Human Rights Issues to take i̇nto Consideration while doing Business in Turkey

last updated on 26 July 2023 | reading time approx. 2 minutes

Export of mechanical products is one of the largest industries in Turkey. 60 percent of the products is exported to EU countries including Germany, England, France, Italy, and the USA. Particularly, the machinery sector adds value to Turkey's economy by encoring the use of high technology, creating a large scale of subindustry and supply chains.

Many of the players of this industry are foreign-invested companies and they play a different role among the entire supply chain. This sector including various lines of products and services creates a dynamic and speedily growing economy. But at the same time, the risks towards the labor rights emerge. Although freedom of labor unions and workers’ rights are granted by the law, we can still come across unfair labor practices from time to time.

WORKING CONDITIONS

Working conditions regarding the health and safety issues mostly don’t meet the standards set forth by the law. With the attitude that promotes the underpaid workforce in order to attract investors, it becomes even more difficult to ensure the balance between workload and payment of employees. Moreover, while female employees enjoy the same rights as male employees before the law, societal and official discrimination can still be observed.

Please note that the type and density of the violation vary at different stages of the supply chain. Sometimes it is hard to detect the human rights violation that occurred in a top-ranked supplier. For example, in such companies, when the volume of the labor rights violation is high and appears frequently, but the substance of the violation is not severe, the violation is perceived as not that much unlawful.

KNOW YOUR SUPPLIERS

It is important to know your suppliers not only by the daily business but also by considering how they communicate the values they have. It is also important to gain an insight into the business habitat and regular practices by visiting the fields where the suppliers operate. This can help to understand the deep-rooted attitudes and practices that may be a hardship to carry out the due diligence responsibilities.

In this regard, it is recommended to discuss labor union freedom with the suppliers, create a complaint mechanism, ask suppliers to submit the documents proving that the measures against the health and safety risks are taken or equal pay for male and female employees is guaranteed. Providing a living wage for all employees is also important, as a living wage is a universal human right and is included in the UN Human Rights Declaration.

EMERGING ENVIRONMENTAL ISSUES

Air pollution, soil and water contamination, biodiversity, and deforestation are the major environmental issues. Industrial pollution influences the flora and fauna of Turkey negatively.

According to the World Health Organization (WHO), Turkey suffers from excessive air pollution. Toxic gases generated along the industrial production phases are severely threatening human health. The water sources are becoming polluted by industrialization. Private companies and public authorities fail to comply with the international treaties regarding the protection of the environment.

Therefore, it is crucial to raise awareness among employees and suppliers of their water consumption and usage. Effective collaboration among the customer and suppliers can help comply with the legal requirements.

IMPACT OF THE EUROPEAN GREEN DEAL ON TURKISH COMPANIES WITHIN THE CONTEXT OF SUPPLY CHAIN ACT

The German Supply Chain Act not only requires the supply chain to be free of human rights violations, but also aims to raise awareness towards environmental problems. Various regulations have been put into effect by the EU in this regard.

Even though Turkey is not a country of the European Union and is not directly bound to the aforementioned EU regulations, most Turkish companies are part of the supply chain due to the cooperation between EU countries and Turkey in many industries, from the production of spare parts to the delivery of goods, and thus indirectly bound by the aforementioned EU regulations. Therefore, Turkey`s Ministry of Commerce is closely following the developments and evaluating the impact of the regulations in force and especially the European Green Deal`s on Turkish companies.

In fact, the Ministry of Commerce first published a Green Deal Action Plan for Turkey on 16 July 2021. The action plan aims to 1) contribute to Turkey's transition to a sustainable and resource-efficient economy and 2) to ensure that Turkey complies with the comprehensive changes envisioned by the European Green Deal in a way that preserves the integration achieved under the Customs Union.

This action plan includes measures under the headings of:

carbon regulations at the border
a green and circular economy
green finance
a clean, affordable and secure energy supply
green agriculture
green smart transport
combating climate change
diplomacy and
information and education, including 81 measures.

A committee under the Turkish Ministry of Commerce is currently working for the adaptation of the measures introduced by the EU regulations.

As a member of the Customs Union, Turkey is also following the developments in the EU regulations in order not to lag behind the measures to be taken, as such failure would most probably impact the trade in and out of Turkey. In this context, Turkey pays close attention to the regulation for establishing the carbon border adjustment system, which was introduced in the EU and is scheduled to enter into force on 1 October 2023, and which is also regulated in the Turkish Ministry of Commerce`s action plan. To underline the importance of compliance with EU regulations, especially in relation to the supply chain, the Ministry of Commerce provides awareness raising programs for Turkish private companies.