2023 universal registration document

4. Corporate Social Responsibility

L’Oréal Share & Care assessment tools

In the interests of transparency and reliability, the programme is regularly assessed to ensure it has been implemented properly:

  • self assessment and creation of an action plan using a follow up tool completed by each subsidiary annually;
  • internal audit via a detailed check on how the programme is being implemented by subsidiaries; and
  • external audit: certain key indicators are audited within the scope of the annual external audit by the Statutory Auditors.
The ILO is a partner in the L’Oréal Share & Care programme

The L’Oréal Share & Care programme attracted the attention of the International Labour Organization (ILO) during its study on how major companies are contributing to the global expansion of social protection. A close partnership has ensued. L’Oréal is a founding member of the Global Business Network for Social Protection Floor, which the ILO launched in 2015. This network allows firms to join forces to create a basic set of social protection measures for everyone.

Flexible work organisation

Work is organised according to the location and activity of each subsidiary, in compliance with legal and contractual obligations. In several subsidiaries, both work organisation and working time are governed by collective agreements.

L’Oréal believes that flexibility at work is a key element in attractiveness. This flexibility is strengthened further by the global “Hybrid Working” policy, implemented in June 2020. Eligible employees may work remotely for up to two days a week, on a voluntary basis, in agreement with their line manager and provided it fits with how the team is organised. All Group subsidiaries have adopted this policy. In addition, 59 subsidiaries have now set up a flexible working time policy.

Employees from all categories have chosen to work part time. Of the 5,543 part time employees in 2023, 89% were women

It should be notedPursuant to Article L. 225-102-1 of the French Commercial Code, as amended by the Law of 1 August 2023 on military programming, providing for the publication of information on action to promote links between the Nation and the Army and to support commitment to the reserves. that L’Oréal provides five days’ availability on full pay for employees who have commitments with the French army reserves.

The L’Oréal For All Generations programme

For L’Oréal, the inclusion of more experienced employees (over 50 years of age), who represent 22.5% of the European workforce and 15.2% of the global workforce, is a long standing commitment. As careers get longer and the digital transformation accelerates, the Group has gone one step further and launched the L’Oréal For All Generations programme, which makes intergenerational relations and employment prospects at the core of its objectives. The programme aims to create an attractive working environment, encouraging employees to flourish professionally and personally from the moment they join until they retire. It focuses on five key areas:

  • promoting intergenerational inclusion, equity and diversity;
  • adapting health and wellness programmes;
  • developing career long employability;
  • preparing for a successful transition to retirement; and
  • laying the groundwork for life after L’Oréal.

Launched in France in 2022 and inspired by the Spanish Generaciones initiative, this programme is gradually being rolled out internationally, particularly in Europe and the United States.

An active social dialogue with employees and their representatives

As a signatory of the United Nations Global Compact since 2003, and in compliance with its Employee Human Rights Policy, L’Oréal respects freedom of association and the right to collective bargaining.

When employees wish to be represented by employee representatives, these representatives are elected without company interference. They have access to workplaces and consenting employees, as well as to local documentation that can help them to perform their duties, subject to compliance with the Group’s rules on confidentiality and security. In countries where freedom of association and the right to collective bargaining are restricted or non existent, there are other modes of dialogue that enable employees to report any concerns.

In the context of these general principles, the social climate at L’Oréal is the fruit of an ongoing dialogue between Management, employees and their representatives, respecting the rights of local trade unions and treating them all equally.

Employee representation bodies are in place in most European subsidiaries, in several Asian subsidiariesChina, South Korea, India, Indonesia, Japan, Vietnam., in AfricaSouth Africa, Kenya, Morocco., in North and South AmericaCanada, the United States, Argentina, Brazil, Chile, Colombia, Mexico. and in New Zealand. In total, 87%  of the Group’s employees work in countries where there are employee representative bodies on at least one site. 45% of the Group’s employees are covered by a national collective agreement and 97% by company collective agreements.

Two Directors representing the employees have been members of L’Oréal Board of Directors since 2014 (see paragraph 2.2.1.3.).

In 1996, L’Oréal signed an agreement with the French and European trade unions, which led to the establishment of the European Works Council (Instance Européenne de Dialogue Social). This council represents more than 31,000 employees in 25 member countries of the European Economic Area and the United Kingdom. With 30 members, this council holds regular discussions with Management about the Group’s current situation and its future perspectives, on the basis of an agenda prepared with the Liaison Secretariat.

L’Oréal’s social policy permits the signing of collective agreements every year. In 2023, 167 agreements were signed in France and 78 agreements were signed in the rest of the world. In total, the number of agreements in force on 31 December 2023 was 824, 466 of which were in France and 114 of which wholly or partially involve health and safety issues. These agreements primarily cover work organisation, compensation and working conditions (working hours, quality of life at work, professional equality, remote working, human  powered mobility, health and safety etc.). They contribute to the smooth operation and performance of the Group by strengthening employee participation and dialogue with their representatives.