What Is The Business Case For Diversity At L Oreal

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Case Questions_ L’oreal

1. What is the business case for diversity at L’oreal?
L’oreal started working on its’ business case for diversity in 2002. They diversified their product portfolio and stated recruited people from different cultural backgrounds to manage the same. The business case for diversity at L’oreal focuses on “Driving Business Growth” and encompasses the following points:
 Fostering Creativity & innovation – L’oreal believes that a diverse workforce addresses issues form multiple angles and provides opportunity for developing products catering to the needs of its diverse consumer base.

 Better Marketplace understanding – Diversity is vital for L’oreal as it helps them understand consumer needs across the world and innovate products accordingly. They therefore have research centers in 5 continents and have developed a unique portfolio of brands, each one with a different cultural origin to satisfy the differences in the sensitivities of people around the world.

 Attracting
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product development at L’oreal Paris, so that they could exchange ideas. It also mentioned that after spending 2-3 years in global product development, the more experienced managers usually returned to their home region. This clearly highlights Access and Legitimacy paradigm.(Additional reading)

 Exhibit 5 mentions about the SOS Racisme trial in 2006 (Referred internet for details). In a campaign to promote shampoo line in supermarkets outside Paris, L’oreal hired saleswomen, but nonwhite women were excluded from promoting the shampoo. This example clearly demonstrates that although L’oreal policies propagated diversity but it was not a part of the DNA of the organization.

 The feedback evaluation highlights that diversity was not integrated in the core of the culture although it was a part of the various charters and guiding
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