LOREAL_Registration_Document_2017

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

In the context of this general principle, the social climate at L’Oréal is the fruit of an ongoing dialogue between management, employees and their representatives, in accordance with trade union rights in each country and with a neutral attitude with regard to the various trade union organisations. Employee representative institutions are in place in most of the European subsidiaries, in several Asian subsidiaries (China, Indonesia, India, South Korea, etc.), in Africa (South Africa, Morocco, Kenya, etc.), in North and South America (the United States, Canada, Mexico, Brazil, Argentina, etc.), and also in Australia and New Zealand. In total, 82.1% of the Group’s employees work in subsidiaries where there are employee representative institutions. 42.7% of the Group’s employees are covered by a collective agreement, and in almost all cases (96.9%), these are company-level agreements. In the cases where there is no employee representative institution (often in subsidiaries with a small workforce), the dialogue is conducted directly with the employees, in complete compliance with the principles of transparency and trust that are applied uniformly throughout the Group. important advance which aims to reinforce social dialogue at L’Oréal while remaining a step ahead of changes in legislation. The agreement has been renewed, without any major change, for the period 2017-2020. The IEDS/EWC leads discussions and formal meetings with its members about the Group’s current situation and future prospects, on the basis of an agenda prepared with the Liaison Secretariat following a one-day preparatory meeting with the members of this body. It has 30 members, who receive regular training on economic and social issues. Today, the IEDS/EWC covers approximately 30,500 employees in 28 countries which are part of the European Economic Area; among whom the 17 countries with more than 150 employees are directly represented.

In France, a system of telecommuting has existed since 2009. These programmes now enables employees who are interested in working from home up to two days a week of such arrangement. In 2017, more than 1,800 employees telecommute, 64% of whom are executives. Internationally, in 2009, the United States launched the " Work From Home " programme, which offers employees the opportunity to work from home for a maximum of six non-consecutive days per quarter. At the end of 2017, 42 of the Group's 69 subsidiaries have already introduced similar programmes and other subsidiaries are considering the possibility of joining this initiative. Flexible working hours are already in place in 45 subsidiaries. An active social dialogue with employees and their representatives L’Oréal undertakes to respect the freedom of association and to recognise the right to collective bargaining as provided in the United Nations Global Compact, of which L’Oréal has been a member since 2003. In countries where freedom of association and the right to collective bargaining are restricted or non-existent, L’Oréal ensures that other modes of dialogue exist with its employees enabling them to report any concerns they have. An agreement signed in 1996 between L’Oréal and French and European trade unions (FECCIA and EMCEF) led to the establishment of the Company’s Instance Européenne de Dialogue Social /European Works Council (IEDS/EWC). The initial agreement has been regularly updated, in particular in 2009 to introduce a new information and consultation procedure which applies to transnational projects involving local consultation procedures. This procedure is implemented with the Liaison Secretariat extended to include members from the countries concerned or with the entire IEDS/EWC, depending on the geographic and strategic dimensions of the transnational project. This process allows for the possibility of an opinion from the IEDS/EWC. This revision of the agreement represented an THE INSTANCE EUROPÉENNE DE DIALOGUE SOCIAL/EUROPEAN WORKS COUNCIL

REGISTRATION DOCUMENT / L'ORÉAL 2017

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