CSR in the cosmetics industry

Corporate Social Responsibility of a company is its sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship through their waste and pollution reduction processes, by contributing educational and social programs, and by earning adequate returns on the employed resources.1 Companies need to answer to two aspects of their operations: the quality of their management (both in terms of people and processes) and the nature and quantity of their impact on society in the various areas. In addition to that, stakeholders and consumers are taking an increasing interest in the activity of the company. Indeed, what the company has actually done, good or bad, in terms of its products and services, in terms of its impact on the environment and on local communities, or in how it treats and develops its workforce really matter to them! Regarding the cosmetic industry, corporate social responsibility is very important. It is expressed through different topics. The fact that they use eco-friendly and healthy ingredients, that they prohibit pre-clinical tests on animals, that they prone non-discrimination and diversification among their clients and employees (either with different cultures or with women as senior executives) and that they respect human rights. Indeed, new legislations and restriction changes in the EU laws in 2005 (regarding drugs and chemicals use), prohibits of the use of ingredients tested on animals and advertising regulations have serious impact on the company strategy as changes in the resources and production are necessary, which can be very costly. But CSR is even more relevant in this sector as we know that a new context seems to be emerging for the natural movement in the beauty and personal care industry. Nowadays, there is no doubt that the word "natural" is being used to describe many beauty and skincare products on the shelves today. How come? People are thinking more about what they eat and it is following through to what you put on your skin. With increasing awareness of healthy lifestyles and preventative measures rather than quick-fixes, the natural approach seems to be an extension of this more holistic "mind, body, spirit" ethos. Furthermore, customers are becoming increasingly sensitive to environmental matters and with news spreading fast on the internet it doesnt take much for the reputation of a business to be affected on account of poor water performance. The Research Business International, have conducted research into this area to identify what future opportunities there are for innovation by exploring current practice, industry leaders and best practice companies, the drivers, the demographic trends and the implications for the future. Traditionally the corporate social responsibility (CSR) agenda has primarily been driven by compliance and reporting requirements. However, in the cosmetics industry, it seems to become consumer driven. Evolving consumer demand has led to a practical approach to CSR using product innovation as its principle tool.
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Business Dictionary

Some key themes are emerging that give us a clue as to why the demand for "natural" products is set to grow. First of all, consumers are becoming better-informed, more welltravelled and information hungry. The aging "western" population has more time and resources to spend on itself on average. There is also a growth in segments such as ethnic cultures. Secondly, safety and health issues are going to be key in the cosmetics industry since people are increasingly health-conscious and consumers grow therefore more aware of the implications of what they apply on their skin. Scares around potentially carcinogenic ingredients and pore-clogging ingredients are an underlying factor driving consumers to demand a more natural approach. Thirdly, the anti-capitalist, no logo movement has increasing relevance in a post-September 11th world, and manifests itself through packaging. Minimalist and basic packaging is the new trend. Moreover, science and genetics: advances in human genome technology generate both fear and possibility in the minds of consumers, and again presents both risks and opportunities for business. Finally, environmental, ethical, pollution, waste, recycling all remain important issues that can still differentiate products when effectively addressed. Once the key drivers for the natural trend in cosmetics and the new emerging context are identified, the question is: how to make it practical? This trend can be translated into practical action through several paths: the retail environment, communication with the consumer, new product development, packaging and branding. The eighties saw the phenomenal rise of the Body Shop. Its stripped down, minimalist, values-driven approach differentiated it from the rest of the market and its market share and global presence grew rapidly. What followed were a series of copy-cat approaches by other companies and own-label brands. Niche, specialist companies have also proliferated but never caught the public's imagination on a similar scale. Whats funny is that LOral just bought Bodyshop for 940 million euros. It is a good demonstration that LOral got the width of this new ecological trend. The chain will remain an independent entity within the cosmetic giant even if it represents for the moment only 5% of the turnover: the current leaders keep their functions and the stores will continue to offer only The Body Shop products. This acquisition represents a double strategic hit for L'Oral. Indeed, The Bodyshop is a strong distribution network (which says distribution says margin) and positioning on the very promising market of the products ethically correct. According to Lindsay Owen-Jones, chairman of LOral, the alliance of the expert testimony of LOral and its knowledge of the international markets with the culture and the values of The Body Shop will be very beneficial for the two companies. And LOral is not the only one that is taking advantage of this new trend. Most recently, a host of mainstream personal care companies and retailers have jumped on to the band wagon. For instance, key industry player Estee Lauder purchased Aveda and launched its own brand, Origins. In a nutshell, from single-issue USPs the natural trend is moving towards to a mainstream, luxurious and quality product offering.

For a long time CSR has been part of L'Oral's Corporate Culture. The initiator of CSR activities was the Chief Executive Officer. His statement clearly describes the strategy and key values of the company since the early days, such as integrity, responsibility and respect for people and environment, as well as giving the examples about the embedding sustainability into short-term, medium-term and long term targets (5- 10 years). LOral believes that lasting business success is built upon ethical standards which guide growth and on a genuine sense of responsibility to the community at large. The group continues to improve the relationships with its stakeholders as this policy is vital to ensure sustainable funding and long-term strategic direction. Respectively, LOreals stakeholder mapping constitutes of their customers, employees, creditors, suppliers, shareholders, government and investors. CSR has many positive effects on LOral. First, there is an increasingly positive attitude of employees and external stakeholders towards the company. Moreover, L'Oral commitment for corporate social responsibility contributes towards the company's overall growth and business success. L'Oral's is the world's largest beauty products company, creating makeup, perfume, and hair and skin care products. L'Oral's brands for women and men include L'Oral, Garnier, Maybelline (mass-market products), Lancme (upscale products), and Redken and Soft Sheen for retail and salon hair care. The company is also Biotherme, Helena Rubinstein, Cacharel, Giorgio Armani, Ralph Lauren, Diesel, Vichy, La Roche Posay, L'Oral also conducts cosmetology and dermatology research and has a 19.5% stake in the Sanofi-Synthlabo pharmaceuticals group. However, the fast-changing technological environment and the increased competition between the companies in the cosmetic industry is a vital driver for LOreals R&D spending. Each year the company is spending large amounts in order to increase its competitive advantage. There are many players in cosmetic industry and enormous profits attracts new entrants, therefore companies such as LOreal need to position itself in an competitive advantage. Main industry competitors are Procter&Gamble, Unilever, Johnson&Johnson, Shiseido and Este Lauder. They all are very proactive in CSR, whether it is on the social, environmental or ethical aspects. Because usually, they got the funds to invest in it (cosmetic industry is rather profitable)! Procter&Gamble : Their social investments are focused on improving the lives of children in need through Live, Learn and Thrive, their far-reaching global cause. Leveraging the scale of their Company and the passionate, skilled volunteerism of their employees, they are on track to reach more than 300 million children by 2012. Almost one billion people in the developing world do not have access to clean drinking water. As a result, thousands of children die every day. The P&G Childrens Safe Drinking Water (CSDW) Program reaches these people through PUR packets, a water purifying technology developed by P&G and the U.S. Centers for Disease Control and Prevention (CDC). One small PUR packet quickly turns 10 liters of dirty, potentially deadly water into clean, drinkable water. Every day, 13 million children in the United States risk going hungry. But P&G is partnering with Feeding America to help change that, providing support through a number of efforts aligned with our Live, Learn and Thrive cause.

Unilever: They have a long-standing set of values and principles that guides their behavior. These values underpin their approach to sustainability. They have always been a business driven by a strong set of values. Today those values are as important as ever. They now know that the well-being of society and the environment is critical to their ability to grow their business. In November 2010, they launched the Unilever Sustainable Living Plan in which they commit to three significant outcomes by 2020: To halve the environmental footprint of the making and use of their products; to help more than a billion people take action to improve their health and well-being; and, to source 100% of their agricultural raw materials sustainably. Their aim is to investigate & understand stakeholders' concerns. People contact them about various concerns: these may be very specific or local issues or more complex global issues such as the need to reduce animal testing. Shiseido Eco Policy: Safety and preservation of the natural environment are among their highest priorities. In cooperation with local communities and in harmony with international society, we employ our cultural resources in creating a beautiful lifestyle. 1. Consider the ecosystems and use natural resources and energy with great care 2. Promote the development and application of new technologies that do not burden the environment 3. Aim to raise the level of employee awareness toward environmental protection 4. Endeavor to work closely with local communities and society at large Moreover, Shiseido had launched Environmental Volunteer Activities which are intended for protecting the environment by reducing CO2, and creating opportunities for local employment. Shiseido is also proactive in offering a program of Beauty Seminars for handicapped individuals and senior citizens. Long story short, the cosmetic industry promotes corporate social responsibility like equity in international trade, ethics, environmental protection and green chemistry. Limitation of pollution, reductions in chemical waste and energy usage and using renewable raw material are few of many steps that the companies carry out to protect our environment. The development in the natural trend has been marked by step changes as market conditions and consumer demand and drivers have developed. While companies have to be more aware of the growing consumer concerns on health and safety and keep their radars out for consequent legislative and regulatory changes, the opportunity for innovation and competitive edge is real. In terms of CSR, key emerging drivers have been identified on the consumer demand side and companies are getting how these can be translated into practical action. This natural is a great opportunity for companies to mark points to the consumers because they have a chance to demonstrate their corporate social responsibility by emphasizing their ecological and healthy side.

CSR by LOral
The adventure of LOral is the story of a socially responsible company. Being a profitable company and a global leader in their field also means being a company that sets an example. LOral received a distinction this year from the Ethisphere Institute, which rated their group as one of the "World's Most Ethical Companies" among several thousand companies in more than 100 countries. This endorses LOral's promotion of ethics as part of a corporate culture that is built on humanist values and individual fulfillment. L'Oral is committed to applying its internal standards all over the world, even if the requirements of local laws and regulations are less demanding. The compliance of its sites with internal standards and then regulations of host countries is therefore monitored through a comprehensive audit programme

LOral s ethical approach

Ethics and values are the basis for the trust placed in us and guarantee the permanence of our company. Throughout the year, as in previous years, we implemented our policy to maintain a high level of awareness among employees about ethical issues. One example was our Ethics Day, when LOral directors took part in a live webchat on our intranet. Approximately 10,000 employees logged on and submitted more than 900 questions.2 L'Oral believes that lasting business success is built upon ethical standards which guide growth and on a genuine sense of responsibility to the community at large. LOral was named one of the "World's Most Ethical Companies" by the Ethisphere Institute. This nomination follows a record number of entries from thousands of companies in more than 100 countries and 36 industries. Based on in-depth research and a multi-step analysis, the companies selected for this ranking have demonstrated exemplary behaviour in ethical commitment and positive engagement with local communities. Ethics constitute a core commitment for LOral. Each entity, each brand and each employee contributes to the implementation, day in and day out, of the groups commitments defined in THE SPIRIT OF LORAL. The groups Code of Business Ethics offers employees guidance on conduct. The groups Director of Ethics, reporting directly to the CEO, acts as an authority, giving his advice and assisting with the realisation of these commitments and providing the appropriate tools, and is also available to address any concerns that may be raised. Eighteen Ethics correspondents have been appointed in the principal countries of the group to assist the chief executives in these countries to implement LOrals ethical programme. Compliance with the rules of ethics is verified in additional audits carried out by their external auditors. Moreover, LOral aim "Zero Accidents" in workforce.

Chairman and CEO message, www.sustainabledevelopment.loreal.com 5

Their ethical approach focuses on three axes: Policies and good practices: the Office of the Director of Ethics regularly offers guidance and support to management on ethical decision-making and provides tools and policies on various topics. For example, the Ethics management team recently developed a risk analysis tool for Management Committees and has circulated a policy on child labour. Communications: the Office of the Director of Ethics has launched a website dedicated to ethics, accessible to all employees including those who are visually impaired. The site offers information and resources such as the learning tool The Ethics Maze. The Office of the Director of Ethics also helps countries to organize communications campaigns locally on various ethical issues. Training: The ethics training system is based on blended learning techniques and, as far as possible, ethics is incorporated into existing training courses in order to ensure integration into employees day-to-day working programmes. The aim is not only to train employees on topics such as corruption, supply-chain management,... but also to develop a set of specific ethical skills such as Demonstrating a high level of personal integrity, Developing ethical reasoning and Understanding the Business Case for ethics and how it relates to value creation. Open-talk: They encourage all their employees to express their views, to defend their opinions and to report unacceptable conduct or requests (sexual harassment,). They appreciate that employees may have concerns about certain practices and need assistance and guidance to resolve these. The normal route for signaling concerns of this nature is through management. If for any reason this is not appropriate in a given case, the employee may raise the matter directly with the Human Resources Manager. In some countries, employees have additional resources such as employee representatives, grievance procedures or telephone help lines. In each country, the country manager is ultimately responsible for adherence to the Code of Business Ethics. If an employee has reported a grievance locally and received an unsatisfactory response or if, in exceptional circumstances, it was not possible to handle the grievance locally; the employee may contact the groups Director of Ethics.

LOral seems to have good commitments about ethics. But what do they do in practice? In order to ensure continued awareness on Ethics, a day is set aside every year (Ethics Day). In 2009, the theme for Ethics Day was the Code of Business Ethics' Open Talk policy (encouraging employees to ask questions and raise possible concerns). The central event was a live webchat with LOral's CEO on the Code of Business Ethics accessible to all staff around the world from their workstation.

Countries organised local events including meetings with Country Managers, local webchats on ethics, games and quizzes and the display of the Ethics Day webchat with the CEO on wide screens in meeting areas, staff restaurants, and so on. Nearly 900 questions were sent in from employees throughout the world for the webchat. There were approximately 10,000 logons from workstations and given that most entities showed the webchat on wide screens, it is estimated that approximately 15,000 employees watched the session. Employee feedback on the event was very positive and the webchat is now set to become an annual event. Another example is the "LOral for Ethics" Excellence Bursary that aims to support students who have chosen to include the study of business ethics in their vocational training. The winners are selected on the basis of their academic record, their financial needs and the quality of an essay, which this year was on the theme of "The importance of ethics in the global leaders of tomorrow". The first "LOral for Ethics" Excellence Bursary was awarded by Jean-Paul Agon, LOral's CEO, to two students of the University of Cergy-Pontoise's European "Law and Business Ethics" Master's Degree, which LOral contributed to launch in 2008. They have a new ethics appraisal system. The two ethical competencies "Act/Lead with Human Sensitivity" and "Obtain results with integrity", which had been included in the annual appraisal system for all managers are now being extended to all staff thanks to the new HR policy "LOral & Me". 18 Ethics Correspondents were nominated in the group's major countries to support Country Managers in deploying LOral's Ethics Programme and to serve as a local ethics resource for staff. By the end of 2010, there should be an Ethics Correspondent in all Countries employing 300 staff or more. Convinced that successful brands are built on a relationship of trust with consumers, L'Oral sponsored the Institute of Business Ethics' publication Marketing Responsibly in order to help raise awareness on the various ethical issues raised by marketing and advertising.

LOral s environmental approach

The second LOrals pillar is sustainable innovation. This is evident in the commitment of our laboratories to integrate eco-design approaches and apply the principles of green chemistry, which allows us to develop our products using the most environmentally friendly processes. Since the early 1980s, the Group "has kept several steps ahead of current legislation, and has done so well in its environmental actions that it has been awarded many prizes". L'Oral is committed to achieving excellence in our safety, health and environmental performance. The company is constantly striving to reduce the number and severity of accidents and to diminish its impacts on the environment for example, In 2005, L'Oral's Safety, Health and the Environment (SHE) programme was focused on three priorities: to reduce the quantities of water and electricity consumed to make each finished product (ecoefficiency measurements) and improve safety in all its activities. In addition to these priority
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goals, the group is determined to improve all its key performance indicators (KPI) in the fields of environment and safety. In 2009, they again renewed their efforts regarding sustainable development and made further tangible, quantifiable progress. For the third consecutive year, therefore, LOral is recognised by Corporate Knights as among the 100 most sustainable companies in the world. LOreals targets include promising to halve its carbon emissions, water use and industrial waste by 2015 compared with 2005 levels. LOreal is keen to point out that regarding water use it is no Coca-Cola (using more of its water for cleaning and sterilising than in its products). Its plans for reducing water use include the replacement of water for steam in its cleaning processes and the collection and reuse of machine and process cooling water. The cosmetics company is keen to pursue product labelling. The company is working with retailers, including Tesco and Walmart, to work out one methodology to carbon-label all its products. LOreal would prefer to use one universal label to display the carbon embedded in its products, but as such a label is yet to be recognised worldwide, the company concedes it may need to use several. LOreal is making investments in more efficient equipment, redesigning processes, installing new lighting systems. The company claims it has already achieved a 17% reduction in energy use per unit of product produced between 2003 and 2007. By installing systems to recover waste heat in its factories, electricity use was cut by 8%. On-site renewable energy forms a small part of LOreals plan to reduce its own emissions. The company has set up a manure-powered biomass station at its cosmetics factory in Libramont, Belgium, which powers 70% of the plant. Other renewable energy sources used by the company include geothermal energy, to heat the companys research laboratories in France, and solar photovoltaic and solar thermal technology in India, Spain and Mexico. These facilities generally produce less than 10% of the total energy use in the factories where they are applied. To LOreal, the environmental approach is necessarily global. It means that everyone must share a commitment to protecting the environment, in research and at production sites, at the Group's administrative sites, as well as in product development and especially packaging development. Intranet site publishes environmentally friendly gestures or reflexes to heighten employee awareness about protecting the environment, both in the company and at home. Their Environmental Management Department was created in 1991 and they set up environmental work groups. L'Oral Group aims to increase awareness and motivate the entire workforce to show greater respect for the environment and to increase the percentage of biodegradable plant substances in product formulas. They already achieved to eliminate all CFC in aerosols. They want to reduce the environmental impact of industrial sites, shipping centre, administrative sites. For example, they use electric vehicles and LPG cars on Group sites and Construction of the purifying station in the Lancme factory. They also aim to decrease the volume of POS (Point of Sale) displays, in weight and in quantity, while emphasizing recycling. Now, in-store displays are foldable and recyclable. This resulted in a 25% decrease in cardboard used and a 90 % reduction transport
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and storage space. For packaging, same story: reducing volume and weight, increasing their percentage of recycled materials and finding new packaging solutions. Moreover, they initiated performance charts at all its sites with objective of continued advancement. They measure and monitor interactions with the surrounding natural environment (water and energy consumption, atmospheric pollution, transportable wastes). Another little example of their involvement is in the Soprocos plant, energy-saving actions are being implemented, in particular with regard to compressed air leaks. This has resulted in an 8% drop in electricity consumption. According to the CEO, LOral is also cultivating a responsible approach to the sourcing and use of raw materials that respect biodiversity and take into account the challenges of fair trade. 40% of the group's raw materials are of plant origin. By working closely with suppliers, they are able to minimise impacts at supply chain level. The group also recently created a laboratory specialising in natural and organic products, and already markets over 70 organically certified products across all distribution channels. They have an extremely deep-rooted commitment to protecting the environment. For more than 20 years, their eco-responsibility standards have always been ahead of the times. And there is no let-up in their efforts. This year they inaugurated their first carbon-neutral production site, totally powered with green energy. All the plant's electricity is produced on-site through a process of biomethanisation, using agricultural waste. Furthermore, they have solemnly undertaken to cut our CO2 emissions, water consumption and waste by half, by 2015. It is by setting highly ambitious, long-term, quantitative targets for three key indicators that LOral confirms its leadership role.

LOral s social approach

Another LOrals commitment is about citizenship. Wherever the group operates, they seek to make a genuine long-term contribution and play their part in making a more beautiful world. Reflecting this purpose, they used their Centenary in 2009 as a moment for sharing and turning to others, and to convey the message globally that LOral is committed to promoting the interests of communities everywhere. To mark this, each of their subsidiaries was invited to support a citizenship project. In total, 100 projects, each a long-term commitment and each involving employees, have been rolled out to bring tangible, effective support to local communities. In addition to that, they created the "Nicolas Hulot Foundation for Nature and Humanity" FT 'World's Most Respected Companies' Survey, particularly noted for its ability to create value for its shareholders. In their sustainable growth, they are seeking the total satisfaction of their consumers by remaining constantly alert to expectations and earning trust through the quality, efficacy and safety of their products. They try to never forget that it is their consumers who are the major stakeholders in the group's continuing success.

"Today we live and work in an increasingly diverse world, a world of individuals with different cultural and ethnic backgrounds, unique styles, perspectives, values and beliefs. A diverse workforce in all functions and levels enhances our creativity and our understanding of consumers and allows us to develop and market products that are relevant."3 Diversity is a core value for L'Oral because it is in their DNA and lies at the very heart of their activity. Indeed, the diversity of their teams is one of the keys to success at LOral. Teams that are diversified at all levels and in all areas allow for greater creativity and a better understanding of consumers, and enable them to develop products that measure up to consumers expectations. The Group plans to continue along this road of self-enhancement with open-minded team members and consequently reject any idea or practice of discrimination amongst its people. LOral based its approach on a Diversities Matrix: cfr appendix 1 Moreover, the Group is composed of 23 brands with an international reputation such as SoftSheenCarson (the global number one hair care brand for women and men of African descent). The multiplicity and complementary nature of their brands and products are testimony to LOreals commitment to enhancing all forms of beauty and well-being while respecting individual differences. In a nutshell, from the broad variety of people who make up its teams to the products developed, diversity has always been a priority. Reflect their consumers diversity of origins within their teams at every level (in terms of nationality, ethnic or social origin, age...), while maintaining their standards of excellence in terms of competencies. They promote gender equity within their teams because they promote the access of women to positions of responsibility, facilitate gender equity in functions that are currently over-staffed by men or women (Marketing, Industry), and ensure equal treatment in terms of salary. Therefore, as a company that believes in good corporate citizenship, LOral is keen to contribute to projects that serve the wider community and that reflect the company's deeply rooted values. In every country where it has operations, L'Oral supports projects that contribute to the community at large through philanthropy and long-term partnerships. Indeed, LOral is extremely proactive in the Commitment alongside UNESCO in the 'For Women in Science' partnership (UNESCO-L'Oral awards recognise women who have been successful in their scientific careers inspire "others to follow in their footsteps"). The For Women in Science programme is one of L'Oral's most important social initiatives. This international corporate programme is launched in partnership with Unesco in 1998. The For Women in Science programme includes the following three interrelated parts: The L'Oral-Unesco Awards Each year, the L'Oral-Unesco Awards go to five outstanding female research scientists, one from each continent, who have contributed to the advancement of science in areas not related to the group's activities. The L'Oral-Unesco Awards are presented in alternate years to women engaged in scientific research in Life Sciences and to those working in Material Sciences. Since 1998, 36 scientists have received awards, their exceptional careers having opened up new and, in some cases, revolutionary avenues to making life better for humanity. L'Oral gives each Laureate a personal award of $100,000.

Jean-Paul Agon, Chief Executive Officer of LOral 10

The Unesco-L'Oral Fellowships The Unesco-L'Oral Fellowships help women scientists involved in promising, exemplary projects to pursue their research in laboratories outside their country of origin. Each fellowship is worth a maximum of $20,000. By sponsoring these young scientists and their hopes for the future, the programme aims to increase the role of women working in scientific disciplines. Since the scheme started, fellowships have been awarded to 75 young scientists from many different countries, around the world. The National Initiatives The L'Oral-Unesco For Women in Science partnership reaches many different countries through National Fellowship programmes, which are launched with the support of the National Commissions to Unesco. These fellowships are designed to encourage young women scientists, and have been launched in 14 countries by the end of 2005: Canada, China, Hungary, India, Indonesia, Italy, Korea, Latvia, Poland, Portugal, South Africa, Thailand, Turkey and the USA. The companys goal is to launch National Fellowships in 50 countries by 2008. Another CSR project of LOral is the project Hairdressers of the World against AIDS. Hairdressers of the World against AIDS is a preventive education programme launched in 2005 by Unesco and L'Oral's Professional Products Division. The programme works through L'Oral's network of hair salon professionals. This education programme is continuing the work begun by an initiative which was set up by L'Oral South Africa and SoftSheen.Carson in 2003. Under this scheme, more than 200,000 days of training were provided to hairdressers from two countries in Sub-Saharan Africa and from South Africa. The Professional Products Division has 115 technical training centres in more than 50 countries, with several thousand instructors committed to the success of this educational project. Aimed at 400,000 partner salons all over the world, the programme should reach more than two million professionals. Training materials have been compiled in conjunction with Unesco. Up to now, pilot programmes adapted for the culture of each country have been launched in India, Brazil and France. Hairdressers, who are the ambassadors of the campaign, pass on their knowledge to the customers who frequent their salons, which are centres for the exchange of ideas and dialogue all over the world. Furthermore, they encourage the employment people with disabilities. A perfect example and marketing action about this is the fact that Aimee Mullins joined the family of LOral Paris Ambassadors. Aimee was born with a limb anomaly and lost both of her legs when she was one year old. While some would imagine a life of disability, she credits her unique body for her ability to develop a sense of personal beauty and glamour. The LOral Paris icons are among the most beautiful women in the world. I am very honoured to be joining this family. says Aimee Mullins. According to Cyril Chapuy, Global Brand President of L'Oral Paris, Aimee embodies perfectly the LOreal woman. Sublime, charismatic, strong. Her life is extraordinary in all meanings possible. She is a smart, confident, curious woman who will wholly represent their philosophy, Because Youre Worth It.

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My opinion about CSR by LOral

A sense of ethics, a concern for sustainable development, solidarity with local communities, and an eagerness to look ahead to tomorrow's world. Welcome to LOral. 1st cosmetics group worldwide 17.5 billion euros of sales in 2009 130 countries 64,600 employees 674 patents registered in 2009

"A responsible company regards respect for the environment as a civic duty, much more than a mere technical objective or legal obligation" Such a big and rich company has a duty to and a necessity to be social responsible because they have the money to pay for it. I think LOral has quite a good way of implementing CSR. Indeed, they have their own projects, and they build partnerships with governmental and non governmental bodies. But they also seek to support projects that are for the public good in the form of long-term sponsorship and partnerships. Which I think we should point out is that the company has a quite good CSR measurement and monitoring. Indeed, data relating to safety, health and the environment is usually examined and verified by Environmental Resources Management, and social data is validated by external auditors. LOral is a member of the FTSE4Good, ASPI Eurozone and Ethibel Sustainability indices. Data relating to the environment, health and safety was verified by Environmental Resources Management (ERM), and social data, were reviewed by Pricewaterhouse Coopers Audit. The verification statements can be found at the end of the CSR report that LOral publishes every June. The information in the report is not presented in a format that allows readers to positive and negative side of performance. I recommend them to fix this! It is necessary for evaluating performance of the company that the information provided in this report can be identified and explained; so that it can be easily confronted on past year bases. The bad point is that the data measurement techniques and bases for calculations are not described. A lot of data provided but there is no description or techniques that would allow to duplicate results.

LOral s ethical approach

I agree with their beliefs and values. At first sight, LOral seems to be perfectly ethic and respectful of regulations. But this is actually quite quickly judged! Indeed, while LOreal pretends to fight against corruption, abides by United Nations Convention against Corruption and the Code of Business Ethics covers issues such as bribery and facilitation payments, Liliane Bettencourt, billionaire heiress of the LOral makeup empire, has been in international headlines for months for her involvement in the high-level corruption scandal over illegal donations she allegedly made to French politicians. Bettencourt, the richest woman in Europe, may be using her enormous wealth to illegally influence Frances democracy, which is not a sense of responsibility to the community!
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Everything began when the old ladys butler secretly recorded her conversations with her financial advisers. Leaked to the press, the recordings suggested massive tax fraud, murky ownership of a tropical island, and cozy, perhaps illegal relations with the countrys president, whose campaign was partially funded by the heiress. So, the recordings contained a number of stunning revelations: more than $100 million in two undeclared Swiss bank accounts; Mme. Bettencourts apparent ownership, also undeclared to French tax authorities, of an island in the Seychelles; allusions to various tax-evasion strategies; and, most explosive of all, privileged links with the Woerths and Sarkozys government. Among other things on the recordings, de Maistre is heard telling Mme. Bettencourt that he is planning to move her Swiss money to Hong Kong, Singapore, or Uruguay so youll be at ease; presumably meaning that she would not have to worry about French taxmen discovering her undeclared funds in Switzerland, which had recently negotiated agreements with France, the U.S., and Britain to share information about account holders from those countries. He also tells her that when he hired Florence Woerth as an investment manager her husband was minister of finance, and he asked me to do it. I did it to make him happy. On another occasion, he describes Eric Woerth as very sympathetic, and whats more, hes the one who oversees your taxes. Hes a friend. In another passage, de Maistre tells Bettencourt that he is in touch with Sarkozys judicial adviser, who assures him that the President continues to follow [Bettencourt Meyerss suit] very closely. We know the prosecutor very, very well. Though it proved no actual wrongdoing, de Maistres claim that the budget minister took a friendly interest in the countrys biggest taxpayer, and his suggestion that the government could influence the prosecutor in a family legal wrangle, was highly embarrassing and potentially compromising for both Sarkozy and Woerth. A second issue I would like to emphasize is animal testing. Around 38,000 animals are used and killed in developing cosmetics in the EU every year. L'Oral is a little bit like the McDonald's of the cosmetic industry. It is the largest, most powerful, most arrogant, then it is more federator to attack him, as it is more federator to stigmatize McDo rather than Quick. But yet, Im sure that LOral is not innocent in this business. For example, in 2006, L'Oral was withdrawn from the list of PETA. Indeed, following a profitable collaboration with One Voice, the great American association of defense of the animals, PETA, withdrew L'Oral and its 80 sub-brands of its list of products without cruelty. PETA met the representatives of LOral who could not answer the precise questions concerning the tests on the animals L'Oral is particularly hated by the defenders of the animals because it tests the molecules of its new ingredients on the animals (like virtually all the cosmetic brands, it is the law). And mostly, LOral is especially responsible to have made move back the EU law on the stop of the cosmetic tests, dates which should have been applied in 1998, then pushed back in 2003 to be finally adopted in 2009. However, to condemn the tests cosmetic, because it is frivolous reinforces always more the idea that there would be reasons serious, important and necessary to use, to poison and kill the animals. It is not with this kind of ambiguous attitude that we will eliminate animal testing! On the contrary, it is to agree with the vivisectionists provided that the 3Rs are respected!
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The 3Rs (Reduce, Refine and Replace) are based on the assumption that experiments on animals, though unpalatable, are scientifically valid, leading to cures and treatments for human disease. Proponents of the 3Rs advocate reducing, refining and replacing animal experiments with 'alternatives'. The principle has merit in theory - though not in practice from an animal welfare perspective. However, it makes no scientific sense because if a practice does not work, there is little point in reducing or refining it. The 3Rs have unfortunately become a smokescreen, which allows the continuation of animal experiments to seem acceptable as long as the 3Rs are applied. LOral may use this excuse Those who endorse the 3Rs and Alternatives promote the 'necessary evil' view of animal experiments. They maintain that each type of experiment - of which there are millions - is, regrettably, necessary until it can be replaced by an Alternative. This perpetuates both the practice and the myth that sustains it. Animal experimenters claim that each and every experiment must be assessed on a case-by-case basis for scientific validity and justification. However, science tells us otherwise:

Applying knowledge gained from animals to humans harms humans most of the time Intractable differences between species mean that animals cannot 'predict' how the human body will respond to a disease or a drug. Their use violates the most fundamental principle of biology: evolution. Therefore the 'animal model' paradigm should be rejected as unscientific.

Society need not fear that abandoning animal experimentation would mean giving up medical progress. On the contrary, it would ensure greater safety for patients and volunteers in clinical trials and a higher probability of finding cures for human illness. But, the lists of products without cruelty or not tested on animals diffused by animal associations have only one too partial reliability, owing to the fact that there is no audit. There are well-known companies of cosmetics that conform to all the standards of the organizations against cruelty and that continue to buy, aware or not, ingredients at companies that make tests on the animals. The company doesnt find any interests in financing such independent audit because the demand of not-tested products is not sufficiently significant. Moreover, the associations do not have the means necessary. Consequently, everything is a question of honesty of the company and she must itself be sure of the honesty of their suppliers In short, there are so many suppliers of ingredients in the world that the traceability becomes complex Therefore, I think that LOral lied about this because they are too big and it is impossible for them to control all their suppliers. And what about firms appearing on lists not tested, but that appear on the red lists of ecological association, because containing particularly harmful products? I believe that the most reliable purchase is that of natural products - organic. If the guarantee is not total, it is optimum because free from many products of synthesis obligatorily tested on animals; it represents, in my opinion, the best alternative for nature and the human health.

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Yet, for LOreal, innovation is one of the most important characteristic of the company because differentiation is one of the key strategies.Scientific innovation which forges the excellence of its products and by cultivating the diversity of its brand portfolio and its distribution channels to make beauty accessible to everyone. To meet consumer demand, LOreal invests each year millions of euro into Research and Development programs. Thanks to this, in 2007, the company built two new laboratories and in same year, the company had 567 products protected by patents. In total, the company runs 16 research centres across the globe. L'Oral is now leader in the field of the substitute methods to the animal experimentation in beauty care. This company has, for example, the patents Episkin (an artificial skin reconstructed from human cells), SkinChip, SkinEthic. In near future, this will fade away animal testing and will aid with reconstructing broken skin.Its Parisian center of clinical trials is very known in the student's medium to recruit volunteers regularly in order to test their products of care and make-up realising remuneration (around 100 euros). L'Oral thus seems decided to explore this new orientation concretely. But we have to bear in mind that this acquisition is an excellent way for L'Oral to catch up; after being highly criticized on the not very ecological character of some of these products. Then which is the part of marketing and which is the part of action, only time will tell us A third issue I would like to point out is the fact that LOral recently bought The Bodyshop range which is supposed to be made only from natural materials without use of chemicals and to be firmly opposed to the experiments on the animals. The Body Shop is one of these world groups which skillfully surf on marketing thico-green. There is nothing evil to that, except that this company was accused several times to mislead the consumer on the equitable and ecological trade. Indeed, International Survival, Greenpeace London, Jon Entine from Ethical Corporation Magazine, Michael Johnson from International Management magazine etc denounced this company to be against the trade unions, to remunerate its employees slightly, to exploit native-born people (the Kayapo Indians in Brazil, the Pueblo Indians with US, etc,), to mislead the consumers with products wrongfully natural (but really petrochemical: sopropyl myristate, petrolatum, triethanolmine, formol etc) and wrongfully without cruelty towards the animals (of the ingredients containing animal by-products coming from the slaughter-houses, of the ingredients which were tested on animals before 1991 etc). Consumers were willing to pay a hefty premium for its commodity products because they believed its cosmetics were high quality and natural, and that it practiced social responsibility consistent with what it preached. But the image shattered irreparably in September, 1994 with the publication of the article "Shattered Image: Is The Body Shop Too Good to Be True?" in the US magazine Business Ethics. It detailed dramatic contradictions between BSI's idealistic public image and its operational practices, questioned the company's ethical reputation and challenged Anita Roddick (the CEO)' honesty, if not her sincerity. "Shattered Image" documented that the company stole the Body Shop name and marketing concept, fabricated the origins of key products, misrepresented its charitable contributions and fair trade programs, and has been beset by employee morale and franchise problems.
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Moreover, its lotions, shampoos and fragrances were never "natural." The breadth of misrepresentation is startling and covers every dimension of its operations. These problems are not just the mistakes of over-enthusiastic idealists. A particularly revealing story is Body Shop's first fair trade program. In 1987, Roddick began sourcing foot massagers, which she calls "footsie rollers", made in India at the Boys Town orphanage. In the early 1980s, when Richard Adams was head of the fair trade company Traidcraft (UK), he sourced a different Boys Town product, wood carvings. He soon discovered that Joe Homan, the project's director, was sourcing the carvings from sweat shops and was molesting the boys. He kept the police at bay by using a slush fund kept full by church agencies that were innocently sending him money... Even by knowing all these lies about their CSR, LOral purchased Bodyshop. They really should be ashamed Moreover, this one will remain an independent entity and is thus likely to continue these abominations.

LOral s environmental approach

Firstly, I would like to focus on the excess of consumption, the wasting of water because we dont realize how much water they can use to produce their products. Secondly, I will deal with the water pollution that the chemicals in their products could cause. Each time we take a shower using one of their shampoos or other LOral products, we just poisoned ourself and the environment a little bit. If we do this every morning as your regular routine, we are accumulating these poisons by the bucketful and chemicals end in rivers which will flow out in the sea and disturb the ecosystem. The cosmetics company has actually not measured its water footprint yet, but is currently focused on its direct site uses of water. Indeed, the sum of the direct use and the indirect use of water is the water footprint. The business should evaluate its direct and indirect uses of water. The direct uses of water are those such as water used for producing goods, manufacturing, and supporting activities; collectively referred to as the operational water footprint of the business. The indirect use of water is the water used in the business supply chain, and is sometimes referred to as the supply chain water footprint of the business. In business and industry, water has often been an issue which is overlooked. So, LOral is not the only late company. But fortunately now, with increasing concern over climate change and resource scarcity, the topic of water has risen up the business agenda. Moreover, apart from negative public relations, reputational and regulatory effects, water issues can affect business operations, through supply chain bottlenecks arising from water shortages. Part of the increased awareness of water issues has come about through recognition of the problem of energy use and greenhouse gas emissions. Therefore, they must catch up the other ecological company and measure their water footprint properly in order to reduce it and to optimize their water consumption. In addition, recognizing that water has a lot of energy associated with it (energy used for pumping water, treating water, filtering water, chilling water, heating water), it is clear that unnecessary water use means unnecessary energy use. It is then extremely important that LOral take this issue seriously because businesses have
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an important role to play in turning water from a resource held in little regard into a resource that is rightly viewed as being precious. Footprinting provides businesses with a way of accounting for and safeguarding water supply (through source water protection) for the future. People are accounting for carbon because of consumer pressure and legislation. Similar pressures are occuring in relation to water, as effects of water stress become obvious. TV images of wildfires sweeping parts of Australia and the south western US, for example, bring home the important effects of drought. Although businesses may not necessarily spend as much on water as they do on energy (although some industries, such as beverages, are clearly water intensive), water can be business critical input and also a sensitive area for stakeholder relations and expectations. The move towards footprint labelling on goods raises the possibility for businesses to communicate in new ways with consumers on good water practice. Investors and other stakeholders are also interested and in some regions there is significant legislation in place designed to protect water resources. The polluter pays principle is changing the way that water pollution incidents are viewed, with significant fines now being levied against offenders, carrying with it the potential for reputational damage. In LOreals factories, the largest single category of water use is washing equipment (42%) followed by content in the product (17%), sanitary (12%), cooling (6%) and other (irrigation, cleaning for wastewater treatment, etc.). Fortunately, LOreal has some water reduction strategies. They collect the backwash from water treatment system, used for softening the water in products and washing. This is done either via reverse osmosis or water softening systems. The backwash is collected and used as a first rinse for cleaning large and small vessels where the product is made (such as a shampoo). They also collect treated wastewater (after treatment and before going to the municipal systems) used for cleaning in the wastewater treatment facility (cleaning equipment, etc.). They collect and reuse water used in the system, the machines and process cooling water and they collect the steam condensate from steam lines in factories. By the way, LOreal will estimate in its next corporate responsibility report that the companys overall carbon footprint, including product lifecycles from sourcing to end of life, comes to around 5 million tonnes of CO2 annually. Much of this is down to the use phase of the products. This large emissions figure dwarfs LOreals 2015 carbon target, which aims to halve the companys emissions for its own facilities. LOreal recorded these emissions at 210,000 tonnes CO2 in 2008. Like many companies looking to make easy wins in the carbon arena, LOreal has plumped for green energy tariffs to cut its emissions on paper, although simply switching to green electricity is not enough in itself! In the US city of North Little Rock, LOreal is purchasing Green Tags (renewable energy certificates) from the municipal utility generated by a hydroelectric dam. Which is very admirable is that LOreal uses a third party, the environmental auditor ERM, to validate its Scope 2 emissions (covering electricity from the grid). According to Mansdorf (VP Safety, health and environment at LOral), they would purchase
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not more than 20% of their energy needs on a green tariff, although he adds that this figure would depend on what happens in the future with national and regional infrastructures for energy and government investments in green energy. He also points out there is less need to invest in green tariffs in France, where 80% of the national grid for electricity is produced by nuclear and in Canada, where the companys facilities in Montreal are already powered by 100% hydropower. In all the cases where LOreal is using green energy on site, the company contracts third party experts to operate and maintain the systems, mostly via Power Purchase Agreements. Payback times need to be rapid, says Mansdorf: For us and most businesses, we need the paybacks in the range of three years under normal circumstances. That proves that money still remains the center of everything and the first and foremost concern of LOral despite all this good will Concerning the water pollution through chemicals, it is difficult to determine if that specific part of pollution in San Francisco bay, for example, come from the factories of LOral. That is why it is hard to charge companies for such reasons. Therefore, LOral has not had such personal accusation yet about it. By tracing these chemicals to particular sites, we could identify simple pollution prevention strategies. In the case of hair-colorants for example, the phrase "naturally-inspired" colours to describe a product made of active chemical ingredients, is quite misleading to consumers. As I said earlier about Bodyshop products (now a part of the LOral empire), criticism has also been aimed at products labelled "organic" where only a tiny percentage of the product's ingredients were certifiably organic and were often mixed with ingredients seen by some as potentially carcinogenic. This leads us to the question: what does "natural" mean? There is no law defining the use of the word "natural" to describe a cosmetic ingredient. For the consumer, this can result in confusion and distrust. Industry guidelines describe processing techniques which allow ingredients to retain their "naturalness", so to speak, as opposed to techniques that alter the ingredient, by chemical reaction or conversion, thus precluding it from being called "natural". Despite its widespread use, no standard, certification or central authority exists at present to guarantee both product and process in the cosmetics industry as being "natural". However, according to a recent Sunday Times article, the Soil Association, (the UK's leading organic certification organisation) is announcing new standards that require 95% of a health or beauty product's content to come from certified organic sources (excluding water) to earn certification. This may mark the beginning in a move towards more stringent requirements for companies, and more clarity for the consumer, presenting both risks and opportunities. This issue of water pollution should really attract the attention of LOral because it is a very serious one. Indeed, 95 percent of wastewater samples show widespread use of chemicals. Several of the chemicals examined are known or suspected of disrupting the hormone systems of animals and people. Of these, only a small fraction have been regulated at all, much less tested for toxicity, persistence in the environment, or other harmful characteristics, such as hormone disruption. Some of the same unregulated, widely-used, hormone-disrupting chemicals have been detected at trace levels in the San Francisco Bay. But all the earth is involved! Fish and other aquatic life inhabiting waters containing man-made hormone-disrupting chemicals may develop reproductive and other health disorders. For example, male fish with
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immature eggs in their testes have been documented with increasing frequency throughout the U.S.. Damage to the reproductive health of vulnerable fish populations may result in detrimental consequences to local fisheries and aquatic ecosystems; in addition, there is concern that people could become further exposed to hormone-disrupting chemicals by eating contaminated fish! To identify some of the sources of these hormone-disrupting chemicals, Environmental Working Group (EWG) and East Bay Municipal Utility District (EBMUD) researchers analyzed samples of wastewater from residential, commercial, and industrial sites in the San Francisco Bay Area. 18 of 19 wastewater samples examined contained at least 1 of 3 unregulated, widely-used hormone disruptors phthalates, bisphenol A, and triclosan; 2 samples contained all 3 substances. Despite sophisticated wastewater treatment, these chemicals were detected in treated waters. While wastewater treatment is extremely effective in removing biodegradable food and human waste, it was never designed to address this broad spectrum of unregulated chemical pollution. Advances in wastewater treatment may reduce some types of pollution, but new chemicals are introduced continuously into the marketplace. Expensive potential improvements to wastewater treatment facilities would result in higher consumer water rates, while only removing a fraction of these contaminants of concern. Instead, it is critical to look at more cost-effective ways to protect our waterways through reducing chemical pollution at the source (before it ever reaches the treatment plant or the ocean). Phthalates are very toxic and are present in lipstick, perfumes and personal care products containing fragrance and in nail polish. Phthalates are plasticizers. In cosmetics, they are used to add texture and luster to the product. Products sold by LOral They're also in detergents, food packaging, pharmaceuticals, and plastic toys. And they have turned up in our bodies. Hormone-disrupting chemicals are not just an ecological concern. Studies of ordinary people show that our own bodies typically are contaminated with low levels of phthalates, bisphenol A, and triclosan. The sources of this pollution in people include many ordinary consumer products, such as cosmetics, cleaning agents, "antibacterial" soaps and canned foods. Recent research indicates that chemicals that interfere with the hormone system can cause adverse health effects in cells at levels as low as 1 part per trillion. Phthalates have been shown to cause a wide array of health problems, from liver and kidney failure to heart, lung and blood pressure problems. The most worrisome aspect by far is the phthalates' effect on the reproductive development of fetuses and infants, particularly the reproductive tracts of males. Adult men with higher levels of phthalates in their bodies are more likely to show signs of hormonal disturbance, including reduced sperm concentration and motility, increased damage to sperm DNA, and altered hormone levels. Baby boys exposed to higher levels of phthalates in the womb or in breast milk are more likely to display reproductive system abnormalities.

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But it is not just about the San Francisco Bay, the use of phthalates in manufacturing is widespread and has such a long history that phthalates have wormed their way into every corner of the globe. Traces are present in virtually every person on the planet. The phthalate DEHP has been found in Antarctica and in deep-sea jellyfish 3,000 feet below the ocean's surface. Since the FDA (Food and Drug Administration) does not regulate the use of pthalates in cosmetics and beauty aids, manufacturers like LOral are not required to disclose them as ingredients. Indeed, they had a long record of safe use, with no reports or evidence of harm to human health. Additionally, the industry group has spent "millions" studying the compounds and has found no reason for concern. In November 2000, the Environmental Working Group released a report that stated, "Phthalates are recognized as toxic substances under environmental law, but companies are free to use unlimited amounts in cosmetics." Without the FDA recognizing that all members of the phthalate family accumulate to cause the same health problems, phthalate manufacturers are able to claim that each individual chemical is not harmful at the documented levels. It's impossible to know without testing which products contain phthalates. Just because some of the lotions we tried tested negative doesn't mean all lotions are clean. Until the manufacturers are required to label phthalates, there's no way to know for sure. Fortunately, non-toxic alternatives are readily available. But the limited testing done reveals that the same big companies that produce phthalate-laced beauty products, also make similar products without phthalates ... L'Oreal markets Jet Set nail polish without phthalate but puts it in its Maybelline brand. Yet, it seems that L'Oreal is one of the largest companies to restrict the use of phthalates in their products, but many other large beauty companies still use this ingredient in their retail items. Indeed, rather than use different formulas in different countries, LOreal have opted for one-size-fits-all approach that applies Europes trend-setting standards throughout the world. LOreal announced that they were in full compliance with new European Union regulations banning a wide variety of known or probable carcinogens, mutagens, and reproductive toxins from personal care and make-up products. In my opinion they did it only because of the public pressure. However, consumers must be careful because even if the product is not supposed to contain phthalates since it is not among the ingredient list, it does not mean they are not present. Indeed, the chemicals are used to help fragrances linger and take the stiffness out of hair spray, among other reasons. Those companies specifically claimed their products were free of phthalates, and two even say as much on their Web sites. So, LOral is likely to promise a lot but to be less perfect in practice! Moreover, scientists at Birmingham and Warwick universities have warned that fabric softeners, disinfectants, shampoos and other household products are spreading drug-resistant bacteria. Once these products are released into sewers and rivers they instigate the proliferation of drug-resistant microbes, increasing the likelihood that certain medicines will not be able to combat dangerous diseases. The research suggests that the problem of drug resistance is not simply due to antibiotics being over-prescribed or poor hygiene standards in hospitals, although the emergence of deadly superbugs such as MRSA are not linked to the use of disinfectants. So, LOrals products may not be as healthy as they pretend they are!
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LOral s social approach

Even if they want to play the gentle heroes giving people easy access to their product through a presence of outlets that match their individual lifestyles, they are absolutely not angels! While they pretend to participate actively in the building of a better world, a fairer world, LOral is accused to lie about the efficiency of their products and to violate the human rights for several reasons. First of all, LOreal was reprimanded for unsubstantiated marketing claims because they failed to back them up! We all know that cosmetics companies embellish the truth when it comes to marketing their products. In fact after reading the book, Toxic Beauty, I found out that most of their claims are unfounded. Simply put, no cosmetic product banishes wrinkles, youll be lucky to even get a slight improvement. Advertisements are accompanied by ludicrous claims that make women simultaneously chuckle and cry, at the outlandishness and the deception. With that in mind, I cant help but feel glad that LOreal is being taken to the Market Court in Sweden for making claims about Lancme High Resolution and Vichy LiftActiv Pro products that the Consumer Ombudsman (KO) says are not backed up by scientific evidence. The Lancme advert suggests that the product can smooth wrinkles by up to 70 percent. I often wonder if these large multinational cosmetics companies pluck these figures out of thin air because they certainly do not appear to be grounded in reality. I understand why LOral embellishes the truth because this is how advertisement works but from a CSR point of view, it is manipulating the consumers and even treating them like idiots This is not really respectful of the citizenship idea. The KO has suggested that these claims border those made for pharmaceutical products and should be backed up with substantial scientific evidence, which as of yet has not been provided. The ombudsman is also requesting that the Market Court clarify the sorts of evidence required for such marketing claims. Secondly, LOral itself was caught in a human rights scandal. United Students Against Sweatshops recently discovered that LOral has contracts with notorious human rights abuser Sodexo in at least eight countries: Chile, Colombia, Czech Republic, Philippines, Poland, Tunisia, Turkey and France. Sodexos grave violations of its workers rights has been well documented by human rights NGOs including TransAfrica Forum and Human Rights Watch. Worker rights advocates sent LOral and Bettencourt the following letter, urging the company to stop doing business with Sodexo. To date have received no response at all. Thirdly, the company became a target of the Palestinian Boycott, Divestment and Sanctions National Committee (BNC) in December 2008, in a campaign called Boycott L'Oreal: Makeup for Israeli Apartheid. LOreal operates a factory on an ethnically cleansed Palestinian village inside Israel and exploits minerals from the Dead Sea. The Palestinian Boycott, Divestment and Sanctions National Committee called upon people of conscience all over the world to boycott all the products of the company due to its deep and extensive involvement in business relations with Israel despite the latter's continued
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occupation and apartheid policies against the indigenous Palestinian people. L'Oral's operations in Israel began in the mid-1990s, motivated in part by political considerations. Since then Israel has become L'Oreal's commercial centre for the entire Middle East. Like almost all other Jewish settlements built in the midst of Palestinian villages in the Galilee inside Israel, Migdal Haemek (the town where LOral is settled) discriminates against Palestinian citizens of Israel. Palestinians are denied the right to buy, rent or live on any part of the town, simply because they are "non-Jews". L'Oral Israel manufactures a line of products using Dead Sea minerals under the name "Natural Sea Beauty" that are exported to 22 countries. While the entire shore and its resources are systematically closed to Palestinians by Israeli military occupation and apartheid practices, Israel exploits the Dead Sea for international tourism and mining. Moreover, Palestinian academics and students in the occupied territories and Israel are systematically impeded by Israeli occupation roadblocks and other oppressive measures from conducting normal academic life. However, L'Oreal awarded a US$100,000 "lifetime achievement" award to a scientist at Israel's Weizmann Institute of Science in July 2008. The Weizmann Institute, since its establishment, has been a major centre for clandestine research and development of nuclear, chemical and biological weapons on behalf of Israel's military establishment, with which it has close ties. It is, therefore, one of many academic institutions in Israel that are in collusion with the state's violations of international law and Palestinian human rights. It is then targeted for academic boycott by the Palestinian Campaign for the Academic and Cultural Boycott of Israel. Whereas now LOral doesnt reply to the accusation of discrimination against Palestinian citizens of Israel, L'Oreal agreed to pay $1.4 million to the US government in 1995 to settle charges that it had cooperated with the Arab League's official boycott of Israel. The company was accused of providing information in the 1980s about its US subsidiaries' ties to Israel, to the now effectively inactive official Boycott Office of the Arab League. The company denied that it had broken US laws designed to prevent US firms from cooperating with the official Arab boycott of Israel, but mounted a campaign to placate Israeli critics by emphasising its desire to invest in Israel. Following the settlement, then chairperson of L'Oreal, Lindsay Owen-Jones, apologised for the company's actions in a letter to the US-based pro-Israel lobby group the Anti-Defamation League. While L'Oreal boasts that one of its core values is to champion the vulnerable and the disadvantaged, and to campaign for social justice and human rights, the company is deep politically-motivated and profit-driven involved with Israeli apartheid. That indicates a flagrant disregard for the human rights of Palestinians and a disservice to justice and peace. Business-as-usual should not continue with a state that has not only practiced apartheid and colonial rule against an indigenous population for decades, but is also committing grave and persistent war crimes described as "a prelude to genocide". Under these circumstances L'Oreal's vast investment in Israel amounts to complicity in severe abuse of human rights. I definitely recommend LOral to stop their activities in such territory if they want to regain credibility of perfect pro-active leader among the population and deserve this position.
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Which is really crazy is that besides all those violations of human rights, regarding the recruitment commitments, LOral seems to have honored its promises. Indeed, on the French scope, through a report, we can say that, since 2005, the diversification of their recruitment sources have increased, thanks to the Employment & Diversity Fairs and the Plan Espoir Banlieues. For the past two years, 418 young professionals under 26 years old from disadvantaged areas have joined L'Oreal through internships, apprenticeships and jobs. They have also improved the employment rate of people with disabilities, increasing 1.21 points since 2007 to reach 4.71%. They maintain their employees above 45 years old who represent 25% in the French headcount. In addition, they wanted to address salary discrepancies between men and women and they have progressed significantly over the past two years. The gap is now under 3% for instance. At the international level, they increased the number of women at top management positions. Now, 40% of women are on their management committees and 50% of their operational divisions are lead by women. Furthermore, LOral organizes Citizen Days to raise funds for the underprivileged. LOral Citizen Day marked an opportunity for the corporation to give back to the community with all proceeds going to Lighthouse School and SAVH. Attendees of the annual event got a glimpse of LOrals philanthropic projects through the different booths set up according to LOrals community initiatives in three priority areas: Solidarity, Science and Education. Driven by the belief that everyone has a right to beauty and that grooming is deeply linked to confidence and self-esteem, LOral has since reached out to more than 100 adults and students through their monthly Touching Colours program held in partnership with SAVH and Lighthouse School to pledge their support for the visually impaired. Touching Colours embraces both the young and old with modules ranging from skincare, make-up, hair-care and styling. Customized to suit participants needs, the workshops have benefitted more than 54 adults of SAVH and students from the Lighthouse School. Another program working to bring the cosmetics industry together in solidarity efforts is Look Good Feel Good, which is targeted at helping patients, in particular women, deal with appearance-related effects of medical treatments, such as hair loss, dry skin and hyperpigmentation, through grooming workshops and sponsor kits. As the name suggests, the program aims to build the self-esteem of participants through collaborations with major hospitals to conduct monthly grooming workshops. So, I have to admit that their commitment to improve women well-being through beauty is quite honored. But is it just to regain trust and admiration from its consumers or a real sign of kindness and generosity? In my opinion, this is still a disguised marketing action in order to improve relationships with stakeholders and their impact on public attitudes/trust. Because money is the most important thing in business and there is no room for feelings And with all their violations of human rights, the lies about their natural products, the attempt to put the new European rules on animal testing and the corruption scandal of Liliane Bettencourt and her tax frauds, it is difficult to believe it comes from the heart. However, I have to admit that those programs actually brought some money to these solidarity associations. Booths showcasing the LOral Corporate Foundation featured global programs and pilot projects that LOral carries out, such as the Haiti Disaster Relief. The LOral Foundation and employees donated
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a total of 1 million Euros to NGO partners around the world working on immediate relief in Haiti. In Singapore, a total of S$10,000 was donated to the Singapore Red Cross. Moreover, a total of $30,000 was raised during LOral Citizen Day for its Touching Colours partners, the SAVH and Lighthouse School, through fundraising via coupon sales, which was matched dollar-for-dollar by LOral. Despite all their misbehaviors, I think there is a little goodwill in their actions. But the problem is that it is so hard for them to control each parts of the empire since they are so eager to purchase other brands to make profit. Instead of preferring quantity to quality, they should first make sure that they respect every single regulation and that they are honest to their clients.

APPENDIX

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