L'Oreal's ethical practices in consumer, environmental, and employee treatment

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.

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 more consumers are turning a critical eye towards how these companies engage in business. Thus, spending the money to engage in more ethical practices is actually a way for the company to connect strongly with their consumer base and to even expand their consumer base further.

Company Policies: A Critical Perspective

While L'OREAL truly does set a strong example in the entire international playing field of ethical practices when it comes to the environment, consumers and their employees, one area where they could stand to engage in improvement is publicity and public relations. While those familiar with the company are aware that it does so much good work in the ethical arena, the rest of the world needs to be brought up to speed so that they are aware that L'OREAL is synonymous with strong ethics. L'OREAL simply needs to chase more positive publicity in this arena for the sake of their image.

Another way for L'OREAL to improve their policies is to make volunteerism not something which they engage with once a year for several days, but every day. Annually "employees around the country will engage in a variety of volunteer projects including children's education, resume building with unemployed adults, environmental revitalization, arts and crafts with seniors, food preparation and serving those who are homebound, among many other projects. In total, over 12,000 hours of community service will be donated in a single day" (cswire.com, 2013). While this is a truly great move and one which benefits the company in a range of ways, they still need to make volunteerism and community building part of their day-to-day existence and not simply a special occasion.