Organizational Strategy - Sustainable Development - L'Oréal

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9 L’OréaL - GrI DaTa SHEETS 2011 3/ Collaboration with integration associations and bodies associations and bodies that provide integration assistance often form strong ties with potential “Solidarity Sourcing” suppliers and with people in situations of exclusion (such as arES, an association for disabled people in China, Helvetas, SNV and GTZ). Therefore, for certain projects, L’Oréal works closely with these entities to identify partners, implement projects, and monitor as well as assess social impact. 4/ Performance measurement “Solidarity Sourcing”programme wishes to measure the results of each project. In addition to its internal evaluation criteria, the programme actively seeks independent performance indicators. This external evaluation system of both quantitative and qualitative indicators will help objectively examine the social impact of the programme overall. 5/ A programme in multiple locations The goal of the programme is to develop in all countries where the group exists. Collaborative tools have been implemented so that projects that arise out of local initiatives (for example, in South africa, Brazil, China, France and Morocco) can subsequently inspire all group employees who are in a position to engage in solidarity sourcing. EXAMPLE OF A SOLIDARITY SOURCING / FAIR TRADE PROJECT: SHEA BUTTER IN AFRICA This fair trade project was implemented with L’Oréal research & Innovation and The Body Shop. Its goal is twofold: to improve the wellbeing of the women who gather shea nuts and to improve the quality of the shea butter. To do this, L’Oréal relies on the know-how of The Body Shop and is working with two suppliers and three very locally involved NGOs (Helvetas, SNV and GTZ). The goal is to export this project to other areas and other products. This project, which is based in sub-Saharan africa, will help ensure income for more than 12,000 people. It will enter into effect in 2012. THE BODY SHOP’S “COMMUNITY FAIR TRADE” PROGRAMME In 2011, as for the last 35 years, The Body Shop continued to put its ethical values into daily practice - from research and development to motivating the public. Thanks to revolutionary campaigns, the brand continued to motivate its clients to promote sustainable change through its “Stop sex trafficking of children and young people” campaign. Teams around the world mobilized over seven million people to sign petitions calling on national governments to take concrete measures to protect children and young people vulnerable to sex trafficking. In addition to being presented to national governments, the petitions were submitted to the United Nations in Geneva. This campaign, which received impressive media coverage, created change on an unprecedented scale and convinced 15 governments from the four corners of the globe to introduce legislation to protect children and young people. as a result of its fair trade programme, The Body Shop can source quality products with ensured traceability from its 25 suppliers in 21 countries. This programme directly benefits over 300,000 people from marginalised communities throughout the world. Since its 2006 acquisition by L’Oréal, The Body Shop has been presenting its fair trade suppliers to the group’s buyers. Today, the group uses four ingredients from The Body Shop product ranges: aloe vera, olives, sesame and sugar. Moreover, The Body Shop is a member of the Ethical Trading Initiative (ETI). The Ethical Trading Initiative (ETI) is an alliance of companies, non-governmental organizations (NGOs) and unions. ETI endeavours to promote and improve the implementation of corporate codes of conduct that also pertain to working conditions in the supply chain. The goal is to ensure that the working conditions for people who produce for the English market comply with, or surpass, international standards. The method has two parts: (1) the NGO, union and company members of the ETI work together to identify good practices in implementing the code and promoting these practices; (2) ETI encourages companies to approve the code of conduct and to have it applied throughout its supply chain. > For more information, visit http://www.ethicaltrade.org/ In 2011, ETI acknowledged The Body Shop as a leader in the beauty sector. Peter Mcallister, Director of ETI, speaks about the brand: “Being truly open to the world is a key element of the leadership that the company has always assumed in managing issues, such as worker’s rights. It shoulders its responsibilities by adopting an approach that is both visionary and commercially viable.” In 2011, The Body Shop provided comprehensive training programmes to its suppliers in Thailand and the United Kingdom. Furthermore, it trained its own teams on sourcing and quality to ensure that they comply with the strictest fair trade standards. It continues to monitor all of the products it offers in its boutiques. The audit was expanded to include second tier suppliers, such those providing store fixtures and fittings, office services and services pertaining to personnel uniforms. 4/8
9 L’OréaL - GrI DaTa SHEETS 2011 A DAY OF CITIZENSHIP AND SOLIDARITY: CITIZEN DAY In 2009, to celebrate its 100-year anniversary, the group rolled out 100 citizen projects across the globe. Concretely, each subsidiary designed and implemented a solidarity project to help local disadvantaged communities. The objective: to make the 100-year anniversary a time to share and to reaffirm the group’s commitment to being a responsible, supportive company. To continue along these lines and involve its employees in its commitment to citizenship and solidarity, 2010 saw L’Oréal launch a day of citizenship and solidarity worldwide: Citizen Day. For the second edition of Citizen Day in 2011, 15,600 employees worldwide were able to contribute to a day of solidarity. In 2010, the very first Citizen Day enabled staff throughout the world to discover or rediscover the philanthropy programmes of the group and its Foundation. In 2011, there was a change of scene: convinced that we all have a role to play in making L’Oréal a better and better corporate citizen, the group shifted gears to let everyone become involved in concrete, useful solidarity actions in the field. From asia to Europe, from Latin america to the Middle East, over 15,600 employees in 58 countries stepped forward. On the programme: a wide selection of social or environmental actions performed with hundreds of partner associations around the world: cleaning beaches, collecting waste, renovating a school, giving blood, visiting an orphanage or reaching out to isolated or destitute people….In a single day, everyone gave time, energy and enthusiasm to make a useful contribution to the communities around us. It was a day that undoubtedly marked a turning point in the group’s commitment: “It is no longer just L’Oréal being committed, but each and every one of us rallying around in a tangible way,” mentioned L’Oréal Chairman and CEO Jean-Paul agon. “By enabling everyone to become players, not mere spectators, this mobilisation has given another dimension to L’Oréal’s commitment to corporate citizenship.” The next stage: Citizen Day 2012, with the same slogan: “We all have a role to play”. CORRuPTION I. CONTENTS CORE SO2 Percentage and total number of business units analyzed for risks related to corruption. II. STATE OF THE L’ORÉAL’S POLICY IN 2011 SO2 L’Oréal supports the fight against corruption, complies with the United Nations Convention of 31 October 2003 against corruption and is committed to applying current legislation, and especially anti-corruption laws. L’Oréal’s Code of Business Ethics publicly stipulates a zero tolerance policy on corruption and discusses themes, such as bribery and “facilitation payments”, conflicts of interest, gifts and entertainment. The anti-corruption policy set forth in the Code of Business Ethics applies to all employees, officers, directors and members of executive committees and boards for the group’s subsidiaries worldwide. Other policies, such as “The Way We Buy”, a practical guide, whose objective is to govern the relationships between suppliers and all buyers involved in sourcing decisions, also address these issues. This commitment is supported at the highest corporate level, and particularly by L’Oréal’s Chairman and CEO who, for example, responded to employee questions on this theme in an online discussion that took place on group Ethics Day, which took place in October 2011. Country managers are responsible for implementing L’Oréal’s anti-corruption policy. The group Ethics Director systematically meets with each new Country Manager to raise his or her awareness on corruption issues. The tool for analysing and assessing ethical risk helps Country Managers evaluate risks in their country (including the risk of corruption) and take the necessary measures to eliminate this risk. L’Oréal’s commitment is supported by Human resources procedures. Subsequently, the “Obtain results with integrity” competency is now included in the annual review system for all employees. Training and communication on Ethics address bribery and “facilitation payments” as well as gifts, entertainment and conflicts of interest. Within the scope of L’Oréal’s “Open Talk” culture, employees are encouraged to raise their concerns online. a dedicated, secure website enables them to ask their questions or submit their concerns directly and anonymously to the group Ethics Director. L’Oréal’s internal audit teams are especially vigilant about this. The risks for corruption are systematically examined during these missions 5/8 CORE SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures. SO4 actions taken in response to incidents of corruption.
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Organizational Strategy - Sustainable Development - L'Oréal

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