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Organizational Strategy - Sustainable Development - L'Oréal

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

II. STATE OF THE L’ORÉAL’S POLICY IN 2011<br />

HR1<br />

as L’Oréal is a signatory to the United Nations Global Compact, all of its suppliers and subcontractors are required to comply with the group’s General<br />

Purchasing Conditions, which include respect for the fundamental Conventions of the International Labour Organization and for local legislation,<br />

particularly in terms of the minimum wage, working time, health and security.<br />

Subcontractors, regardless of where in the world they are based, and suppliers of raw materials, packaging or POS/PrOMO materials located in<br />

countries classed as “at risk” are required to undergo a social audit.<br />

HR2<br />

L’Oréal actively seeks to work with suppliers who share its values and its ethical commitments. Subcontractors, regardless of where in the world they<br />

are based, and suppliers of raw materials, packaging and POS/PrOMO materials located in countries classed as “at risk”, are required to undergo a<br />

social audit. The initial audits are financed by L’Oréal and conducted independently on its behalf.<br />

L’Oréal has implemented a social responsibility program among its suppliers in order to ensure the application of fundamental points such as<br />

compliance with the laws in force, respect for human rights and labor law, the protection of hygiene and the security of staff.<br />

Social and Security/Health audits are performed frequently worldwide right along the logistics chain in order to validate the selection of new suppliers<br />

and to contribute to the development of good practices among existing suppliers.<br />

Since 2002, L’Oréal has implemented a program that allows it to ensure that its suppliers comply with the applicable laws, human rights and labor law,<br />

as well as ensuring the security of their teams and hygiene in the workplace.<br />

The audits cover the following 10 aspects:<br />

• child labor;<br />

• forced labor;<br />

• health and security;<br />

• compliance with laws concerning trade unions;<br />

• non-discrimination ;<br />

• disciplinary practices;<br />

• sexual harassment or hostile working environment;<br />

• observance of minimum wage/compensation and benefits;<br />

• working time;<br />

• relations with subcontractors.<br />

L’Oréal’s social audit is to a large part based on the globally recognized Sa8000 standard, but includes certain exceptions as regards the issue of the<br />

minimum age for child labor and the requirements relating to a living wage.<br />

Thus far, L’Oréal has performed social audits at over 3,000 supplier sites: 567 took place in 2010. In 2011, 793 audits (567 in 2010) were conducted, bringing<br />

the total to more than 3,300 since 2006.<br />

GEOGRAPHICAL BREAKDOWN OF L’ORÉAL’S SOCIAL AUDITS<br />

NAZ: North America zone<br />

ZAL: Latin America zone<br />

ZAMO: Africa & Middle East zone<br />

2006 2007 2008 2009 2010 2011<br />

Europe 78 221 80 86 119 134<br />

NAZ 58 21 2 5 2 9<br />

ZAL 43 106 128 36 84 65<br />

ZAMO 24 26 24 4 23 76<br />

Asia 103 211 454 305 339 512<br />

TOTAL 306 585 688 436 567 793<br />

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