LOREAL_Registration_Document_2017

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

Sharing the fight against corruption with the Group’s business partners L’Oréal wants to share its commitment to fight against corruption with its business partners and as such, compliance with the law is included in the Group’s general terms of purchase. It moreover reserves the right to put an end to any relationships with business partners who fail to comply with anti-corruption laws.

Anti-corruption measures implemented within the Group

Group-level risk assessment

The risk of corruption is included in the Group-level risk assessment. Specific corruption risk mapping is in place at Group level and in each country. A tool enables Country Managers to assess and analyse possible local ethical risks (including corruption) and to take the necessary prevention measures.

Specific Human Resources procedures

A “ delivers both sustainable and short-term results with integrity” ethical competency is included in the annual appraisal system for all employees.

L’Oréal’s “Open Talk” policy

This enables employees to express any concerns they may have, including with regard to corruption, namely directly via a secure website to the Group’s Senior Vice-President and Chief Ethics Officer. Any allegation raised in good faith is examined in detail and appropriate measures are taken, where necessary, in the event of non-compliance with the corruption prevention policy.

Online anti-corruption training (e-learning), which is available in 18 languages, is currently being deployed all over the world.

Training

Internal Control within the scope of the control procedures for operational activities

The Group’s Internal Control system provides for control procedures for operational activities and in particular with regard to separation of tasks. L’Oréal’s Internal Audit teams are particularly vigilant in this respect. Corruption risks are systematically reviewed during Internal Audit assignments, through individual interviews with regard to Ethics. These interviews include questions specifically concerning corruption and are conducted separately with the Country Manager and the Administrative and Financial Director. They give rise to an individual report reviewed and signed by these latter persons.

Due diligence prior to proposed acquisitions

The answers to the “ethics questionnaire” submitted to target companies are intended to identify whether corruption risk prevention has been taken into account by such companies.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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