Organizational Strategy - Sustainable Development - L'Oréal

4 L’OréaL - GrI DaTa SHEETS 2011
4.9
The Strategy and Sustainable Development Committee demonstrates the Board’s determination to ensure that L’Oréal has all of the
means and resources to meet all of the challenges of sustainable growth.
Through its analyses, the Committee clarifies the strategic lines put before the Board and monitors the achievement and development
of significant operations in hand. It monitors the maintenance of major financial balances. In that respect, the Committee examines
outlines, options and strategic projects presented by the Senior Management with their economic and financial consequences, acquisition
opportunities, financial transactions liable to significantly affect the structure of the balance sheet. The Committee also ensures that the
group’s commitments as regards Sustainable Development, issues specific to the group’s business and aims are fully taken into account. In
that respect, the Committee examines the means and resources employed and reports to the Board.
In 2011, the Committee welcomed a new independent director, Louis Schweitzer, which brought the number of its members to seven. The
Committee is chaired by the Chairman and CEO (Jean-Paul agon), there are two members of the Bettencourt family (Liliane Bettencourt
and Jean-Pierre Meyers), two members are from Nestlé (Peter Brabeck Letmathe and Francisco Castañer Basco) and two independent
directors are also on the Committee (Bernard Kasriel and Louis Schweitzer). all these directors take part in Committee meetings with complete
freedom of judgement and in the interests of all shareholders.
The Committee met five times 2011, with an attendance rate of 92%.
The Committee periodically analysed business in terms of sales and results, and the outlook and development opportunities for the group
and its Divisions as markets and the competition evolve.
Throughout the year, acquisition plans were examined by the Committee before being presented to the Board for a decision. In addition,
the Committee appraised itself of the industrial strategy, especially in New Markets, as part of a process of localising, seeking flexibility
and adapting to local constraints. additionally, at each of its meetings, the Committee examined the latest high added value product
launches in terms of innovation. Lastly, in 2011, the Committee took advantage of the opportunity to have the Company’s Sustainable
Development policy presented and noted that the policy aims to:
• ensure ongoing economic growth, built on a model valuing staff diversity;
• favour ethical, responsible behaviour on a daily basis, and develop new ways as regards sustainable consumption;
• share the group’s development through public spirited actions.
On all its work, the Committee reported to the Board.
> For additional information, see the “2.2.2.1.2. The work of Board of Directors’ Committees” section on pages 43 and 44 of the 2011
reference Document.
4.10
Chairman Jean-Paul aGON (March 2011)
Members Liliane BETTENCOUrT (2004)
Jean-Pierre MEYErS (2004)
Peter BraBECK-LETMaTHE (2005)
Francisco CaSTaNEr-BaSCO (2004)
Bernard KaSrIEL (2004)
Louis SCHWEITZEr (april 2011)
Every year, the Board assesses its composition, organization and the way in which it works. From a summary of prior individual interviews
between the director and the Secretary to the Board, the Board considers routes for progress still possible and, after discussion, took the
improvement measures that it deemed relevant. The assessment is made in accordance with the aFEP-MEDEF Code, to which the Board
refers.
again in 2011, the directors exercised complete freedom of judgement. Their freedom of judgement enables them to play their part,
entirely independently, in the Board’s work and joint decisions and, when applicable, in preparatory work then in proposals by the Board’s
Committees.
The Board was of the opinion that the quality of its meetings, as regards what had been anticipated as routes for progress on completion
of the self-assessment at end of 2010, continues to improve, in particular on the group’s strategic issues which are regularly discussed and
debated, in the presence of management members of the Executive Committee. This year again, the strategic approach was scrutinised
in depth as part of the Board’s work, as regards the development of brands, countries and markets in which the group operates and, in
that respect, the Board’s attention is particularly focused on the major developments in research and Innovation that are at the heart
of the group’s strategy. In 2011, the Board spent an entire day on research at one of its laboratories. L’Oréal’s research is essential to the
group’s growth, through its discoveries, in compliance with quality, safety and efficacy standards and to aid performance for consumers,
wherever they may be in the world. L’Oréal has established an international presence in its research and Innovation activity with five
regional centres: in France, the USa, Japan, China and Brazil.
In 2011, the Board assessed the quantity, frequency and format of information that it is sent as regards the general business and main events
in the life of the group. The provision of documents prior to meetings of the Board or Committees, in accordance with the requirements for
confidentiality and time constraints that the Company is subject to, favours the quality of discussion.
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