Ethics And Marketing Ethics In L Oreal's Business

Ethics refer to a set of values that are applied to the moral decisions and implications that emerge in the business environment. Consequently, these implications are considered to be important for internal, external stakeholders, and the natural environment. Thus, every business is required to abide by a code of ethics, which governs the behaviour and actions of an organization. Alongside with ethics, globalization is a process that enforces integration and interaction among a wide range of individuals and organizations, on an international level. Moreover, the utilization of ethics and globalization is regarded to be quite significant, specifically while devising marketing strategies; as applying such concepts to one’s business can give it

For instance, L’Oréal is held in high regard as a result of the company stopping animal experimentation for their cosmetics in the year 1989. Furthermore, the business ended all their testing on animals after four years of numerous protests and letters from external stakeholders, such as pressure groups like PETA. Despite agreeing to PETA’s negotiations, L’Oréal still manages to create their products safely, without harming or killing any animals in the process. This is an advantage to internal stakeholders as being one of the first companies to cease animal experimentation, gave the company a better image in the cosmetic industry, and hence attracted more customers. However, there is a disadvantage in being ethical, as the company has experienced low profit margins, which is advantageous to its competitors. Additionally, it has satisfied its pressure groups, which proves that L’Oréal continuously behaves in an ethically responsible manner, to ensure the best for the

As a result of having offices in more than 130 countries across the world, L’Oréal promotes their brand with respect for the differences between each country. Regardless of the increasing global-local tensions, L’Oréal has the advantage of having numerous multicultural executives playing a critical role in the product development and promotion of their cosmetics, especially in new markets. Additionally, in order to retain and increase their customer base, the marketing of their products is based on the demands of women. This has a positive impact on consumers, as their ideas and culture are regarded significant in advertisements worldwide. Thus, this strategy was also successful in obtaining a global-local