Looking beyond a purely financial business modelA social projectRespect for persons and different culturesA responsible attitude
| Looking beyond a purely financial business modelA social projectRespect for persons and different culturesA responsible attitude |
This corporate is a thrilling one, and it relies first and foremost on our 52,000 employees. Motivation, a sense of belonging, and commitment to financial and societal objectives are essential in a company whose business development model is essentially based on internal growth. This great human adventure is founded on one ambition: to make growth an element of our social policy and our social policy an element of growth.  |
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Our business is a celebration of diversity starting with the diversity of our teams. We also want our company to be open to diversity for we are totally convinced that the difference between us enriches our lives by making us more creative, more imaginative, and more dynamic. Furthermore, we also celebrate the diversity of our consumers because we believe that beauty is not uniform. Each culture has its own rituals for care and finery, its cosmetic secrets and its own conception of beauty. We are dedicated to being aware of this diversity so that we may offer products adapted to the needs of each individual. Our approach to brand development also contributes concretely to achieving diversity. Since L'Oréal does not seek to project a single image of beauty, we aim to encourage the expression of all forms of beauty that make up the incredible diversity of human faces. We have thus developed a unique portfolio of brands coming from different cultural backgrounds in order to better satisfy the various sensibilities of persons across the world. Thanks to L'Oréal's commitment to diversity and, more broadly to our integration practices, the company was the first to earn the Global Leadership Award which is awarded in the United-States by the organisation Diversity Best Practices. L'Oréal collaborators are proud to receive recognition for their ambition and involvement. |
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Our responsible attitude is backed by the obsession of guaranteeing our customers innovation, quality and safety. Consumer health and well-being is L'Oréal's absolute priority. Through willingness and anticipation, our company has demonstrated over many years a responsible attitude in selecting the ingredients that makeup our products. This is one of the main pillars of our commitment to sustainable development. Similarly, our responsibility is demonstrated through our commitment to manufacturing our own products. This provides an additional guarantee, not only of overall product quality, but also of respect for social, ethical and environmental rules. In addition, we are dedicated to limiting the impact of our activities on the environment. In a industry which by nature generates little pollution and consumes little in the way of resources, the group has already made significant progress over the last ten years or so and has set new, ambitious objectives for the future. But for L'Oréal, corporate responsibility goes much further. It is also reflected in actions that demonstrate our desire to remain close to the communities in which the group operates.  We intend that this document be factual, in order to show in real terms how L'Oréal assumes its share of responsibility. It is a dynamic report that we shall use as an instrument for progress. The report and the objectives set out in it commit the Management Committee, myself and all our employees worldwide to adopting a much broader view of the corporate development of L'Oréal. That is our way of asserting our vision of truly sustainable growth for the future. |
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| In order to serve its customers as effectively as possible, ensure the quality and long-term future of its relations with distributors and suppliers, satisfy its shareholders and integrate as effectively as possible in the communities in which it operates, L'Oréal follows a strategy that inspires the actions of all its employees in terms of sustainability. L'Oréal intends to move forward with humility yet with determination by means of concrete initiatives that have measurable effects. Beyond the initiatives carried out by the group - in terms of adherence to rules and ethical principles, promotion and development of the women and men in the company, concern for the environment, proximity to the communities in which the group is active -, which are described in this report, L'Oréal is focusing on five key areas:
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Taking care of one's appearance is not only about pleasing others but also about pleasing oneself and feeling more confident in relations with others. L'Oréal is dedicated to the beauty and well-being of women and men all over the world through its brands, which respect different cultures and identities. Our in-depth understanding of consumers' expectations coupled with scientific knowledge accumulated over almost a century are dedicated entirely to the satisfaction and anticipation of their needs. L'Oréal's continued investment in research helps guarantee quality, safety and innovation in its products. The group puts on the market only products whose effectiveness is proven and whose safety is guaranteed by rigorous testing for tolerance and absence of risk. Their performance is scientifically recognized and proven.  ;){kind=small} |
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Product accessibility and making technologies developed by L'Oréal's research teams widely available are another major thrust of the group's responsibility.
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Cosmetics are a time-honoured means of expression for all cultures and all peoples. Thus, since each of its brands promotes an ideal of beauty in all parts of the world, L'Oréal is attentive to the diversity of skin types, to beauty rituals and to the perception of beauty. L'Oréal takes care not to favor any particular model of beauty but to respond as effectively as possible to the needs and the desires of all. It does so through.
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Creating value means offering consumers high-quality, technologically high-performing products born out of permanent innovation. It also means ensuring that the company performs well financially, for the benefit of its shareholders and all its partners. This continuity is based on a strategy that gives priority to internal growth, promotes investment in research , focuses on added-value areas of specialisation , on the most buoyant market sectors, and a unique brand portfolio. This strategy, implemented on a continuous basis, led yet again to L'Oréal's recording a year of growth in 2004.  ;){kind=small} |
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Production integration and commitment to local production provide an assurance of respect for the law and for people. |
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L'Oréal's corporate culture is based on strong ethical principles compiled in a Code of Business Ethics that gives formal expression to the fundamental values and guiding principles to which L'Oréal is committed. The Code of Business Ethics, a major reference document, articulates what is expected of employees both in the way they do business and in their day-to-day contacts with others within the organization. The Code of Business Ethics, available in the languages of all countries where the group operates, focuses on six areas:
The Code of Business Ethics was distributed to the group's 50,000 employees in the year 2000, and every person coming into the group is given a personal copy on joining. Prohibiting child labor the use of forced labor are issues that receive special attention. The group forbids the employment of anyone under the age of 16 and ensures that these principles are respected by its subcontractors and suppliers, as specified* in the group's General Terms of Purchasing and Payment. The preservation of privacy in the context of IT and Internet access is covered by various documents adapted to the legal framework of the countries concerned. The social, humanitarian and environmental policy outlined, followed by L'Oreal for many years illustrates concrete expression given by the company to its values and guiding principles. |
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Consciousness raising, training and improvement initiatives either in the business units or at product category level, ensure that these values and principles are properly disseminated and applied. These initiatives enable the development of managerial capabilities that respect ethical principles. Numerous training modules take place during our induction seminars for line managers, whose job includes monitoring the day-to-day application of the Code of Business Ethics, and for the benefit of Management Committee members. An international working party has been set up within the Group to specify, in the most concrete terms possible, the relevant indicators for the measurement of the actual implementation of the Code in an international environment. To achieve this, the working party focused on key universal principles and to the documents in which they are set down, such as the United Nations' Universal Declaration of Human Rights, the European Union Charter of Fundamental Rights, European Directives on equal treatment and discrimination as well as the main Conventions and Recommendations of the International Labor Organisation.  In June 2003, L'Oréal signed the Global Compact declaration (a United Nations agreement), thus the commitment itself to adopting and promoting nine universal principles concerning Human Rights, labour and the environment.The application of the Ethics Charter is an absolute duty of the management. The Human Resources Departments of each country are responsible for its explanation at the local level. Each person can also contact the Legal Department of the group Human Resources Division. Geoff Skingsley, Executive Vice-President, Human Resources, by authority of Sir Lindsay Owen-Jones, CEO of the L'Oréal group, is responsible for ensuring strict compliance with all the values expressed in the group's Charter, notably with regard to Human Rights defined in the United Nations Universal Declaration of Human Rights.  Extract from the Code of Business Ethics: Respect for the individual "Respect for the individual is a fundamental principle. It is applied daily at L'Oréal and is the focus of human relations within the company. L'Oréal believes in the virtue of difference and diversity for the development of its human assets: L'Oréal categorically rejects all forms of discrimination, both in thought and deed, notably concerning sex, age, physical disability, political and philosophical opinion, union activity, religious conviction, as well as race and social, cultural and national origin. Each individual has a right to respect and human dignity; all behavior or acts likely to create a hostile working environment and, in particular, any form of sexual harassment , will not be tolerated. Respect for the individual is also demonstrated by L'Oréal's commitment to its employees and to those management values upon which the Company sets great store. Respect for the individual is maintained through an ongoing dialogue between individuals and management."  |
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In some business areas, the Code of Business Ethics is supplemented by codes of practice, such as the one that defines L'Oréal's principles and practices applied to purchasing. The aim is to establish the relationship with suppliers within a strict framework and to address specific issues to which the group's buyers may be exposed, such as conflicts of interest, courtesy invitations and gifts from suppliers. The group's General terms for Purchasing and Payment, introduced in 2003, ensure that suppliers comply with all the laws and regulations inforce and that they respect the rules of conduct stated in the fundamental Conventions of the ILO, particularly on the abolition of forced labour, the eradication of child labor, equality and freedom of association |
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| Breakdown of share ownership - Elimination of double voting rights - Change in the breakdown of voting rights Board of DirectorsCorporate Governance in 2004- Good corporate governance contributing to the Company's success - A balanced, diversified, experienced and responsible Board - The work of the Board in 2004 - Good practices - The Board's Committees - Continuous improvement is essential for good corporate governance Management Committee |
ELIMINATION OF DOUBLE VOTING RIGHTS The shareholders of L'Oréal approved the elimination of double voting rights at the Extraordinary General Meeting held on April 29th 2004. L'Oréal now applies the principle of one voting right per share. The percentage of voting rights held by the public as increased from 28.3% to 43%. CHANGE IN THE BREAKDOWN OF VOTING RIGHTS  |
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Chairman and Chief Executive Officer Lindsay Owen-Jones Vice-Chairmen of the Board Jean-Pierre Meyers Peter Brabeck-Letmathe Directors Werner Bauer since April 26, 2005 Liliane Bettencourt Françoise Bettencourt Meyers Francisco Castañer Basco François Dalle until April 26, 2005 Jean-Louis Dumas Xavier Fontanet Rainer E. Gut until April 26, 2005 Bernard Kasriel Marc Ladreit de Lacharrière Franck Riboud Louis Schweitzer since April 26, 2005 Auditors PricewaterhouseCoopers Audit Deloitte et Associés |
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GOOD CORPORATE GOVERNANCE CONTRIBUTING TO THE COMPANY'S SUCCESS The clarification of the shareholding structure and improved corporate governance are conducive to a spirit of transparency, simplicity and modernity. Strategic issues are now discussed only at Board level. L'Oréal ensures that its corporate governance is in line with the best practices, while renewing the stability of its shareholding structure for a number of years. A BALANCED, DIVERSIFIED, EXPERIENCED AND RESPONSIBLE BOARD Three directors are proposed by the Bettencourt family and three by Nestlé. The two Vice-Chairmen of the Board respectively represent the two parties. The Board members contribute their expertise and their professional experience, gained in a diversified range of activities in the international business world. They are required to act with due care and attention, and have complete freedom of judgement, which enables them to exercise total independence in the decision-making and work of the Board, and, where applicable, of its Review Committees. Each Board member is aware of the rules relating to the possession and use of inside information. It is compulsory for Board members to notify the Board if any conflict of interest arises, even if the conflict is only potential, in which case they are not allowed to participate in the corresponding deliberations. THE WORK OF THE BOARD IN 2004 The Board met nine times in 2004, with an average attendance of 85%. Extraordinary meetings were called to consider issues such as the merger and absorption of Gesparal by L'Oréal and the take-over of Aventis by Sanofi- Synthélabo. The Board invited senior L'Oréal managers to its meetings to examine the strong competitive positioning of the group in cosmetics markets and the quality of its market share. After considering the strategic analysis and commentary of the General Management, the Board focused its attention on the main priorities of the company and approved the major lines of development. GOOD PRACTICES In L'Oréal's view, the Internal Rules of the Board and the Insider Trading Rules, together with ethical values and principles, help to foster good corporate governance and individual integrity. The Board decided to amend its Internal Rules, changing the voting thresholds required for the approval of projected acquisitions, and more clearly defining the missions of the Committee for Strategy and Implementation. The Board is notified when an operation is concluded and implemented, and all transactions amounting to more than €150,000,000 are submitted to the Board for prior approval. THE BOARD'S COMMITTEES The Committee for Strategy and Implementation Created on April 29th 2004. 3 meetings in 2004. The missions of the Committee for Strategy and Implementation are to clarify, through its analyses and discussions, the strategic orientations of the group which are submitted to the Board, and to monitor the implementation and progress of significant ongoing operations. In particular, the Committee reviews: the main strategic lines of development, options and projects presented by the General Management, and their economic and financial consequences, acquisition opportunities, and financial transactions that could significantly change the balance sheet structure. More broadly, the Committee discusses all issues considered to be of essential importance for the future of the group in strategic terms, and for maintaining its general financial stability. The Committee is composed of six L'Oréal Board members: two representing the Bettencourt family, two representing Nestlé, the Chairman of the Board of Directors and one other independent Board member. 6 members:
4 meetings in 2004. In 2004, the Committee reported to the Board and expressed its approval concerning all the procedures in place, particularly those relating to the compilation of the financial statements. The financial statements closed in conjunction with the Statutory Auditors were established satisfactorily and with a high degree of security. The new regulations concerning the Internal Control, together with the Chairman's Report, are considered to be an opportunity for progress rather than a difficulty. If, in the course of its work, the Committee detects a material risk which does not seem to be adequately addressed, it notifies the Chairman of the Board accordingly. The Committee has furthermore examined provisions, insurance, legal disputes and legal risks, the Internal Audit missions and the Report on Internal Control. It has been informed of the progress made on IFRS and the impact of these accounting standards on the presentation of the financial statements, with an estimate of the impact on items in the balance sheet and the profit and loss account. 3 Members:
4 meetings in 2004. The missions of this Committee are to make proposals to the Board concerning the remuneration of corporate officers and the attribution of stock options, to assist the Chairman and the Board in their review of succession plans for the group's senior management positions, and to review the composition of the Board of Directors. The Committee may meet at any time it considers appropriate, for example to assess the performance of the company's senior management. At the start of each financial year, the Committee proposes a target level of remuneration for each executive corporate officer. The principle is that fixed remuneration may represent one-half of this target amount. At the end of the financial year, the variable remuneration is based partly on an analysis of the company's performance and partly on a qualitative assessment of management aspects. 3 Members:
The Board of Directors has adopted a method for assessing its work that is closely related to the concerns of Board members arising from their responsibilities. The interviews held with Board members by the Secretary of the Board, in accordance with generally accepted practices, led to the compilation of a report summarising the Board members' main remarks and proposals. The quality of Board meetings is steadily improving. Considerable efforts have been made to provide more detailed information to the Board and to ensure that strategic issues are thoroughly reviewed. The Board members recognise the value of inviting senior managers to make presentations at certain meetings, and wish to see this practice continue. For further information, please refer to the Board of Directors' Management Report and the Chairman's Report in the 3rd volume of the Reference Document, available in the "Annual Report" section on the Internet site www.loreal-finance.com:
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| A growing marketA sustainable growth strategyKey figures 2004 |
Since 1990,average annual growth in cosmetics has equaled twice the rate of the annual global average GNP. This growth is continuing in developed countries, thanks to new demands and new markets, and it has been stiking in countries that have recently converted to the market economy.
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 ;){kind=small} L'Oréal considers internal growth to be the main focus of its development. The group ensures healthy long-term geographic and sector-based balance for its brands and increases the rate of its international expansion, through a highly selective acquisition policy. As a result, L'Oréal has enjoyed double-digit growth in earnings for many years. L'Oréal manufactures more than 94% of its products. Control over its processes is an essential strategic issue and a key lever for its civic responsibility. L'Oréal looks to the growth of new markets, especially in developing regions such as in South East Asia. However, the group's growth is never at the expense of a responsible attitude : by manufacturing locally as soon as practically it contributes to a local economic development and applies the principles outlined in its Code of Business Ethics. |
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 ;){kind=small} 2004 consolidated sales: €14,534 million 2004 net operational profit after minority interests: €1,667 million Dividend put forward at the Annual General Meeting on 26 April 2005: €0.82 Workforce: over 52,000 employees of 100 different nationalities at 31st December 2004. Global presence:
The group has 42 factories worldwide. Investment in research:
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L'Oréal is active in cosmetics (98% of consolidated sales in 2004) and dermatology. In cosmetics, L'Oréal is organized according to distribution channels.
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| Localized productionIncreasing investmentL'Oréal is part of the main sustainability indexes |
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| ProfitShareholder dividends |
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L'Oréal is firmly committed of improving its financial informations. The Reference Document, the AGM and the modern financial communication resources intended for international shareholders are channels that the group is actively developing. For detailed information on the L'Oréal Group's financials, see the Group's annual report or www.loreal-finance.com |
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| Founded by a research scientist, Eugène Schueller, L'Oréal has always embraced technological innovation. L'Oréal is convinced that, in the long term, quality and innovation are the only ways to satisfy an increasingly diverse and ever more demanding consumer base. The group therefore carries on the tradition started by the chemical engineer who put research at the centre of his development strategy. Since its foundation in 1907, L'Oréal has constantly invested in cosmetics research with one precise objective - to ensure that all the group's products benefit from the scientific advances made by its laboratories. |
| Research as a central strategic themeL'Oréal's Research missions |
With the conviction that research contributes to future well-being, each year L'Oréal invests more than 3% of its revenues in R&D, the equivalent of about €3bn over the last ten years. L'Oréal has made it a priority to create its own molecules in all its strategic product categories. Over the last 40 years, more than 120 different molecules have been developed by the company's Advanced Research facilities. Our laboratories in France, the USA and Japan employ over 2, 900 people specialising in some thirty areas, including chemistry, biology, medicine, physics, physico-chemistry and toxicology ...
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The aim in Research is to bring to market products which are safe, and which respect the natural qualities of the skin and hair. To achieve this aim involves:
The pursuit of optimum quality is the driving force at every stage of a product's design. The aim is continually to improve a product's current performance or to add a new, as yet unknown property. Performance is assessed at every point in the research process . In order to ensure the security of formulas, the main preoccupation of research teams is constant anticipation. One of the main objectives of our Research effort is to eliminate from the substances being studied any ingredient that might pose a threat to the consumer or the environment. Before any ingredient finds its way into a product, L'Oréal tests it using all the scientific knowledge and techniques available to it for assessing human and environmental safety.
A pre-emptive approach:
When the first scientific data on the potential hazards associated with the outbreak of bovine spongiform encephalopathy (BSE) in the United Kingdom became available in 1990, the L'Oréal took immediate action. Although the conclusions of the experts were reassuring, the group asked its suppliers of bovine extracts to provide certificates of origin and production process. From 1992, long before regulations made it compulsory in 1996, all ingredients derived from organs defined as high-risk by the WHO were eliminated from our formulations. Continuing in the mindset of precaution and anticipation, we started in 1997 to progressively replace all ingredients of bovine origin despite the fact that none were found to have an infectious nature. Since 1998, several regulations have strengthened the prohibition laws and regulated the origins and treatment of derived bovine products. Again, our active vigilance enabled us to anticipate these regulations. Chlorofluorocarbons (CFCs) were suspected of depleting the ozone layer in the upper atmosphere as early as the 1970s.As a precaution, under the aegis of the United Nations, the Montreal Protocol was signed in 1987 and has been amended several times. Some 160 countries have committed to the Protocol, the aim of which is gradually to phase out the production, sale and consumption of substances that deplete the ozone layer. The Montreal Protocol resulted in a European Regulation issued in 1994. L'Oréal had replaced CFCs used as aerosol propellants by 1989. Regarding human health, the International Safety Assessment Department closely examines the toxicological profile of all the ingredients used and assesses the safety and tolerance of all formulations before they are used and put on the market. For marketed products, L'Oréal set up over twenty years ago a post marketing surveillance organization which relies on an international network of specialized doctors. Thanks to this highly professional network, it is possible to detect if products are being misused and/or directions are not being followed properly, and allows us to react immediately to the situation. As part of its environmental policy, L'Oréal Research submits its formulations to risk assessment by outside international experts. All this information, obtained in a proactive manner, allows us to continue improving the security of our products in terms of human health and as well as for the environment. |
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| L'Oréal attaches great importance to the selection of the raw materials used. To ensure constant improvement in product tolerance and effectiveness, all the 3500 raw materials used are continuously being renewed at a rate of 120 per year. The group is in permanent dialogue with its suppliers all over the world with a view to obtaining the highest quality fats, surfactants, solvents, polymers, plant extracts, propellants, dyes, pigments, UV filters, active biological ingredients, preservatives and antioxidants. It is active in promoting and developing the use of raw materials from natural, renewable sources. In 2004, 37.2% of our raw materials by volume came from plants (water non include), our aim is to follow and to increase this percentage. For example, ethanol can be obtained from beetroot, coconut can be used to poduce fats and surfactants. The remaining raw materials are either synthetic or products that are very commonly found in nature ( the most typical being iron or titanium oxides, clay and schist). The principle guiding our choices is the wish to balance product quality, the health of our employees, professionals and consumers and respect for the environment. These new raw materials are the product either of L'Oréal Research or of research carried out in partnership with our suppliers. This diversified approach has enabled much progress to be made in the selection of raw materials and the group intends to develop it in order to achieve greater respect for the environment and for biodiversity.  ;){kind=small}
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L'Oréal's permanent desire is to offer innovative quality products while guaranteeing their safety and harmlessness for consumers as well as for professionals. The group's research laboratories have always devoted considerable resources to ensuring the safety of its products and, in addition, to developing and validating alternative methods to animal testing. In 1989, L'Oréal had already stopped this practice and had developed alternative methods used routinely to assess tolerance of new formulas. These methods include cell culture testing and testing on a reconstituted skin models (EPISKIN). They enable scientists to study several areas of toxicity such as eye and skin irritation, phototoxicity and percutaneous absorption. Suppliers of chemical ingredients are required to guarantee their safety and harmlessness before they reach the market. At the present, most testing required under the various regulations can be carried out only on animals. L'Oréal has also, for a number of years, been committed to research, development and validation of methods leading to reducing and replacing animal testing of the chemical ingredients used in cosmetics. There are currently three areas of toxicity for which alternative methods have been scientifically validated and which replace animal testing: skin corrosion, phototoxic potential and percutaneous absorption. L'Oréal Research has contributed extensively to the development, validation and international regulatory acceptance of these tests. As part of the search for alternative methods, L'Oréal has developed original in vitro techniques, particularly in the area of human skin models. Among the different models developed, the group's research teams are credited with the world's first skin model containing Langerhans cells, which play a crucial role in allergic response.  ;){kind=small} L'Oréal conducted this research as the lead laboratory within a European Commission programme. In the future, if this model were reproduced on an industrial scale, it could be put forward as an alternative to skin allergy testing, alongside other cell-based tests.
Looking beyond the progress already made, industry and scientific research as a whole face an extremely complex challenge: that of developing and validating alternative methods of evaluating chemical ingredients in fields where there are currently no alternatives to animal testing, and within the timeframe set by the 7th Amendment to the EU Cosmetics Directive. L'Oréal is committed to bringing all its skills to bear on developing these new methods. |
| L'Oréal's research scientists direct their efforts towards providing a scientific response to the most varied requirements. A number of different approaches are used in this work. In vitro, human skin models obtained from cultures of skin cells from donors of different ages and ethnic groups facilitate the constant improvement of knowledge of the variations between skin types In vivo, hair samples from all over the world are meticulously examined in terms of colour, composition, structure, resistance to the effects of contact with mechanical equipment and reaction to hair treatment. The L'Oréal Institute for Ethnic Hair and Skin Research This Advanced Research Institute was created in Chicago in 2000 , in order to increase knowledge of the properties and specific requirements of the skin and hair of people of African descent. It is essentially made up of 3 laboratories: Chemistry, Biology and Physics. It is the first of its kind in the world. In addition to its own research, its collaborates with Northwestern University in Chicago and Howard University in Washington. In order to share and disseminate knowledge on the ethnicity of hair and skin from all over the world, L'Oréal initiated a series of symposiums. The first, held in September 2001, was entitled "Ethnic Hair and Skin: What is the state of the Science?" and brought together 170 participants, mainly research scientists from universities and industry, dermatologists and cosmetic surgeons. The most recent, called "Ethnic Hair and Skin: New Directions in Research", took place in September 2003 and was attended by even more participants.
Testing centres have been set up by L'Oréal Research in a large number of countries in North America, Latin America, Asia, Africa and Europe. These Centres enable the group's laboratories to test new formulas directly among the people for whom they are. Thanks to this structure, the different product categories in the group benefit from studies and tests that take into account the whole range of requirements, attitudes and characteristics of people all over the world. Finally, large-scale cosmetics testing studies are carried out in Latin America, the USA and China, with a view identifying the skin and hair types of women of African, Hispanic and Asian origin. |
L'Oréal has based its Corporate plan on the determination to establish a close link between economic performance and social achievement. The clear aim is to be one of the most dynamic companies in terms of remuneration, career development, profit sharing and overall attractiveness to employees. The monitoring of expectations all over the world ensures that motivation and commitment to the company go hand in hand with a share in the group's continued success. The quality of the L'Oréal products , as well as the group's overall development, depend on every employee at every level of the organization who now benefit from local profit-sharing schemes in line with the growth of results in each country. Growth and forward planning enables us to carry out changes in the interest of employees and to anticipate restructuring For L'Oréal, developing a sustainable human resources policy means adopting the following objectives:
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The group's expansion brings about the creation of many jobs. In 10 years, L'Oréal's workforce has risen from 38 972 to 52 081 employees. L'Oréal is convinced that variety is a source of enrichment, and attaches great importance to the development of a highly diverse workforce : 98 different nationalities are represented within the group (*). The group has built a database , currently limited to managerial staff, that gives precise figures for the number of people joining and leaving the company or moving within it, as well as for in-house training and the size of the workforce in each country.
The group carefully monitors to the male/female balance of its workforce worldwide; women represent on average 38% of all Management Committee members (*). |
| Developing diversityAn international focusEmphasizing major partnerships with universitiesRaising awareness of our areas of activity and passing on knowledge |
| The recruitment of executives is a key aspect of L'Oréal's sustainable development strategy. The foundation of this strategy is to attract talented persons to accompany growth all over the world and to ensure long-term partnerships by offering them a wide range of professional possibilities. |
Whether in terms of culture, qualifications, training or nationality, L'Oréal's policy is to continue to enrich its workforce by recruiting talented, open-minded people from diverse backgrounds. For L'Oréal, earlier education or training is not the only criterion for selection. While taking into account knowledge acquired through education and experience as well as professional qualifications, L'Oréal attaches great importance to candidates' personality and individual qualities such as creativity, capacity for commitment and openness to the idea of a truly international organisation. Aware that fostering pluralism and seeking diversity through recruitment and career management can be a factor in the group's progress, L'Oréal signed the Diversity Charter in France in December 2004. The first tangible expression of this commitment was a partnership with the Africagora Association for the "National Day for Employment Diversity" on December 10th, 2004. L'Oréal also intends to identify and promote within its own structures the talents of its employees of ethnic minorities. |
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The group's involvement with universities has been increased and since the end of December 2004 it has close partnerships with 174 universities in all parts of the world*. These take different forms, including: endowment of chairs for example at Oxford (Saîd Business School) and at the INSEAD at Fontainebleau (in France) business games, business case-studies, lecture series or internships. The internship scheme is a key to a first practical experience of work. The internship is merely a brief period spent in the company: more often than not it is the first stage of a career within the group. In 2004, 2 203 internships were offered in 48 countries. |
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To share its management expertise, make its skills more widely known and identify talented individuals, the group has developed annual initiatives that raise awareness in young people about our industry and that enable us to pass on our know-how to future professionals.
Every year the Universum Institute carries out a survey among students from universities all over the world. L'Oréal uses this survey as an indicator and aims to make improvements each year. The 2004 survey involved 5,219 students from 100 European schools and universities. Students were asked which company "they would most like to work for."
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| Showing trust in young people by giving them early responsibilityOrganizing a personalized and imaginative approach to career tracking |
| It is the group intention to give its employees outstanding and personalised career opportunities. |
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The group is attentive to the career plans and expectations of its employees. L'Oréal relies on its worldwide human resources as a measure of the quality of its career development. To ensure that the needs and aspirations of individuals are taken into account L'Oréal decided in 2002 to further the work of the Human Resources Personnel in developing or formalizing the following tools: - Mid-year appraisal interviews: offered to all young managers (less than 5 years in the company) to discuss how well they are getting into the job and integrating into the organization. Further to an analysis made in 2004, a project is now underway for these interviews to be mainly focused on employee development. - Year-end appraisal interviews: an individual formalized system for assessing individual performance and skills. The issue of remuneration is dealt with during the year-end appraisal. This assessment system has been rolled out worldwide with the assistance of the country Management Committees.  ;){kind=small} L'Oréal thus has a consistent appraisal system that meets its objective for transparency (a written report is produced) and is based on standards shared by all. This system should ensure that everyone has a better understanding of the standards used for their appraisal. A reference guide covering managerial skills, personal qualities and general and job-specific skills has been created so that employees can appreciate what their line managers expect from them. The short-term objective is that each employee should have the benefit of an annual appraisal giving them quality time in which to dialogue with management. |
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| Encouraging international mobility Enabling occupational mobility |
| The diversity that L'Oréal seeks relies on a policy of geographical and occupational mobility. |
International mobility is part of L'Oréal's strategy for the growth and development of its business, which is increasingly international. L'Oréal seeks to enhance the quality of its international management and local workforce by the addition of young or experienced expatriates. They contribute to the group's development while broadening their knowledge and honing their skills. At the end of 2004, 524 expatriates of 53 different nationalities were employed in management roles in 53 countries. 23% were women (*). To support and facilitate these international movements, the group offers employees a handbook and a set of guidelines to provide a framework for expatriates and their families during their time abroad. These guidelines address four major concerns (*):
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Internal mobility gives employees the opportunity to acquire skills in various areas and to gain early access to jobs involving responsibility. As a result of their varied experiences , they are able to pass on L'Oréal's know-how. In 2004, 24% of executives took on new responsibilities. "COOL" (Careers and Opportunities On Line) is an intranet-based job exchange. It encourages employees' occupational and geographical mobility by giving them access to all vacancies in a particular country. "COOL" provides a means of checking, before initiating external recruitment procedures that the resources needed to fill a particular vacancy do not already exist internally. It constitutes an additional guarantee of development for the Group's employees and is fully in line with our policy of encouraging internal promotion. "COOL" was developed and launched in April 2000 by L'Oréal USA. In 2003, 26.3 % of job vacancies were filled internally via COOL.  ;){kind=small} In May 2002, COOL was introduced in France, chosen as the pilot country for Europe. The system shows all the job vacancies available locally, with the exception of management vacancies. Of the 333 job vacancies posted online in 2004, 156 ( 47%) were filled via "COOL." (*) The group hopes to extend the system to other European countries, adapting it to the local cultural and linguistic environment. |
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| Organizing quality training available all over the world.Adapting training and development initiatives to individual needsA network and dedicated teams. |
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Conscious of the need to offer its managers a personalized system for developing their knowledge and expertise, in 1970 L'Oréal set up a Corporate Continuing Education Department in order to make career development a real lever for the group's growth strategy.
In 2004, specific communication tools were used to make our training programmes available to all managers throughout the world. |
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In 2002, L'Oréal launched the "Talent Development" project, accompanied by a vast publicity and training campaign. This evaluation programme is intended to facilitate listening and dialogue; it centers on 9 managerial competencies for which specific training or development action may be provided. Many countries, including France and the USA, immediately made the programme available for all employees. Talent Development is the main lever for passing training needs up the chain and building personal development plans.
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It was possible in 2004, to boost the professionalism of training and development activities.
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| Applying transparent principlesRecognizing individual qualitiesSharing in collective achievement |
| For L'Oréal, the individual is at the heart of the company's development. Indeed, L'Oréal would not be successful without the quality of its employees and each individual's investment in the group's growth process. |
L'Oréal's global pay policy reflects its recognition of its employees' involvement in the company's development and simultaneously aims to attract talented individuals. Although it applies to all the group's employees, the application of the policy varies according to the job and to the level of responsibility involved. In all its units, the group has put in place a clear compensation policy transparent for all employees, based on an appraisal system standardized all over the world that recognizes individual performance. |
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L'Oréal offers competitive rates of pay. Remuneration is linked to the job and takes into account potential as a means of playing a role in managers' long-term development and involvement. Each employee's career and salary is followed individually. |
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L'Oréal gives financial rewards to all employees, in line with collective achievement. In France, an employee profit-sharing scheme has been in place since 1988. In 2004, it represented 17.5% of employee salaries in France. 75% of the profit-sharing funds invested by employees are invested in L'Oréal shares. Since 2001, a "Worldwide Profit Sharing Plan" (WPS) scheme has been implemented in every country. The scheme is being set up locally in each of the group's 55 subsidiaries with the formation of Country Steering Committees whose role is, at local level, to develop common principles and define the practicalities of implementation, namely:
With WPS, the group hopes to strengthen its employees' sense of belonging and increase their motivation. In 2005, L'Oréal is planning to pay a total of € 42.9, million in bonuses under the WPS scheme for the 2004 financial year. The amounts paid under the profit-sharing plan are not fixed insofar as the payment of the WPS varies as a function of objectives reached (*).. In 2005, L'Oréal's General Management required countries to pay employees the equivalent of three weeks' salary if performance objectives were fully met(*). The group looks to continue the development of WPS with the aim of bringing it up to 4 weeks' salary by 2006-2007 (*). |
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The quality of the "social climate" within the group is the result of a permanent dialogue and the pursuit of consensus between Management, employees and their representatives. These exchanges are facilitated by decentralised structures of representation, both legal and informal. In France, RIEDS (informal meetings of exchange and social dialogue) are occasions for in-depth discussions between the management and trade union representatives held in advance of local negotiations. In France, there are 97 employee representation entities, totalling 1,101 office bearers (elected and replacements): works and plant committees, personnel delegates, union delegates, CHSCT (health, safety and working conditions committees), Group Committee (France), RIEDS (informal meetings of exchange and social dialogue), etc. The topics addressed by these entities range from local issues through the examination of the Consolidated Financial Statements by the Group Committee. (*). In 1996, an agreement was reached between the Management, the relevant five French national trade unions and two European associations (FECCIA and EMCEF), for the setting up of L'Oréal's European Social Dialogue Works Council (IEDS.) This agreement, continually renewed since, makes provision for the inclusion of the 10 new European Union Member States in 2004. The purpose of this body is to inform and consult staff representatives about the group's current situation and its economic, financial and social prospects. In 2004, the IEDS is made up of 30 members representing 15 countries, for whom economic and social training is provided. A Secretariat for Liaison, in which at least two nationalities, must be represented, is responsible for maintaining links between Management and the members. |
| Welcoming apprenticesEncouraging integration of the socially disadvantaged and giving the disabled employees access to the workplaceRewarded initiative and sharing experience |
| L'Oréal is developing an active apprenticeship policy and numerous vocational integration courses in France and internationally. |
Passing on experience and know-how to young people is a tradition that is strongly anchored in the corporate culture of the group. L'Oréal sees apprenticeship as a means of achieving excellence by :
Privileged long-term relations have been developed with establishments where courses prepare students for our various business segments. Our commitments take the concrete form of various actions: participation in examiners' panels, meetings with apprentice mentors in CFAs (apprenticeship training centres), organisation of visits to our premises, etc. On March 26th and 27th, L'Oréal took part in the first "Chemistry Village", a forum of chemistry professions organised in partnership with chemicals companies and the AFI 24 apprenticeship training centre. Some 30 L'Oréal employees were the co-leaders of an area devoted to R&D, alongside Research HR. Over the two days, around 3,000 young people visited the "Chemistry Village" (*). The concept of work-based training is also developed internationally and takes different forms: |
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In order to facilitate professional integration of the disadvantaged, particularly the young and disabled people, L'Oréal has set up, since 1995, partnerships with specialists in professional integration : In France this policy developed along 4 axes:
In France, L'Oréal increased its involvement with the Association Valentin HAUY in 2004; the Association helps the blind and visually impaired to overcome their disability through (*):
L'Oréal France also stepped up its cooperation with temporary employment agencies to assist with the employment of young people without any qualifications:
There are just as many such initiatives in countries outside France: courses for people with no qualifications, beauty workshops, fundraising and product collection drives, etc.
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Since 1997, the "Prix L'Oréal de l'apprentissage" (L'Oréal Apprenticeship Award) has been awarded on alternate years with the Trophée L'Oréal "Initiatives pour l'insertion" (L'Oréal Trophy for "Integration Initiatives"), in recognition of the most innovative and most exemplary actions within the L'Oréal group in the area of apprenticeships for the former, and in professional integration and solidarity for the latter. These internal awards also provide an opportunity to exchange experience in France and around the world. Trophée L'Oréal "Initiatives pour l'insertion" (L'Oréal Trophy for "Insertion Initiatives") approach L'Oréal's various entities in France and abroad are invited to take part by submitting their entry to the Jury that selects the best practices in compliance with specific criteria (concrete results obtained, entity's commitment, quality of the partnership, etc.). The jury, whose members are integration professionals and leading internal representatives, awards three prizes:
These prizes are awarded during an event organised at L'Oréal headquarters in the presence of the group Vice-Presidents. "Des Artistes pour l'insertion" competition To produce the works that are awarded to the winners of the Trophée L'Oréal "Initiatives pour l'insertion", L'Oréal organises a sculpture competition on the topic of "Solidarity" in partnership with ACTEMPLOI, an association helping struggling artists. All the works made for the competition are exhibited at L'Oréal group sites.
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| Creating spaces for living and workingLooking after employees' health |
| L'Oréal attaches great importance to creating the best possible working conditions. |
Working and interacting with others in a convivial, friendly atmosphere are additional factors affecting staff motivation.
Similarly, a wealth of resources is provided to help employees in their day-to-day work, including the worldwide directory, L'Oréal intranet, Internet access, etc. |
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Keeping our employees healthy is a permanent priority for L'Oréal. Whether it is a question of accidents at work or occupational illnesses, the group intends to pursue the implementation of preventive measures, namely:
This commitment also relies on the implementation of health and working condition indicators. Since 2001, after the plenary session of the European Social Dialogue Committee, the number of occupational diseases in Europe and the means implemented by country to reduce the number of cases have been monitored each year. This corresponds to the ongoing improvement approach that L'Oréal wants to adopt with regard to these issues surrounding its employees' health. All these approaches have already started to pay off. They are one of the essential conditions for the group's sustainable growth as they boost employee support for a very real corporate project. The result of this human resources and social policy is illustrated by the ranking published by the American Great Place to Work Institute in 2005. Thus, in France, out of the 50 companies assessed using a questionnaire mainly filled out by the employees themselves, L'Oréal is ranked in 4th position of the companies that are great to work for. "Gold Winner", the group is both the first French company and the first manufacturing company in the ranking. |
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Key accomplishments in Safety, Health and Environment for 2004 are summarized here. More detailed information follows in the report. Our key accomplishments were:
Introduction Faithful to its commitment to improve industrial safety, occupational health conditions and environmental protection, and to meet well-defined objectives, L'Oréal has followed a Safety, Health and Environment (SHE) policy for a number of years.The aim of this policy is to achieve high standards in terms of Safety, Health and the Environment performance. This year we have published the following group wide policy for SHE. L'Oreal group SHE Policy : L'Oréal is committed to the development, production, distribution and sales of innovative products of the highest quality, to enhance beauty and improve well-being. We must fulfil this mission in an ethical manner, by minimising our impact on the environment and guaranteeing the safety and health of our employees, our customers and the communities in which we work. To achieve these goals, we undertake to:
The L'Oreal SHE policy, internal standards requirements and performance reporting requirements apply to all L'Oreal industrial activities (factories and warehouses worldwide). All (100%) of our industrial sites are included in the results provided in this document. Those requirements that are applicable to administrative sites as well as some unique requirements will be applied to our administrative sites (offices) worldwide over the next two to three years. SHE management systems L'Oréal uses several terms of reference for SHE management systems including OHSAS 18000, OSHA VPP (Voluntary Protection Program) in the United States, and ISO 14001. L'Oréal has undertaken to have all its plants ISO 14001 certified by the end of 2005. By the end of 2004, 20 plants (approximately half) had successfully passed their certification audit. They are the following sites:
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| OrganisationResources in support of SHE managementTraining and informing employeesIndustrial FactoriesMonitoring through multiple audits |
L'Oréal has implemented practices that lead to optimum environmental performance on all its sites: manufacturing sites, research laboratories and office buildings throughout the world. The group has put in place the mechanisms needed for the task : dedicated organisation and management, staff training and an audit process. ;){kind=small} |
The Production and Technology Department (DGT) has functional responsibility for the protection of people, property and the environment. This department is link to each operational entity through SHE managers who coordinate the actions of local experts at each of their sites The SHE Department is responsible for: The SHE Department works closely with the Committee for Sustainability and the Department of External Affairs to establish goals and achieve a continuous progress in Sustainability. |
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Audits are also carried out at the factories and distribution centres by insurance companies. In 2004, 9 such inspections dealt with environmental issues and 43 with safety conditions. Factories and distributions centres carry out audits of their suppliers, and these include aspects related to SHE. |
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Safety, Health and Environment: L'Oréal ensures that all its employees benefit from the best possible working conditions and safety. Developing prevention and reducing accidents and occupational diseases to a minimum at all manufacturing sites entails a certain number of concerns: and working conditions, During the reporting period in question (since 2000):  Final Target: Zero accidentsIn 2004, 14 factories and 51 distribution centres hit the "zero accident" target, that is the conventional frequency rate was equal to zero (lost time accidents with at least one day away from work). These factories and warehouses were located in the following countries: Austria, Belgium, Brazil, Canaries, Chile, China, Czech Republic, Denmark, France, Germany, Ghana, Guatemala, Hong-Kong, Hungary, Italia, Indonesia, Israel, Japan, Korea, Latvia, Morocco, New-Zealand Portugal, Romania, Slovakia, Spain, Switzerland, Thailand, Turkey, U.K, USA, Venezuela.  ;){kind=small}
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Although the cosmetics industry consumes little energy compared with other areas of activity, the group pursues an active policy of limiting its consumption, for both environmental and financial reasons with sustainable development in mind.
Supply At local level, the electricity used by the sites is provided by local utilities (~120 countries) with their own means of production. It is therefore difficult to trace the origin of the energy (e.g. coal, gas, fuel oil, nuclear, solar, etc.) required to produce the electricity used by L'Oréal factories. Performance analysis The moderate increase in energy consumption in absolute terms at L'Oréal's manufacturing plants is attributable to an increase in production volumes. This increase is also attributable to the greater improvements to working conditions which consume energy. On the other hand, the ratio of energy consumption per product produced has fallen. This result has been achieved through productivity savings and energy saving measures. In 2004, L'Oréal set itself the goal of reducing electricity consumption per finished product by 2% compared with 2003 in each zone (a zone includes several plants or centres). Of the 14 zones, 8 achieved this goal; the drop in consumption per product for all group plants was 6% and for plants and centres was 7.8%. For 2005, we set ourselves a new goal of a 4% reduction compared with 2003. This will require those zones that did not reach the target in 2004 to make a greater effort in 2005 than those that did achieve the goal. Further, we are working with energy experts and are planning to produce a best practices guide to pursue our commitments in the areas of production and logistics. |
The group's water consumption is directly linked to the volume manufactured because of its use in producing the products. This involves, for example, washing operations (to achieve the desired quality), or water used directly in formulas (such as shampoos). The composition of the group's product portfolio therefore has a direct impact on the average water consumption per finished product.  ;){kind=small} Performance analysis Our plants achieved excellent water conservation results. Our target for 2004, was to cut water consumption by 5% per zone per finished product compared with 2002 (reference year for the objectives given for these last three years). Eleven zones out of 14 achieved this goal. All group plants therefore achieved a 10% reduction overall. Initiatives For many years now, to reduce water consumption, machine cooling water has been recycled and reused. Furthermore, several plants use the water with a high mineral content that results from the demineralisation process for water needed to manufacture liquors, such as wash water. Since 2003, a special program focussed on reducing water consumption has included the development of new cleaning technology as well as the identification and reduction of water loss. Target set: in each zone (plants), 8% reduction in water consumption per finished product compared with 2002.At many sites, the pipes transporting the product are cleaned at the end of each cycle by a special cleaning system. The pig is propelled through the pipe, scraping the walls as it moves. This system not only reduces the amount of water consumed in the cleaning process, but also results in less product lost, less waste and less residue found in the effluent. |
Greenhouse gases None of L'Oréal's manufacturing processes directly emit greenhouse gases. Only steam production and oil-fired heating of the group's buildings produce CO2 emissions. To limit the effects, the use of natural gas to fuel boilers is being implemented as soon as this is possible. L'Oréal is not covered by the European regulations on CO2 emission quotas. However, we are committed to a voluntary approach to reducing these emissions by recommending the use of more efficient heating systems.  ;){kind=small}
Volatile Organic Compounds (VOC) Our VOC emissions can be traced to the use of alcohol for fragrances and propellant gases for our aerosols (hairspray, etc.), and other lesser sources, such as effluent treatment. In 2004, we contracted an external firm to assess the VOC emissions generated by our plants. The results of this study are expected in 2005. Other atmospheric emissions SO2 emissions are due to the use of fuel oil for heating. In order to limit these emissions, the group uses natural gas to fuel its heaters whenever possible.  ;){kind=small} |
The group makes reducing waste a priority and sets precise annual objectives at each manufacturing site. In the manufacture of its products, L'Oréal generates various types of discharge, including so-called "transportable" waste, as opposed to effluent or atmospheric emissions. The overall goal of the group is to minimize all solid wastes, recycle or valorise whenever possible and to not landfill wastes. This is the overall strategy with specific goals established each year since some locations lack the infrastructure, markets or technology to allow the overall goal to be achieved in the short term on a global basis (example: no waste recovery of energy in most non-European countries). Any material leaving the L'Oreal site other than in products is considered a waste, even if used again (example, pallets) This also includes construction debris, products rejected for quality reasons, residues from manufacturing and other such wastes. We call these wastes transportable wastes since they leave our site by transportation (normally by truck). The chart below shows our performance in this area:
Transportable waste per unit product (grams/finished product) decreased by 18.3% for the factories and 16.8% for the group. Further, we encourage the use of returnable packaging (we return the packaging to the vendor to be reused) as an environmentally beneficial practice. We have decreased our waste per finished product less returnable packaging (grams/finished product) by 22,7% in the factories and 20,4% for the group. All of this was accomplished with an 11% increase in production. The fate of our wastes on a worldwide basis is shown in the pie chart below:  ;){kind=small}
Specific objective for the reduction of packaging waste In 2004, we set ourselves a target to reduce transportable waste. For each zone, it involved reducing board and paper waste by 15% to 25% by finished product depending on their initial quantities. This highly ambitious goal enabled all plants to reduce their waste by 9%. More importantly, we have increased our eco-efficiency. Specific targets set for 2005: - Reduce paper and board waste by 15% (excluding returnable packaging) - Eliminate expanded polystyrene waste - Reduce by 20% the number of references delivered on thermoformed trays. The Karlsruhe plant in Germany has put in place best practices to enable it to achieve the zero non-recycled waste target. The sludge produced from wastewater treatment is converted into a powder used as a source of energy when incinerated. The water vapour generated from drying processes is condensed and then treated in a water treatment plant. |
Scope: This indicator concerns only industrial effluents from factories. The distribution centres do not discharge any waste water other than that resulting from the normal activity of an inhabited building (sanitary wastes) and are not therefore included in this indicator. Depending on the activity and the discharge environment for industrial wastewater from its plants, L'Oréal carries out pre-treatment appropriate for the type of industrial waste before discharging it into the external wastewater system. However, all the waste water is tested before being sent to such plants or discharged into the ecosystem.  ;){kind=small} As mentioned earlier, L'Oréal is committed to manufacturing under an eco-responsible approach (reducing energy and water consumption). This also covers the quality of our effluent for which there has seen a 19% reduction in COD per finished product. *Chemical oxygen demand (COD) - the amount of oxygen needed to oxidize all the pollutants contained in the effluent - is the value commonly used to measure the properties of waste water. |
The packaging of a product allows protection and dispensing of its content. It ensures safe transportation and conservation of the products. It also acts as a way to convey all the written information required for a product: instructions of use and legal information (for example: Full Ingredient Labelling). When those missions are over, the packaging turns into household waste and that's why it must have as small an impact as possible on the environment. Since the 1990s, L'Oréal has had a pro-active policy in order to ensure that the packaging of its products is respectful of the environment. Packaging: Methodology of creation The group's packaging in its whole complies to the various local regulations regarding materials and packaging waste. A precise methodology helps the services in charge of packaging creation designing packaging just necessary to ensure its protection/dispensing/transportation/conservation/information purpose. Our own specifications have often anticipated new legislation:
1. Reduce the amount of raw material involved from the beginning 2. Reduce the number of materials involved in order to favour recycling 3. Indicate the nature of the materials the packaging is made of 4. Constantly involve our packaging suppliers in this progress. Industrial intelligence Because packaging technologies keep evolving, L'Oréal's industrial intelligence team is tasked to keep in touch with the newest environmentally-friendly technical innovations. The nature and the quantity of the packaging is regularly checked and questioned. For instance, a systematic weight-saving program is set according to the newest technical improvements in order to use less material. This leads us to watch and analyze carefully some subjects such as:
Recycling Recycling materials used for equipment or consumption is as old as the materials themselves. The recycling ratio for materials such as tin plate, aluminium, glass and paper/cardboard often exceeds 50% (recycled material tonnage / actually used tonnage) in developed countries. Plastics are relatively new materials which have been massively employed since the Seventies. According to the country, their recycling can take two forms: - energy creation when household waste is incinerated - material recycling, where the final recycling rate still remains less than 10%. L'Oréal uses the main types of materials for its packaging items (tin plate/aluminium/glass/cardboard and plastics) ; our objective is to facilitate identification and sorting of materials in order to take part in the global increase of those material's recycling rate. L'Oréal pays the green dot tax in the countries where it is in place. Moreover, we follow a simplification policy regarding the use of plastics: - Reduction of the variety of plastics employed - Association of plastics of similar composition in accordance to the global objective to facilitate recycling of our packaging. Marking and identification of materials L'Oréal makes it a rule to label all containers larger than 150ml, and the labelling of all other products is performed when possible. Thus our large tonnages, hollow plastic bodies (shampoos), aerosols, cardboard (folding cartons and corrugated cardboard grouping boxes) are systematically marked in accordance with Europe and U.S. regulations.
Use of recycled material For materials whose recycling rate exceeds 50%, we employ materials for our components containing a proportion of recycled material, this presence being inherent to the production process of the material itself (aluminium and cardboard for instance). In the case of plastics, we have set 'minimum quality specifications' for recycled materials and we are getting ready to employ those materials when they become regularly available and economically sound. Moreover, we lead an active policy of elimination and recycling at source of production of our components, this in order to avoid creating scrap waste at our vendors. |
| The most symbolic and the most notable example of L'Oréal's societal commitment is the international corporate programme, "For Women in Science" developed in partnership with UNESCO. In the words of Sir Lindsay Owen-Jones, CEO of L'Oréal: "Science is the root of all progress and the contribution of women is essential to its future". This program expresses the desire of both partners to promote the role of women in scientific research and thus help to create new career opportunities worldwide. "I am delighted to see the role of women in science highlighted, particularly in the area of life sciences. The commitment of a large corporation like L'Oréal alongside an organization like UNESCO is a perfect example of the partnerships we can forge with the private sector. A cooperative venture like this, which aims to involve more and more women in the great scientific adventure, leads to progress not only in science but also in society." Koichiro Matsuura, Director General of UNESCO L'Oréal decided to work alongside UNESCO, an international organization that speaks on behalf of all the world's cultures. By supporting an organization that facilitates understanding of cultural identities and recognition of their diversity, L'Oréal seeks to participate in the dialogue between cultures and to work for a better understanding between men and women from different traditions. For L'Oréal, women and science are the two best vehicles for progress for the global community. It was necessary therefore to encourage not only the women who are already helping the modern world to move forward through their research work, but also female students who will be following in their footsteps in the future. L'Oréal decided to form a partnership that goes far beyond the scope of private-sector support, in which the entire company is associated with a cause that it considers essential: the recognition of women and promoting them through scientific research. The group is all the more aware of the importance of the role of women in research because 55% of women, a percentage unmatched in industry. The company's history is punctuated with women research scientists who have contributed to its expansion. |
| The L'ORÉAL-UNESCO AwardsThe UNESCO-L'ORÉAL FellowshipsThe National Initiatives |
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The L'ORÉAL-UNESCO For Women in Science partnership reaches many different countries through national initiatives and fellowships that benefit women of science, such as:
These national initiatives help to strengthen women's position in science all over the world. By virtue of their history, culture, role in society and sensibility, women of science can influence the direction science takes in the future through a new social view of science and the benefits it can bring. The African proverb quoted by UNESCO on the occasion of its 50th anniversary takes on its full meaning here: "When you educate a man, you educate a person.
When you educate a woman, you educate a family, a nation." |
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For Women in Science has recognized work of high quality that has helped considerably to change the perception, particularly among scientists, of the role women can play in furthering knowledge, and has encouraged young women from all over the world to pursue a career in science. The quality of the relationship forged with UNESCO and its representatives all over the world over the past six years has led L'Oréal to develop this collaboration further, taking inspiration from the ideas and projects that have emerged in this global environment, to increase its own understanding of global cultural issues and lesser-known identities. |
| Because L'Oréal's business is at the center of people's everyday lives and well-being, the group is closely involved in the life of the communities in which its facilities are located. L'Oréal has a duty to conduct itself as a socially responsible company and seeks to support projects that are for the public good, in the form of long-term sponsorships and partnerships. These are often local initiatives focusing on specific, clearly identified issues - solidarity, education - and are consistent with the values that the group has advocated for almost a century. The aim of these initiatives is to provide a strong foothold in the economic and social life of the countries in question. The group endeavors to preserve what gives these initiatives their strength and effectiveness, namely the independence of our locally-based companies and their ability to adapt to specific cultural environments. AIDS prevention In South Africa, L'Oréal teaches its 800 employees about AIDS prevention in Africa through its hairdresser training network. In addition to the AIDS prevention and treatment programme for our employees and their families, we have included an AIDS information and prevention unit in all our training courses. By the end of 2004, we had disseminated this life-saving information directly to over 60,000 people. The impact has been very significant given the large number of customers that hairdressers deal with. Our local networks have made it possible to extend this ambitious programme to help combat this serious disease. In early 2005, L'Oréal's Professional Products Division signed a Cooperation Agreement Protocol under which an AIDS prevention campaign, "Hairdressers of the World Against AIDS", will be launched. Initially, this programme will involve creating training material as a function of the culture of the various countries. After Africa, India and Brazil will next be targeted by this programme in 2005. Look Good, Feel Better "Look Good, Feel Better" is an association in the United States. In 1989, a cancer specialist called on the US Association of Cosmetic Industries on behalf of one of his patients suffering from cancer and badly affected by the physical damage caused by her treatment. The young woman regained a thirst for life and the courage to fight her cancer. The result was this programme for women who have undergone cancer treatment: it is now active in 14 countries. L'Oréal is one of the main drivers behind this worthy venture, notably in France where the programme is called "La Vie de plus belle". Restaurants du Coeur For the past seven years, we have been providing the charitable organisation "Restaurants du Coeur" with kits bearing the L'Oréal logo and containing five of the group's hygiene products (Consumer Products Division), covering basic family needs. They are handed out during the association's winter campaign right across France. Through this gesture, L'Oréal seeks to put into practice its commitment to forming closer ties with people in difficulty and so help them regain their place in society by retaining a positive image of themselves. Help for the tsunami victims An exceptional contribution of one million euros has been retained to help the countries affected by the tsunami; this amount was boosted by contributions and support actions from many employees around the world. These initiatives are a way of asserting the group's social responsibility. But, for L'Oréal, sponsorship and partnership initiatives must on no account take the place of the number one priority for any company, that of behaving responsibly in its "role" as a citizen. |
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