Fighting corruption: a major ethical concern

Zero tolerance for corruption

Integrity is one of the Group’s ethical principles; it makes fighting corruption a priority. As a signatory of the United Nations Global Compact since 2003, L’Oréal has committed to combatting all forms of corruption, particularly as defined by the UN Convention Against Corruption on 31 October 2003. 

In 2007, L’Oréal published its own zero tolerance policy for corruption, along with a practical guide, The Way We Prevent Corruption. This policy applies to all employees, officers and members of the Group’s executive board and management committees as well as those of its subsidiaries worldwide. Since it operates in countries where the risk of corruption may be high, L’Oréal has rolled out concrete initiatives to prevent and detect corruption, in particular by applying its own standards at all subsidiaries.

The fight against corruption: sharing our commitment with stakeholders

In 2021, the Group actively pursued its fight against corruption during the pandemic and continued to campaign for integrity in business.

As Chairman & CEO, Mr Jean-Paul Agon spoke on the topic at the opening ceremony for the OECD Global Anti-Corruption and Integrity Forum, citing the Group’s commitments over the last 15 years as an upstanding corporate citizen. 

Internally, we rolled-out several measures to complement the corruption prevention policy and involve all stakeholders, including suppliers, in the fight against corruption. In 2021, L’Oréal published an update to its Mutual Ethical Commitment Letter, which has been signed by strategic suppliers since 2002. The letter underscores how important it is for the Group and its suppliers to share the same convictions and commitments based on demanding ethical norms in order to build lasting, trust-based partnerships. In addition to the fight against corruption, it covers several crucial issues such as human rights, working conditions, environmental protection and integrity. It also gives partners the option to use the L’Oréal Speak Up whistleblowing system. If they feel the Group is not complying with its principles, suppliers can talk to their usual contacts or opt to use this confidential whistleblowing tool.  

Mandatory training for employees

Corruption can come in many shapes and forms, and not all of them are easy to identify. For example, an exchange of invitations or expensive gifts could be considered corruption. That’s why L’Oréal introduced a mandatory online anti-corruption training course in 2016. As of 31 December 2021, 85% of targeted employees had completed the programme. Using concrete examples, the course applies the principles laid out in L’Oréal’s guide, The Way We Prevent Corruption.