SUSTAINABILITY REPORT

Transcription

SUSTAINABILITY REPORT
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SUSTAINABILITY REPORT
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SUSTAINABILITY REPORT
Contents
About Us
About This Report
Messages of Executives
Business Structure
Company Overview
Milteks Products, Customers & Suppliers
Code of Conduct
1
2
4
5
10
14
Financial Performance
Financial Awards
Financial Responsibilitiies
Government Support, Local Purchasing
16
18
19
Value for Human Life
Business And Labor Practises
Employment Data
Demographic Profile of Employees
The Project on SHREC
Practice and Content
Feedback and Evaluation
22
23
24
28
29
30
Sustainibility Management
System
Lean
Electronic Product
32
33
34
Community
Communication Channels
Management Dialogue
Stakeholders Questionaries
Supply Chain
Our Material and Service Providers
Employee Dialogue
Audit Levels
Social Activity with Employees
Social Investments
Unicef
37
38
39
43
45
46
47
48
50
51
Environmental Responsibilities
Environmental Policy
Water Turbine
Sustainability Strategy
Sensitivity To Ecological Environment
Waste Management
Eco -Friendly Approach
Seed to Sapling
GRI Application Level Grid
GRI INDEX
52
53
56
59
63
64
66
67
68
About This Report
Milteks Textile is a textile company with three apparel
factories in Turkey and Georgia.
Our report relates to making the apparel’s subsidiaries
within the Milteks group. The reporting period is from
January 2010 to December 2011 and the previous
report was issued in April 2010.
Milteks’s second sustainability report contents are
developed in accordance with the GRI G3 Guidelines
and complied with the requirements of “C” Plus
Application Level.
This report’s intended audience includes a broad range
of our stakeholders. Stakeholders are individuals or
groups who have the ability to influence, may have
an interest in, or may be affected by a company’s
operations. Our main stakeholders include our
employees, customers, suppliers and contractors,
shareholders, non-governmental organizations, and
local communities.
We report on biannual basis which helps our
management to monitor the group’s performance in a
systematic manner, to analyze our current position, to
anticipate our goals and to set future targets.
The report includes social, environmental and
economic performance data for all facilities, business
units and subsidiaries that are under the operational
and financial control of the Milteks Group. All financial
figures are reported in Euro (€) unless otherwise noted.
Collection of data has been coordinated by Milteks
Marketing and Project development Manager and
the Deputy General Manager. This Report have been
conceptualized, designed by Marketing and Project
development manager with the technical support of
Deputy General Manager.
During the period, concerning to headquarter office
had moved to our new building in Istanbul and second
factory in Ajara/Georgia has been established for
Production. Apart from this, there were no significant
changes regarding size, structure, or ownership during
the reporting period.
What has not changed is also our commitment to
sustainability.
We are committed to an open transparent dialogue
with all our stakeholders to harness all ideas and
suggestions to improve our sustainability performance.
We also look forward to receiving your feedback on this
report at:
Sukran.bagcier@milteks.com.tr
1
Statement from
Chairman
Dear
ar Valued Stakeholder
The first GRI sustainability training programme
in textile sector led by Puma was held in 2009 by
Milteks. That two-day programme showed that
sustainability is not only limited to economical
sustainability, but also pointed to the necessity
of fulfilling our responsibilities for environment
and society by means of scientific data. We
realized the value of those intuative acts done
by religious, social or cultural orientation.
In order to provide a cleaner environment for
future generations, we have an environmental
approach in our investments other than
economic factors.
We have focused on new investment fields that
are emerging with the help of consciousness of
the society due to development of social and
environmental factors
Recycling of production wastes, tools and
equipment that saves electricity, fuel saving
and low-emission vehicles may be one of those new
investment projects. Developing strategies up to
becoming-conscious society’s needs, these investments
may turn into real “opportunities”.
Through our customers, we have began to realize that
in the future the awareness of consumers will increase
and the good price and quality will not be enough in the
future. Our customers are now interested in sustainable
raw materials, recycled polyester, organic cotton and
use of African cotton as a social responsibility project.
Brands began to give more importance to feelings and
demands of the society in order to be a sustainable
and reliable brand. We are aware of the fact that our
quality and prices will not be enough for a sustainable
production. Therefore, we take care to have more social
and environmentalist approach in our investments.
During the Project of our new facility, our priority was
avoiding environmental impacts. According to the
calculations 30% of energy saved.
These practices turn into new opportunities; lower
prices, bigger amounts, new customers. “Lean Training”
we started in 2009 is still continuing both in our central
building and factories, in order to improve productivity.
Providing qualified employees to the industry is one of
our principles. Milteks Management attach importance
to training of workers; 80% of our workers started their
careers in our companies. We see that management
staff have always worked as tutors and our factories in
Ordu, Fatsa and Georgia, Bobokvati-Batumi have served
2
like as industrial schools. For our employees, Career at
Milteks is a long journey with an ever-rising successful
team.
We are aware of the fact that a healthy and quality living
starts with education. As Milteks family, we support
primarily medical students giving scholarship through
the agency of Support for Modern Life Association.
Supported by family elders and sponsored by Milteks, in
2012 educational year we present our project “Abdullah
Bilgingulluoglu Anatolian Agricultural Vocational High
School” in Seymen Village, Istanbul-Silivri, to children
whom we entrust our future by the support of Ministry
of Education.
We supported the UNICEF “Vitalizing Presents” Project
in order to enable world children shape our world’s
future as healthy generations.
Our customers, manufacturers and suppliers contribute
a lot to these ever-growing values. We appreciate our
manufacturers and suppliers always supporting us
in competitiveness and sharing their experiences in
tough times.
Thank you for your contribution to our report with your
feedback and sharing your thoughts with us.
Best Regards,
Kemal Bilgingulluoglu
Chairman of the Board
Statement from
Member of Board
Dear Valued Stakeholder
Ever-growing and gradually developing, textile
has been a significant sector for Turkey’s economy
throughout the past 30 years. Even though Far East
manufacturers entered into market with cheap labor
and low costs and caused a recession in Turkey, this
situation could not prevent the development in
the sector. As other manufacturers, sports clothing
manufacturers also moved their production lines to
the neighboring countries where labor is cheaper, and
turned into products that can be produced in a shorter
time with a higher added value.
As Milteks Group, we aimed to reach a wide range
of production and started to found an appropriate
structuring for this strategy towards the end of 1999.
Our aim was to meet all orders of our customers; cheap,
expensive, long-medium-short term orders. During our
first 5 years, we dealt with installation of infrastructure.
After 2005 we accelerated investment research. We
opened a clothing factory in Fatsa, Ordu in 2007 and
Kobuleti, Georgia in 2008. In 2011, we opened the
second factory in Batumi, Georgia and we aim to open
our third factory in this region on the second quarter
of 2012.
Our investments on developing regions allowed us to
move up our financial success as well. We established
International Investor Association in order to support
foreign investors in this region. This associaton is
taking the role as a consultant
between the Georgian government
and the foreign investors in sorting
out the cases, therefore improving
their releations.. As a board member
of ICC (International Chamber of
Commerce in Georgia), we continue
our practices.
Sustainability is a significant issue
that we realized, price and quality
are no longer enough for consumers,
they look over the values you create
and your impacts on environment.
We know that, you can be successful
in business life as long as you give
support to society’s economic, social
and environmental problems and
find solutions to such problems.
We pay attention to cultures and
customs and legal regulations of countries we made
investments. Therefore, we are trying to have an ecofriendly and social approach while investing.
As a result of this awareness and research we made, we
bought the inactive micro-hydroelectric plant located
on the creek next to our Kobuleti factory in Georgia.
Turbine is renewed, inside and outside of the building is
restored. Micro-hydroelectric plant is opened by Adjara
Head of Government and the electricity produced is
connected to national power grid in September 2011.
By this way, we started producing our own electricity for
our textile production as a sustainable energy source.
In our new factory established in Georgia, we used
radiant heating with natural gas. Compared to radiator
heating system, we save 50% fuel and emit less CO2.
We appreciate the support of Head of Autonomous
Republic of Adjara, Georgia.
Best Regards,
Cemal Bilgingulluoglu
Member of the Board
General Manager / Ajara Textile
3
Business Structure
Milteks was founded by family members in 1984 as a small enterprise in
textile and readymade in 1984. While producing sportswear and team
jersey under its own brand CESEKA at the beginning, Milteks became
Turkey’s biggest poly tricot brush importer and poly tricot tracksuit
manufacturer in 1990’s. During this period, while making a breakthrough
in production, Milteks accelerated investments in textile. By the year
1992, Milteks started working with international sports brands such
as Lotto Sport, TFG Group UK, KL Rupert and Taylor Bowls and still
continues business relations with most of these brands. In 1997, Milteks
started working with Puma and improved its relations gradually. Milteks
Group is actively in other sectors but report have not been included.
Milteks Textile Industry and Trade CO. is a third generation family-
Companies mentioned as Milteks
Group in this report are:
MILTEKS Textile (Istanbul-Turkey)
CESEKA Textile (Ordu-Turkey)
AJARA Textile ( Adjara,Georgia)
run company located centrally in Beylikduzu, Istanbul.
Milteks Textile stopped the production and marketing its own brand in
the late 1990’s. As from those years, Milteks focused on production of
sportswear brands’ orders. After sample and development stages, the
entire production is based on pre-defined and planned customer orders.
Including orders, marketing, R&D, Developing fabric and accessories,
all stages of production is coordinated and directed by Milteks
departments in Milteks Textile central building. Milteks supplies all the
fabrics and accessories used in production from its partner suppliers.
According to the production organization, all operations prior to
sewing are finished in central building Beylikduzu, Istanbul, sewing and
following processes are completed in Ceseka Textile located in Fatsa,
Ordu and Ajara Textile located in Adjara, Georgia. For processing shortterm orders, standardized and customer-approved subcontractors are
available in Istanbul.
99%
Milteks Textile exports 99%
of its production.
Chairman and General Manager is at Milteks central building, Ajara
Textile and Ceseka Textile are directed by Deputy General Managers
dependent on General Manager.
Partnership Structure
Milteks Textile is a family-owned company formed by partnership of
specific proportions of 7 people. Partnership structure varies slightly
in each of the group companies because of management attitude.
Percentage of partnership is parallel, but differs in each company.
Share proportions are roughly saved in companies established by new
investments.
Chairman and General Managers of group companies are family
members. Infrastructure studies still continue in order to have a longlasting business structure.
4
Partnership Structure
Ratio
Abdullah Bilgingulluoglu
Kemal Bilgingulluoglu
Cemal Bilgingulluoglu
Aysel Bilgingulluoglu
Other partners
26,00
26,36
23,87
22,00
3,27
Milteks-CesekaAjara Workflow
Sewing
Final
Approval
Ironing
Merchandising
Planning
PrinƟng
Crea
CreaƟng
paƩern
Cuƫng
ng
Accessories
Fabric
Packaging
i kd
B eyl
üzü
ANB
- İ ST
UL
Fa
OR
tsa-
TURKEY
DU
Quality
Control
UM
BAT GEORGIA
800 KM
1300 KM
5
0
1
20
Milteks Textile
ISO 9001
ISO 9001
Quality assurance system. This
generic management system
standard assures the quality of
an organisation’s management
system. For Milteks this impacts
the continuous improvement of
product quality and increase of
customer orientation.
During the development processes
of
the
products,
different
alternatives are created and
customer’s ideas on the model are
turned into designs, the outcome
is discussed with technical team.
Thus, we produce designs that
correspond to customer demands
and suitable for production. Milteks
Team is directive for customer’s
designs with their great experience
on fabric, accessories and styles.
Throughout
the
production
processes, the problems are solved
in cooperation with customer’s
technical team, developing new
methods improving the quality
without affecting the design. New
developments and technologies on
fabric, accessories and production
materials and new production
methods are always searched, and
shared by our customers.
i s aw
ard e
Chairman of the Board
Ass. General Manager
Planning
Ass. General Manager
ProduĐƟon Manager
Merchandising Team
MarkeƟŶg and Project
Development
Financial
CollecƟon
Human Resources
Cuƫng
InformĂƟon and
PrinƟŶŐ
Import&Export
6
Repair&Service
Quality Management
Sewing
Laboratory
R&D
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MILTEKS TEXTILE
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APP AWARD WINNERS 2011
Supplier of
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EEMEA
MILTEKS
From forecast to order processing,
every
stage
is
directed
by
Planning
Department.
Production capacity is controlled
regularly and loading dates are
scheduled according to customer
demands and conformity of
production.
Following the order confirmation,
fabrics and accessories needed
are calculated and ordered
from suppliers. Fabrics and
accessories are tested according
to brand’s standards and cut
after the approval. Markers are
produced electronically and
cut by automatic cutters. Panel
sublimation printing and transfer
printing after cutting are carried
out by printing department.
Press calibration is done regularly
and latest version press is used.
Embroidery, pigment print and
allover printing are applied by
Milteks partner subcontractors
that are controlled and defined
according to S.A.F.E Standards.
Those semi-finished products
are classified and made ready to
be sewed before being shipped
to the sewing factories. After
shipment, samples are regularly
sent to Milteks to be controlled
in every stage of sewing and
approved by Quality Assurance
Department. Quality Assurance
Departments of factories are
trained and inspected by Milteks
Quality Assurance Department
authorities every month. Video
conferencing system is installed
in both factories in order to
find a solution to instant quality
problems.
Our Companies Certified by
OHSAS 18001
OHSAS 18001
Occupational Health and Safety
Management System. This
generic management system
standard assures the continuous
improvement of Occupational
Health and Safety performance. It
impacts our occupational safety,
workplace conditions, sanitary
facilities and risk management.
ISO 14001
ISO 14001
Environment Management System.
This generic management system
standard assures environmental
management. It continues to reduce
Milteks’s environmental impact on
the entire production process.
7
Ajara Textile
Ajara Textile is established in Autonomous Republic of
Adjara in Georgia, near Batumi, in the village of Bobokvati
towards the end of 2008. The factory building was
originally a tea factory founded by Russian administration
in 1927. With a faithful renovation to the original, the
building is converted into a quality, healthy production
and living area. The renovation works started in June, 2008
and completed in 6 months. Renovation of the building is
very close to the original. Small changes have been made
suitable for textile and apparel operations. Static project
of the building is analyzed and some of the columns were
strengthened. Some of the walls are replaced with concrete
curtain walls. Instead of changing the column structure of
the building which is not suitable for textile and apparel
standards, production line layout is re-designed according
to those column distances. Compared to a standard
factory building’s costs, Ajara Textile Building was restored
at a higher price and turned into a visually beautiful and
compatible building.
Sewing and other processes of relatively long-term orders
with big quantities and low-priced orders are carried
out in Ajara Textile Factory. Semi-finished products
and accessories imported in accordance with outward
processing regulation from Milteks-Beylikduzu are sorted
and made ready for sewing as done in Ceseka. In this
company, phases of production are same with Ceseka.
Only loading qualities differ from Ceseka in some ways,
due to the customs legislations.
Since Milteks-based management is not possible in Ajara
Textile, a new structure is created suitable for country.
General Manager of the company is a Board Member of
Milteks. Except for the Administrative and Production
Deputy General Managers and a few senior executives,
all managers have been recruited from local community.
Revising the careers considering the successful
performance of local managers, we are planning to
recruit our senior executives from local community as
well. The biggest problem on executive recruitment is
language. There are not many qualified employees who
speak Turkish in this region. It is not possible to find a
senior executive who speaks a foreign language. There
8 Georgian and 3 Turkish executives who can speak
Georgian language and Turkish in the factory.
8
Member of the Board- General Manager
ProduĐƟon Manager
Quality Mangement Ass. to General Manager .
Planning
Process EdžĞĐƵƟve
LogiƐƟcs
...Quality Control ...
Account
IT
Human Resources
Care&Repair
Service
Ceseka Textile
Ceseka is established in a short period of 2,5 months in Fatsa,
Ordu towards the end of 2007. As a result of research for lowestcost production in Turkey, Fatsa is chosen for investment due to its
proximity and being appropriate for promotion law. Ceseka Textile is
established on an 8000m² area within Organized Industrial Zone. The
factory working in a 2700 m² closed area at the time of establishment
is re-designed in 2010 and reached to 3600 m2 of closed area.
Business Structure
Ceseka worked with average of 270 employees in the years 2008 and
2009,now is working with 75% of capacity and has approximately 440
employees . In 2009, 75% of employees in Organized Industrial Zone
worked for Ceseka. However, due to a few clothing factories opened
in the area, the number of employees is doubled and percentage of
Ceseka employees is decreased to 35%. Ceseka served as a technical
school in this area and provided vocational training to employees
during 2008 and 2009. It is estimated that 75% of employees of other
clothing factories within the area, had worked in Ceseka. (Assuming
that employees quit Ceseka are working in other factories now) There
is shortage of staff. So, the routes of shuttles are revised and reached
to other provinces. We are pleased for our contribution to the local
people.
Sewing and other processes of short term orders are carried out in
Ceseka Textile Factory. Semi-finished products coming from Milteks
are sorted and made ready before sewing. Production starts in
sewing lines balanced according to the style structure. Production
processes on these sewing lines flow on one-piece and comply
with lean production techniques. Merchandise movements from
one process to another on sewing, ironing and packing lines are
carried out by employees. According to Lean Production Techniques,
transition period from one style to another is under 10 minutes.
(Changing the categories does not exceed half-day.) During the
production processes, goods are controlled by process controlling
staff and oriented to high quality production. All products pass the
quality tests before packing and being packed with all the labels of
customer attached in customer-branded bags. Garments produced
and packed in customer’s standards are prepared and put in parcels
according to sizes and amounts that customer demand, and made
ready for shipment after a final control by customer representative.
General Manager Ass.
ProduĐƟon
Quality Assurance
Planning
Process Exec.
Warehouse
Quality Control
Human Resources
Care service
Service & Repair
Logistcs
Milteks contributed a lot to our region’s recruitment
with investments in Ordu-Fatsa. We are witnessing and
experiencing the social and environmental impacts in
the area. Its role in region’s economical development
has been increasing since the year it was founded.
Olgun Topkaya
Director of Fatsa Organized Industrial Zone
9
Customers
We Work With
Product Sales
Milteks Textile CO. is engaged in garment
manufacturing on order and exporting all over the
world according to customer demand. Fabric and
accessories used for production of garments are
either developed in Turkey or imported on customer
demand. 95% of garments are exported to Europe;
Germany, England, France and Italy. The share of the
Turkey sales in production is approximately 1%.
Turkey
%1
USA
%3
Denmark
Switzerlad
Austria
Swiss
%4
%3
%3
Others
Greece
England
%2
%6
%13
%8
France
%10
Italy
%9
Germany
%38
CAN
ANAD
DA
USA
MEX
EXIICO
PAN
PA
NAM
AMA
SU
U
PERU
CHILEE
UR
ARG
AR
GEN
NT
10
SWEDEN
EDEN
UNITTED KINGDO
OM
DEENMA
DENM
ARK
POLA
AND
GERMANY
CZEECH REEPUBLIC
C
BEELGIUM
M
FR
RANC
CE
81% of the production is men’s sports apparel. Unisex
shirts are also included in this group. Sports shirts and
shorts, replicas, referee shirts and shorts, running,
leisure, lifestyle, basket wear, sportswear, tennis wear
are also included in this group. Kids orders are about
15%. Apart from the unisex apparel that women can
also wear, garments like skirts, jerseys, T-shirts, trousers
produced only for women are about 4% in total.
Producing a variety of sports apparel, Milteks Textile
CO. produced 62% T-shirt Group (Polo Neck Collar,
Team Jerseys, Long sleeve and short sleeve T-shirts)
, 24% Sleeveless Group (Runners, training vests) and
22% shorts and trousers group. Others include minikit,
tennis skirts and other products with lower production
in 2011.
AU
USTRIA
SWITZERLLAND
ROMANIA
A
ITALY
SPAIN
POR
RTUGALL
GR
REECEE
RUSSIA
AN FEDERATION
JAP
PAN
DUBAI
DUB
URINA
NAME
ME
CAMER
ROON
BR
RASIL
RUG
GUAY
TA
AIW
WAN
HO
ONG KO
ONG
TH
HAILAND
D
MALAY
YSIA
SING
GAP
POREE
IND
DON
NESIA
AUSTR
TRALIA
A
SOUTH AFRICA
A
TIN
INA
NEW ZEEALA
AND
D
11
Fabric Contents
Milteks Textile CO. mostly uses knitted fabric. 99% of fabric is
local production. It is also possible to import the fabric from
other countries or companies on customer demand. Most of
the fabric are developed by our team and produced in Turkey.
Therefore, the production can be done faster and cheaper.
There are hundreds of fabrics developed in this manner and
being used on current jerseys.
Ingredients of all fabrics used for production are cotton or
polyester.
During the report period, 78% of total fabric used
was polyester and 22% was cotton. We are aware
of that the polyester is not a sustainable fabric at
the moment. With this regard, we use re-cycle
polyester if asked by the customer.
cotton 23%
organic 43%
CmiA 34%
cotton
22%
polyester
78%
Sublimation
Sublimation paper printing is applied on 11% of the
polyester fabrics used for the production. Since the
quality standards could not reached with local produced
sublimation papers, imported sublimation paper printing
have been used in whole production for the last two years.
12
Re-cycle Polyester
The majority of the world’s PET production – about 60% – is used to
make fibers for textiles; about 30% is used to make bottles
The reason recycled polyester (often written rPET) is considered a green
option in textiles today is twofold, and the argument goes like this:
1. Energy needed to make the rPET is less than what was needed to make
the virgin polyester in the first place, so we save energy.
2. And we’re keeping bottles and other plastics out of the landfills.
It is true that recycling polyester uses less energy that what’s needed to
produce virgin polyester. Various studies all agree that it takes from 33%
to 53% less energy. If we use the higher estimate, 53%, and take 53%
of the total amount of energy needed to make virgin polyester (125 MJ
per KG of ton fiber), the amount of energy needed to produce recycled
polyester in relation to other fibers is:
Organic Cotton
Organic cotton products have been offered by the Group, both yarn
and fabrics since 2005. Central Textiles group of companies has
received full certification under organic Exchange 100 (OE 100) in
2008 respectively.
Project CmiA
Milteks Textiles has joined the
Project CmiA (Cotton made in
Africa) in 2008.
Core principles
‘Helping
people
to
help
themselves’ is a core CmiA
principle.
The
smallholder
farmers receive on-site training
in improved cultivation methods
which allow them to increase
their crop yields, generate higher
income and thus raise their standard of living through
their own efforts. CmiA plans to finance training over
the long term through financial contributions from
participating cotton trading companies, as well as
through levying CmiA licence fees.
Cotton made in Africa is used in the fashion and
home textiles segments and all articles using CmiA
are distinguished by a red label. CmiA is an ingredient
brand: this means that it is not a product brand, but
rather a brand for African cotton which is used as a
raw material in branded products. CmiA thus defines
itself as a Quality Seal and appears besides an already
existing brand. It is also applied by branded product
suppliers as an ‘extra quality mark’ to distinguish and
differentiate their respective product.
Cotton- Fiber
34% of cotton-fiber fabrics are produced by cotton of African countries and CMIA certified. Puma is having most of
its cotton goods produced by African cotton since 2008. Along with Puma, many companies are following this in
accordance with improvement of the poor countries project.
%43 of %100 Cotton fabrics used for production is made of organic cotton yarn. Some of our customer requested
the whole cotton orders as African Cotton and Organic Cotton.
13
Code of Conduct
Milteks vision is to be
recognized as the best value
adding company for our client
and for the world time.
We at Milteks declare our strict adherence to the respect of Human Rights.
We, hereby, announce that we will definitely comply with the guidelines
mentioned in our laws. As a commitment to these standards, Milteks
declared the following Code of Conduct:
t MILTEKS should not form any condition of forcing or unwilling working
depending on working contract,
Our Sustainable Values
We believe that we live
in a story that characters love
being successfull, never say
enough always keep going
for endless success stories
We create added value to
our clients, our self and the
world
We learn and teach each
other, improve everyday
We follow up news and
innovate
We establish good &
effective communication with
our stakeholders
Work and act with the
awareness of saving the
world and its resources
Sustainable Production Concept
M anufacturing
I nnovation
L iability
T echnology
E nvironment
K now-how
S ustainability
14
t MILTEKS has to follow all legal procedures of Child Labor. No child
below minimum age required by the law shall be hired,
tMILTEKS shall not apply or let others apply any corporate punishment
and any physical or psychological harassment or compulsion,
tMILTEKS will pay all the mandatory wages and benefits of the workers
which are mentioned in the laws,
tMILTEKS has to follow the requirements of current laws and
obligations in the determination of working hours,
tMILTEKS will employ workers and will decide the wage & promotion of
them according to their ability of work, but not in terms of race, color,
language, religion, ethnic origin or gender,
tMILTEKS subscribes absolutely to follow the requirements about Work
Health & Safety and also the Code of Conduct of the customers.
tMILTEKS is responsible to take all necessary actions for the possible
working area risks and to embrace a working concept which puts the
health of workers at first step always,
t MILTEKS holds the workers in esteem in their freedom of association
and about in their other social rights as far as they are all according to
the laws of the Turkish Republic,
t MILTEKS will designate its activities which may affect the environment,
will work in order to prevent environment pollution, will aim the best in
terms of environment & health and accepts to follow all the rules about
environment which are defined by the laws.
If you may require more info about the social standards which have been
mentioned above, please ask for the “Milteks Code of Conduct” hand book
from Human Resources Department.
15
Our Financial
Performance
ITKIB (Istanbul Textile and Apparel Exporters Association)
“Golden Award” of 2010 and 2011
Firstly, I congratulate you for ranking as Turkey’s first
1000 exporter companies honor roll prepared by Exporters
Council of Turkey and for your adding value to Turkey’s
economy. With exportation of 114 billion dollars in 2010,
you ensured that Turkey is once again in 100’s club. You have
raised the level of Turkey by searching the countries and
entering into new markets in a period most countries are still
struggling with crisis and impacts of World’s Economic Crisis
are still remaining. Thanks to your successful works, total
export numbers of the year 2001 has become achievable by
only one sector.
main duty and priority will be removing the obstacles and
showing you the way.
Your success encourages us and proves that 500 billion
dollars export is not a dream anymore.
I congratulate you, board members, partners and all your
employees and express my gratitude and appreciation on
behalf of my country and nation.
We will reach our target; 500 billion dollars export in 2023,
100th Anniversary of Turkish Republic, altogether with
our strategy determined to make Turkey’s economy one
of World’s largest 10 economies. As it has always been, our
16
In this context, both legal regulations and restructuring of
subsidies, enabling the service sector to take advantage of
export subsidy will contribute Turkey’s growth of exports.
Increasing abroad staff number to 250, opening new
consultancies and strengthening the current ones, analyzing
target countries and markets with countries’ desks are our
studies that will ensure Turkey to take firm steps forward for
our 500 billion dollars target.
=DIHUd$ö/$<$1
Minister of State
OUR FINANCIAL PERFORMANCE
As a leader in sportswear apparel industry in Turkey,
Milteks Textile continued its development on
institutionalization in 2010 and 2011.
Added value of an organization to the national
economy is measured by Istanbul Chamber of
Commerce through a research called “Survey of 500
Industrial Enterprises”.
-What
do you think about your business
UHODWLRQVKLSZLWK0ø/7(.6"
“Milteks
Group is highly dependent on its
commitments and working structure is very
well-organized. Executives and employees
follow up all processes and payments are
made on time.”
Arzu Rodop
+6%&%$1.$ù
-What
do you think about your business
UHODWLRQVKLSZLWK0ø/7(.6"
t .ƌMUFLT 5FYUƌMF UPPL
496th
place among
Istanbul Chamber of Commerce, second biggest
Industrial Enterprises of Turkey in 2009.
363
t Milteks Textile took
rd place among
Istanbul Chamber of Commerce, second biggest
Industrial Enterprises of Turkey in 2010.
“We
have been working with Milteks since
the beginning of the year 2000. Executives
of the company are very experienced in their
fields and trustworthy people.”
-:KLFKEUDQGRUUHWDLOSURGXFWZRXOG\RXGH¿QH
DVVXVWDLQDEOH"
“Products developed by natural resources
can be described as the most sustainable to
me.”
-,I\RXKHDUWKHZRUGV0ø/7(.6DQGVXVWDLQDELOLW\
LQRQHVHQWHQFHZKDWZRXOG\RXWKLQN"
“I believe Milteks is a sustainable company
t Among ranking of Turkish Exporters Assembly,
604
Milteks Textile took
th place in second 500 in
2009.
t "NPOH SBOLƌOH PG 5VSLƌTI &YQPSUFST "TTFNCMZ
Milteks Textile took
2010.
caring for its customers, suppliers, employees
and environment.”
(UROg]EHN
+6%&%$1.$ù
426th place in first 500 in
17
OUR FINANCIAL PERFORMANCE
Management of Activities Related to Financial Responsibilities
Financial performance of Milteks is monitored by company management, primarily Board of
Directors. All reports related to financial performance are carried out by Financial Department.
Production
milion pcs
48%
Milteks Textile Co.
is increasing the
sustainable production
capacity.
Due to major effect
of World Cup on
2010, the numbers of
orders increased 48%
compared to 2009.
6,0
others
Ajara2
3,0
Ajara1
Ceseka
Milteks
0,0
2009
2010
2011
Compared to 2009, sales increased 48% in 2010. The
reason for this increase is the excessive order demands
due to World Cup. These numbers shows that; Milteks
Textile’s infrastructure investments are strong enough
to meet 48% of increase.
After 2010, Milteks Textile planned the growth target
according to the previous year as %10. However,
while planning to keep growth rates constant, the
amount has decreased approximately %4 as a result
of an unpredictable, customer-based target error. This
decrease has not changed the planned targets.
As Milteks, we have a economic impact on our
stakeholders directly. Our economic value is distributed
to suppliers, employees and governments. The table
below shows the details of this distribution.
Million €
2009
Turnover
2010
2011
31,7
28,2
35,5
expenses
19,4
26,3
22
Workers wages and other benefits supplied
Providers of Finance
1,2
1,6
1,3
5,4
4,1
3,4
Corporate Taxes
1,6
1,7
1,7
Charity for Community
0
0,4
0,0
Impacts distrubuted economically
27,6
34,0
28,4
Economical Impact Protected
0,6
1,5
3,4
Total Turnover / Milion €
40
31
30
20
,7
10
2010
2009
Turnover
18
Supplies
Taxes
2011
Wages
Milteks Textile CO’s sales
turnover was 31,7 million €
in2011
OUR FINANCIAL PERFORMANCE
Government Support
Ecenomical Impact /Milion €
40
1.
Government support plays an
important role in Milteks order
costs. During modal pricing
process, these discounts are
allowed and numbers of orders are
increased. It is a fact that Turkish
textile industry will be more and
more competitive in world market
as long as government support
and funds are increased.
Tax Relief
(000 €)
30
€ 95.000
According to the Law No 6111, treasury support %5
.............to pay insurance premiums on time
2009
2010
2011
73,1
71,5
90,7
89,0
95,0
95,0
1,6
1,7
0,0
2009
2010
2011
39,4
66,6
70,0
185,9
320,6
350,0
2010
2011
204,9
213,2
20
%100 Treasury support for disability allowance
(According to the Law No 6111)
10
2010
2009
Income
Supplies
2011
Wages
Taxes
stopaj desteŒi(1.000 €)
SGK desteŒi(1.000 €)
500
1.
Tax Relief
(000 €)
400
€ 420.000
Support income withholding
(According to the Law No 5084)
300
200
2.
Incentives
100
Social security premium contribution
(000 €)
(According to the Law No 5084)
0
2009
2010
2011
stopaj desteõi (1.000 €)
225
€ 213.000
1.
Tax Relief
(000 €)
150
Support income withholding
(According to the Law No 5084)
75
Local Purchasing
0
2009
2010
2011
As Milteks, we try to supply all our
needs from local sources in Turkey
where our central factory is located,
as a part of our sustainable growth
target.
Milteks supplied 80% accessories of
manufacturing facilities in Turkey
and Georgia from local sources
in 2010 and 2011. 15% of other
accessories are purchased from
Europe, and 5% from Far East.
Payments to Suppliers million €
30,0
Indicators
25,0
%94,7
21,7
million €
2009
2010
2011
17,18
0,78
26,11
1,08
21,71
0,71
0,59
15,81
0,08
24,73
0,53
20,47
20,0
%94,3
15,0
1.
(million €)
%92,0
10,0
5,0
0,0
2009
Europe
2010
Far East
2011
Local
Payments to FarEast Suppliers
Payments to European Suppliers
Payments to Local Suppliers
Payments to Suppliers (Million €)
1,00
As Ajara Textile supplied 42% of
material requirements from local
suppliers in 2009, the percentage
Indicators
0,35
million €
2009
%100
0,75
1.
0,25
%100
%100
0,00
increased to 64% in 2011. In
2010, additional building of Ceseka
Textile which costed about
million €
0,5
was constructed by
a local contractor.
2009
2010
2011
0,82
0,00
0,35
0,00
0,00
0,33
0,00
0,82
0,00
0,35
2011
Indicators
2010
2011
36%
1.
0,75
30%
64%
0,50
70%
0,25
2010
0,33
0,00
2009
1,00
1,03
Payments to FarEast Suppliers
Payments to European Suppliers
Payments to Local Suppliers
Payments to Suppliers (Milion €)
1,25
million €
(million €)
0,50
%58
%42
0,00
2009
2010
(million €)
Payments to FarEast Suppliers
Payments to European Suppliers
Payments to Local Suppliers
0,33
0,00
0,69
0,00
1,03
0,00
0,20
0,21
0,38
0,14
0,48
0,66
2011
19
Most
Valuable Asset
Value for Human Life
Milteks accepts employees as “Most Valuable Asset”
and offers a healthy, safe and efficient working
environment.
20
O
ne of primary
stakeholders; our
employees are invaluable.
Increasing their
satisfaction levels,
improving working
environment, providing
the equality of
opportunity, contributing
to their personal
and professional
developments and
ensure their commitment
to Milteks are among
our most important
responsibilities.
21
Business And
Labor Practises
Employees
Milteks accepts employees as “Most Valuable Asset” and
offers a healthy, safe and efficient working environment.
In this context Milteks Textile Group;
Equality of opportunity applies to everyone. We
give opportunity to improve themselves to all of
Fulfils all legal obligations towards all of its employees.
our employees without discriminating against race,
t %PFT OPU EJTDSJNJOBUF FNQMPZFFT BHBJOTU SFMJHJPO nationality, gender and belief.
language, gender, sexual orientation, race, disability Recruitment and appointments are made with great
care and selectivity. Faithfulness, courage, justness,
or age in terms of human resources practices.
t *OGPSNBUJPO JO UIF QFSTPOOFM öMF CFJOH JO UIF öSTU sensibility and honesty are main criteria. Priority is given
place, reserves all information whether personal or to internal sources when our company needs staff.
As a corporate, in other words “an institution turned
its practices into a system and procedure”, we expect
our employees to be honest, positive and have good
t 0SHBOJ[FT USBJOJOHT BOE BDUJWJUJFT GPS QFSTPOBM BOE
skills on teamwork; behave rationally and fairly on all
business development of employees and helps them
business relations.
to manage their careers.
Since we are aware of the fact that social and economic
t 5SJFT UP JNQSPWF UIF MJGF TUBOEBSE BOE RVBMJUZ
development can be achieved with a peaceful working
of employees and provides balanced and fair
environment, being a model company in peaceful
distribution of wages and vested benefits.
employer/employee relations is our priority.
t 5BLFT OFDFTTBSZ QSFDBVUJPOT GPS B TBGF XPSLJOH
We create a working environment according to
environments and occupational health.
occupational health and safety laws and behave
properly.
not.
t%PFTOPUJOUFSGFSFXJUIQSJWBUFMJGFPGFNQMPZFFT
Human Resources Policy
Our Human Respect policy is our corporate value and
understanding of management, and based on basic
principles listed below:
We believe that our employees are our most valuable
asset. We do not consider our togetherness as
temporary and try to have a healthy relationship on a
permanent basis.
Our principle is to add talented and successful
employees to our group and work for together many
years.
22
Our respect to society and individual comes before our
production capacity conditions.
Child Labor and Forced Labor
As no child labor or forced labor is employed in our
company, it is our rule for our suppliers and partners
not to employ any child labor or forced labor.
&NQMPZNFOU%BUB
5IFWBMVFTPGFNQMPZFFTBSFBTPG%FDFNCFSUI0VS
employee agreement is a full-time and indefinite term
DPOUSBDU$POUSBDUTJO5VSLFZBSFPSHBOJ[FEVOEFSMBXT
PG5VSLFZBOEDPOUSBDUTJO(FPSHJBBSFPSHBOJ[FEVOEFS
laws of Georgia. In Milteks structure, everyone from
Chief level is chosen among the bests in their field.
8IJMF TPMWJOH QSPCMFNT JO GBDUPSJFT .JMUFLT VUJMJ[FT
from knowledge and experience of these managers.
When necessary, these employees are sent to factories
as short-term instructors.
In 2011, for two reasons, we couldn’t achieve this
improvement seemingly. As a result of cancellation
of planned Ceseka orders due to a customer-based
reason, numbers of the employees in the factory had
to be reduced. In Ajara, some employees quit because
due to opening new factory. Employees that are living
around new factory named AJARA II, started to work
in new factory. After eliminating these side effects,
UVSOPWFS SBUF JT DBMDVMBUFE BT *O UVSOPWFS
SBUFXBT
5IFSBUFPGFNQMPZFFTUIBURVJUJOXBT
of all employees. We see that working conditions
JNQSPWJOH FWFSZ ZFBS UIJT SBUF JT SFEVDFE UP JO
2010.
In Milteks, where such an event did not happen, these
rates are:
Number of Employees
Year
2009
2010
2011
MILTEKS
197
205
199
CESEKA
268
471
440
AJARA
487
596
936
tJO
tJO
tJO
1600
282
1269
1200
Milteks
93
Female Workers
2009
94
2010
92
2011
92
Female Left
19
21
14
Male workers
103
181
147
Male Left
21
30
20
970
800
Female LeŌ
102
Female Workers
747
400
Ceseka
Female Workers
2009
190
2010
321
2011
309
Female Left
57
49
85
Male workers
78
150
131
Male Left
18
34
46
0
2009
2010
2011
500
Ajara
2009
2010
2011
Female Workers
463
557
868
Female Left
26
23
183
Male workers
24
47
68
Male Left
2
4
10
68
76
375
Male >ĞŌ
250
41
Total
Female Workers
2009
2010
2011
Male workers
378
747
970
1269
Female Left
102
93
282
Male workers
205
378
346
346
Male Left
41
68
76
125
205
0
2009
2010
2011
%FNPHSBQIJD1SPöMF
of Employees
1000
68
PGUIFFNQMPZFFTJO.JMUFLT)FBERVBSUFST
are women. In our garment factories, this rate
JT RVJUF IJHI5IJT SBUF JT JO $FTFLB5FYUJMF
BOEJO"KBSB5FYUJMF*O"KBSB5FYUJMFXIPMF
employees working in lines are women. In
Ceseka Textile, except for Chief Administrative
0óDFSBMMFYFDVUJWFTJODMVEJOH%FQVUZ(FOFSBM
.BOBHFSBSFXPNFOPGFNQMPZFFTXPSLJOH
in Milteks Group are men.
%20
%80
500
868
131
309
107
92
0
M7LTEKS
CESEKA
AJARA
1.600
922
8FEPOPUIBWFBOZFNQMPZFFTVOEFSZFBST
"T TFFO PO UIF UBCMF PG %FNPHSBQIJD 1SPöMF
of Employees, we have a young and dynamic
structure. The rate of employees between
ZFBST JT 5IJT TUSVDUVSF NBLFT JU
easy to shape our Human Resources system,
especially education, development and career
management in accordance with younger
generation employees. At the same time, this
young employee structure provides competitive
advantage to our group.
4%
757
1.200
605
38%
58%
age 18-30
800
age bet. 30-50
596
over age 50
477
400
331
0
2009
2010
2011
ŝƐƚƌŝďƵƟŽŶ ŽĨ emplŽLJĞĞs
ŐĞ'ƌŽƵƉ
age 18-30
age bet. 30-50
Žver age 50
24
2009
952
605
331
16
2010
1.272
757
477
38
2011
1.575
922
596
57
DEMOGRAPHIC PROFILE OF EMPLOYEES
Our company made payments increasing on yearly
basis to Social Security Institution and Unemployment
Insurance as seen below. The reason for increase in Social
Security Institutions payments is increased number of
employees on the basis of years and increased amount
of real earnings on insurance charges.
2009
2010
Others
Local
People
Total
Others
Local
People
Total
Others
Local
People
Total
D7LTEKS A.b
0
10
10
0
10
10
0
10
10
CESEKA A.b.
3
2
5
2
3
5
1
4
5
AJARA TEXTILE
5
2
7
6
3
9
8
4
12
8
14
22
8
16
24
9
18
27
Toplam
Tüm Įrmalar yerel halk
2011
2009
2010
2011
Local People at Upper Management
20
33%
33%
15
29%
80%
60%
Ajara
40%
10
100%
100%
%100
Ceseka
Milteks
5
0
2009
2010
All Milteks employees are people living in surrounding
areas. Residents of surrounding areas of Milteks
Headquarters as possible are preferred for recruitments
in order to reduce shuttle routes. Percentage of
employees living in surrounding areas is increasing
every year.
2011
%VF UP UIF DPOUJOVFE JOWFTUNFOU JO "KBSB5FYUJMF UIF
number of executives is increasing. Need for executives
are met by local executives as possible. The percentage
XBTJOBOE0VSBJNJTUPJODSFBTFUIF
QFSDFOUBHFPGMPDBMFYFDVUJWFTUP
We pay particular attention to employment of local
"TPGUIFQFSDFOUBHFPGMPDBMFYFDVUJWFTJT people and fair paying in domestic and foreign
6OMFTTUIFPSHBOJ[BUJPOBMTUSVDUVSFDIBOHFTUIJTJTUIF communities.
highest percentage possible for Ceseka.
DEMOGRAPHIC PROFILE OF EMPLOYEES
There is an objective assessment process for all
applications for job advertisements. All details of
Recruitment process of Milteks are included in
Recruitment and Placement Regulation and there is not
any specific procedure for local employment.
Hours/Year
2010
Training Topics
Occupational Health and Safety
Personal Protective Equipment
Emergency Fire Training 1
Emergency Fire Training 2
Transport Lifting Stowage
Electricity Risk and Precautions
First Aid
Safety on Maintenance and Repair Work
Ergonomics
Chemical Works
2
1
2
2
1
1
2
1
1
1
Hours/Year
2011
Training Topics
Company Policies
Wage/Salary Calculation
Discipline for Chefs
Hygiene
Collection and Separation of Wastes
Codes of Conduct
Personnel Regulation
System of listening to Requests and Complaints
Human Rights (Ceren at, Sogep)
PUMA Codes of Conduct (Puma.Safe Humanity)
Discrimination (Ceren at, Sogep)
Women Rights (Ceren at, Sogep)
Communication (Ceren at, Soge )
Procedure of listening to requests and complaints at
work place
Labour Law
Performance System
EMPLOYEE SELECTION
Personnel Management of the company provides proper
staff due to departmental requests and needs. Available
references are used to meet the requirement. In case the
references are insufficient, need for staff is met through
newspaper, radio and internet ads. Personnel Management
makes the first interview with the applicant and sends the
appropriate applicants to head of related department
with the approval of General Manager. An examination
can be made for selection of personnel, if necessary. For
recruitment of executives or recruitment staff, a senior
executive or manager of related department may make the
öSTU JOUFSWJFX BDDPSEJOH UP TQFDJBMJ[BUJPO BOE TUBOEBSE
According to the specifications of related department, tests
or examinations can be applied to determine applicant’s
intelligence, knowledge and skills before the interview.
26
DŝůƚĞŬƐdĞŬƐƟů
&
ĞƐĞŬĂdĞŬƐƟů
&
ũĂƌĂdĞdžƟůĞ
2
2
2
1
1
1
1
1
6
3
6
6
6
DŝůƚĞŬƐdĞŬƐƟů
&
ĞƐĞŬĂdĞŬƐƟů
&
ũĂƌĂdĞdžƟůĞ
ĞƐĞŬĂdĞŬƐƟů
3
6
6
ũĂƌĂdĞdžƟůĞ
RECRUITMENT:
3FDSVJUNFOU JT öOBMJ[FE XJUI UIF BQQSPWBM PG 1FSTPOOFM
.BOBHFS%FQBSUNFOU.BOBHFSBOE(FOFSBM.BOBHFS
CONTRACT:
Hired personnel start working after signing the contract.
Personnel undertake to comply with the workplace rules
and provisions of personnel regulations by signing this
contract.
53*"-1&3*0%
In Turkey two-month trial period is applied to hired
personnel however in Ajara Textile it is only 1 month.
Parties can disrupt the agreement without notification and
compensation.
DEMOGRAPHIC PROFILE OF EMPLOYEES
A/PJTF-FWFM$POUSPMA"KBSB5FYUJMF
Ajara Textile cares to be best
paying factory in the region
standards and well aware that
purpose of presence in that
region is lowering the production
costs to levels close to Far East.
A0DDVQBUJPOBM)FBMUIBOE4BGFUZ5SBJOJOH"KBSB5FYUJMF
As Ceseka Textile, Ajara is also
like a technical school in this
region. Even though some of
the people does not reach the
required standards for the job
they applied, they are given
a technical training. Those
employees are placed in nonproduction departments.
-BCPS3FQSFTFOUBUJWF&MFDUJPO%BZA"KBSB5FYUJMF
The Project on SHREC
The Project on Supporting Human Rights Enhancement of Communication
Observer of the Project:
Preventing discrimination and maltreatment at workplace are among the most important elements for a
peaceful and fair workplace. To achieve this, management of factories, production brands and legal legislator’s
of that company have different responsibilities. At the same time, one of the things that should be done is
raising administrative staff and employee awareness for human rights and prevention of discrimination issues
and strengthening the communication between employees who have different positions in the company.
"DDPSEJOHMZBPOFXFFLUSBJOJOHJTPSHBOJ[FEPO+VOFUIOEJO$FTFLB5FYUJMF
5IJTPSHBOJ[BUJPOJTDPOUJOVBUJPOPG.JMUFLT4PHFQDPMMBCPSBUJPOUIBUTUBSUFEJOBOEBQBSUPG.JMUFLT
Corporate Responsibility Practices.
Olgun Aydın
Puma.Safe Humanity & Ecology Auditor and Responsible for Continious Improvement
“I really wanted this Project to happen. I know that due
to newly developing industry in Anatolia, there are
some problems about corporate culture. Thanks to this
project, we had a chance to interfere and find solutions
for such problems.“
Ahmet Gökdemir (.JMUFLT5FYUJMF%FQVUZ(FOFSBM.BOBHFS)
“Both during and after the project, we have
SFBMJ[FEUIBUPVSFNQMPZFFTIBWFNBOZQSPCMFNTUIBU
we do not know in their daily life and business life. As a
result of this project, as Milteks, we will do our best to
eliminate problems in workplace. They will also use the
things they learned here and try to solve their problems
in their private lives. Our employees’ happiness and
effectiveness in production is very important for
us. Thanks to this project, communication with our
employees will also be strengthened.”
Practice and Content
*O UIF QSPKFDU TDPQF USBJOJOHT BSF PSHBOJ[FE XJUI UIF
participation of workers, line chiefs and administrative
staff. These trainings are given in the working hours
and no salary deduction is applied for participants. In
order to ensure an active participation and discussion,
numbers of participants are limited.
chosen from each line. At the same time, participants did
not only share the information with other employees,
but also their family members and relatives.
Trainings are held in comfortable environments to
talk freely and communicate. For this reason, no line
chiefs participated in sessions with workers and no
male participated in women sessions. Trainings are
held in team work and simulation methods. To enable
participants to talk, presentations were short as
possible. By this way, trainings were flexible and can be
revised according to needs of each group. A significant
part of participants’ first workplace was Ceseka. The
profile of participants was quite young and they were
at the beginning of their working life. This situation
increased the potential of creating long-term effects by
this training.
In addition to these titles, a half-day workshop is
PSHBOJ[FECZB4PHFQSFQSFTFOUBUJWFXJUIQBSUJDJQBUJPO
'PVS IPVSTFTTJPOT DBSSJFE PVU FWFSZ EBZ XJUI of administrative staff and line chiefs. Human rights,
participants of each session. Therefore, total of 120 discrimination and communication issues are discussed
people participated in trainings. 120 people were in this workshop.
chosen randomly and equally from each line. To enable
the participants share the information with other
employees easily, an equal number of participants are
Feedback From
Employees
After the trainings, a randomly chosen group of participants are selected and interviewed. The interviews are carried
out by Sogep and PUMA representatives. To ensure that participants express their views freely, Ceseka and Milteks
representatives did not attend to these interviews.
Interviews show that trainings lead to increase
of self-confidence on participants. Being aware
of their rights and knowing where to transmit
requests and complaints firstly lead to increase of
self-confidence.
“I have never participated
on such a training before.
Topics
were
about
workers. Sometimes we
discuss with our friends
as if we are in a class. But
we have never discussed
those issues together with
a big group.”
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“Training was good for me. I think
that these trainings are important
in terms of people speaking out
their problems. We knew that but
we could not speak out. I think it is
important in this context. We talk
with our friends. I can see that they
also thought trainings were good.”
Elif Çelik
“I would participate to these trainings consistently if I had a chance. Because my knowledge is increased. I have improved my
dialogue between my husband and children. I have learned to express my demands without arguing.”
Sema Gülçiçek
We have seen that especially female participants learned
more about women rights and it affected their lives seriously.
Trainings improved the communication between employees
from different levels. Participant feedbacks showed that
the session about communication was quite impressive.
However, the only part of project that strengthened
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participants for each session to active participation and
creating a participant profile allowing them to talk freely
were the basic element. Both workers communication with
each other and workers communication with line chiefs
were effected positively.
FEEDBACK AND EVALUATION
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family problems as well. Now we learned to speak one by one and we understood
that we need to listen to each other. It is very important for me because we used to
clash a lot. Now we have better relations. We are psychologically relieved. People
get bored when they do not know what to do under the pressure. Now I think that we
are spiritually relieved.
Tuba Kale
”
“I
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,ZHQWWRVFKRROQRZ,OHDUQHGPDQ\WKLQJV:HVKDUHGWKDWZHKDGEHHQH[SRVHGWR
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,RQO\KDYHRQHFORVHIULHQG6KHZDVDQROGQHLJKERURIPLQHWKDW¶VZK\VKHNQRZVPH
well. I want everyone to attend these trainings because you feel the lack of it. You also feel
the lack of being a worker. I reconciled with my job
Gülay Erkuş
.”
It can be seen that basic result of Project is strengthening
of participants. It is important that working conditions
at workplaces should be fair and workplaces should
be a place to strengthen. This project contributed to
strengthening of employees but of course continuity
is important as the participants also mentioned. The
project could not been applied with all employees, this
can be regarded as weak part of the project. However,
as much employees participated possible. We had to
make a choice between more participants and less
active trainings and less participants with more active
trainings. The basic method is determined as an active
participation by reducing the number of participants.
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training program for other employees who could not
attend to this project.
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“It is a relationship with mutual trust. We do not feel the pressure while we are working
with employees of Milteks.”
,I\RXKHDUWKHZRUGV0ø/7(.6DQGVXVWDLQDELOLW\LQRQHVHQWHQFHZKDWZRXOG\RXWKLQN"
“Sustainability report and Puma’s activities on sustainability comes to my mind.”
Do you think Milteks Textile Group is committed to basic principle of sustainability and to
IXO¿OOLWVFRUSRUDWHUHVSRQVLELOLWLHV"
“Yes I think. However, I am not sure how much of this is Milteks’ own initiative. I cannot
decide if sustainability practices are company’s own initiative or these practices are
carried out in order to meet the requirements of brands.”
Ceren İşat
4PDJBM%FWFMPQNFOUBOE(FOEFS&RVBMJUZ1PMJDJFT$FOUFS
4VTUBƌOBCƌMƌUZ
Management
We are guided by our vision and corporate values. In
addition to our ethical and transparent approach of
working, we attach great importance to managing and
improving our economical, environmental and social
performance. We monitor our economical, environmental
and
an
d social
soci
so
cial
al p
per
erform
erfo
formances
rm
aacc
ccordanc
cc
nce with
wi o
our ttar
targets,
arge
gets
ts,
performances
in accordance
exam
ex
amin
am
ine
in
e th
the
e re
resu
sult
su
ltss an
lt
and
d im
improve considering opinions and
examine
results
need
edss of o
ed
our
ur ssta
take
keho
hold
lders.
needs
stakeholders.
efficiency, use of raw materials, regulations and laws,
business ethics and corruption, human rights, supply chain,
difference employees, worker health and safety.
integrated
We aim to
o ha
have
ve aan in
integr
grat
ated
ed approach of sustainability,
managing
mana
ma
nagi
na
ging
gi
ng potential
pot
otential sustainability risks
ot
ri and turning them
into opportunities
in
opp
ppor
pp
ortu
or
tunities by benefiting from various systems.
tu
sy
t
t
t
t
These sy
Th
syst
stem
st
emss ar
em
are
e about
ab t envi
vironmental issues like
systems
environmental
preventi
pr
ting
ti
ng p
pol
ollu
ol
luti
lu
tion
ti
on, waste management, carbon
on
preventing
pollution,
footprin
fo
int,
in
t, product
pro
p
rodu
ro
duct
du
ct rres
esponsibility, water
es
er and energy
footprint,
responsibility,
32
As Milteks Textile, we are applying the listed standards to
efficiency
ffici
cien
ency
en
cy aand
nd ensure the su
sustai
aina
ai
nabi
na
bililility
bi
ty of ourr
increase the effi
sustainability
manageme
ment system:
management
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SUSTAINIBILITY MANAGEMENT
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Milteks Tekstil
and all of the three plants are now operating in line with
lean principles. Today, as a leading firm, Milteks Group of
companies are frequently visited by local and international
firms so as to see lean practices in place.
After examining and mapping the value-stream in
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and has continued with the development of Total
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unmeasured cannot be managed”, first facilities became
‘measurable’ and then continuous improvement activities
followed. In this way, Milteks group of companies can
measure and improve its processes on a real-time basis in
case any abnormality in the process is detected.
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procedures and as a result of these evaluations, best-inclass practices vs. areas for improvement are identified
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The program achieved major improvements in quality
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which has been continually updated with additional
modules according to the production monitoring needs.
In this way, Milteks is now able to track and manage the
workflow, inventories and, the cash flow in real-time. In
addition, the combination of pull and push production
systems contributes and greatly shortens the production
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activities resulted in high equipment utilization and
increased line efficiencies significantly.
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reduced costs, Milteks has drawn the attention of wellknown brands and as a result the Group has opened
three new facilities in Georgia this year. We conclude
that Milteks’s success story is a case study for those who
are aiming ‘growth’ and this shows us how growth can
be achieved while eliminating wastes and improving
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gained a competitive advantage with the help of lean
manufacturing program. We are proud to provide a small
contribution to this program and recommend Milteks
group of companies as an important source. Regarded
as a never-ending process, we wish Milteks increasing
success during their lean journey.
In today’s competitive market, there are three vital features
for an organization: growth, flow and cost. Usually the
top management of companies consider ‘growth’ as a
priority issue to address and work to intesify their efforts
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organization, it is not possible to survive and carry on its
activities. It used to be that companies set their prices
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based on the principles of cost accounting including raw
materials, labor and overhead costs and a profit magrin
typical for the industry would be added. The price would
be passed on to the customer, who more often than not,
paid it. This is no longer true. The profit equation is now as
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that there is no way out, cost reduction is the only solution
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achieved by the elimination of all wastes throughout the
organization. Therefore, “continuous flow” is required for
a sustainable living in a business environment which can
only be achieved by the elimination of all wastes in work
processes throughout the entire value chain, from the
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an efficient, environmentally sensitive, a safe and healthy
work environment is both a necessity and a result of this
approach.
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with Milteks and provided training and conducted lean
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the program at the group center in Istanbul with the
participation of top and middle level management and
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5VSLFZ BOE "KBSB5FYUƌMF ƌO (FPSHƌB 4ƌHOƌGƌDBOU QSPHSFTT Yours sincerely,
has been achieved since the beginning of the program
33
SUSTAINIBILITY MANAGEMENT
Milteks management aimed and planned a growth since
the beginning of the new century, and decided to invest
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it is assessed that management software packages would
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software is enabled for Internet use and communicating
with host of other group companies automatically.
Thanks to these developments, group companies are
able monitor production stages simultaneously and
update the production reports any time. As a result, group
companies do not need any written matters. Any update
on orders by merchandisers can be reached by production
departments of group companies simultaneously.
Updates are also sent as reports related departments
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system that enables to reach any information while out
of the office, we ensured our communication security at
maximum level.
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working the first step, generating orders automatically by
this software. Now we have reached to the point that we
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We are able to receive barcode data automatically from
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without any mistake.
It is being delivered an alert to the related parties
automatically by GIZ software when the actual production
lead time exceeds initially planned production lead time.
Again the alert is being delivered to the related parties
automatically for the fabric and accessory orders which
are not completed on time.
For the items that are being worked with constant
inventory, the levels of minimum and critics inventories
are determined and it is achieved to keep up them at
certain levels by mail alert system of GIZ software.
Warning system send alerts for administrative
manufacturing process delays and errors as well. We gain
experience with our mistakes we made
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and avoid committing same mistakes.
The software part of this study are being constructed in
accordance with the ideas concluded after long terms
studies.While we are developing GIZ software, we started
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Using GIZ production performance program which has
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can see the production numbers for each line with only
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based on lean production rules, can monitor the rise and
drop at the productivity of each line simultaneously
This system which is established to monitor line
performances can also be utilized to measure the
performance of the employees. Those devices which are
for determining the performance’s has been developed
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We have ordered to develop a production quality control
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ratios.
SUSTAINIBILITY MANAGEMENT
We have placed control buttons on each quality control
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ratios and types of the defaults can be monitored
simultaneously using this system.In order to ensure ease
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develop new software to gather all the factory audits
under single software base and all audit data of the
factories is collected under GIZ inquiry software program.
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this year. This way, all group companies will be gathered
under a single program , and the manuel data entries of
Gız production performans program which is entegrated
with lean production will become automatic.
Next year, the study of integration of all programs with GIZ
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a single software program with the support of
management
All barcodes on cards, packing bags
and parcels are informed to packing
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packing department receives
directly from the system and
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the packing loading
processes, the number
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are
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Communiitty
36
STAKEHOLDERS
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We would like to reach to our foremost partners in an understandable manner. We identified our partners as
following:
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In order to get feedback on customer expectations
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highly important indicator for science.
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Daily Communication
Meetings
Cooperation
Weekly Department
Meetings
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We encourage our suppliers to comply with principles
of business ethics.
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business by maintaining our ties with local and central
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we keep our relationship with related institutions in an
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stakeholders.
37
STAKEHOLDERS
Management Dialogue
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the performance of a company trying to grow rapidly
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When we first started working on our sustainability
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prior to writing and process of writing is a tough journey.
We appreciate the support of our Chairman and board
members during this tough journey.
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all management issues including production in a
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are conditioned to focus on more production and better
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trainings not only allows us to lower costs and increase
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This report is prepared by the support of all departments
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collection/compilation process is completed by Head
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I appreciate the assistance of factory managers and our
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during the process of creating this report.
#FTU3FHBSET
Hasan Gundogdu
Milteks Textile Deputy General Manager
38
STAKEHOLDERS
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healthy competition and for the budget incomes and
employment.
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of sustainable production.
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“Already very productive and fully aligned. Price is always an issue so on top
of our current service level regarding development and production additional
efforts I order to stay competitive are always appreciated. Regular meetings
need to take place just to align strategy, but this is already in place.”
- Do you think that Milteks exhibit an exemplary behavior with the projects of
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“Carbon footprint and ways to reduce this is key more than ever. We only have
this planet so we need to protect it accordingly. All this is overdue already, but it
is never too late so we need to do things more focused and faster.”
- +RZFDQ\RXLQ\RXURUJDQL]DWLRQFRQWULEXWHWRKHOS0ø/7(.6WREHFRPHD
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“There is a lot we can do together as a Team. Contact points we got plenty,… Planning the business better would be
a key criteria for me.”
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“We have a very good and professional relationship. Milteks is doing an
excellent job at management and also employee level.
All requests from our side are worked out promptly and precise. Prices are
competitive and deliveries are always in-time and in good quality.”
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“The character of such a company is that they do not only think about today
or tomorrow. They think about the future in reference to the nature/climate and
to the people (employees). They have social and nature projects and support
the organizations who invest in that as well. Such as social human projects in
other countries, building up forests for a better climate and so on.”
- ,I\RXKHDUWKHZRUGV0ø/7(.6DQGVXVWDLQDELOLW\LQRQHVHQWHQFHZKDWGR\RXWKLQN"
“MILTEKS is a perfect example for social and nature sustainability, they do not only think about earning money
with their business they also think about giving back a part of the money and success to the nature and other
people.”
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“Milteks, is a very committed, reliable and cooperative partner for us and
we have a very professional biz relationship built on these values.”
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“We always guide and encourage Milteks to participate in sustainable
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production. We innovate and guide for increasing the level of sustainable
processes in the production areas, we offer alternative solutions and help
them to get in contact with rights people to develop and evolve further, and
we also perform audits at their factories and increase the level of quality as
well as incredibility.”
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“More roundness, Deep professional communication, Unprejudicedness.
More cooperation, Proper and sustainable supply-chain management.”
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“Fairness,
Honesty, Positiveness and Creativity, Economical, ecological
and socialy in compliance, Social and corporate responsibility, Working
conditions, and Reporting sustainability.”
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“Functionality, Manufacturing conditions and Service.”
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relationship with our company more productive at Management
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“Our business relationship are satisfactory due to reliability of
delivery dates and total supply chain visibility starting from fabrics
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Quality Assurance inspectors can be effectively planned.”
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“We have already developed products more and more respecting
environment and workers health starting from materials and
fabrics up to treatment and printing processes. This path has to be
continuously stimulated between partners like Milteks and Lotto
driving product innovation towards new fronteers.”
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responsibilities with respect to social sustainability.”
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What do you think about the business relationship with
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“Although
we have just started working with Milteks, we
appreciate the spirit and importance Milteks management give
to the job. Our requests – questions are responded timely.
We believe that Milteks will deliver goods on time with right
quantity and quality. We would like to meet and have open
communication also with other employees of other levels.”
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those procedures imposed were tough and formidable.
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and implemented by discussing proposals and solutions.
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better.
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testing is performed for refectory workers and a procedure
is prepared to apply this test regularly in standard periods.
Personal files of employees are prepared carefully. Chest
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TBGFUZJTTVFT8FCPVHIUMPDLFSTGPSBMMTUBò8FCPVHIU professional consultants.
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say that; machines and other equipments are periodically
bins are placed in appropriate places in the building. We
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signed agreements with certified companies that are
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able to deal with separation of wastes and recycling. We
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are trying to separate and collect the wastes in order to
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quality and dust are measured and risk assessments are We thank Milteks Management for their contribution to
DBSSJFEPVU0VSTUBòJTUSBJOFECZQSPGFTTJPOBMDPOTVMUBOUT become a company in international standards.
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We are happy to see that the factors seen to be extremely
challenging and formidable in the beginning are now in
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and suggestions on important issues determining the
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“Always one step ahead as partnership relations”
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“Milteks is sensitive enough on each stages of production and asks suppliers to act accordingly. Today,
understanding of production quality requires this method of working and any other way is not acceptable.
Accordingly, necessary production controls are done and quality tests required by produced brand are carried out.
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Likewise, in supply chain, should coordinate with companies that offer the required quality with more affordable
prices. Against cheaper prices of Far East, Milteks should make faster and high quality production to gain
advantage.”
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“Sustainability brings along a cost and some long procedures. Meeting this cost and following the required
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“Fersan considers itself as more than a supplier of MilteksTextile – we are a strategic partner working with
them to help them achieve their goals. I have been working for the company for more than 23 years We know
that they are an innovative and quality-oriented company with a clear focus on the total costs of production
rather than simply on the unit costs of the products we supply. Milteks’s active driving in Sustainability in
the industry is highly appreciated, as well as their generously sharing of sustainable practices in textiles and
garment industry.”
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44
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Are you satisfied with your working hours?
Are you working over-time very often?
Do you believe that Milteks protects and offers
all social rights protected by law?
Do you think that your suggestions and complaints are taken into consideration by Human
Resources? Is any feedback provided about
your suggestions and complaints?
Are you aware of the steps taken to protect the
environment in your workplace?
Satisfied 94%
No 86%
Not Satisfied 6%
Yes 14%
Belive 92%
Do Not Belive 8%
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adjustments 10%
Aware of the activities 65%
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Are you satisfied with your working hours?
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nature?
Are you satisfied with your working hours?
46
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think was is highly important.
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to fulfill our social responsibilities in general.
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"TBSFTVMUUBLJOHQBSUJOUIJT1SPKFDUXBTBOJODSFEJCMF
we follow the criteria complying with our business
experience for us.
approach and focus on social impact.
Environmental
Responsibilities
Environmental Policy
For our children’s future we have to protect the environment, this
is an important challenge and it should begin in our work place.
We apply our Environment Management System to change the
environmental conditions at our level, and change periodically
our system. Our sensitivity to the environment is constantly
improving.
We can present our environmental regulation as follows:
All environmental laws are applied.
Our entire production project includes the environmental
consideration, by taking into account environmental impacts
that permit us to reduce the damages.
Our electricity, fuel, water, or other basic needs supplies are
subject to measures to reduce consumption.
We strive to reduce our wastes by taking in account in our
production process.
To succeed our environmental actions, our employees receive
periodically a specific training
52
Eco-Tex
This label guarantees ecological
standards of textiles during
production. It promotes product
responsibility and consumer health.
Water Turbine
We are glad that we contributed to reduce power
outages due to emerging economy and infrastructural
deficiencies.
Ajara Textile Bobokvati factory is established
on an old tea factory in Georgia. It is restored
keeping the original structure and made ready
for production. This renovation is completed
without cutting any trees and without harming
the nature. Average annual production of
factory is 3,5 million pieces and average 600
people are employed. Added value of this
production to Georgian economy and family’s
of employees cannot be underestimated.
The earth is warming rapidly after the 20th
century. Perhaps, one of the most important
reasons is deterioration of ecological balance.
Since sustainability of production is not
inspected, pollution has been growing rapidly
and the world is being polluted more and more
with in order to meet the energy deficit with
population growth.
53
WATER TURBINE
Having the grits subsided in deposit pool, water moves
forward for 650 meters in open channel and enters the
turbine after a 30 meters penstock.
Largest amount of fuels used for electricity production are nuclear and fossil fuels. Use of these fuels is ruining the
ecological balance. Nuclear pollution and atmospheric pollution rates are threatening the biological life. According
to authorities, lack of oxygen is the main reason of many diseases. For these reasons, use of renewable energy
sources and efficient use of natural resources should be supported by society.
Milteks Group has always been searching for alternatives in accordance with sustainability as an investor. We keep
researching for investments for a sustainable world in Turkey and other countries.
Largest amount of fuels used for electricity
production are nuclear and fossils fuels. Use
of these fuels are running the ecological
balance. environmental organizations
strongly support Re-newable energy
sources, solar panels, wind turbines, water
turbines and the stilling basin.
The most environment friendly system
supported by environmental activists is
producing electricity by draining the water
directly into a turbine.
Our project is a micro hydro-electric turbine
with a stilling basin.
In this project, only an appropriate amount
of the stream is divided from its naturel
path. Water is being directed through the
height created by the channel and the
water through the turbine return to water
bed. Water amount taken into turbine
is at the appropriate amount in Stream
flow standards not to damage the natural
balance around the creek.
Our project is a micro
hydro-electric turbine with
a stilling basin.
54
WATER TURBINE
Milteks Group, as a
manufacturer aware of its
responsibility, has been
searching for renewable
energy sources in order to
compensate the natural
harm it caused.
Dagva micro water turbine building is opened by Head of
Government of Adjara Levan Varshalomidze in September
2011.
The creek next to the factory was determined to be the most suitable renewable energy source in Ajara region. It
is found that the turbine was installed in the most suitable part of the river to the point where it reaches the sea.
Inactive and old-technology turbine is purchased by Ajara Textile after a brief investigation. After purchasing, flow
and velocity measurements are made by a company specialized in energy systems and 1 year change is investigated
monthly.
It is calculated that 100 KWh of electricity can be produced during the months, when water flow rate is highest.
The entire project is designed according to these dimensions and it is predicted that current structure of channel is
not appropriate for this production. Therefore, maximum production will be approximately 50 KWh.
Dagva micro water turbine building is opened by Head of Government of Adjara Levan Varshalomidze in September
2011.
55
PROJECT CARBON FOOTPRINT
Sustainability
Strategy
Project
CARBON FOOTPRINT
56
Carbon dioxide equivalent calculation of Milteks Textile,
Ceseka Textile and Ajara Textile are done by Systain as
it was on 2009. Developed by WRI and WBCSD, GHG
protocols including ISO 14040/44 norms are used
for these calculations. Calculations done in every 2
years consist of ten months of 2009, November and
December 2008, and first 9 months of 2011. So, over
the years, amount on comparative charts is not valid.
As calculation of unit carbon emission, only Ceseka
and Ajara values may be significant. For Milteks is
not producing in this sense, any unit comparison has
no significance. Since the group companies are in a
constant change for last 3 years, conditions required for
comparative charts are not formed.
As seen on the graphic above, carbon emissions per unit
in Ceseka Textile are increasing. It seems that attempts
to reduce carbon emissions could not be successful as
a result of inefficient production after the investment
in 2010 and low-volume production in 2011. On the
other hand, Ajara Textile where same practices are
done achieved great success in these studies. Instead
of 0,189 kg CO2/unit on 2009, it was reduced to 0,13 kg
CO2/unit on 2010. Since all the electricity and fuel used
for construction of new building and the restoration of
micro hydro-electricity power plant is added on Ajara
Textile, emissions per unit seem to have increased
extraordinarily in 2011. As a result of these data, Ajara
Textile’s carbon emission value per unit is 0,17 kg CO2
in the year 2011.
Ceseka Textile increased from 2700m2 to 3600m2 with
additional facilities at beginning of 2010, and Milteks
Textile increased to 11000m2 from 8000m2 in new
building at the end of 2010. In addition to its factory
with 11500 m2 closed area, Ajara Textile opened second
factory with 2500m2 closed area, at the beginning of
2011. A separate calculation for energy consumed
during dislocating and enlarging the factories is not
considered as necessary. Therefore, discrepancies on
energy consumption by years can be observed. Still,
studies in order to reduce carbon emissions continuing
regularly.
PROJECT CARBON FOOTPRINT
As seen on graphic above; the total emission
value of Milteks Textile, Ceseka Textile and
Ajara Textile is 1.437 tons of CO2 in 2009
,and 1831,8 tons of CO2 in 2010. According to
calculations of Systain, the total emission value
of all companies on the first 9 months of 2011
is 1370,5 tons of CO2e.
The distribution of total emission in the year
2010 is seen above. %53 of total emission of
all factories which is 1831,8 tons is calculated
as transportation emissions. Business trips,
flights, employee shuttles and emissions of
vehicles used for quality monitoring are also
included.
57
PROJECT CARBON FOOTPRINT
Corporate
Carbon Emissions
In order to reduce the vehicle emissions, vehicle requests are taken in e-mailing system and destinations are
gathered, therefore, less vehicles are used for deliveries.
Also, we are using teleconferencing and video conferencing systems for our meetings in order to use less
vehicles.
Vehicles in Milteks are mostly
used for development and daily
Standard sub-production controls.
Daily controls do not change
due to production amount. A
certain number of standardized
subcontractors do the contract
manufacturing of Milteks. Although
the production increased 90% in
2010 compared to 2009, kilometers
of vehicles had been reduced to 5%
after the measures taken. In return,
while the distance per unit was 651
meters, it was decreased to 324
meters in 2010 and 307 meters in
2011. It decreased by 5% in 2011
compared to 2010.
Cooperation at
Sustainability Level
At the beginning of 2010 Puma Safe introduced PUMA
Sustainability Scorecard.
This scorecard is composed of three elements that set
supplier sustainability approach working toward the
year 2015. The PUMA Sustainability Scorecard initiated
ambitious goals for our suppliers to reduce 25% of their
Environmental KPIs including water, waste and energy
leading up to 2015.
In order to ensure timely information on progress towards
the PUMA Sustainability Targets for 2015 (25% increased
efficiency) as well as the annual interim targets (5%
increased efficiency) the data collection process will be
repeated bi-annually.
58
Sensitivity to
Ecologial Environment
Energy Consumption
Electricity Consumption per Unit
Total electricity consumption has incrased 3% in 2011,
compared to 2010. Although the production rate has
decreased, there are several reasons for increased
electricity consumption.
5%
In Ceseka and Milteks,
it is planned to decrease power
consumption level 5% every year.
and interior decoration, renovation in Ajara Textile,
recruitment and trainings are not categorized.
Therefore, since all of this consumption is divided into
production number, consumption level per unit seems
higher. At the same time, trainings are also carried out
in order to meet the need for staff. Energy used for these
trainings are also included in total energy. Production
with newly-trained staff is low-efficient and therefore
electricity amount per unit is increasing. It is expected
to compensate this situation in second quarter of 2012
due to increasing orders with The Olympic Games and
the EuroCup.
Electricity consumption for Milteks Central Building
Produced Pcs (1.000pcs.)
ConsumpƟon Electricity (GJ)
Cons. Elec. Per Unit ( KJ/pcs.)
9.000
7.000
5.000
3.000
1.000
2009
25%
25% of less power consumption
is planned for 2016.
2010
2011
Since Ajara Textile will continue to invest for new
factory in 2012, power consumption per unit is not
expected to decrease. In Ceseka and Milteks, it is
planned to decrease this level 5% every year and
have 25% lower power consumption in 2016.
59
SENSITIVITY TO ECOLOGIAL ENVIRONMENT
Fuel Consumption per Unit (kJ/pcs.)
Thanks to measures taken in 2009 and 90% increase in
orders, fuel efficiency per unit is seen to have improved
40%.
10%
We transported more products
with less than 10% trucks.
Pieces (1.000pcs.)
We are working on this issue in order to improve
sustainability. Since the additional fuel consumption
during construction of new building and new factory
are not classified separately, fuel consumption per unit
in 2011 has increased 20%. As seen on graphic above,
the biggest increase was on direct fuel consumption.
Fuel for equipment’s used in renewing the building
and decoration are covered by factory. And also some
shuttles in factories are purchased by company and
indirect fuel consumption turned into direct fuel
consumption. Compared to 2009, fuel consumption per
unit has increased 18% in 2011.
Direct (GJ)
Indirect (GJ)
per Unit (KJ)
8.000
6.000
4.000
2.000
0
2009
22%
60
With double trailer trucks,
we reduced %22 CO2 emissions
resulting by transportation.
2010
2011
It is a fact that we create a little environmental pollution
due to vehicular traffic and use of generator in the area.
However, it is also a fact that we would like to lead to
economical, social and environmental developments and
have a major contribution on the region’s growth.
SENSITIVITY TO ECOLOGIAL ENVIRONMENT
Water Consumption per Unit (lt/pcs.)
Water 1.000 m³
Lt/pcs.
13,00
11,40
11,88
11,53
9,00
5,00
4,23
1,00
2009
2,32
2,34
2010
2011
The world population has tripled in the past century and it is expected to reach
9 billion increasing another 50%. Compared to last century, average 6 times
more water is being consumed. According to the reports published by scientists,
doubling water consumption in every 20 years is inevitable. Water is a requirement
for all industrial activities. 20% of water sources are used for industrial activities.
Rainfalls are reducing in many regions and due to climate change water sources
are drying. Governments, non-governmental organizations and business world
are worried about water problem of earth. Sustainability of industrial activities
depends on efficient use and protection of water sources and innovative
practices encouraging reusing, recycling and preventing natural or humaninduced loss of available water.
82% of water used in our companies is used for cleaning and personal needs.
5% is used for washing tests of fabrics and the washing up the dishes, about 3%
is used for ironing.
33% of water is used in Ajara Factory. Ajara Textile draws utility water from the
creek next to the factory. Drinking water is carried out by pipes laid from spring
water. Spring water is analyzed regularly.
Estimated values are given because there is no counter on drawn water. And
since the water billing information is given in irregular periods in Turkey, water
bills coming during the year are taken into account.
Water consumption in 2010 has increased 4,2% contrary to 90% production
increase. This amount decreased to 3% in 2011. Water drainage increased only 1%
contrary to high increase on the production within two years. It is 45% improved
as water drainage per unit is decreased from 4,23 Lt to 2,34 Lt.
PUMA Sustainability Scorecard
2015 is a clear roadmap and
presents the strong commitment
to a more sustainable future.
In order to achieve the
targets with our factories,
PUMA Sourcing cooperates
with our business partners
for development of factories
towards an environmental
friendly production set up and
furthermore supports with
capacity building projects,
development of ‘green’ products,
provides cooperation for
research and NGO practice
and creates a platform for Best
Practice sharing and knowledge
exchange. The team welcomes
always new ideas, pro-active
suggestions for new projects
and innovative ways to push
Sustainability to the next level.
…. until we have achieved a
carbon neutral textile production
with no energy and water
consumption and without waste
generation, we can always
continue to improve for a more
sustainable future.
All employees from top to
bottom must be aware of
Sustainability definition and
values and act accordingly
within daily working operations.
A sustainable company knows
about E-KPI performance and
has established EMS system
accordingly, a dedicated team
headed by Sustainability
manager drives the
implementation of ecological
projects and continues
improvement and is integrated
within the organization
with direct report to top
management.
SONJA GOTTSCHLICH | Project
Manager Sustainability APP
World Cat Hong Kong Ltd.
61
SENSITIVITY TO ECOLOGIAL ENVIRONMENT
Recycle Material Consumption (kg)
Quantities of packages supplied are submitted to
Ministry of Environment and Urbanization via “Waste
Package Program” Under the Package Waste Control
Regulation of Environmental Law every year since 2008.
Recyclable production wastes are separated under the
“Waste Management Procedure” and send to waste
collection companies licensed by Ministry of Environment
and Urbanization.
Amount of packing wastes of the production separated
for recycling are listed below:
1%
Among total input, non-recyclable
material rate is less than 1%.
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used for carton box is produced by waste papers. Some
cellulose other than waste papers is used for craft paper
pulp that is covering the inside and outside of box in order
to provide endurance. Different waste paper rates can be
used for craft paper production. The amount increases in
cement bag, but decreases up to 10% in carton box.
99% of input used for production is recyclable materials.
Stain remover chemicals and polyurethanes are nonrecyclable materials. Usage rate is less than 1%. Among
the materials we use, the rate of recycled materials is
about 8%. Unit weights of carton boxes are determined
and converted into kilograms. Entire curved carton
Material Consumption (kg)
1.000 <Ő͘
0DO]HPHLoHULNOHUL
ϭ͘ϮϬϬ
ϲϯй
1.000 Kg
Material Consuption
Cotton Fabric
Polyester Fabric
Polyester Material
Polyethylene
2010
2011
376
337
1.258
1.162
68
49
72
61
Paper
241
212
Others
26
14
ϭ͘ϬϬϬ
ϴϬϬ
ϲϬϬ
ϰϬϬ
Being used lower than 1%, metal, polyurethane
(foam rubber), wood and other chemicals are
stated as “other”.
62
ϭϴй
ϮϬϬ
ϯй
ϯй
ϭϮй
Paper
Polyethylene
Polyester Material
Polyester Fabric
Others
ϭй
Ϭ
Cotton Fabric
All fabric units used in production are
converted into kilograms. Weights of woven
fabrics with meter information are calculated
as unit weight * width * height = weight.
Weights of all accessories are scaled with
precision scales and average unit weights are
calculated. An A4 paper pack of 500 pieces
is calculated as (0,210 x 0,297 x 0,080 x 500
=2,5Kg.) The reason for paper usage in such a
high level (13%) is due to fact that almost all
packaging material is paper.
SENSITIVITY TO ECOLOGIAL ENVIRONMENT
Waste Management
Our wastes are separated as Industrial waste, recyclable
and recoverable in terms of “Waste Management
Procedure” in cooperation with Environment and
Urbanization Ministry licensed companies.
Wastes are classified and monthly trends are monitored.
Among these trends, “The amount of safe waste
per unit” is followed as an indicator of performance.
Our employees, suppliers, business partners and
visitors are informed regularly in order to increase the
efficiency of our waste management system.
Disposing of mercury-containing lamps
A variety of lamp types used in Turkey and Georgia require mercury to operate. Generally, the higher the power
usage, the more mercury that is required to operate the lamp. Mercury containing lamps include:
tIJHIJOUFOTJUZEJTDIBSHF)*%
MBNQTTVDIBTNFSDVSZWBQPVSMBNQTVTFEGPSTUSFFUMJHIUJOHXIJDIDPOUBJO
between 50 and 1000 milligrams (mg) of mercury
tMJOFBSøVPSFTDFOUUVCFTBTVTFEJONPTUDPNNFSDJBMBOEQVCMJDCVJMEJOHTXIJDIBSFSFRVJSFECZ5VSLJTI
standard to contain less than 15 mg
tDPNQBDUøVPSFTDFOUMBNQT$'-T
VTFENPTUMZJOIPNFTXIJDIBSFSFRVJSFEVOEFSBOFX5VSLJTI4UBOEBSE
to have a maximum of 5 mg, and
tTPNFOFPOUVCFTBTVTFEJOTJHOT
An alternative to landfill disposal is taking mercury containing lamps to
specialty recyclers who are able to safely recover not only the mercury, but
also the glass, phosphor and aluminium contained in the lamps.
Fluorescent lamps to be recycled in order
to protect the life and save the resources
63
Eco-Friendly
Approach
Within our “Protecting the environment and reducing the use of natural resources” strategy, our applications are
as follows:
All phases of construction and equipment of the
building are inspected by SGS. Around the entire
building, SGS approved material used and thermal
insulation is used. Highly insulated sandwich
panels are used in roof construction.
Calculations made during the project shows that
30% of energy will be saved.
Solar energy panels are installed on new building of Milteks.
This system meets the need of hot water of entire building.
64
ECO-FRIENDLY APPROACH
Milteks Textile moved to its new building at the end of
2010. Floor plan of production departments is created
under the supervision of a Lean Production Consultant.
Thus, unnecessary transports within the building are
totally eliminated and maximum saving of production
costs achieved. Production departments are placed
properly in the building and it is possible to send away
the products to other production departments or
manufacturers outside as soon as possible.
All phases of construction and renovation of the
building are inspected by SGS. All stages such as
project’s compliance with international standard,
quality check and amount of material used in building’s
construction are inspected. Other than this, labor safety
and health checks are also carried out by SGS.
Exterior
Exte
Ex
teri
te
rior
ri
or tthe
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herm
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rmal
rm
al sshe
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at
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plie
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d in ccon
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form
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ityy
it
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off th
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ding
di
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construction
building.
Acco
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ccal
alcu
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According
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saving
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at
ion.
io
n. H
Hea
eati
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ting
ti
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tem
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m
achieved
after
thermal
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system
equi
eq
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we
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Fuel
el o
oilil
equipment
building
completely
renewed.
boiler is changed to highly efficient, condensing natural
gas boiler. With the use of semiconductor ballast, 40%
of energy saving for lighting achieved.
Milteks
Milt
Mi
ltek
lt
ekss Textile
ek
Text
Te
xtililile
xt
e is aaud
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udit
ud
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to SA
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tand
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and received
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perc
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and
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Mi
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pl
with aallll tthe
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ia
and
d
Milteks
determined
social
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tall standards.
ta
stan
st
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dard
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et
and
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th aare
re
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Labor
safety
health
prio
pr
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io
riti
ri
ties
ti
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of th
the
e company.
comp
co
mpan
mp
any.
an
y.
priorities
Innavation and
Sustainability Meet In Milteks
By using Cloud System,
2 tons Milteks
Textile, Ceseka Textile
and Ajara Textile saves at least
pieces of paper 2 tons
of paper 400.000
in weight.
When 1 ton of used paper is recycled;
Cutting 17 pine trees,
Releasing 36 tons of greenhouse
gas CO to atmosphere
²
Waste of 4100 kWh power,
Releasing 267 kg pollutant gas to
atmosphere,
Waste of 1750 litres of fuel,
Using more than 3 - 4 m3 storage
2
Destruction of 85 m2 forestland
Waste of 38,8 ton water is
PREVENTED.
Cloud system is being used by many large corporations
in recent years. This system is installed locally at the end
of 2011 by Information Technologies Department of
Milteks Textile Headquarters. With this system, briefly,
detailed forms, unofficial documents, data of products
on lines are documented digitally. Information can
be reached any time with a categorized shareability.
Printed-out documents are also stored in cloud and
can be printed out. Only authorized users can access to
information stored in our highly-secured server.
Milteks is investing on information technology parallel
to company’s growth.
Thanks to this system, instant file sharing became
possible for all manufacturers working with Milteks.
Quick accessibility to documents without any problems
is provided for group companies. Since there is no need
for printing out, use of paper is decreased and group
companies contributed to protecting the environment.
By this means, instant changes can be controlled
promptly from records. Eliminating the unnecessary
readings fairly large labor is saved.
36 tons of
greenhouse
gas CO
GIZ Software, with flexible and up to date infrastructure,
provides a quick and accurate production. After
expansion of Milteks investments, in order to meet
the need for sharing production information,
digital software is used rather than printed papers.
Printed papers are only used for official documents
of production movements. Software is developed
regularly compliance with customers. Our aim is to
provide required information to customers as soon as
possible.
Habits are changing depending upon expanding use
of internet. These changes result in taking improving
steps on environmental issues.
Milteks Textile, Ajara Textile and Ceseka Textile are
using at least 400.000 pieces of paper. Thanks to
cloud system, except for saving paper, chemicals and
electricity used for printing are also reduced.
65
Seed to
to Sapling
SSapling
apling tto
o TTree
ree Project
Project
Milteks
Milt
Mi
ltek
lt
ekss us
ek
used
ed rec
recycled
ecyc
ec
ycle
led
le
d pa
pape
paper
perr fo
pe
forr ne
new
w ye
year
ar car
cards.
ards
ar
ds. Wi
ds
With
th tthe
he new
ew
cards,
“seed
cards”
have
seeds
inside,
year
ye
ar cards
ds,, eco-friendly
ds
ecoec
o-fr
ofrie
fr
iend
ndly ““se
nd
seed
se
ed car
ards
ds” th
ds
that
at h
hav
ave
av
e seed
edss in
ed
insi
side
si
de,,
de
becoming
planted,
beco
be
comi
ming
mi
ng flowers and tr
trees wh
when
en p
pla
lant
la
nted
nt
ed, ar
are
e se
sent
nt to
o ou
ourr
stak
st
akeh
ak
ehol
eh
olde
ders. By this
de
thi
hiss way,
hi
way, we
we hope
hope ttha
hatt we h
ha
hel
elp
el
p ch
chil
ilildr
dren
dr
en aand
nd
stakeholders.
that
help
children
adults
ad
ts to un
unde
ders
de
rsta
rs
tand
ta
nd how
ow m
much time
me and
nd endeavor is n
nee
eede
ee
ded
understand
needed
to g
gro
row
ro
w a tr
tree. Ai
Aim
m of this
tthi
hiss pr
hi
proj
ojec
ectt is tto
o ra
rais
ise
is
e en
envi
viro
vi
ronm
ro
nmen
nm
enta
en
tal
ta
grow
project
raise
environmental
awaren
aw
eness in the
en
he ssoc
ocie
oc
iety
ie
ty, de
deve
velopi
ping
ng lov
ove
e of n
nat
ature,
at
e, o
offe
fferi
ring o
our
awareness
society,
developing
love
nature,
offering
empl
em
ploy
pl
oyees and
oy
and stakeholders
stak
st
akeh
ak
ehol
eh
olde
ol
ders a gift
de
gif
g
iftt of nature.
if
nat
atur
at
ure.
ur
employees
Dete
De
termin
te
inin
in
ing ou
in
our carbon
carb
ca
rbon ffoo
rb
ootp
oo
tpri
tp
rint
nt, we rem
emin
em
ind
d ou
our
Determining
footprint,
remind
envi
en
viro
vi
ronm
ro
nmenta
nm
tall re
resp
spon
sp
onsibi
on
bilililiti
bi
ties
es onc
nce ag
nc
again wi
with
th tthi
hiss pr
proj
ojec
oj
ect.
t.
environmental
responsibilities
once
this
project.
We aass
ssur
ss
ure that
ur
that w
we are
are well
well aawa
ware
wa
re o
off ou
ourr duty
du ffor
or fut
utur
ure
ur
e
assure
aware
future
genera
ge
rati
ra
tion
ti
ons an
on
and
d we w
willl no
nott fo
forg
rget
rg
et o
our respo
ponsib
ibilit
ib
itie
ies du
ie
during
ng
generations
forget
responsibilities
the
th
e produc
uction.
uc
production.
In ord
rder
rd
er tto re
redu
duce
du
ce our
our ccarbo
bon fo
foot
otpr
ot
prin
intt on n
nat
atur
at
ure
ur
e as a
order
reduce
carbon
footprint
nature
part
pa
rt o
of ou
ourr su
sustai
aina
ai
nabi
na
bililility
bi
ty app
ppro
pp
roac
ro
ach,
ac
h, w
we
e cr
crea
eate
ea
ted
te
d “M
“Milte
teks
te
ks
sustainability
approach,
created
“Milteks
Comm
Co
mmem
mm
emor
em
orat
or
ative
at
e Fo
Fore
rest” in Tekirdag
re
TTek
ekirdag
ek
g on b
beh
ehal
eh
alff of our
al
Commemorative
Forest”
behalf
stak
akeh
ak
ehol
eh
olde
ol
ders
de
rs in
n 20
2010
10 w
whe
here
he
re tthousan
ands
ds o
off tr
tree
eess are
ee
are “greening”.
“gre
“g
reenin
re
ing”
in
g”.
g”
stakeholders
where
thousands
trees
Led by TTEM
Le
EMA
EM
A Foundation,
Foun
Fo
unda
dati
da
tion
ti
on, th
on
thou
ousa
ou
sand
sa
nds of ssap
nd
apling
ap
ngs ar
ng
are grow
own
ow
n
TEMA
thousands
saplings
grown
in K
Kon
onya
on
ya,, Ka
ya
Kara
rapi
ra
pina
pi
narr on 2
na
201
011
01
1 un
unde
der “Com
de
omba
om
bati
ting
ti
ng Soi
oil Er
oi
Eros
osio
os
ion”
io
n”
Konya,
Karapinar
2011
under
“Combating
Soil
Erosion”
project.
pr
t. M
Milte
teks
te
ks ccre
reat
re
ated
at
ed a sustainable
ssus
ustainab
able
le effe
ffect
ct o
on
n co
comm
mmunityy wi
mm
with
th Mi
Milteks
created
effect
community
Milt
ltek
lt
ekss chos
ek
ose
e to u
use
se 1
100
00%
00
% recycled
recy
re
cycl
cled
ed p
pap
aper
ap
erss in
Milteks
chose
100%
papers
soci
so
cial
ci
al res
espo
es
pons
po
nsibility activities
ns
activi
viti
ties
ti
es aand
nd w
will co
cont
ntin
nt
inue
in
ue d
doi
oing.
oi
social
responsibility
continue
doing.
prom
pr
omotio
ional item
emss lilike
ke not
oteboo
ooks
oo
ks and
nd p
pen
enss in
en
promotional
items
notebooks
pens
2011
20
11.
11
2011.
Commemorative Forest
In order to reduce our carbon footprint on nature as a
part of our sustainability approach, we created “Milteks
Commemorative Forest” in Tekirdag on behalf of our
stakeholders in 2010 where thousands of trees are
“greening”.
66
Led by TEMA Foundation, thousands of saplings are
grown in Konya, Karapinar on 2011 under “Combating
Soil Erosion” project. Milteks created a sustainable
effect on community with social responsibility activities
and will continue doing.
67
GRI Index
1.1
1.2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
Strategy and Analysis
Statement from the most senior decision-maker
DescripƟon of key impacts, risks, and opportunŝƟĞƐ
OrganŝƐĂƟonal ProĮle
Name of the organŝƐĂƟon
Primary brands, products, and/or services
KƉĞƌĂƟonal structure of the organisaƟon
LocaƟon of organŝƐĂƟon’s headquarters
Number of countries where the organŝƐĂƟon operates
Nature of ownership and legal form
Markets served including geographic breakdown, sectors served, and
types of customers/bĞŶĞĮciaries)
2
2,3
4
10,11
6
6
6,8,9
4
10,11
Scale of the repoƌƟng organŝƐĂƟon
SignŝĮcant changes during the reporƟng period regarding size, structure,
or ownership
1
2.10
Awards received in the repoƌƟng period
6,7,16,17
3.1
3.3
3.4
3.5
3.6
3.7
3.8
Report ProĮle
RepoƌƟng period
RepoƌƟng cycle
Contact point for quesƟons regarding the report or its content
Process forĚĞĮning report content
Boundary of the report
State any speĐŝĮc limŝƚĂƟons on the scope or boundary of the report
Basis for repoƌƟng on joint ventures, subsidiaries, leased faciliƟes,
outsourced opĞƌĂƟons and other enƟƟĞƐ
1
1
1
1
1
1
1
Data measurement techniques and the bases of calculĂƟons
Table idĞŶƟfying the locaƟon of the standard disclosures in the report
1
68,69,70
3.9
3.12
68
1,6
4.1
4.2
4.3
Governance, Commitments and Engagement
Governance structure of the organisaƟon
Indicate whether the Chair of the highest governance body is also an
exĞĐƵƟve oĸcer
State the number of members of the highest governance body that are
independent and/or non-exeĐƵƟve members
6
4,6
4
4.4
Mechanisms for shareholders and employees to provide recommendĂƟons or
37
dŝƌĞĐƟon to the highest governance body
4.7
Process for determining the qualiĮĐĂƟon and expĞƌƟse of the members of the
highest governance body for guiding the organŝƐĂƟon’s strategy on economic, 2,3
environmental, and social topics
4.8
Internally developed statements of mission or values, codes of conduct, and
principles relevant to economic environmental and social performance and
the status of the implementaƟon
14,37,52
Procedures of the highest governance body for overseeing the organŝƐĂƟon’s
idĞŶƟĮĐĂƟon and management of economic, environmental and social
performance
6
4.11
ExplanĂƟon of whether and how the precauƟonary approach or principle is
addressed by the organisaƟon
2,3,6
4.12
Externally developed economic, environmental and social charters, principles,
11,33
or other iniƟĂƟves to which the organŝƐĂƟon subscribes or endorses
Membership in associaƟons and/orŶĂƟonal/internaƟonal advocacy
3,6,7,16,17
organŝƐĂƟons
4.9
4.13
4.14
4.15
List of stakeholder groups engaged by the organŝƐĂƟon
Basis for idenƟĮĐaƟon and selecƟon of stakeholders with whom to engage
4.16
Approaches to stakeholder engagement, including frequency of engagement
by type and by stakeholder group
37
4.17
Key topics and concerns that have been raised through stakeholder
engagement, and how the organŝƐĂƟon has responded to those key topics
and concerns, including through its repoƌƟng
39,40,41,42,43,44
10,11,45
37
69
EC1
EC4
EC6
EC7
EC8
18
SignŝĮcant Įnancial assistance received from government.
Policy, praĐƟĐes, and propoƌƟon of spending on locally-based suppliers at
signŝĮcant locaƟons of opeƌĂƟon
19
Procedures for local hiring and propoƌƟon of senior management hired from the
local community at loĐĂƟons of signŝĮcant opĞƌĂƟon.
25
Development and impact of infrastructure investments and services provided
primarily investments and services provided primarily for public benĞĮƚ through
commercial, inkind, or pro bono engagement
50,51,56
EN1
EN2
EN3
EN4
EN5
EN8
EN16
EN22
Environmental Performance
Materials used by weight or volume.
Percentage of materials used that are recycled input materials
Direct energy consumpƟon by primary energy source.
Indirect energy consumpƟon by primary source.
Energy saved due to conservĂƟon and eĸciency improvements
Total water withdrawal by source
Total direct and indirect greenhouse gas emissions by weight.
Total weight of waste by type and disposal method.
LA1
LA2
Social Performance: Labour PracƟĐes and Decent Work
Total workforce by employment type, employment contract and region
Total number and rate of employee turnover by age group, gender and region
LA10
LA13
70
Economic Performance
Direct economic value generated and distributed, including revenues, opeƌĂƟng
costs, employee compensaƟon, donĂƟons and other community investments,
retained earnings and payments to capital providers and governments
Average hours of training per year per employee by employee
CompoƐŝƟon of governance bodies and breakdown of employees per category
according to gender, age group, minority group membership, and other
indicators of diversity. stakeholder group
19
62
62
59,60
61
59,60,61
61
57
62
23
24
26
25
71
Milteks 2011 Sustainability Report conceptualized, designed and DTP by Milteks Textile.
©2011 Milteks. All rights reserved.
www.milteks.com.tr
Main Office & Factory :
Milteks Tekstil Sanayi ve Ticaret A.Ş.
Bakır ve Pirinççiler Sanayi Sitesi,
Mustafa Kurdoğlu Caddesi, No:7,
Beylikdüzü-Büyükçekmece- İstanbul-Türkiye
Tel: 00902128761934
e-mail: info@milteks.com.tr
Factory Fatsa :
Ceseka Tekstil ve Konf. San. ve Tic. A.Ş.
Fatsa Organize Sanayi Bölgesi, Parsel 561-562
Fatsa-Ordu-Türkiye
Tel: 00904524238111
e-mail: info@ceseka.com.tr
Factory Georgia 1 :
Ajara Textile LTD.
Bobokvati Village, Kobuleti- Batumi- Georgia 6200
Tel: 00995426262380
e-mail: info@ajaratextile.com
Factory Georgia 2 :
Ajara Textile LTD.
Tbeti Str. 3, Tamara District- Batumi- Georgia 6000
Tel: 00995422250523
e-mail: info@ajaratextile.com