Organizational Strategy - Sustainable Development - L'Oréal

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5 L’oréaL - GrI DaTa SHEETS 2011 Growth of published group staff numbers (companies taken proportional to their rate of consolidation) Distribution by gender and average age of staff (Scope: Cosmetics and TBS) INDIRECT ECONOMIC IMPACTS Cosmetics The Body Shop Dermatology Group 2010 2011 2010 2011 2010 2011 2010 2011 Western Europe 23,996 24,254 4,803 4,891 743 1,011 29,542 30,155 4 North America 11,110 11,762 3,231 2,948 470 485 14,811 15,195 4 Asia Pacific 11,449 12,531 772 688 223 286 12,444 13,505 4 Latin America 4,674 4,760 , , 205 233 4,879 4,993 4 Eastern Europe 3,127 3,186 ,, , 20 22 3,146 3,207 4 Africa/Middle East 1,783 1,817 , , 15 15 1,798 1,832 4 New markets 21,033 22,293 772 688 462 555 22,266 23,536 4 Total 56,139 58,309 8,806 8,527 1,674 2,050 66,619 68,886 4 TOTAL MEN WOMEN AGE Western Europe 29,145 9,686 19,459 38 North America 14,710 4,223 10,487 38 Asia Pacific 13,219 4,103 9,116 33 Latin America 4,760 2,314 2,446 36 Eastern Europe 3,186 1,102 2,084 33 Africa/Middle East 1,817 836 981 37 New markets 22,981 8,355 14,626 34 Total 66,836 22,264 4 44,572 4 37 4 I. CONTENTS CORe EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in kind, or pro bono engagement. II. STATE OF THE L’ORéAL’S POLICY IN 2011 aDD 12/14 EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts. % women 67% 71% 69% 51% 65% 54% 64% 67%
5 L’oréaL - GrI DaTa SHEETS 2011 EC8 sPONsORsHIP: GROUP sUbsIDIaRIes MaKe COMMITMeNTs TO THeIR COMMUNITY aND FIGHT aGaINsT INseCURITY bY PROVIDING WORK TO THe MOsT DIsaDVaNTaGeD. L’oréal has always fought against exclusion and insecurity, especially by training less favoured groups in the beauty industry. a strong group commitment to give back material independence and a future to the most vulnerable. Group subsidiaries have therefore launched example initiatives, like in Vietnam, where the “beauty for a Living” programme has already allowed 120 less favoured women, victims of violence or insecurity, to be offered training as hairdressers. a joint initiative with the Polytechnic University of Ho Chi Minh City, the Women’s association, conducted with technical support from L’oréal Professional teams, which has enabled 12 graduates to open their own salons and others to find work, increasing their income by a factor of two or even four times. The programme was welcomed by the government. In Brazil, L’oréal concentrates its work on the young in the less favoured communities of Sao Paulo and rio de Janeiro, fighting against the shortcomings in the education system. Its “oficina de Beleza” programme offers professional training as make-up artists and hair stylists. apart from training, students benefit from networking opportunities and work with L’oréal partners in “Fashion and Beauty” weeks or on television. 66% of the 130 young people trained have joined the job market. The subsidiaries also adapt to new needs in their community. L’oréal Thailand thus extended its “Beautiful Tomorrows” programme, intended for women who are victims of violence to those who have lost their jobs following the closure of factories caused by the floods in November 2011. This programme awards bursaries for eight months of intensive training in beauty trades at Ketvadi-Gandini International Hair Dressing academy, in order to give them back the stable resources which they need. L’oréal Singapore is engaged with the National association for the Visually Impaired by offering make-up and care and “appearance management workshops to these disabled people. In Japan, “100 Love Hands” gives hand massages to improve the well-being of women suffering from cancer and to mothers of children with rare diseases. Insertion through the beauty trades is another strong commitment: Through its “Beauty for a Living” programme, L’oréal Vietnam has helped 120 young women, since 2009, to escape from distress by training them as hairdressers, allowing them to open their own salons or to find employment. other countries undertake education for little girls, like, for the last three years, L’oréal Morocco, which has developed the “School for all” programme with the INSaF association (National Institute for solidarity with Women in Distress), to promote the education of little girls and fight against them being condemned to do domestic work. In 2011, workers also re-developed the premises of the Hsaine school in the Chichaoua region, that teaches 270 pupils. L’oréal entities also make commitments to emergency programmes. In Thailand, during the recent floods that struck the country, L’oréal’s local teams assisted 10,000 victims in emergency centres in the capital, by distributing emergency hygiene products and offering haircuts. In the longer term, the subsidiary is committed to extending its training programme in the beauty trades, initially intended for women who are victims of violence, to those who lost their jobs due to the factory closures resulting from the floods. Key figures: In 2011, L’oréal invested €33,208,098 around the world (other than sponsoring), allocated as follows: • Foundation: €8,140,848 • Corporate: €11,221,376 • Brands: €13,845,874 Three main areas of action: • Science: promoting careers for women in science • Solidarity: assisting the most vulnerable to rediscover dignity and self-confidence • Education: making education more accessible EC9 TOWaRDs beTTeR aCCess TO THe PRODUCTs Today, the western world is no longer the most dominant market for the cosmetics industry. To attract new consumers, while ensuring that products are accessible to them, requires constantly working on the economic suitability of the offering to the diversity of local populations. Taking the local specifics of different markets into account has a change effect on the design work done by teams. To best adapt the product offering to consumers’ requirements, the directors of subsidiaries and the local marketing departments now work closely with Product Development and Packaging teams. actually, accelerating innovation for new markets such as India, the Philippines and other aSEaN countries, requires knowledge of specific market requirements: for example, the right format for the product, the right process and ad hoc distribution. To adapt to south asian markets like Thailand, for example, L’oréal had opted initially for essentially urban distribution in hypermarkets. The launch of 10 g sachets, distributed in a large number of rural superettes enabled a strong acceleration of growth and, today, the group is the leader in skin care. This small-size packaging fits with consumers’ purchasing power, some paid by the week, as in the Philippines, where everything is in sachets, from facial care to cigarettes. In India and in Indonesia, shampoo in 80 ml bottles is the most popular. In parallel with these low-paid populations, a huge explosion of the middle classes in the big cities means that consumers are aspiring to beauty practices of a higher quality or with a greater frequency. To meet these needs, the ranges grow in parallel, both in bottle size but also in brand sophistication. In the New Markets, only China started with a less strong demand for sachets and with distribution provided by a more developed infrastructure. But the growth dynamic there is the same as in other countries. It results in greater consumption, greater appetite and more interest in the appearance of products. Close cooperation between the local marketing department and the Product Development and Packaging teams allows the offering to be better adapted. 13/14
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Organizational Strategy - Sustainable Development - L'Oréal

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