When it comes to social matters, the group does not limit itself to its own divisions. It also includes its network of suppliers all over the world. For L'Oréal, a priority is adherence to fundamental human rights and diversity, which inspires its entire Buy & Care program. Among others, two activities illustrate this: social audits are carried out among suppliers and the Solidarity Sourcing worlwide program.
Social audit policy
As a signatory of the United Nations Global Compact, L'Oréal expects its suppliers to adhere to the basic conventions of the International Labor Organization and to local legislation, especially in matters concerning minimum wage, work time and occupational health and safety. Social audits are carried out by independent external companies on the suppliers' premises, thus making close monitoring of their adherence possible. Audits are also systematically carried out on subcontractors, wherever in the world they may be based, as well as for suppliers of raw materials, packaging and POS*/advertising in sensitive countries. Social and safety/health audits are frequently conducted along the entire logistics chain, with the aim of validating the selection of new suppliers and contributing to the development of good business practices among existing suppliers.
* POS : point of sale.
Since 2006, 7,080 social audits have been carried out, including 951 audits that took place in 2015. More than 400 suppliers have been evaluated by Ecovadis, representing 74% of the Group’s strategic suppliers.
Sourcing as a lever for social inclusion
L’Oréal has launched in 2010 a worldwide program called “Solidarity Sourcing”. It aims to open up calls for tenders to very small companies which employ people from economically vulnerable communities to enable them to have durable access to employment and income. In 2015, 25 new projects were created, to reach a total of 208 Solidarity Sourcing projects, that benefit to 57,200 people all over the world.