LOREAL_Registration_Document_2017

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

Promotion of and compliance with the ILO conventions

All internal social audits (see above “ Actions implemented in the Group in favour of Human Rights ") and social audits of suppliers cover the questions of freedom of association and the right to collective bargaining, forced labour, child labour and discrimination. All of these social audits are carried out by independent external service providers. In the event of a major non-compliance, corrective action plans are put in place and a follow-up audit is carried out. When carrying out social audits of suppliers, the most serious cases of non-compliance or the absence of effective implementation of a corrective action plan may lead to breaking off commercial relations or, where applicable, non-referencing of a new supplier.

Even though no L’Oréal sites have been identified as presenting a substantial risk of incidents of non-compliance with the principles of freedom of association and/or the right to collective bargaining, forced labour, child labour or discrimination, all L’Oréal sites, wherever they are in the world, are subject to control in the form of compulsory Annual Reporting, via the Annual Ethics Reporting platform and the Country reporting intranet system for the collection of Human Resources data.

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WITHIN THE COMPANY

SUPPLIER SOCIAL AUDITS

The measures taken are described in paragraph 3.1.2.6. Work organisation . 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. Recourse to prison labour is possible when it is voluntary within the scope of a professional reinsertion programme, and paid at market price. Suppliers/subcontractors must request the authorisation of L’Oréal before they have recourse to this form of labour. Furthermore, all Group entities are required to ensure that none of their employees are subject to the retention of identity papers or travel documents, or are obliged to pay recruitment fees or to deposit money affecting their ability to leave their employment. All L’Oréal entities are required to verify the age of their new employees when they are hired. L’Oréal has chosen to set a compulsory minimum age of 16 for its entire staff, a minimum age which is higher than that required by the International Labour Organisation. In light of their young age, employees who are between 16 and 18 years old are subject to specific conditions. They may not do night work, overtime, work involving the use of hazardous substances or tools or for carrying heavy loads. They benefit from a reinforced training programme, appointment of an internal “tutor” and inclusion on a special register. In 2017, 14 employees aged between 16 and 18 worked within the Group’s entities.

2.7% ; of non-compliance related to the issue of “Freedom of association”. Most of the cases of non-compliance concerned the absence of trade union elections or creation of the Workers’ Committee in countries where this is a local requirement (1) .

Respect for freedom of association and the right to collective bargaining

5.8% ; of non-compliance related to the issue of forced or compulsory labour. Most of the cases of non-compliance concerned the retention of identity papers or abusive contracts. Two severe cases of non-compliance concerned the lack of freedom to leave work stations to go to the toilet, the other being a case of work subcontracted to prisons.

Elimination of all forms of forced or compulsory labour

None ; of the social audits conducted in 2017 of suppliers and subcontractors revealed the employment of a child who was less than 16 years of age.

The abolition of child labour

0.8% ; of non-compliance related to the " Discrimination " chapter. They mainly concerned pre-employment pregnancy tests and one case of discrimination against a trade union member. The five suppliers involved were asked to cease this practice. A follow-up audit will be organised.

Elimination of all forms of discrimination

The measures taken are described in paragraph 3.1.2.7. Diversity and Inclusion.

Statutory Auditors have expressed a reasonable assurance with regard to this indicator. ; Figures exclude audits where verification could not be performed because of the specific nature of local regulations. (1)

REGISTRATION DOCUMENT / L'ORÉAL 2017

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