Léal: One Of The World's Most Ethical Companies

L’Oréal: One of the World’s Most Ethical Companies

Every business entity has social responsibilities. The four theories of social responsibility are the maximization of profits, moral minimum, stakeholder interest and corporate citizenship. Social responsibility goes hand in hand in regard to a company’s ethical standing. As a company, it’s crucial to have high ethical standards. The Ethisphere Institute ranks businesses annually to be named on their honorable and highly recognized list of the World’s Most Ethical Companies. These organizations are evaluated in terms of their ethics and compliance programs, corporate citizenship and responsibility, culture of ethics, governance and leadership, and innovation and reputation. One of the companies

Many makeup companies have run into problems because they test their products on animals, which is controversial, but ultimately, unethical. The social responsibility theory of “moral minimum” is the theory that says a corporation has a duty to make a profit while also avoiding causing harm to others. It is well known that L’Oréal used to test their products on animals, but have since rid the practice. In doing this, L’Oréal has achieved their social responsibility in this area by avoiding causing harm to others. L’Oréal responds to the frequently brought up issue with, “L’Oréal no longer tests on animals or any of its products or any of its ingredients, anywhere in the world. Nor does L’Oréal delegate this task to others,” (L’Oréal: Frequently-Asked Questions, n.d.) This feat alone is one reason why L’Oréal made Ethisphere’s list of the World’s Most Ethical

Corporate citizenship is a business’ responsibility to do well. L’Oréal’s meets their social responsibility of corporate citizenship and Ethisphere’s high standards is through their governance and leadership. L’Oréal’s key executives have been recognized for their leadership in corporate ethics. In January of 2016, Emmanuel Lulin, Senior Vice-President and Chief Ethics Officer of L’Oréal was awarded the 2015 Carol R. Marshal Award for Innovation in Corporate Ethics from the Ethics & Compliance Initiative. Lulin says “Good ethical practices are now strategic. Companies who want to be leaders in our 21st century must address them to win trust and keep their license to operate. Innovative thinking, and strong cooperation of the players are required to address the deep ethical challenges of today and of tomorrow” (L’Oréal’s Chief Ethics Officer Recognized for Leadership in Corporate Ethics - L 'Oréal Group, 2016). Lulin emphasizes and enforces respect, integrity courage and transparency. L’Oréal hosts “ethics day, an annual event where employees worldwide can raise questions with the chief executive,” (Q&A: Emmanuel Lulin, L’Oréal’s Chief Ethics Officer, 2013). This demonstrates their value of transparency. L’Oréal management is relied on to express ethical leadership, not only by leading by example, but by being first-hand communicators about the company’s ethical standards. Additionally, all L’Oréal employees