Category: MBA catalogue 1 | Word(s): 1594 | Page(s): 7 | View(s): 339 | Rank: 0

L'Oreal is one of the largest cosmetics companies in the world. It produces and markets a range of make-up, perfume, hair and skin care products in over 130 countries. The company operates primarily
 in Europe and North America. It is headquartered in Clichy, France
and employs about 60,850 peoples. The company recorded revenues
of E15,790 million during the fiscal year ended December 2006, an
increase of 8.6% over 2005. The operating profit was E2,541 million
in fiscal year 2006, an increase of 12.1% over 2005. The net profit
was E1,833 million in fiscal year 2006, an increase of 11.8% over 2005.


At L’ORÉAL, we believe that everyone aspires to beauty. Our mission is to help men and women around the world realise that aspiration, and express their individual personalities to the full. This is what gives meaning and value to our business, and to the working lives of our employees.
We are proud of our work


- A century of expertise in cosmetics

- €17 billion consolidated sales in 2007

- 25 global brands

- A sustainable business model


- 3,095 employees of 60 different nationalities working in 30 different disciplines

- €560 million dedicated to cosmetic and dermatological research in 2007

- 16 research centers across the world

- 1/3 of the R&D budget devoted to Advanced Research

- 120 molecules designed and patented over the last 40 years

- 4,000 formulas developed each year

- 576 patents filed in 2007

- 100 active cooperation agreements with leading academic and research institutions


- 63,358 employees in 58 countries

- 140 close partnerships with universities around the world

- 4 Management Development Centers

- L'Oréal rated the employer of choice in 2006 for European business school students according to Trendence European Students Barometer

- L'Oréal employees worldwide have been involved in social commitment actions for over a decade.


- 40 factories around the world

- 4.7 billion units manufactured in 2007

- 100% of factories are ISO 14001-certified

- 100% of L'Oréal's industrial sites audited with standard SA 8000


•     01. Christian MULLIEZ
•    05. Jean-Jacques Lebel
•    08. Jochen Zaumseil
•    11. Brigitte Liberman
•    02. Jean-Philippe BLANPAIN
•    06. Beatrice Dautresme
•    09. Jean-Paul Agon
•    12. Joseph Bitton
•    03. Marc Menesguen
•    07. Geoff Skingsley
•    10. Laurent Attal
•    13. Jean-François Grollier
•    04. Nicolas Hieronimus


L'ORÉAL has been built around fundamental values which have guided us throughout the life of our company, and continue to do so today. Our values have shaped our culture, and they underpin our reputation

•    The Code of Business Ethics
•    L’Oréal’s Ethics Program
•    As a Business
•    As an Employer
•    As a Responsible Corporate Citizen
•    Interview of the Director of Ethics


Our strategy for leadership is based on continuous investment in rigorous scientific research and development. This enables our brands to deliver products which are innovative, highly effective, practical and pleasant to use, and which are manufactured to the most demanding standards of quality and safety. We aim for excellence, and constantly challenge ourselves and our methods. We place great value on honesty and clarity: our consumer advertising is based on proven performance and scientific data. We are committed to building strong and lasting relationships with our customers and our suppliers, founded on trust and mutual benefit. We do business with integrity: we respect the laws of the countries in which we operate and adhere to good corporate governance practices. We maintain high standards in accounting and reporting, and support the fight against corruption. We deliver long-term, sustained shareholder value by protecting and making the most effective use of company assets.


We aim to make L’ORÉAL a great place in which to work. We know that our employees are our greatest assets. They are entitled to a safe and healthy working environment: one in which personal talent and merit are recognised, diversity is valued, privacy is respected, and the balance between professional and personal life is taken into account. We believe in offering our employees a stimulating environment, exciting personal opportunities and a chance to make a difference. We encourage an atmosphere of openness, courage, generosity and respect, so that all our employees feel free to come forward with their questions, ideas and     concerns.


We play our part in creating a world of beauty and fairness. We are mindful of our impact on the natural environment, including biodiversity, and constantly seek to reduce it: we are determined to avoid compromising tomorrow for the sake of today. We make a positive contribution to the countries and communities in which we are present, and respect local cultures and sensitivities. We are committed to the respect of human rights. We want to help end the exploitation of children in the workplace and the use of forced labour. We want an end to animal testing in our industry, and we contribute to the development and acceptance of alternative methods. We actively seek out and favour business partners who share our values and our ethical     commitments.

This is the spirit in which we operate: the L’ORÉAL SPIRIT.


Diversity is a core value for L'Oréal. From the wide variety of people who make up its teams to the products developed, diversity has always been a priority for L'Oréal.

•    Our teams
•    Our community
•    Our suppliers
•    Our involvements
•    L'Oréal's initiatives to promote diversity
•    Interview of the Chief Executive Officer
•    Interview of the Global Diversity Director

Our people

L’Oréal’s ambition is:

• to reflect, in its teams and at every level, the diversity of its clients (in terms of nationality, ethnic or social origin, age...), coherently with its employment pools,
• promote the access of women to high-responsibility position and a better gender equity in jobs,
• to promote work for disabled people,
• to accumulate skills and capitalise on the experience of its employees, taking advantage of the cultural diversity of its teams, extending careers and making use of experience.

The principles behind the Group’s action:

• respect for its requirement for excellence in terms of its core competencies and individual performance,
• attract candidates from outside its usual talent banks and identifying diversified profiles which will bring new perspectives,
• focus on a managerial culture which fosters the inclusion of all employees and capitalise team diversity.

L’Oréal has decided to focus its action on six priority points:

• nationality,
• ethnic origin,
• social origin,
• gender,
• disability,
• age.

The Group is active in the following five areas:

• training on diversity,
• recruitment and inclusion,
• career management,
• communication.

Diversification of sourcing:

The Group has established multiple partnerships in France, in the USA, Latin America and in South Africa with several Universities, associations and recruitment agencies involved in diversity.
These partnerships enable us to gain access to various candidates of different backgrounds.
The Group also takes part in varied recruitment forums dedicated to candidates from minority groups or dedicated to women.

Diversity Training for managers:

Since the end of 2006, a specific diversity training program is being rolled-out to 8000 managers in Europe (over 32 countries). This training aims to involve, give responsibility to and help managers in implementing the Group’s diversity policy. This training at European level joins the training that has been underway in the USA for two years where more than 2000 have already been trained.

Diversity and Social Cohesion Observatories:

Since 2006, 23 Diversity and Social Cohesion Observatories have been set up in France. They are comprised of staff representatives, members of the personnel department and volunteer employees. Their objective is to promote respect for diversity and non-discrimination in the field, implement initiatives and follow-up on them. The group process involves meeting to share information regarding the measures implemented to fight all forms of discrimination, to promote diversity and equity. The implementation of Observatories on an international level has already begun in various European countries.

Some Results:

At L’Oreal, at international level, 54% of managers are women. They account for 34% of the members of the management committees . 53% of managers promoted in 2006 were women.
In the Group, there are 112 different nationalities and 60% non-French people are members of the management committee.
In the USA in 2005, minorities represented 19.8% of all managers and 33% of all employees. In South Africa, 51% of managers are “PDI” (Previously Disadvantaged Individuals).


Purchasing policy

For L’Oréal, purchasing is not just a question of reducing costs and prices. There is a fundamental ethic which must be applied to factories, distribution warehouses and subcontractors.

For this, social audits have been set up via external agencies which audit all the group’s suppliers in terms of the following points:

• Child labour
• Slave labour
• Health and safety
• Right of association
• Non-discrimination
• Disciplinary practices
• Sexual and moral harassment
• Remuneration
• Work time
• Relationship with subcontractors and suppliers

To verify these different dimensions, there is a questionnaire made up of 10 sections of which one is entirely dedicated to non-discrimination. The issue is therefore to grade dysfunctional policies via this questionnaire.
Before carrying out the audit, suppliers must pledge to respect ethical standards. They are therefore informed that they must respect these points and that they will be subsequently audited to check their adequacy.
So that the information resulting from these audits can be passed on to all the group’s subsidiaries, there is a global database which allows this information to be shared. Since 2002, 350 audits have been carried out.



It marks its presence in more than 159 countries with more than 4000 factories all around and  numerous research centres and offices.
Add Comments
» Forgot Password?
» Create an account. click here
Saved Papers
Save Paper to find them more easily.
Order New Solution

Want a brand new solution for the case study? We have got it all right here.
Recent Topics
New Entries
Most Recent Request
Join Now
Ease your MBA workload and get more time for yourself