2006 SUSTAINABLE DEVELOPMENT REPORT

examination of the consolidated financial statements
by the group committee.
Promoting social dialogue at European level
In 1996, an agreement was reached between management
and the relevant French and European
trade unions (FECCIA and EMCEF), relating to the
creation of L’Oréal’s European social dialogue body
Instance européenne de dialogue social (IEDS).
This agreement has been continually renewed
ever since. The purpose of IEDS is to inform and
discuss with staff representatives L’Oréal’s current
situation and prospects for economic, financial and
social development. It currently has 30 members
who all receive training in economic and labourrelated
matters. Following the enlargement of the
European Union in 2004, IEDS covers 21 countries.
A total of just over 24,000 employees are represented
in IEDS*.
Following the enlargement of the European Union
in 2007, IEDS will cover 23 countries and represent
almost 24,500 employees*.
WORKING CONDITIONS
Looking after employees’ health
Keeping our employees healthy is always a priority
for L’Oréal. Whether it is a question of accidents at
work or occupational ill-health, the group intends
to pursue the implementation of preventative
measures, namely:
• removal of biomechanical causes by phasing out
packing lines involving a lot of manual intervention,
• stepping up awareness and training initiatives for
employees and management,
• carrying out job and design ergonomics studies,
• dissemination of best practice,
• personalised health monitoring.
This commitment also relies on the introduction
of indicators relating to health and working
conditions. Since the plenary meeting of the IEDS
in 2001, the number of occupational diseases in
Europe and the means employed by countries to
reduce the number of cases have been monitored
on a yearly basis. This is in line with the continuous
improvement approach that L’Oréal adopts
with respect to employee health.
In 2005 the group set up an indicator for monitoring
the level of absenteeism worldwide. In 2006
it covered 53 countries (out of a total of 61) and
98% of employees. The global level of absenteeism
was 3.83%* (including authorised absences and
maternity leave), which was lower than in 2005.
The level of illness-related absenteeism (excluding
occupational accidents and diseases) was 2.34% in
2006*, which was also lower than in 2005.
INTERNAL LABOUR STANDARDS
AUDIT PROGRAMME 2006
In addition to L’Oreal’s wider programme of labour
standards audits of suppliers and subcontractors
(see pages 42-45), it was also decided to carry out
these independent audits at our own factories and
warehouses. In the spirit of fairness, the audits of
our sites were conducted by the same external auditors
and according to exactly the same standards as
we set for our suppliers and subcontractors.
By December 31 st , 2006, 101 sites* in 40 countries*
had been audited. The audits confirmed important
points such as the absence of any employee under
16 years old. Certain areas of improvement were
however identified such as “house-keeping”, health
and safety issues, and better control of working
hours. Such issues have all been integrated into
corrective action plans which will be monitored
both internally and through follow-up audits by
the external auditor.
Listening to our employees –
internal opinion polls
L’Oréal has always placed particular importance
on listening to our employees. This element is a
founding feature of our culture and economic success.
Since 2003, employees from 41 countries*
have participated in opinion surveys, all in partnership
with various worldwide institutions.
The method selected
In October 2006, with a view to achieving uniformity
and coherence in the approaches used, L’Oréal
selected a single service provider of worldwide
repute—Towers Perrin-ISR—to measure the opinions
of employees using a global approach.
A questionnaire specific to L’Oréal was compiled.
This contains a common section serving as the
basis of the questionnaire for each subsidiary,
which may be supplemented by a series of further
questions touching on specific issues that respond
to local requirements.
The items covered are divided into eleven categories—commitment,
leadership, development,
remuneration, style of management, company
image, direct supervision, efficiency, involvement
and innovation, performance assessment, and
workload and stress.
The objectives
On the basis of the replies from employees, the
group has set up action plans to ensure that
L’Oréal is a great company to work for.
This project is at the heart of the group’s strategy,
and global coordination of these opinion polls will
ensure proper monitoring of the opinions of all
employees and a proactive response to them.
ABSENTEEISM
4.40%
2.60%
2005
• Overall absenteeism
• Illness-related absenteeism
SOCIAL AFFAIRS
3.83%
2.34%
2006
More information on our
Health & Safety performance
can be found on page 59.
Sustainable Development Report_L’ORÉAL 2006 / 37