Organizational Strategy - Sustainable Development - L'Oréal

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4 L’OréaL - GrI DaTa SHEETS 2011 A STRONG COMMITMENT TO SOCIAL RESPONSIBILITY AND SAFETY Like the rest of group, the Operations Division plays a major part as regards social responsibility and safety. Through its “Buy & Care” programme, L’Oréal encourages its suppliers to take greater responsibility and checks their commitment rigorously through numerous social audits at suppliers around the world. The aim is not to penalise suppliers but to help them to improve their safety standards and environmental and social performance. By creating the “Solidarity Sourcing” programme, the group has forged the initiative to take on local suppliers that are committed to favouring minorities: disabled workers or ones from disadvantaged environments. It can also involve very small suppliers or ones in fair trade which L’Oréal is developing through its suppliers. as regards safety, the Operations Division is especially attentive to staff who work at production sites. They are trained to comply with safety rules and every day observe “a safety minute” in order to prevent and avoid accidents. > For further details, see the “‘Solidarity Sourcing’, a supportive world sourcing programme” section on page 40 of the 2011 <strong>Sustainable</strong> <strong>Development</strong> report. 4.12 L’Oréal supports and implements in its sphere of influence, the ten fundamental principles relating to Human rights, labour law, environmental standards and combating corruption. UNITED NATIONS GLOBAL COMPACT Its commitments L’Oréal has been a signatory of the United Nations Global Compact since 2003 and a member of the French Global Compact Forum (Forum des Amis du Pacte Mondial). Progress report L’Oréal supports and implements in its sphere of influence, the ten fundamental principles relating to Human rights, labour law, environmental standards and combating corruption. L’Oréal works closely with the following major associations and institutes to advance practices and share its experience: • The International Chamber of Commerce’s anti-Corruption Commission • Global Council on Business Conduct, The Conference Board • Ethics and Compliance Officers association • International Business Ethics Institute • Institute of Business Ethics • Circle of Business Ethics Human rights Principle 1: Businesses are asked to promote and respect the protection of international law on human rights in their sphere of influence; and, Principle 2: To ensure that their own companies are not complicit in breaching human rights. • Its commitment: L’Oréal supports the United Nations Universal Declaration of Human rights. L’Oréal wants, in particular, to contribute to eliminating the exploitation of children in the workplace and forced work, to ensure that workers’ rights are respected and to promote diversity. • System: L’Oréal’s policy on Human rights (corriger partout) is detailed in the Code of Business Ethics (pdf). Staff can report their concerns in this sphere to the group Head of Ethics through a dedicated, secure web site. a strict policy prohibits any reprisals against staff who have reported their concerns in good faith. • The group’s training on Ethics makes staff aware of questions related to Human rights. • L’Oréal’s monitoring system provides that independent auditors regularly conduct audits of all group plants and distribution facilities, as well as of suppliers and subcontractors. • The annual reporting system on Ethics allows L’Oréal to assess the group’s performance as regards Human rights. • 2010 actions: L’Oréal’s world-wide subsidiaries have been asked to inform and train their personnel more on ethical questions, including questions related to Human rights. • 2010 results: 6% of countries informed staff on the Ethics theme at least in 2010 (+ 1% compared to 2009). 60% of countries informed staff on five or more themes related to Ethics (+ 7% compared to 2009) / 90% of countries set up local training 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 Ethics (stable since 2009). Labour standards Principle 3: Businesses are asked to respect freedom of association and to acknowledge the right of collective negotiation. • Its commitment: L’Oréal supports the fundamental principles of the United Nations Universal Declaration of Human rights and the International Labour Organization’s fundamental agreements. L’Oréal wants, in particular, to contribute to ending the exploitation of children in the workplace and forced work, to ensure that workers’ rights are respected and promote diversity. • 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 to comply with International Labour Organization conventions C87 and C98 on freedom of association. • 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 to comply with International Labour Organization conventions C87 and C98 on freedom of association. 2010 actions: an agreement signed in 1996 between L’Oréal and the French and European trades union organizations (FECCIa and EMCEF) lead to the creation of the Instance européenne de dialogue social (IEDS/EWC – European Works Council). The IEDS consists of 30 members. Data from various European countries which regularly benefit from training courses on economic and social questions, is reviewed by PricewaterhouseCoopers. a new consultation process has been introduced concerning cross-border projects involving 9/13
4 L’OréaL - GrI DaTa SHEETS 2011 local consultation procedures in at least two countries. • 2010 results: In France, 90 bodies bring together more than 500 personnel representatives. Data reviewed by PricewaterhouseCoopers. The European Works Council (IEDS/EWC) was created in 1996, subsequent to agreements made with French and European trades unions FECCIa and EMCEF. It covers 26 countries and more than 30,600 employees. In most countries, L’Oréal pays minimum wages appreciably higher than the legal minimum wage (both nationally and regionally, or as determined by joint agreements). For example, in argentina, wages are 96% higher and in China, they are 82% higher. Principle 4: Eliminating all forms of forced or coerced labour. • Its commitment: the same as Principle 3 • Systems: all L’Oréal suppliers and subcontractors are required to comply with the group’s General Terms of Procurement, that clearly state the obligation to comply with the International Labour Organization conventions C29 and C105 on the abolition of forced labour. • 2010 actions: In 2009, L’Oréal extended its programme of social audits to suppliers. The group conducted 567 audits at suppliers’ sites around the world in 2010, or more than 2,148 to date. • 2010 results: 28% breaches found at suppliers’ sites by audits conducted by L’Oréal concerned working hours and 26% concerned wages and benefits. Principle 5: The effective abolition of child labour. • Its commitment: the same as Principle 3 • Systems: all L’Oréal suppliers and subcontractors are required to comply with the group’s General Terms of Procurement, that clearly state the obligation to comply with the International Labour Organization conventions C138 and C182 on the prohibition of child labour. • L’Oréal has set the minimum age for all its staff at 16. Staff aged between 16 and 18 also receive special attention. all L’Oréal entities must confirm the age of staff before they are employed. • 2010 actions: In 2009, L’Oréal extended its programme of social audits to suppliers. The group conducted 567 audits at suppliers’ sites around the world in 2010, or more than 2,148 to date. • L’Oréal has created a policy entitled “Suppliers/Subcontractors and child labour” (pdf). • 2010 results: 9% of breaches found at suppliers’ sites by audits conducted by L’Oréal concern child labour. Principle 6: The elimination of discrimination in employment and at work. • Its commitment: the same as Principle 3. • Systems: all L’Oréal suppliers and subcontractors are required to comply with the group’s General Terms of Procurement, that clearly state the obligation to comply with the International Labour Organization conventions C100 and C111 on equality. Environment Principle 7: Businesses are asked to apply the precaution approach to address problems affecting the environment. Principle 8: Undertake initiatives to promote heightened environmental responsibility. Principle 9: Promote the development and application of technologies kind to the environment. • Its commitment: L’Oréal has long been committed to favouring the protection of the environment and reducing climate change, as stated in the group’s Environment, health and safety (EHS) policy. • To protect and promote biodiversity, since 2005, L’Oréal has adopted an approach meeting the goals of the Convention on biological diversity and the recommendations in the Convention on International Trade in Endangered Species (CITES). • L’Oréal undertakes to promote efficient operation and quality manufacturing. The Company has thus invested substantial sums in hightech facilities, which greatly contribute to reducing its footprint, whenever possible, in accordance with the aims of its environment protection programme. • Where research and Innovation are concerned, its constant commitment to sustainable development means environmentally friendly procedure design, application of the “green chemistry” principles in the formulation process and growing expertise in sourcing organic and natural products that respect the environment. • Systems: L’Oréal uses internationally renowned systems, including the ISO 14001 standard, for environmental management. • L’Oréal’s world ESS auditing programme assesses progress and the compliance of its practices with its policies and ESS standards. The group also conducts audits at suppliers’ sites. • 2010 actions: L’Oréal has set a target of halving its CO 2 emissions, water consumption and waste production by 2015 (reductions will be calculated using comparable data for the 2005-2015 period). • 2010 results: apart from in the energy sector, the group has achieved spectacular results by radically reducing its water consumption, transportable waste production, greenhouse gas, sulphur dioxide, volatile organic component emissions and wastewater quality index. L’Oréal is also pleased to have met its safety target. Combating corruption Principle 10: Businesses are asked to act against corruption in all its forms, including extortion and bribery. Commitment and policy: • Components from the basic report: B1/B2 L’Oréal supports the war against corruption, complies with the United Nations Convention against corruption and is committed to applying current legislation, in particular laws against Corruption. This commitment is stated in the L’Oréal Code of Business Ethics on the corporate web site. • Components of the report wanted: D1 The L’Oréal Code of Business Ethics publicly states a policy of zero tolerance as regards corruption, except in rare cases where the safety of an employee is at stake. The anti-corruption policy detailed in the Code of Business Ethics applies to all staff, Officers of the Company and members of the group’s Executive and Management Committees and to its world-wide subsidiaries. • D2 L’Oréal complies with the United Nations Convention against Corruption and is part of the International Chamber of Commerce’s anti-Corruption Commission. • D3 Country Heads have a practical means enabling them to appraise and analyse any ethical risks, specifically, ones relating to corruption, in order to take the measures necessary to remedy them. They are asked to make this appraisal every year and to check progress resulting from measures taken, where applicable. 10/13
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Organizational Strategy - Sustainable Development - L'Oréal

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