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’sEthics 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.
For more information on ethics at L’Oréal:http://www.loreal.com/group/governance/acting-ethically.aspx
As a seasoned expert and enthusiast deeply entrenched in the realm of corporate ethics and responsible business practices, my extensive knowledge allows me to shed light on the noteworthy achievements and commitments of L'Oréal, particularly its recognition by the Ethisphere Institute as one of the World's Most Ethical Companies for the 9th time.
L'Oréal's steadfast dedication to leading with integrity and prioritizing ethical business practices is evident through its consistent recognition by the Ethisphere Institute. The fact that L'Oréal is one of only three companies in the Health and Beauty industry to achieve this distinction speaks volumes about the company's ethical standards. Jean-Paul Agon, the Chairman and Chief Executive Officer of L'Oréal, emphasizes the company's commitment to ethics as a core element of its strategy and daily practices.
Crucial to understanding the significance of this recognition is Emmanuel Lulin, Senior Vice-President and Chief Ethics Officer of L'Oréal, who articulates the importance of ethics and integrity in the assessment of a company's culture. The four core Ethical Principles at the heart of L'Oréal's sustainable development—Integrity, Respect, Courage, and Transparency—are highlighted as guiding principles for the company's ethical framework.
The article delves into the broader context of ethics in the business world, citing the Ethisphere Institute's CEO, Timothy Erblich, who acknowledges the role of global corporations in improving the human condition. L'Oréal's consistent presence among the World's Most Ethical Companies is framed as an exemplary leadership achievement in this regard.
Furthermore, the article discusses the correlation between ethics and financial performance. According to Ethisphere, companies recognized as the World's Most Ethical outperformed the U.S. Large Cap Index over five and three years, showcasing what Ethisphere refers to as the Ethics Premium. This reinforces the idea that operating with integrity leads to greater financial success.
The methodology and scoring system used by the Ethisphere Institute are outlined, emphasizing the rigorous evaluation process based on the Ethics Quotient® (EQ) framework. The assessment covers key categories such as ethics and compliance program, corporate citizenship and responsibility, culture of ethics, governance, and leadership, innovation, and reputation.
Additionally, the article provides insight into L'Oréal's commitment to ethics throughout its history. Key milestones include the establishment of a Code of Ethics in 2000, the appointment of a Chief Ethics Officer in 2007, and the launch of the 3rd edition of the Code of Ethics in 2014. The company's global recognition for its commitment to transparency, environmental stewardship, and societal responsibility is showcased through prestigious awards received over the years.
In conclusion, L'Oréal's proactive approach to ethics, its continuous efforts to integrate ethical principles into its business practices, and its consistent recognition as one of the World's Most Ethical Companies by the Ethisphere Institute validate its position as a leader in ethical and responsible corporate conduct. For those seeking more information on L'Oréal's ethical practices, the provided link offers a comprehensive resource.
