2006 SUSTAINABLE DEVELOPMENT REPORT

out what is expected of employees and what stakeholders
can expect from L’Oréal. L’Oréal expects
its employees not only to respect local law but also
to comply with the minimum standards contained
in this Code, whatever the role or business, or
wherever in the world they operate. Awareness
programmes and training, aimed at all employee
levels, ensure that these values are properly communicated
and embedded in every-day operations.
Managers are specifically targeted for training on
the Code of Business Ethics, as part of their duties
includes monitoring the day-to-day application of
L’Oréal’s values.
Employees who have concerns relating to the Code
of Business Ethics are encouraged to contact their
line management or Human Resources Department.
Employees may also contact the Director of
Ethics, who is located at the group’s Headquarters.
All concerns are carefully examined and the group
guarantees that all information will be treated on a
strict need-to-know basis and ensures that there
is no retaliation for those who have in good faith
raised a concern. “Whistleblowing” mechanisms
for raising ethical concerns also exist at country
level, for example in the United States and Germany,
in accordance with local requirements and
culture.
L’ORÉAL’S COMMITMENT TO
THE GLOBAL COMPACT
L’Oréal has been a signatory of the United Nations
Global Compact since June 2003 and is committed
to embracing, supporting and enacting, within
its sphere of influence, a set of core values in the
areas of human rights, labour standards, the environment
and anticorruption as set out in the Global
Compact’s ten principles.
L’Oréal respects and supports the Universal Declaration
of Human Rights and Jean-Paul Agon,
Chief Executive Officer, has entrusted Emmanuel
Lulin, Director of Ethics with the responsibility of
ensuring strict compliance with the Code of Business
Ethics, in particular with regards to Human
Rights.
L’Oréal makes specific reference to the International
Labour Organisation’s Declaration on Fundamental
Principles and Rights at Work which
cover freedom of association, elimination of all
forms of forced or compulsory labour, effective
abolition of child labour and the elimination of discrimination
with respect to employment and occupation.
The elimination of forced and child labour
receives particular attention. L’Oréal has chosen
to set a minimum age of 16 for all its employees,
which is higher than the minimum age set by the
International Labour Organisation’s Declaration
on Fundamental Principles and Rights at Work.
L’Oréal respects the rights of employees to join
associations of their choice and encourages constructive
dialogue. Elimination of discrimination is
at the forefront of L’Oréal’s diversity policy (for more
information, see pages 30-31 of this report).
Moreover, L’Oréal hopes that its partners will
share and put into practice its values and therefore
ensures that its supply chain is also free from
violations of human rights. All L’Oréal suppliers
and subcontractors are asked to comply with
L’Oréal’s General Terms of Purchase and Payment
which includes an undertaking to comply with the
International Labour Organisation’s Declaration
on Fundamental Principles and Rights at Work.
Regular audits are carried out in order to monitor
compliance (for more information, see pages 42-45
of this report).
L’Oréal supports the Rio Declaration on Environment
and Development, which outlines the concepts
of a precautionary approach to environmental
challenges, promotion of greater environmental
responsibility and development and diffusion of
environmentally friendly technologies.
L’Oréal also condemns all forms of corruption,
including extortion and bribery and abides by the
United Nations Convention against Corruption. In
particular, the Code of Business Ethics is supplemented
by specific codes of conduct such as
L’Oréal’s Purchasing Code which addresses issues
such as gifts, courtesy invitations and potential
conflict of interest situations.
“COUNTRY REPORTING ETHICS”
NOW IN ITS SECOND YEAR
2005 saw the launch of “Country Reporting Ethics”:
an annual reporting system* on ethical issues
including communication of the Code of Business
Ethics, prohibition of child and forced labour, discrimination,
sexual and moral harassment and
integrity and loyalty. The first year was a success
with a 100% response rate* from the 58 countries*
included in the reporting scope. The 2005 results
confirmed that all employees are given the Code of
Business Ethics and that 97% of employees have
access to a Code of Business Ethics in their native
language*. Areas of improvement were also identified
including the need for additional training at
country level and clearer reporting lines in case of
grievances in certain countries. The 2006 reporting
survey has been completed and already shows
progress in certain areas and in particular in the
level of training*.
CORPORATE GOVERNANCE
Sustainable Development Report_L’ORÉAL 2006 / 09