L’Oréal Named World’s Most Ethical Companies by the Ethisphere Institute for the 9th time
by Shrutee K/DNS
India - L’Oréal, the world’s leading beauty company, has been recognized by the
Ethisphere Institute, a global leader in defining and advancing the standards
of ethical business practices, as one of the 2018
World’s Most Ethical Companies. L’Oréal
has been recognized for the 9th time and is one of only 3 in the
Health and Beauty industry, underscoring their commitment to leading with
integrity and prioritizing ethical business practices.
“A company’s value is not measured by its
sole economic performance. Because L'Oréal has always strived to be a virtuous
and responsible company, we have placed ethics at the heart of our strategy and
daily practices. It is this approach that is recognized today by Ethisphere,
and it is a source of pride for all of us. ” said Jean-Paul Agon, Chairman and Chief Executive Officer
of L’Oréal.
“Companies’ culture of ethics and integrity
has become a substantial part of their assessment. The currency of ethics is
trust and our sustainable development is based on L'Oréal's core Ethical
Principles: Integrity, Respect, Courage and Transparency.” said Emmanuel Lulin, Senior Vice-President and Chief Ethics Officer of L’Oréal. In 2018, 135 honorees were recognized,
spanning 23 countries and 57 industries. This year’s class of honorees had
record levels of involvement with their stakeholders and their communities
around the world. Measuring and improving culture, leading authentically and
committing to transparency, diversity and inclusion were all priorities for
honorees. “While the discourse around the world changed
profoundly in 2017, a stronger voice emerged. Global corporations
operating with a common rule of law are now society’s strongest force to
improve the human condition. This year we saw companies increasingly finding
their voice. The World’s Most Ethical Companies in particular continued to show
exemplary leadership,” explained Ethisphere’s CEO, Timothy
Erblich. “I congratulate everyone at
L’Oréal for being recognized for the ninth time as one of the World's Most
Ethical Companies. This is a great achievement.”
Ethics & Performance
Once again, the 2018 World’s Most Ethical
Companies have proven that operating with integrity leads to greater financial
performance. According to Ethisphere, research has found
that, when indexed, listed World’s Most Ethical Companies outperformed the U.S.
Large Cap Index over five years by 10.72 percent and over three years by 4.88
percent. Ethisphere refers to this as the Ethics
Premium.
Methodology & Scoring
The World's Most Ethical Companies assessment is based upon the Ethisphere
Institute’s Ethics Quotient® (EQ) framework, which offers a quantitative way to assess a company’s
performance in an objective, consistent and standardized manner. The
information collected provides a comprehensive sampling of definitive criteria
of core competencies rather than all aspects of corporate governance, risk,
sustainability, compliance and ethics.
Scores are generated in five key categories: ethics
and compliance program (35 percent), corporate citizenship and responsibility
(20 percent), culture of ethics (20 percent), governance (15 percent) and
leadership, innovation and reputation (10 percent). All companies that
participate in the assessment process receive their scores, providing them with
valuable insights into how they stack up against leading organizations.
About Ethics at L’Oréal
A company’s behavior is as important as its economic
performance or the quality of its products. L'Oréal was built on strong ethical
principles that guide its development and contribute to building its
reputation: Integrity, Respect, Courage and Transparency. These principles are namely
the foundation of the Group's policies in terms of compliance, responsible
innovation, environmental stewardship, social and societal responsibility, and philanthropy.
L’Oréal’s ambition is to be an exemplary company worldwide and integrate ethics
into the very heart of its business practices.
In 2000, L’Oréal was one of the first companies in France to establish a
Code of Ethics and to appoint, in 2007, a Chief Ethics Officer.
In 2008, L’Oréal’s Chairman and CEO, Jean-Paul Agon, received the
prestigious Stanley C. Pace Leadership in Ethics Award.
In 2014, L’Oréal launched the 3rd edition of its Code of
Ethics, which is now available in 45 languages and in Braille in English and in
French, as well as a new ethics e-learning in 22 languages.
In 2015, L’Oréal’s Senior Vice-President and Chief Ethics Officer,
Emmanuel Lulin, received the prestigious Carol. R. Marshall Innovation in
Ethics Award
In 2017, L’Oréal received the Transparency Grand Prix for its Code of
Ethics (Grand Prix de la Transparence – Charte Éthique). It is the first time
that this prize was awarded.
L’Oréal is a Global Compact LEAD company, one of the 100 companies
included in the Global Compact 100 stock index, a signatory of the Women’s
Empowerment Principles, an initiative of UN Women and the UN Global Compact and
supports the United Nations Sustainable Development Goals
L’Oréal organizes an annual Ethics Day where employees from around the
world can chat online with L’Oréal’s Chairman and CEO and their country General
Manager about ethics.
About L'Oréal
L’Oréal has devoted itself to beauty for over 100 years. With its unique
international portfolio of 34 diverse and complementary brands, the Group
generated sales amounting to 26.06 billion euros in 2017 and employs
82 600 people worldwide. As the world’s leading beauty company, L’Oréal is
present across all distribution networks: mass market, department stores,
pharmacies and drugstores, hair salons, travel retail, branded retail and
e-commerce. Research and innovation, and a dedicated research team of 3 885 people, are at the core of L’Oréal’s strategy, working to meet beauty
aspirations all over the world. L’Oréal’s sustainability commitment for 2020
“Sharing Beauty With All” sets out ambitious sustainable development objectives
across the Group’s value chain. www.loreal.com
About the Ethisphere
Institute
The Ethisphere®
Institute is the global leader in defining and advancing the standards of
ethical business practices that fuel corporate character, marketplace trust and
business success. Ethisphere has deep expertise in measuring and defining core
ethics standards using data-driven insights that help companies enhance corporate
character and measure and improve culture. Ethisphere honors superior
achievement through its World’s Most Ethical Companies recognition program and
provides a community of industry experts with the Business Ethics Leadership
Alliance (BELA). https://ethisphere.com.
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