In this topic, we have an aspect which is suggested by Debra Dunn and Keith Yamashita “do well”and “do good” at the same time. We will discuss L’Oréal’s activities why and how the firm should take the social and environmental issues into account in this field according to this aspect. Dunn and Yamashita focus on Hewlet-Packard’s (HP) corporate social responsibility (CSR) efforts. CSR refers to be a good citizenship as a firm in the world where hey are located.
This means that MNEs should take consider about their issues environmentally and socially in home&host countries. Basically HP can be examined its CSR in three main area; privacy, environment and e-inclusion. Actually, the third area, e-inclusion is really important in today’s world with developing technology. Technology is the key point in order to improve firms’ access to both social and economic facilities. Therefore, MNEs should take this initiative and try to implement these points, just like our company L’Oréal.
We will talk about some of their work in this area.
L’Oréal as a group attaches importance to social and environmental issues into account in its international activities. Because they know that, we have just one world and we must do something to protect and ensure a sustainable life. Since, they have a campaign which is created in 2013 “The Sharing Beauty With All” about sustainability. Charlotte de Tilly who is Head of Corporate Social Responsibility (CSR) at L’Oréal explains that they are trying to change their approach to designing, producing, communicating and distributing products according to their new objectives of innovating and producing sustainably, enabling consumers to consume more sustainably.
Their main aim is decreasing the product footprints and raising consumer awareness. At this point, it is very important to increase customer awareness because these activities increase the willingness to pay for customers who are interested in such activities and this is very important for MNEs to create competitive advantage.
L’Oréal developed a new unit in 2017 Sustainable Product Optimization Tool (SPOT), across all its subsidiaries. This unit measures the environmental impact of cosmetic products. Because the production, sale and usage of a cosmetic product creates an environmental effect throughout the product’s life cycle. Also players that are in value chain communities, suppliers, employees and consumers are affected by. L’Oréal’s Sustainability, Packaging and Research teams developed the SPOT tool. With this tool, Loreal was the first company to take into consideration the social criteria in addition to the environmental criteria in the sector as they express themselves. All teams which are working on product design undertook were trained on SPOT in order to reduce water footprint, improve their packing facilities in eco-friendly way and increase the proportion of renewable ingredients sourced sustainably. Sustainable packaging is an important part of aspect of L’Oréal’s environmental program. This eco-friendly approach aims to reduce the volume and weight of the packaging. L’Oréal has a strict policy on packaging, the certification allows to certify 99.8% of cardboard used for product boxes is certified, in particular by FSC® (Forest Stewardship Council) and PEFC (Pan European Forest Certification).
L’Oréal’s attitude towards this issue is clear and they have made it more transparent with the help of a computer-aided tool; Sustainable Product Documentation Tool. This tool will include data on the footprint of the packaging, the environmental impact of each raw material, how many emissions were created as a result of the product’s manufacturing and transportation. In coming years they are planning to be available these data for consumers.