4. Sustainability Report
4.13 Responsible leadership and ethical practices (G1)4.13 Responsible leadership and ethical practices (G1)
4.13.1 Background
Underpinned by the demanding principles set out in its Code of Ethics, L'Oréal has built a solid governance framework that guides each of its employees, managers, senior executives, directors and corporate officers. Beyond simply complying with the laws and regulations in the countries where it operates, L'Oréal strives to apply exemplary ethical standards throughout the world.
Through Speak Up, the Group encourages open and transparent dialogue, where everyone can report any behaviour that runs counter to L'Oréal's values. This ethical framework strengthens L'Oréal's reputation and inspires trust among stakeholders.
4.13.1.1 Material impacts, risks and opportunities related to business conduct
| Description | Sub-topics | Policies | Action plans | |
|---|---|---|---|---|
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Description Responsible and ethical practices, including protection of whistleblowers, fair relationships with suppliers and compliance, are crucial for L'Oréal. Failure to respect these commitments could give rise to financial risks for the company, legal sanctions or damage to its reputation, a deterioration in relationships with suppliers, or a loss of trust among stakeholders. |
Sub-topics Corporate culture Protection of whistleblowers |
Policies Ethics policy |
Action plans Reinforce ethics through compulsory training, a whistleblowing system, internal controls and regular audits |
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Description Management of relationships with suppliers |
Sub-topics Sustainable purchasing policy |
Policies Optimise supplier management through transparent communication, ongoing dialogue, compliance with payment deadlines, audits and ongoing support |
IRO: I- = negative impact; I+ = positive impact; 
Time horizon: ST = short term; MT = medium term; LT = long term.