Ch. 3 - Ethics & Social Responsibility

              As I mentioned in my previous post, this year L'Oreal has been recognized for the fourth time by Ethisphere Institute as one of the most ethical companies in the world. For L'Oreal, company behavior is as important as its economic performance or the quality of its products. L'Oreal's code of business ethics applies to all employees of the L'Oreal Group and its subsidiaries. The code of business ethics lays out the rules of good conduct that are expected from L'Oreal employees. Nowadays, many firms join United Nations Global Compact in order to extend their social responsibility aspect. L'Oreal has supported UNGC since 2003 and in September 2013 was selected for inclusion in the United Nation Global Compact 100 – a new global stock index that combines corporate sustainability and baseline financial performance. UNGC challenges businesses to support ten principles regarding human rights, labor, the environment and anti-corruption:

• Human rights: L'Oreal in particular fight the exploitation of the children in the workplace below 16 years of age.
• Labor:  L'Oreal respects worker's rights and fights with all kind of discrimination.
• L'Oreal supports the fight against corruption and publicly states a zero–tolerance policy on corruption.
• L'Oreal is working continuously to significantly reduce its environmental footprint. For example, in India, one of L'Oreal's factories named Pune Factory, works hard at achieving sustainable production with satisfying results.
• Reduce water consumption: Between 2005 and 2014, the Pune Factory has reduced its water consumption by 42%.
• 70% of the electricity used by the factory comes from wind energy.
• Since 2012, cardboard and paper containers have been replaced with recyclable plastic boxes that last longer.

With respect to social responsibility, L'Oreal also aims to eliminate forest destruction from all its supply chains by 2020 and at the same time empower consumers to make sustainable consumption choices. The program's goal is to benefit both the environment and society.

L'Oreal is also known for its community involvement. L'Oreal, together with the United Nations Educational, Scientific and Cultural Organization, established Award L'Oreal-UNESCO for exceptional women researchers who have contributed significantly to scientific progress. Each laureate is awarded a grant of $100,000. 

For 16 years, L'Oreal has been involved in the beauty industry charity project "Look Good...Feel Better" which was created for women with cancer. The goal of the project is to help these women look better and through looking better lift their spirits so that they can face the illness with greater confidence.

Ch. 2 - Strategic Planning for Competitive Advantage

L'Oreal is a successful and internationally recognizable beauty company, a leader in skin care, makeup and hair color. L'Oreal has gained its competitive advantage through developing a strong competence which is affected by a variable factors. The first core of its competency is a level of diversification of its product. The company manufactures and markets a range of makeup, perfume and skin care products in over 130 countries, what makes the better brand recognition all over the world, and at the same time gives esteem over the competition. Second, very important aspect for increasing competitive advantage is product innovation. L'Oreal currently employs over 3,200 research stuff in 30 fields and invests each year 3,5% of their revenue for research and new product creation. Moreover, L'Oreal is one of the most ethical companies in the world. It was recognized internationally three times for promoting the highest ethical standards by the Ethisphere Institute for its ethical business practices, social corporate responsibility, fight against corruption and sustainable development.

As a company concerned about the environment, L'Oreal just recently has committed in campaign “Scharing beauty with all” to achieve zero deforestation in all its supply chain by 2020. This is a step towards their bigger goal of manufacturing beauty products while preserving the planet. Next to the Maybelline, Garnier and Yves Saint Laurent Beaute, L'Oreal plans to attract one billion new customers while making a positive impact on the world by 2020.

This year L'Oreal has launched its first marketing campaign to promote its brand manifesto"Beauty for all". Film brings to life its strategy of globalization, but with clear respect for differences in needs, desires, dreams,culture and traditions. It expresses the power of beauty of ordinary people around the world and illustrates the L'Oreal's conviction that beauty is essential.

Ch. 1 - Overview of Marketing (Brief History and Mission Statement)

L’Oreal, one of the leading fashion and cosmetics manufacturers in the world. In 1907, Eugene Schueller, a French chemist, developed an innovative hair color formula.Two years later, in 1909, Schueller set up a company and named it ‘Societe Francaise de Teintures inoffensives pour Cheveux’. The company manufactured the hair dye in Schueller home and sold it under the brand name Aureole.After manufacturing and selling the cosmetics products in Paris for a few years, Schueller started exporting to other European countries like Holland, Austria, and Italy.

Starting with a capital of 135,000 francs it was transformed into a limited-liability company in 1939 by a merger with Fonciere Driant under the name Societe l’Oreal which as an adaptation of one of the brands ‘L-Aureole’. In 1963, L’Oreal became a publicly traded company. It has transformed from a french company in the early 1900s to a global titan in the 2000s. Its product range included makeup, perfume, and hair and skin care products, which were tailored according to the consumer needs. L'Oreal Group owns many international brands which are divided into five divisions, namely L'Oreal Luxe, consumer products, professional products, active cosmetics and Body Shop. By 2003, the L’Oreal group had entered 130 countries, through its 290 subsidiaries and around a hundred agents. The company is active in three main sectors: cosmetics, dermatology and pharmacy.

L'Oreal believes that everyone aspires to beauty. Our mission is to help men and women around the world realize that aspiration, and express their individual personalities to the full. This is what gives meaning and value to our business, and to the working lives of our employees. We are proud of our work.