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Organizational Strategy - Sustainable Development - L'Oréal

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4 L’OréaL - GrI DaTa SHEETS 2011<br />

A STRONG COMMITMENT TO SOCIAL RESPONSIBILITY AND SAFETY<br />

Like the rest of group, the Operations Division plays a major part as regards social responsibility and safety. Through its “Buy & Care”<br />

programme, L’Oréal encourages its suppliers to take greater responsibility and checks their commitment rigorously through numerous<br />

social audits at suppliers around the world. The aim is not to penalise suppliers but to help them to improve their safety standards and<br />

environmental and social performance.<br />

By creating the “Solidarity Sourcing” programme, the group has forged the initiative to take on local suppliers that are committed to<br />

favouring minorities: disabled workers or ones from disadvantaged environments. It can also involve very small suppliers or ones in fair<br />

trade which L’Oréal is developing through its suppliers.<br />

as regards safety, the Operations Division is especially attentive to staff who work at production sites. They are trained to comply with<br />

safety rules and every day observe “a safety minute” in order to prevent and avoid accidents.<br />

> For further details, see the “‘Solidarity Sourcing’, a supportive world sourcing programme” section on page 40 of the 2011 <strong>Sustainable</strong><br />

<strong>Development</strong> report.<br />

4.12<br />

L’Oréal supports and implements in its sphere of influence, the ten fundamental principles relating to Human rights, labour law,<br />

environmental standards and combating corruption.<br />

UNITED NATIONS GLOBAL COMPACT<br />

Its commitments<br />

L’Oréal has been a signatory of the United Nations Global Compact since 2003 and a member of the French Global Compact Forum<br />

(Forum des Amis du Pacte Mondial).<br />

Progress report<br />

L’Oréal supports and implements in its sphere of influence, the ten fundamental principles relating to Human rights, labour law,<br />

environmental standards and combating corruption.<br />

L’Oréal works closely with the following major associations and institutes to advance practices and share its experience:<br />

• The International Chamber of Commerce’s anti-Corruption Commission<br />

• Global Council on Business Conduct, The Conference Board<br />

• Ethics and Compliance Officers association<br />

• International Business Ethics Institute<br />

• Institute of Business Ethics<br />

• Circle of Business Ethics<br />

Human rights<br />

Principle 1: Businesses are asked to promote and respect the protection of international law on human rights in their sphere of influence;<br />

and,<br />

Principle 2: To ensure that their own companies are not complicit in breaching human rights.<br />

• Its commitment: L’Oréal supports the United Nations Universal Declaration of Human rights. L’Oréal wants, in particular, to contribute to<br />

eliminating the exploitation of children in the workplace and forced work, to ensure that workers’ rights are respected and to promote<br />

diversity.<br />

• System: L’Oréal’s policy on Human rights (corriger partout) is detailed in the Code of Business Ethics (pdf). Staff can report their concerns<br />

in this sphere to the group Head of Ethics through a dedicated, secure web site. a strict policy prohibits any reprisals against staff who<br />

have reported their concerns in good faith.<br />

• The group’s training on Ethics makes staff aware of questions related to Human rights.<br />

• L’Oréal’s monitoring system provides that independent auditors regularly conduct audits of all group plants and distribution facilities, as<br />

well as of suppliers and subcontractors.<br />

• The annual reporting system on Ethics allows L’Oréal to assess the group’s performance as regards Human rights.<br />

• 2010 actions: L’Oréal’s world-wide subsidiaries have been asked to inform and train their personnel more on ethical questions, including<br />

questions related to Human rights.<br />

• 2010 results: 6% of countries informed staff on the Ethics theme at least in 2010 (+ 1% compared to 2009).<br />

60% of countries informed staff on five or more themes related to Ethics (+ 7% compared to 2009) / 90% of countries set up local training<br />

on at least one theme related to Ethics (+ 2% compared to 2009) / 55% of countries set up local training on 5 or more themes related to<br />

Ethics (stable since 2009).<br />

Labour standards<br />

Principle 3: Businesses are asked to respect freedom of association and to acknowledge the right of collective negotiation.<br />

• Its commitment: L’Oréal supports the fundamental principles of the United Nations Universal Declaration of Human rights and the<br />

International Labour Organization’s fundamental agreements. L’Oréal wants, in particular, to contribute to ending the exploitation of<br />

children in the workplace and forced work, to ensure that workers’ rights are respected and promote diversity.<br />

• Systems: all L’Oréal’s suppliers and subcontractors are required to comply with the group’s General Terms of Procurement, that clearly state the obligation<br />

to comply with International Labour Organization conventions C87 and C98 on freedom of association.<br />

• Systems: all L’Oréal’s suppliers and subcontractors are required to comply with the group’s General Terms of Procurement, that clearly<br />

state the obligation to comply with International Labour Organization conventions C87 and C98 on freedom of association.<br />

2010 actions: an agreement signed in 1996 between L’Oréal and the French and European trades union organizations (FECCIa and<br />

EMCEF) lead to the creation of the Instance européenne de dialogue social (IEDS/EWC – European Works Council). The IEDS consists<br />

of 30 members. Data from various European countries which regularly benefit from training courses on economic and social questions, is<br />

reviewed by PricewaterhouseCoopers. a new consultation process has been introduced concerning cross-border projects involving<br />

9/13

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