unit No. 7 Name HAS ORME SANAYI VE TICARET A.S. Copyright 2004 The English version is the legally binding one. BSCI 6-01/09

Audit Questionnaire Street 19/04/2012 25327 Page 36 of 38 OTAKCILAR YOLU, PASMAKCI CAYIRI CAD. NO:9/ 13, EYUP City, Zip Code, Country ISTANBUL Phone/ Fax 0090 212 567 88 34 E-mail Contact Person Active for the supplier since (date) Own unit (share of Not Provided MS. NURSEN MUTLUCA 6 MONTHS (KNITTED FABRIC) Subcontractor (share of Supplier / Sub-Supplier (mark with a cross) Social audited If yes Audit Company Audit Number Date of Audit Result Associated with BSCI? Yes No Production Unit No. 8 Name Street City, Zip Code, Country GEREDE TEKSTIL BOYA SAN. LTD. STI. ORGANIZE SAN. BOLGESI, GEREDE BOLU Phone/ Fax 0090 374 311 83 63 E-mail Contact Person Active for the supplier since (date) Own unit (share of Not Provided MR. YASAR 6 MONTHS (DYEING PROCESS) Subcontractor (share of Supplier / Sub-Supplier (mark with a cross) Social audited If yes Audit Company Audit Number Date of Audit Result Associated with BSCI? Yes No Name Street City, Zip Code, Country Production Unit No. 9 Copyright 2004 The English version is the legally binding one. BSCI 6-01/09

Audit Questionnaire 19/04/2012 25327 Page 37 of 38 Phone/ Fax E-mail Contact Person Active for the supplier since (date) Own unit (share of Subcontractor (share of Supplier / Sub-Supplier (mark with a cross) Social audited If yes Audit Company Audit Number Date of Audit Result Associated with BSCI? Yes No If additional production units, please add as an attachment. Date / signature / stamp Company 19.04.2012 Copyright 2004 The English version is the legally binding one. BSCI 6-01/09

Audit Questionnaire 19/04/2012 25327 Page 38 of 38 Child Labour Record Sheet Name Birthday Attending school Present during regular shoollessons Met in non hazardous areas Receives an education Since when in he company Working under ILO-Convention 138 exception Comments Month / Year Yes / No Yes / No Yes / No Yes / No Month / Year Yes / No 1. no child labor is noted in the audit 2. 3. 4. 5. 6. 7. 8. 9. 10. Remedial Actions (incl. time frame) : N/A / 19.04.2012 Date / signature / stamp Company Copyright 2004 The English version is the legally binding one. BSCI 6-01/09

Audit Name of Company Date DBID number Page 19/04/2012 25327 1 Photo report sheet General facility photos: Outside view Notice board Fire extinguisher Marked& lightened fire exit door Evacuation map Lunch hall

Modelling section Fire alarm system First aid box Cutting section PPE (steel glove) provided in cutting section Hand washing facility

Potable water Changing facilities Fabric storage area Finger print time recording system Finished goods area Suggestion box

Model sewing section Eye guard on overlock machine Accessories room BSCI code of conduct posted Time Record Social Insurance

Labor Contract First Aid Training