CA Transparency in Supply Chains Act of 2010

On January 1, 2012, the California Transparency in Supply Chains Act of 2010 (SB 657) became effective in the State of California. This law requires manufacturers and retailers operating in the state to publically disclose their efforts (if any) to address the issue of slavery and human trafficking in their supply chain, thereby allowing consumers to make more informed choices regarding the products they buy and the companies they choose to support or patronage.

L’Oréal aims to ensure that human rights are respected throughout its supply chain around the world. Through L’Oréal’s Buy & Care Program, all our suppliers and subcontractors are required to comply with the company's General Terms of Purchase and Payment, which include compliance with the Fundamental Conventions of the ILO, as well as local legislation.

As stated in L’Oréal’s Code of Business Ethics for Suppliers/Subcontractors, we believe that employees have the right to freely choose employment, the right to associate freely and join or be represented by trade or labor unions on a voluntary basis, and have the right to bargain collectively as they choose. Employees also have the right to a workplace free of harassment and unlawful discrimination.

Slavery and human trafficking can take many forms, including forced labor, bonded labor and child labor. L’Oréal proactively takes efforts to ensure and verify the absence of such slavery and human trafficking in our supply chain. These efforts include:

Supplier Certification Agreements & Direct Supplier Certifications:

L’Oréal builds long-term relationships with suppliers who share our values and ethical commitments. L’Oréal requires all components, raw materials, subcontracting and POS/promos suppliers to sign the Groups’ General Terms of Purchase & Payment Commitment Letter. This commitment requires our suppliers to comply with all applicable laws and regulations of the country in which their products are manufactured for health & safety, working hours, wages, disciplinary procedure, etc. The terms specifically require all suppliers or subcontractors to verify that no merchandise purchased by L’Oréal has been manufactured, assembled or packaged through the use of forced labor, prison labor and child labor or under unsafe working conditions.

Our policy and process has allowed L’Oréal to grow sustainably and to develop and build long-term relationships with our suppliers based on mutual respect for the environment and society.

Supplier Audits:

L’Oréal’s audit program evaluates suppliers' compliance with our Code of Business Ethics which prohibits forced labor, bonded labor and child labor. Audits are routinely conducted under this program, including unannounced third-party on-site audits of practices and underlying management systems. Suppliers in countries deemed “of risk” and all subcontractors worldwide are subject to unannounced third party audits by Intertek, a leading provider of inspection and consulting services for global industry, markets and institutions.

These audits rate each facility’s performance on: Child Labor, Forced & Compulsory Labor, Health & Safety, Freedom of Association, Non-discrimination and Disciplinary Practices. Suppliers who are found to be “needing improvement” are required to produce corrective action plans, which Intertek reviews, approves and monitors. The corrective action plans outline how a supplier will resolve issues uncovered in audits. Intertek then performs follow-up audits to confirm that the supplier has corrected the infraction and to ensure that no new issues have arisen.

In addition to conducting and enforcing audits, L’Oréal provides new and existing suppliers with various tools to succeed within our supply chain. These tools include a New Supplier Welcome Kit, Suppliers Days, Vendor Meetings & various other training opportunities.

These programs have allowed L’Oréal to create standardized procedures and models that can be conducted in ten languages around the world. Additionally, in order to ensure transparency and performance progress, a global shared database has been established which includes all the audit results.

Internal Accountability Standards:

L’Oréal seeks to help end the exploitation of children in the workplace and therefore maintains a zero-tolerance regarding child labor. When a case of child labor is found, the supplier or subcontractor is obliged to ensure that the child returns to school. This includes, if necessary, providing his/her family with an additional income and includes making an offer of reemployment to the child when he/she reaches the permissible age.

Ethics Training:

All L’Oréal employees are required to participate in an ethics training course, which, in part, focuses on the practical implementation of human rights – in particular Health, Safety & Security, Diversity, Harassment & Bullying, Sexual Harassment, Privacy, Contribution to the Community, Supplier Selection and Fair Treatment of Suppliers. Additionally, all employees have access to a Guide to Dealing with Suppliers, which provides them with detailed information on how to apply the Code of Business Ethics when interacting with suppliers.

In accordance with the California Transparency in Supply Chains Act of 2010, L’Oréal is compliant in its disclosure of the efforts it is taking to eradicate slavery and human trafficking in the supply chain. For more information please visit the L’Oréal Ethics page of our website.