A living wage must cover an individual’s basic needs such as housing, meals, health and education as well as those of any of their dependents. At L’Oréal, a remuneration monitoring process is in place to adjust, if necessary, the remuneration paid to the Group’s permanent employees to ensure they receive a living wage. L’Oréal has been accredited to the Fair Wage Network, a rigorous independent organisation, since 2023.
In line with its commitment to fair pay for all of its employees, L’Oréal aims to ensure that, by 2030, all its strategic suppliers’ employees will be paid at least a living wage.
In 2022, L’Oréal launched a pilot programme that included some 20 of its strategic suppliers. The programme’s objective was to explore the principle of the living wage and to provide support for its suppliers. This pilot project used to test the effectiveness of the supplier support system based on cohort principles.
A series of meetings were organised with a group of suppliers, the Fair Wage Network and L’Oréal in attendance. The purpose of these meetings was to discuss the strategy and methodology, as well as to hear from the suppliers that were furthest forward in the process. This way, companies were encouraged to share best practices and any difficulties they encountered. Following this series of meetings, suppliers are invited to make commitments through a living wage pledge. In 2023, more than 115 suppliers benefitted from individual support and more than 50 suppliers pledged to be compliant by 2030.
At the same time, L’Oréal provides a digital platform named Spread The Best Practices. This media tool makes it possible to stream learning materials on implementing a fair wage policy.
In addition, L’Oréal is working hard to create fair wage synergies so as to encourage other stakeholders outside its own value chain to adopt this commitment.
In this sense, the Group works closely and advocates alongside public and private businesses and organisations sectors, such as the Better Business through Better Wages initiative, to raise standards in terms of remuneration.
L’Oréal is also a member of the Business for Inclusive Growth (B4IG) coalition which, in partnership with the OECD, works to incorporate the fair wage into public debate.