Case Analysis Of L Oreal

In 2016, for the seventh year in a row L’Oreal has been labeled as one of the worlds most ethical companies. Rated by Ethisphere, L’Oreal was one of only four health and beauty companies out of 153 rated to make the list in 2016. Their dedication to staying true to their values when it comes to ethics seems to be doing nothing but benefit them as time goes on. Ethisphere tests companies in five different categories to determine who truly operates in an ethical manner. Companies ethics and compliance programs make up the majority of this test with 35% counting towards it. Followed after by corporate citizenship and responsibility as well as culture of ethics at 20% each, governance at 15%, and finally leadership, innovation and reputation making

They strive to achieve greatness in both a respectful and productive way. For example, L’Oreal has a minimum working age in all countries of 16, which requires kids have completed mandatory schooling before they can begin (“Code of Business Ethics” 2016). If a subcontractor or supplier has been caught hiring children under the legal age, it is their obligation to provide the child’s family with an additional income to make up for the child’s income and they are required to extend a position back to the child once they are of legal age to begin working (“Code of Business Ethics”

Since 1995 L’Oreal has been using eco-toxicology labs to test their products and see what their potential impact would have on ecosystems like soil, air, and water (“The pillars of responsible” 2016). Since then they have introduced predictive evaluation, which helps researchers make predictions on the effects of products and ingredients very early on and in a reliable fashion. This helps them determine which ingredients should be incorporated into products and what should not. L’Oreal has been increasing their use of sustainable sourced ingredients as well. Palm oil is one ingredient that L’Oreal uses in many of their products and in 2011 the World Wildlife Federation gave them a 9/9 for their sourcing of palm oil in terms of sustainability (“Increasing the Sustainable” 2016). On top of this they had Biotherm, a deodorant company they own, release a men’s deodorant in 2011 that was made of 100% natural and renewable ingredients (“Increasing the Sustainable” 2016).

A very large ethical debate in the media lately involves companies like L’Oreal, and where they stand on animal testing. In 1989 L’Oreal stopped testing their products on animals and was able to continue creating safe merchandise. However, they took this one step further in 2013 when they announced that L’Oreal was no longer testing on animals anywhere in the world, and they were not allocating this