Diversities in the supply chain

Thanks to the Solidarity Sourcing, program, L’Oréal enriches its supplier base by opening it up in solidarity to new categories of companies.

L’Oréal Solidarity Sourcing program billboard: sourcing, a way to promote inclusion
L’Oréal Solidarity Sourcing program billboard: sourcing, a way to promote inclusion

Solidarity Sourcing is a worldwide solidarity-based purchasing program created two years ago in L’Oréal's Purchasing Division. The aim is to open up the group's purchasing process to new categories of suppliers: those that have difficulty accessing major purchasers, and those that employ people who are generally excluded from employment (people with disabilities or with barriers to social integration, rural communities…).

This approach is also shared with L’Oréal's existing suppliers so that they can respond, in their own purchasing policies. Proposals for Solidarity Sourcing projects become a selection criterion in purchasing tenders.

This worldwide program involves all L’Oréal buyers in every part of the supply chain and is based on four founding principles.

L’Oréal’s purchasing power provides leverage to promote inclusion

The high volume of purchases made by L'Oréal gives the group considerable economic and social leverage. Through its "L’Oréal Buy & Care" program, the group seeks to create sustainable relationships with its suppliers based on respect for the environment, social development and economic progress. The Solidarity Sourcing program also enables the group to ensure solidarity in its purchasing.

To be sustainable, solidarity must be integrated into the company’s business model.

Solidarity Sourcing is not charity. Contracts with Solidarity Sourcing suppliers generate economic value for L’Oréal and its suppliers, while fostering job creation, in particular for economically vulnerable people. Because these contracts are absolutely necessary for the group's activity and they are in line with the group's purchasing strategy, (level of quality, competitive pricing, meeting deadlines…), solidarity purchasing creates sustainable projects.

Maximizing the social impact of projects thanks to dialog with experts

The aim of Solidarity Sourcing is to multiply the number of projects carried out in partnership with experts in the field of social economics and solidarity (NGOs, foundations, public bodies) that contribute their expertise in the selection, the implementation and the development of solidarity purchasing projects.

Ensuring the credibility of Solidarity Sourcing through rigorous selection of projects

Projects are selected on the basis of a certain number of criteria, including the following: purchasing value, competitiveness in the market, number of jobs created or maintained, positive external spin-off for the company, reproducibility and sustainability of the project. Compliance with the group's fundamental values (ethics, local regulations, environmental impact and the "Buy & Care" Charter) is the indispensable criterion for approval of a project.

In two years, 120 initiatives have been created in 47 countries. Thanks to these purchases, 14,000 people had access to long-term employment and better income.