Should L ' Oreal Become Cruelty Free And Adopt Its Child Company
1305 Words Mar 21st, 2015 6 Pages
Should L’Oreal become cruelty free and adopt its child company – the Body Shop – ethical purchasing polices? Background Information:
L’Oreal is known as worlds largest cosmetic company, selling over 63 billion products in 130 countries worldwide. In 2014 the European mega giant in the beauty and hair world has annual revenue of $149.4 million US dollars, along with $24.86 billion US of profits and $25.6 million US of profit loss. The business’ assets are $9368.9 million US and liabilities at $9910.2 million US. As of 2014 L’Oreal owns 28 international brands with annual sales of more that $54 million.
With over 77,500 employees L’Oreal distribute their products into cosmetic stores all over the world from 71 distribution centers and 40 factories. L’Oreal’s factories are 80% FAD certified (quality certification) and 90% environmentally certified. L’Oreal states that they have committed to reduce 60% of the environmental footprint by 2020 and other sustainability goals for the future.
According to Principals and Practices of Public Procedure, 2012, the main idea of ethical business is that the business doing the right thing. This entails upholding strategies to avoid conflicts of interest and corruption, and to correctly apply conduct with suppliers. Although keeping and prioritizing ethical rights within a business ‘may be time consuming’ it is worth it, because any ethical related issue may be damaging towards the company or…