2022 Universal Registration Document

The main Departments concerned are:

• the Research, Innovation and Technology Department, with particular regard to cosmeto-vigilance and the quality of the formulas used in the products (see section 4.3.1.3.2.);
• the Purchasing Departments with regard to suppliers and their working conditions;
• the Environment, Health & Safety Department, with regard to checking site safety and ensuring employee health and environmental compliance;
• the Quality Department to measure performance and the progress made by manufacturing entities with regard to the quality of production;
• the Global IT Department, primarily to assess compliance with the Cyber Security Policy;
• the Administration and Finance Department;
• the Human Resources Department, with regard to the monitoring and supervision of obligations in respect of staff management, specifically:
  • the documents to be provided to employees;
  • the remuneration of the workforce and personnel expenses;
  • recruitment, training and evaluation procedures, the rules to be followed in respect of payroll management and the implementation of the Share & Care programme;
• the Engagement and Public Affairs Department to coordinate communications campaigns and ensure that the Group’s responsible lobbying policies are applied;
• the Digital and Marketing Department, with regard to securing the Group’s digital transformation (e-commerce, consumer relations, influencers, digital media etc.) by defining the policies, tools and processes and ensuring they are deployed; and
• the Security Department, with regard to the security of people, travel, property, information and data confidentiality, as well as crisis management (see section 3.5.3.1.).

Indicators and reporting procedures facilitate the regular monitoring of the local activities of these Support Departments.

The Administration and Finance Department

The department assists and monitors operational employees in their administrative, financial and legal activities, as well as in terms of information processing. It sets the operating rules for all entities, defines and deploys tools, procedures and best practices, particularly in terms of management, accounting and consolidation, M&A, investments (BOLD corporate venture fund) and holdings, financing and cash, taxation, legal issues and data governance (including personal data), financial communication, strategic planning and insurance.

An Internal Control Committee has the task of taking all measures to promote the proper understanding and the proper application of the Group’s Internal Control rules and also to monitor progress on important Internal Control projects.It is composed of the Chief Financial Officer, and the Directors of Ethics, Risk and Compliance, Internal Control, Operational Finance, Internal Audit and Information Systems (Global IT).

Ethics, Risk and Compliance Department

In particular, this Department coordinates the procedures for identifying, assessing and prioritising risks with all those concerned. It keeps the Group’s risk mapping up to date. Its aim is to promote optimal use of resources in order to minimise and control the impact of negative events, as well as maximise opportunities. The Chief Ethics, Risk & Compliance Officer reports directly to the Chief Executive Officer.

The Internal Control Department

This Department, which is separate from Internal Audit, is under the responsibility of the Ethics, Risk and Compliance Department. In collaboration with the experts in each business line, it defines and updates the internal control framework relating to their area of activity. This framework is summarised in the “Fundamentals of Internal Control” reference document and detailed in standards and procedures that are listed in the Group’s “digital referential”.

The Internal Control Department also manages and develops a network of around 170 regional and local internal control managers covering all Group entities. Their role is to apply the internal control framework and support employees in this respect. Frequent participation in seminars, training cycles or webinars with business lines, and the publication of notes of engagement help to strengthen knowledge of the internal control framework within the Group.

Within a continuous improvement process, the Internal Control Department develops, disseminates and coordinates self‑evaluation campaigns focusing on the main risks and issues identified. These campaigns are gradually being rolled out in each of the business lines. The self-evaluation of Internal Control makes it possible for the Group’s entities to ensure the due and proper functioning of the system and reinforces it with operational actions.

The Internal Control Committee is driven by the Internal Control Department, which validates directions and priorities with regard to improving the internal control framework, developing the network of internal control managers and the tools used to perform internal control tasks. This Department monitors changes related to Internal Control relating to expectations and market practices.

The Internal Audit Department

The Internal Audit Department audits major processes and checks on the application of Group principles and standards. It’s work is carried out by a central team that reports directly to the Chief Executive Officer.

Internal Audit assignments are submitted to the General Management and the Audit Committee. With the approval of those committees, they result in an annual audit plan that takes account of the Group’s risk mapping, the entities’contributions to the Group’s key economic indicators, and the historical precedence and results of previous audits.

The risk level assessment carried out by the Area Departments and experts in the different business lines is also a determining factor in the elaboration of the annual audit plan.