L'Oréal - 2018 Registration Document

3 L’Oréal’s corporate social, environmental and societal responsibility PERFOR MANCE INDICATORS AND RESULTS

Similarly, the profound changes to come are the subject of reflections on the prospective opportunities they may represent, notably wherever cosmetics can contribute positively to adapting to climate change, but also wherever there are opportunities to contribute positively to the regions and local communities in which the Group operates. HUMAN RESSOURCES POLICY 3.3.2. L’Oréal’s Human Resources Department has always had the mission of supporting the HR Group’s growth and supporting its transformation initiatives. In order to be sustainable, L’Oréal’s growth relies first and foremost on the men and women in the Company, who are the key drivers of the Group’s success. Built on this conviction, the Group’s human and social project is based on highly individualised management of employees and on collective strength. The Executive Vice-President Human Resources works under the Chairman and Chief Executive Officer and reports regularly to him. He is responsible for all aspects of the Group’s Human Resources management. L’Oréal’s HR policy focuses on the identification, recruitment and development of employees and the rewarding and commitment of all, as well as on an active policy of diversity and inclusion. Dedicated policies are developed within the Group, as described in this section. The conviction that everyone’s talent makes a difference has caused the Group to put the focus consistently on the human dimension. L’Oréal finds, recruits and develops its employees in a long-term perspective in which training and development play a core role throughout the employee’s career. The Group’s HR naturally reflects the business’ three main strategic priorities: universalisation, digital transformation and social and environmental responsibility. In support of universalisation, understood as globalisation that respects differences, the role of our HR teams is to accelerate the recruitment and development of talents across the world and to prepare tomorrow’s leaders, fostering the emergence of the best local talents. To identify and attract the most diverse talents, L’Oréal relies notably on digital technology, which is now the Group’s main source of recruitment, in particular LinkedIn. It also uses artificial intelligence solutions to increase the capacity of its recruiters to locate a range of profiles. Digital technology is one of the Group’s major transformations supported by HR: the digital transformation relies on the recruitment of the best talents, the integration of new business lines and the spread of a digital culture at all levels. Building on this expertise, the Group has transformed its Employer communication, using more engaging and direct communication. Identify, attract, develop: employees are central to the business model

HR also plays a central role in the transformation of work and management methods. They accompanied the rollout of the Simplicity programme, initiated in 2016 to develop cooperation, instill more agile working methods and foster management based on trust and accountability. The programme was accompanied by a major managerial training plan known as Lead and Enable for Simplicity . In line with the spirit of Simplicity , L’Oréal’s HR adopted a brand new mode of operation in 2018 by becoming the incubator of country ideas and initiatives. This approach, known as “Disrupt HR” promotes co-construction and a test-and-learn approach designed to foster agility and respond more effectively and more instantly to the expectations of employees and job candidates. Artificial intelligence solutions, such as the chatbot Mya (see 3.3.2.2), are an illustration of this. For L’Oréal, there can be no sustainable economic growth without social progress. Throughout its history, the Group has set itself the target of offering an environment in which everyone can reveal their talents, improve and thrive. This responsibility bears on the permanent development of its employees. Within the scope of the 2020 targets of the Sharing Beauty With All programme, L’Oréal has made the commitment to provide annual training to all of its employees worldwide. In terms of social protection, L’Oréal’s Share & Care programme, created in 2013 and rolled out to all of the Group’s subsidiaries, offers employees a shared framework of social benefits in the areas of employee benefit schemes, health, parenthood and the quality of life at work. In addition to this common core, the programme provides that each subsidiary should reflect the level of the best practices of each country and that they should roll out their own initiatives to contribute to social innovation and keep L’Oréal among the most attractive employers in each market. New targets were set in 2017 for implementation by 2020, including greater flexibility of time and place of work as well as special attention to parenthood measures. Year after year, L’Oréal is expanding its policy of sharing the benefits of its growth with its employees. In addition to its worldwide profit sharing, incentive and mandatory profit sharing schemes, which have been in place for many years, the Group launched its first employee shareholding plan in 2018. The aim was to give employees a stake in the Company’s development, to unite them around the Group’s strategy and to strengthen their sense of belonging. The strength of social dialogue remains one of the essential components of L’Oréal’s operations and illustrates the Company’s desire to involve employees and their representatives in the Group’s development. Protect and share: the force of the collective commitment

REGISTRATION DOCUMENT / L'ORÉAL 2018

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