Organizational Strategy - Sustainable Development - L'Oréal

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8 L’OréaL - GrI DaTa SHEETS 2011 In fact, 6% of the nonconformities detected during the 2011 supplier audits related to the “child labor” part (contracts, employment situation of staff aged 16 to 18), medical visits that did not take place, etc.). all L’Oréal suppliers and subcontractors are required to comply with the group’s General Purchasing Conditions, which clearly stipulate the obligation to conform to Conventions C138 and C182 of the International Labour Organization concerning the ban on child labor. L’Oréal is also contributing to the abolition of forced labor. The use of prison labor is possible, directly or via a supplier/subcontractor, only when it is voluntary within the context of a rehabilitation program and paid at the market rate. Should more information be required, L’Oréal has developed a policy entitled “http://developpementdurable.loreal.com/pdf/child-labour-suppliers.pdf” “Fournisseurs/Sous-traitants et travail des enfants” “http://developpementdurable.loreal.com/pdf/child-labour-suppliers.pdf” “http://developpementdurable.loreal.com/pdf/child-labour-suppliers.pdf” > For more details, also see p. 193, 6.1.2.7. of the reference document “Promotion and respect of the stipulations of the fundamental conventions of the International Labour Organization. FORCED AND COMPULSORY LABOR I. CONTENTS CORE HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor. II. STATE OF THE L’ORÉAL’S POLICY IN 2011 HR7 L’Oréal is also contributing to the abolition of forced labor. The use of prison labor is possible, directly or via a supplier/subcontractor, only when he is voluntary within the context of a rehabilitation program and paid at the market rate. all L’Oréal suppliers and subcontractors are required to comply with the group’s General Purchasing Conditions, which clearly stipulate the obligation to conform to Conventions C29 and C105 of the International Labour Organization concerning the abolition of forced labor. In 2011, 1% of the 793 audits performed at our Suppliers’ sites identified problems of forced labor. This percentage corresponds to all nonconformities connected with the topic concerned, irrespective of their nature or seriousness. Nonconformities observed are the subject of corrective actions and, in the most serious cases, may result in commercial relations being halted or, where applicable, refusal to list a new supplier. 6/6
9 L’OréaL - GrI DaTa SHEETS 2011 MANAGEMENT APPROACH Society The Code of Business Ethics is the reference document for ethics within L’Oréal. It helps employees integrate the L’Oréal spirit into their daily activity. The Code of Business Ethics applies to all employees of the L’Oréal group and its subsidiaries worldwide. It also pertains to all L’Oréal group officers, directors and members of executive committees and boards of the L’Oréal group and its subsidiaries worldwide. Each employee receives a personal copy of the Code of Business Ethics. The Code of Business Ethics was drafted with the help of employees from 22 countries who took part in international working groups in Latin america, North america, asia and Europe. The Code was then validated by 50 internal experts and reviewed by each Country Manager, Human resources Manager and local legal advisor. > For more information, read the Code, which is available in 43 languages, on the official L’Oréal English-language website: http://www.loreal.fr/_fr/_fr/html/groupe/la-charte-ethique.aspx. CODE OF ETHICS FOR GROUP EMPLOYEES WORKING WITH SUPPLIERS aspects of society, such as communities, corruption, public policy, unfair business practices and regulatory compliance, are all an integral part of L’Oréal’s management approach. In observance of the Code of Business Ethics, the Ethics Department and the Purchasing Department created and implemented a document for all group employees who deal with suppliers. The purpose of this document is to guide the 600 professional buyers and 10,000 occasional buyers involved in purchasing decisions in their daily relations with suppliers. > For more information, read “a new international ethical guide for purchasing” on page 35 of the Sustainable Development report 2011. COMMuNITY I. CONTENTS CORE SO1 Nature, scope, and effectiveness of any programmes and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting. II. STATE OF THE L’ORÉAL’S POLICY IN 2011 SO1 L’Oréal has implemented programmes on the conditions for sourcing raw materials and the impact of these materials on communities. For example, since 2007, the group established the “Sustainable Sourcing of argan” programme in Morocco. > For more information, read: the article on the L’Oréal site • http://www.loreal.fr/_fr/_fr/html/suppliers/responsible-sourcing/responsible-sourcing-fair-trade.aspx • the article “ever more responsible sourcing” in the Sustainable Development report 2011. 1/8
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Organizational Strategy - Sustainable Development - L'Oréal

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