Introduction LOral has long been the worlds largest beauty and cosmetic supply company, as well as a prime

example of positive business ethics. Headquartered in a Paris suburb, the company has developed a large number of cosmetic products that focus on hair colour, skin care, sun protection, make-up, perfume, and other assorted haircare products. Additionally, LOral has a long-standing research tradition and is active in the fields of pharmaceutics, dermatology, and tissue engineering. The company is also the leading nanotechnology patent-holder in the United States (Pitman, 2006). The company was founded on 31 July 1919 by a young French chemist named Eugne Schueller. A decade prior, in 1909, Schueller had developed a new hair dye formula which he called Aurale. A one-man-show, Schueller developed his own formulations and manufactured all of his own products, which he sold to hairdressers in the city of Paris. The company was originally registered as the Safe Hair Dye Company of France and was founded upon principles that LOral still stands for to this day. Namely, the guiding principles of research and innovation. The company began to grow in the early 20th century, hiring 3 chemists in 1920 and expanding by 1950 to employing teams that were one hundred-strong. By the 80s this number reached as high as 1000 per team and has climbed to nearly 2000 today. These teams are responsible for not only the development of hair colors (products for which the company was founded), but also enabled the company to branch into cleansing and other beauty products. Today, there are over 500 LOral brands and thousands of individual products that run the gamut from hair colour to makeup and fragrances. Additionally, their products are found in a large number of channels, from hair salons to perfumeries and supermarkets to pharmacies. Staying true to the original principles for which the company was founded, LOral has six R&D centers across the world located in France, the United States, Japan, China, and India, with plans for another US plant. It made its breakthrough into the pharmaceutical industry with the acquisition of Synthlablo, which through a series of mergers eventually became Sanofi-Aventis in 2004. Its manufacturing capabilities were also significantly expanded in 2012 with the opening of a $100 million dollar factory in Cikarang, Indonesia (2011). LOral has also been at the forefront of a number of self-esteem movements in the United States. This is exemplified by the advertising slogan Because Im worth it, which was later replaced with Because youre worth it and Because were worth it. These changes reflect not only the desire to create a deep consumer connection but to provide greater satisfaction, since the idealization of women has long been a criticism of the beauty product industry. This is one of the important ethical foundations of the company that has allowed it to succeed since its inception. It has over the years developed more efficient means of production, in addition to using renewable raw materials in its manufacturing processes. Most importantly, its focus on R&D has led to the development of safer and more environmentally friendly cosmetics. These factors add together to lead to the conclusion that in the 94 years since its inception LOral has always set a high standard for business ethics. Ethics and Methods of Production LOral has adopted a system of ethics that is similar to what was described by the Toyota Motor Corporation as lean manufacturing. The claim made by the company is that it is the ethical responsibility of the manufacturer to encourage certain behaviors that act as a code of excellence for the consumer. These principles were defined in terms of respect, and included respect for value, respect for the workplace, respect for people, respect for time, and respect for problems (Carver, 2013). While

this system of ethics was specifically adapted by Toyota, it can be applied broadly and LOral is no exception. Time and time again, LOral has shown positive ethics in their manufacturing, particularly with respect to the value of their products. They have worked consistently through the years to give their products value to the customer by offering many different brands and choices for all cultures, races, and backgrounds following the companys Beauty for All campaign. This is directly coordinated with one of the companys ethical princples, namely its quest for excellence (l'Oral, 2013). According to the company, they are in constant pursuit of perfection, and in doing so they act ethically towards their consumers. Additionally, LOral has shown tremendous ethical fortitude with respect to its supply chains. Much like the principles of respect of time, the workplace, and people, LOrals own ethical standards ensure that its supply chains are efficient, that its workplace is motivating and stress-free, and that its suppliers and factories are transparent and free of corruption. To combat this, the company began its Buy & Care Program. This program sets a system of ethical standards and rules for dealing with suppliers and the potential issues stemming from involvement with foreign companies. This program ensures that human rights are respected in the supply chain that people are not being held against their will or that they are not being harassed or discriminated against (L'Oral, 2012). This is also helped with the development of an in-house production system, wherein the suppliers machinery and other equipment is integrated with the production facility. This ensures greater oversight into the conditions of their suppliers workplace and also allows for a more efficient delivery of product, eliminating the need for a long supply chain and minimizing costs to the consumer. Minimizing the time and cost of production as well as maximizing the safety and working conditions of its factories is directly related to the ethical principles laid out by both Toyota and by LOral (L'Oral, 2011). 2011. LOreal to build its largest factory worth $50m in Jababeka [Online]. The Jakarta Post. Available: http://www.thejakartapost.com/news/2011/02/18/l%E2%80%99oreal-build-its-largest-factoryworth-50m-jababeka.html 2013]. CARVER, M. 2013. Lean Manufacturing Is a Form of Ethics [Online]. iSixSigma. Available: http://www.isixsigma.com/community/blogs/lean-manufacturing-is-a-form-of-ethics/ 2013]. L'ORAL 2011. Suppliers at the heart of L'Oral. Sustainable Development Report. p. 34 L'ORAL. 2012. California Transparency in Supply Chains Act of 2010 [Online]. Company Overview. Available: http://www.lorealusa.com/_en/_us/html/our-company/operations/sociallyresponsible-supply-chain.aspx. L'ORAL. 2013. Our Values and Ethical Principles [Online]. Available: http://www.loreal.com/group/whowe-are/our-values-and-ethical-principles.aspx. PITMAN, S. 2006. L'Oral builds on skin testing capabilities [Online]. Cosmetics Design-Europe. Available: http://www.cosmeticsdesign-europe.com/Formulation-Science/L-Oreal-builds-on-skin-testingcapabilities 2013].