4.13.3 Action plans in place
4.13.3.1 Implementation of the ethics policy
To support the implementation of its ethical commitments, L’Oréal’s action plan is built on four pillars:
- Raising awareness and training: L’Oréal has made training a central part of its strategy, with a comprehensive programme of compulsory online training for all employees, covering key issues such as ethics, human rights, anti-corruption, competition law, personal data protection and IT security. These training courses target around 60,000 people who are exposed to such risks, with specific modules for the populations at greatest risk. A dedicated training programme for managers is also underway. Each year, L’Oréal organises an Ethics Day to raise awareness and engage in open dialogue with all employees;
- Encouraging the reporting of unethical behaviour: through Speak Up, L’Oréal enables whistleblowers to confidentially report any concerns via a secure website (www.lorealspeakup.com). Employees are informed of the existence of the Speak Up programme, in particular through an e-learning course on ethics and human rights that is available and compulsory for all of the Group’s new hires, as well as through awareness-raising initiatives such as Ethics Day. Whistleblowers are protected from retaliation and the reports are subject to thorough review, followed by an impartial internal investigation;
- Monitoring and preventing risks: L’Oréal takes a proactive approach to identifying and managing the risks associated with its operations. Rigorous internal control processes ensure compliance with the law and the Group’s ethical standards; and
- Auditing and ensuring compliance: the internal audit system ensures compliance with laws, regulations and Group policies, identifying weaknesses and determining any remedial measures to be taken.
4.13.3.2 Action plan for managing relationships with suppliers
L’Oréal implements concrete measures to guarantee the effectiveness of its supplier relationship management policy, based on the following priorities:
- transparent and accessible communication: the guide on The Way We Work With Our Suppliers is readily available to all suppliers, along with tools and training to help them understand and apply the Group’s principles;
- ongoing dialogue: L’Oréal encourages regular and open discussions with its suppliers through frequent meetings and dedicated communication platforms to strengthen collaboration;
- monitoring payment times: to ensure that contractual payment terms are respected, L’Oréal has updated its internal tools and purchasing terms and conditions, while closely monitoring “pay on time” payment performance indicators. The Group is committed to finding amicable solutions to any financial difficulties encountered by its suppliers;
- audits and assessments: L’Oréal assesses its suppliers’compliance with social and environmental requirements through self-assessment questionnaires, risk analyses and audits carried out by independent third parties, as required; and
- support and progress: in addition to monitoring, L’Oréal supports its suppliers in improving their practices. It encourages a collaborative approach with resources and training to help suppliers achieve the required standards.
