Supply Chain Management
Garanti Bank’s supply chain is extensive, with a large number of suppliers providing goods and services to support the Bank's operations.
Garanti Bank meets the daily needs of its branch network by means of procurement from local suppliers. However, the Bank buys in bulk purchases, the products and services with price advantage from a single supplier. The Purchasing Department located at the Bank’s Istanbul head-quarters ensures that nearly all (95%) of the cleaning services and cleaning chemicals are purchased locally.
In 2012, Garanti Bank started to include a requirement for compliance to Garanti Bank's EMS in supplier contracts. New catering and cleaning services contracts thus started to become compliant by 2012. In 2015, suppliers operating in sectors with a relatively higher footprint and constituting a substantial component (44%) of the Bank’s total procurement were requested to provide information on how they manage their environmental impact.
After reviewing their suppliers’ respective management strategies, the Bank communicated its criteria for suppliers’ environmental performance and compliance methods through a variety of platforms such as one-to-one meetings and teleconferences. As a result of this process, supplier contracts representing 6.4% of total procurement were revised to include specific provisions regarding compliance with Garanti Bank’s EMS by the end of 2014.
In 2015, in order to expand the scope, Garanti Bank continued to work comprehensively on its supply chain’s environmental management and included legal Environmental regulations and ISO 14001 EMS compliance rules to all its contracts made with its suppliers.
While supplier contracts contain provisions pertaining to environmental issues, they currently do not have any clauses pertaining to auditing for and reporting human rights’ violations. They do, however, make reference to laws and regulations (including the Labor Law) pertaining to the protection of workers’ rights. Such provisions give Garanti Bank the right to terminate any contract which is deemed to be in violation of worker protection regulations. During the reporting period, Garanti Bank was not aware of any supplier with which it was working that was under investigation for any issue related to human rights.
In addition, each year, Garanti Bank’s internal auditors inspect a selection of the Bank’s suppliers on a sample basis in order to assess their compliance with its EMS. In case that a supplier is found to be non-compliant, they are given a grace period to improve their performance and the assistance provided by the Bank when necessary.
Garanti Bank gives trainings to its suppliers regarding its Code of Conduct, and regularly monitors its suppliers’ compliance with operational health and safety standards.
‘Garanti’s Code of Conduct for Suppliers’ has been published with the purpose of regulating supplier behavior and the professional relations of suppliers in parallel to the Bank's commitment to corporate governance principles and ethical values concerning. You may find Code of Conduct for Suppliers by following the link. Garanti shared its Code of Conduct for Suppliers with suppliers with a message stating that their full commitment and compliance is expected.