L'Oréal - 2018 Registration Document

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

Main commitments with regard to employees (health, hygiene and safety, diversity, sexual and moral harassment, privacy). The Group’s commitments to the abolition of child labour and forced labour, the selection of suppliers and the contribution to the community. L’Oréal’s commitments to respecting and promoting Human Rights, with reference in particular to the 1948 Universal Declaration of Human Rights and the 2011 United Nations Guiding Principles on Business and Human Rights.

The L’Oréal Spirit

Code of Ethics

L’Oréal’s commitments to its stakeholders, particularly its consumers and civil society, and which describes the way in which these commitments are fulfilled in practice.

Human Rights Policy

A practical guide intended to specify the Group’s standards and to help employees handle situations that they could encounter in the performance of their duties in relationships with suppliers.

“The Way We Buy”

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Certain suppliers and subcontractors are asked to comply with the ethical commitment letter that refers to compliance with the Fundamental Conventions of the International Labour Organization as well as local laws (see section 2.8.4 “Vigilance Plan”).

Ethical Commitment Letter

“Suppliers/Subcontractors and Child Labour”

Description of the main commitments concerning child labour by suppliers/subcontractors.

Operational procedures A “Treats all individuals in a respectful and consistent manner” ethical competency is included in the annual appraisal system for all employees.

Employee evaluation system

L’Oréal’s procedure for collecting and processing reports enables employees to report serious violations of Human Rights and Fundamental Freedoms and breaches of rules related to health and safety of people and respect for the environment, notably via a secure Internet site (ethics whistle-blowing line) directly to the Senior Vice-President and Chief Ethics Officer. The Group’s ethics whistle-blowing line (www.lorealspeakup.com) is also open to all Group stakeholders. For more information, see “Components of the Internal Control and risk management system”, section 2.8.2. This system allows monitoring of the implementation of the ethics programme, particularly with regard to Human Rights. The Countries are informed of their potential areas for improvement by the Office of the Chief Ethics Officer. 100% of Countries completed their annual ethics reporting practices in 2018. When prospective acquisitions are being reviewed, the responses to the “Ethics and Human Rights questionnaire” submitted to target companies serve to identify whether they have properly taken into account risks related to failure to respect Human Rights (abolition of child labour and compulsory and forced labour, etc.), among other issues. The Group’s Human Rights policy is communicated to all Group employees. Ethics Day: an annual day on ethics has been organised since 2009. A live webchat with L’Oréal’s Chairman and Chief Executive Officer enables all the Group’s employees to ask questions and exchange on the application of L’Oréal’s Ethical Principles on a day-to-day basis, including respect for Human Rights. Ethics chats are also organised locally with each Country Manager and with the members of the Executive Committee for the Corporate teams. In 2018, over 60% of the employees took part in these chats and over 6,800 questions were asked worldwide. The Senior Vice-President and Chief Ethics Officer regularly visits the Group’s entities all over the world to meet employees at all levels of the Company. In 2018, within this framework, he visited 10 countries, making a total of 91 countries visited since the end of 2013. 99% of countries have communicated on at least one topic related to Human Rights. Employees also have access to a dedicated intranet site which provides additional information on ethics, including on Human Rights. Specific training is being rolled out for the management committees. A specific, compulsory e-learning course on ethics covering Human Rights issues in particular is currently s being rolled out in all countries. As of 31 December 2018, 82% of the employees with access to the online module had completed this s course. 19 ethics training courses were delivered by the Ethics Department and Purchasing Department to 381 s employees, representing 972.5 hours of training in 2018. In 2018, 67 purchasers were trained in responsible purchasing practices. This training is compulsory for s any new purchaser. 99% of the Group’s countries included subjects related to Human Rights in their local training s programme.

Procedure for Collecting and Processing Reports

An annual ethics reporting system

Procedures for prospective acquisitions

RAISING EMPLOYEE AWARENESS

Ongoing communication

Training

REGISTRATION DOCUMENT / L'ORÉAL 2018

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