L'OREAL: Ethical Company Examination L'OREAL is a truly famous cosmetics company and is one which has been noted for its high level of ethical responsibility and cooperation.

Consumers

For any company, the main way that it needs to exhibit responsibility to its consumers is via the high level of products and services which it provides. L'OREAL is able to assure consumers products of the highest level and caliber in that consumers can hope for and to assure products that are above all safe. As the company assures, "Our strategy for leadership is based on continuous investment in rigorous scientific research and development. This enables our brands to deliver products which are innovative, highly effective, practical and pleasant to use, and which are manufactured to the most demanding standards of quality and safety. We aim for excellence, and constantly challenge ourselves and our methods" (loreal.com). This sentiment is not mere lip-service to consumers: there is clear and consistent evidence which demonstrates that L'OREAL really is trying to fine-tune and clarify its scientific methods and processes so that it can deliver the safest and most effective products to its consumers.

Another way in which L'OREAL engages with consumers in an ethical fashion is via their advertising. This is an essential arena where good companies need to communicate with consumers in an ethical fashion, as advertising is the sole means of communication between consumers and companies. As the official L'OREAL website states, "We place great value on honesty and clarity: our consumer advertising is based on proven performance and scientific data. We are committed to building strong and lasting relationships with our customers and our suppliers, founded on trust and mutual benefit. We do business with integrity: we respect the laws of the countries in which we operate and adhere to good corporate governance practices. We maintain high standards in accounting and reporting, and support the fight against corruption" (2013). These are all aspects which still relate back to the consumer. How a company does business with its suppliers and with its shareholders is indicative of how it will treat the consumer. Whether a company engages within the realm of corporate governance in an ethical fashion is symbolic of whether or not they will interact with consumer in an ethical manner.

The Environment

A truly significant way in which L'OREAL is responsible to the environment is through using responsible packaging, an aspect that the company views as part of its environmental program. "For several years, the group has been training its Packaging and Development, Marketing and Purchasing teams in the principles of eco-design. This approach is aimed at reducing the weight and volume of packaging and improving the environmental impact. For example, for the past 5 years L'Oreal has followed a strict policy of forest certification of its packaging, which allows it to certify that more than 90% of its cardboard packaging is certified, with over half being certified by the FSC" (loreal.com). This is an unbelievably essential arena for any cosmetics company. Cosmetics companies all have to rely on some sort of cardboard or plastic packaging in order to sell their goods in stores to consumers. There is an ethical obligation to do this in a way so that the environment is not continually trashed or debilitated just so the company can sell cosmetics.

One way that L'OREAL continues its ethical commitment to the environment is by not testing their products on animals and being a strong leader in this regard in the national and international community. This is so important because it means that the company is setting a high standard in the international community as a way of forcing other companies to also behave in such an ethical fashion. As a spokesperson for the company explained: "L'Oreal has not used animals to test its finished products since 1989, except in the case where national legislation requires it,' the cosmetics giant said in its sustainability report. 'This is the case in certain countries where L'Oreal operates and in those locations regulations require testing using animals before substances can be registered for commercial use. As L'Oreal operates on an international scale, it is obliged to comply with the current national legislation for products that are manufactured locally and sold locally'" (Salisbury, 2011). L'OREAL is correct in asserting that it is in fact a world leader in the arena of finding other alternatives to animal testing, including the creation of artificial tissue which it has engaged in €600m in recent years (Salisbury, 2011).

L'OREAL was also responsible for founding an organization known as the European...

While some misinformed critics might wrongly accuse the company of still engaging in this backwards practice, L'OREAL is actually one of the pioneers who strive to make the practice obsolete (Salisbury, 2011).
Employees

One of the major ways that any company can be socially responsible involves engaging with their employees in a socially responsible manner. One of the glaringly obvious ways in which L'Oreal has been able to consistently achieve this is demonstrated that Fortune magazine found more than enough reasons to rank L'OREAL in its European short list of "10 Great Companies to Work for" (loreal.com). This award was given to L'OREAL and other companies after a survey was conducted throughout Europe based on repeated visits to various companies and with substantial interviews with employees (loreal.com). One way that L'OREAL is good to its employees is via the aesthetically pleasing work environment that it provides for them. "Fortune describes the scene at the company's Panoramic Coffee Bar between 8:30 and 9:30 in the morning. 'There you will see, on any day of the week… one of the most stylishly dressed workforces in the world, talking animatedly about the work at hand. These are people with a passion for beauty products'" (loreal.com). While this might not seem like an essential, providing a beautiful and inspiring place to work in is an absolute necessity for inspiration and to make employees feel happy, and as though they're capable of beautiful and meaningful work.

However, as such a multinational company, L'OREAL has an even more aggravated burden to ensure that all of its employees all over the globe are treated well. L'OREAL has long been compliant with the California Transparency in Supply Chains Act of 2010 which requires that all companies proactively address the issues of slavery and human trafficking as they exist in their supply chains, allowing consumers to make better choices regarding the companies they choose to support. L'OREAL has long been a staunch supporter of human rights and goes to great lengths to ensure that human rights are supported all over the world. "As stated in L'Oreal's Code of Business Ethics for Suppliers/Subcontractors, we believe that employees have the right to freely choose employment, the right to associate freely and join or be represented by trade or labor unions on a voluntary basis, and have the right to bargain collectively as they choose. Employees also have the right to a workplace free of harassment and unlawful discrimination" (lorealusa.com). L'OREAL is well aware of the variety of forms that slavery and human trafficking can take so the company engages in the following efforts: supplier certification agreements & direct supplier certifications. This ensures that L'OREAL can build strong partnerships with suppliers who have the same ethical commitments to the environment and to workers.

However, the company is aware that it still has to engage in Supplier Audits to ensure that firms all over the world really are complying with their shared code of business ethics that stops things like forced labor, bonded labor and child labor (lorealusa.com). Internally speaking, L'OREAL has been proactive about establishing clear accountability standards to ensure in particular, children are never exploited in the workplace. L'OREAL has been very proactive and vocal at establishing a zero-tolerance policy regarding child labor. "When a case of child labor is found, the supplier or subcontractor is obliged to ensure that the child returns to school. This includes, if necessary, providing his/her family with an additional income and includes making an offer of reemployment to the child when he/she reaches the permissible age" (lorealusa.com). Though all of these efforts will be fundamentally futile without appropriate ethics training for all employees. Employees all over the world absolutely have to participate in a basic ethics training course which focuses on things like upholding human rights, honoring diversity, contributing to the community, dealing with suppliers in sound and well-rounded ways and other impacts (lorealusa.com).

Impacts of these Morally Conscious Decisions on Company's Bottom Line

The impacts of these morally conscious decisions can't help but have a positive impact on the company's bottom line. While it does take more time, energy or manpower to execute them, they are still important for the company in setting a strong example in the international playing field and with consumers. More and more consumers are becoming conscious of the work practices of the companies that they purchase from and more and…