3. Risk factors and risk management
3.2 Internal Control, risk management system and tax policy3.2 Internal Control, risk management system and tax policy
3.2.1 Organisation and control environment(1) 
The control environment is critical to the Internal Control system. It ensures that risks are managed properly and that appropriate procedures are effectively implemented. It is based on behaviours, the organisational structure and employees.
3.2.1.1 Framework
At L'Oréal, the control environment forms part of a culture of rigour and commitment modelled by senior executives in line with the Group's strategic choices. It also complies with local regulations – both general regulations and regulations more specific to the Group's products – and with the standards set by the Group, particularly in terms of ethics.
3.2.1.1.1 Ethics, CSR and Human Relations policies
The Group's Ethical Principles
L'Oréal's Code of Ethics is available in 30 languages and as an audiobook in English and French. It was completely overhauled and expanded in 2023. The Code of Ethics is distributed to all employees around the world. It uses simple rules and concrete examples to explain how employees can apply these Ethical Principles in their behaviours and actions.
The Code of Ethics applies to all employees, directors and corporate officers, as well as members of the Executive and Management Committees.
Chief Ethics, Risk and Internal Control Officer
The Chief Ethics, Risk and Internal Control Officer reports directly to the Chief Executive Officer and keeps him informed on a regular basis. The Chief Ethics, Risk and Internal Control Officer regularly updates the Board of Directors and the Executive Committee. Regarding Ethics, she is responsible for:
- promoting and embedding best practices within the Group by informing ethical decision-making;
- overseeing employee training;
- overseeing the management of alerts and directly managing those related to General Management positions; and
- measuring and assessing the Company's ethical performance.
She has a dedicated budget and team, and unrestricted access to all information about the Group's business activities. She can call on any of the Group's teams and resources to support her work.