How did the organizations you explored address sustainability
concerns inherent to their industry, if at all? For example, a company
that manufactures plastic has inherent environmental risks
regarding plastic waste and pollution.
L’oreal is a cosmetic company with headquarters in France. The
company prides themselves on being committed corporate citizens.
Among many sustainability concerns the company has many
commitments in place. Which include aiding the fight against climate
change and preserving natural resources. The company is currently
working on reducing emissions with the introduction of local
renewable energy sources. This effort both helps climate change,
while preserving natural resources. The company has also addressed
concerns amid animal testing.
What other sustainable practices did the organizations you explored
identify as priorities, and what kinds of business risks may they be
taking on to prioritize those sustainable practices?
I would say that L’oreal has made it a priority to maintain animal
welfare. 14 years before the European Union regulations banned
animal testing, L’oreal had already stopped in 1989. This raises the
question of “How are products being tested?” and “Are they safe?”.
The company developed reconstructed human skin that they use to
evaluate the behavior of cosmetic ingredients. This was done to
maintain animal welfare.
Do you think that the business risks the organizations are taking to
prioritize their identified sustainable operations are worthwhile
from a business perspective? Why or why not?
The changes that L’oreal has implemented, and plans to implement
seem to have a positive effect on business operations. Consumers
are becoming more and more aware of corporate issues such as
sustainability. In 2019 a global consumer survey showed that “just
35% of respondents said they chose sustainable products to help
protect the environment, 37% said they looked for products with
environmentally friendly packaging, and 41% said they avoided the
use of plastic when they could”( Emmert, Amy). This shows that
consumers are starting to make the change towards more sustainable
products. And as mentioned, one of L'oreal's commitments pertains
to its packaging, which is a key concern for many consumers. Overall
by prioritizing sustainability, L’oreal can appeal to other target
markets, while still maintaining its current audience.
Emmert, Amy. “The Rise of the Eco-Friendly
Consumer.” Strategy+Business, 8 July 2021, https://www.strategy-
business.com/article/The-rise-of-the-eco-friendly-consumer
.
L'Oréal. “L'Oréal Group : Commitments & Responsibilities.” L'Oréal,
L'Oréal, 23 Jan. 2020, https://www.loreal.com/en/commitments-
and-responsibilities/
.
