One company that appears to be getting it right on the diversity front is LOral, a popular

One company that appears to be getting it right on the diversity front is L’Oréal, a popular French cosmetics organization founded in 1909, with over 86,000 employees operating across 130 countries.

In 2018, the Thomson Reuters Diversity and Inclusion Index, which measures how diverse companies are, ranked L’Oréal in eighth place with a score of 77.25 percent. In 2019, L’Oréal company statistics demonstrate that 69 percent of employees are female (31 percent being represented at executive level). The company’s approach to recruiting and sustaining a diverse workforce is highlighted through its workforce—over 1,100 employees with disabilities and an employee base representing more than 158 nationalities.

So what is the key to its success? L’Oréal appears to embed its values in its commitment to diversity both externally, through the community work they are involved in, and internally, with their workforce across the globe. Its diversity statements suggest that the company is dedicated to promoting the recruitment of more women for top positions, it encourages people from different social and cultural backgrounds to join its workforce, and is committed to increasing the number of employees with disabilities.

To achieve this, L’Oréal has introduced many initiatives across the globe, supported by the management, to help embed its commitment in driving the equality strategy. For example, L’Oréal has implemented employee resource groups in Mexico to represent and capture the best practices outlined by its LGBTI community, and, in 2018, its employees took part in the Pride March in Mexico City. Through its Free to Be project, L’Oréal Mexico is promoting the use of positive work spaces for sexual diversity.

This encourages LGBTI employees to come together to feel supported, though the longer term aim would be to move towards a whole organization approach where these safe spaces would no longer be needed. In Germany, L’Oréal’s INTERNgration project, a joint effort with the country’s government and other organizations, allowed it to integrate 10 young refugees to their local offices through a 6-month internship. In Pakistan, it provides skills training for beauty care to women with disabilities, which helps increase employment opportunities in the industry and build careers for women.

At the forefront of its diversity strategy, L’Oréal is recognized for its work on gender equality, with some of its subsidiaries having been certified by the Gender Equality European and International Standard (GEEIS) and the Economic Dividends for Gender Equality (EDGE). Their work with GEEIS ensures that human resource policies pave the way for equal opportunities for both men and women in the workplace. Projects in France have also included the introduction of a mentoring program enabling employees to act as voluntary role models, giving advice on building a successful career as a female.

In addition, L’Oréal has also developed 10 external partnerships with organizations to demonstrate their commitment to the equality and diversity agenda. These often include representation from L’Oréal on committees and networks to influence the conversation around significant issues that affect diversity at the workplace. Being one of the founding partners of Disability Hub Europe (DHub), it aims to influence policymakers to promote inclusive work culture in Europe. A number of its brands—

Garnier, Urban Decay, and Maybelline—support organizations dedicated to developing a more just and sustainable world.

L’Oréal understands that a focus on diversity is paramount to the changing consumer culture. Consumers are more aware of the products they buy—what the products represent and where they were sourced.

Amin Rajan, a prominent researcher in the field of employment across Europe, suggests that the contributors to organizations sitting up and taking notice of diversity issues are down to increasing globalization of the market place, and the requirement to have that represented within the staff groups to achieve global dominance.

Creating an all-encompassing workforce, supported through values that actively promote diversity, is something that L’Oréal has successfully achieved.¹⁰⁵

DISCUSSION QUESTIONS

 5-1. What diversity and inclusion initiatives has L’Oréal been involved in? How have these initiatives helped the company grow?

5-2. How can L’Oréal increase female representation at an executive level?

5-3. What benefits does participating in a mentoring program offer to employees at L’Oréal? What is needed to ensure the program is effective?

5-4. How can other organizations learn from what L’Oréal has achieved? What are the challenges faced by other organizations in integrating such initiatives into their work cultures?

5-5. What can L’Oréal do to ensure it continues to lead the way in diversity and inclusion?