LOREAL_Registration_Document_2017

3 L'Oréal’s corporate social, environmental and societal responsibility* L’ORÉAL’S CORPORATE SOCIAL, ENVIRONMENTAL AND SOCIETAL POLICIES

THE L’ORÉAL GROUP’S HUMAN 3.1.2. RESOURCES POLICY L’Oréal’s Human Resources Department have always had the mission of supporting the HR Group’s growth and supporting its transformation initiatives. In order to be sustainable, L’Oréal's growth relies first and foremost on the men and women in the Company who are the key drivers of the Group's success. Built on the strength of this conviction, the Group’s social and human project is based on both individual development and collective strength. People as the central focus The conviction that everyone’s talent makes a difference has always caused the Group to put the human dimension at the centre of its concerns and its development. L’Oréal finds, recruits and develops its employees in a long-term perspective in which training and development play a core role throughout the employee’s career. A Human Resources Policy at the service of growth The Human Resources Department support L’Oréal’s growth objectives and its three main priorities: universalisation, digital transformation and corporate social responsibility commitments. In support of universalisation, understood as globalisation that respects differences, the role of our Human Resources teams is to accelerate the recruitment and development of talents from all over the world and to prepare tomorrow’s leaders, fostering the emergence of the best local talents in support of the ambition to win one billion new consumers. The Human Resources teams provide support during all the changes in the Company, its organisation and its businesses. The digital transformation therefore relies both on recruiting highly talented employees, integrating new businesses and the dissemination of a digital culture at all levels. This transformation also concerns HR practices, in particular, employer communication, the identification and recruitment of talented people and the training and development of employees with an increased level of e-learning. Human Resources also play a central role in transforming working and management methods, particularly through the “ Simplicity ” programme. This programme, launched in 2017, plays an essential role in growth through innovation and increasing L'Oréal's appeal throughout the world. The Simplicity programme aims to develop a new mind set at the core of the Group, one that is based on greater cooperation and trust within flexible and effective teams. The implementation of Simplicity is supported by a large-scale programme, LeadEnable for Simplicity . Launched this year for the Group's Top Managers, LeadEnable supports managerial

transformation and promotes new ways of managing teams and working together.

A leader in social innovation For L’Oréal, there can be no sustainable economic growth without social progress. Throughout its history, the Group has set itself the target of offering an environment in which everyone can reveal their talents, improve and thrive. Therefore, within the scope of the 2020 targets of the Sharing Beauty With All programme, L’Oréal made the commitment to provide annual training to all of its employees worldwide. In addition, L’Oréal's Share & Care programme, which launched in 2013 and was rolled out to all of the Group's subsidiaries, offers employees a shared framework of social benefits in the areas of employee benefit schemes, health, parenthood and the quality of life at work. In addition to this shared framework, the programme ensures that each subsidiary is at the same level of best practice in each country. Finally, each subsidiary is invited to launch its own initiatives to contribute to social innovation and to maintain L'Oréal's position as one of the most attractive employers in every market. L'Oréal took a further step forward in 2017 in order to reinforce the programme by setting new targets for 2020 with a particular emphasis on quality of life at work and parenthood. Recruiting and supporting talents 3.1.2.1. The Group constantly strives to enhance its pool of talents, in all countries. It enforces a diversified recruitment policy based around several recruitment channels, including partnerships with the best educational institutions internationally and its student competition (Brandstorm), which attract tens of thousands of students from all over the world each year. To ensure an effective selection process, L’Oréal has also developed its own selection methods to recruit the best talents - those who best represent the diversity of cultures - who are capable of expressing the different aspirations of consumers on a global scale, from among more than a million unprompted applications received every year. The proactive approach offered by social networks in particular facilitates further diversification and enrichment of the sources of job applications for the Group. In parallel with this approach, L’Oréal has developed digital employer communication aimed at sharing, daily and transparently, the rich variety of its professions and jobs and the diversity of its career paths, and making it possible, as an underlying objective, to understand the Group’s culture. L’Oréal is recognised as one of the most attractive companies in the world for young graduates and one of the companies that provides the most leadership training (1) .

Source: Universum 2017. (1)

REGISTRATION DOCUMENT / L'ORÉAL 2017

138