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Aligning Strategy and Diversity at L'oreal "L'oreal is the world's largest beauty products company. It creates cosmetics, perfume, and hair and skin care items in more than 140 countries under 34 brands, including L'oreal Paris, Maybelline, Lancome, Garnier, and Urban Decay. In 2016, L'oreal had revenues of $29.5 million and was seeing growth come from both its emerging markets as well as its traditionally large US and European markets. The organization is highly decentralized-what CEO John-Paul Agon calls "organized chaos"-with countries having full profit-and-loss responsibility. Local results are then rolled up to the group level to provide a picture of overall effectiveness. L'oreal's strategy is conducive to a diversity and inclusion perspective; the very nature of its business makes diversity and inclusion vital for success. With diverse customers from around the world, innovation must be based on understanding and respecting differences. To be a global company, the organization must be global from within, and their experience shows that variety breeds more creativity and innovation. As a mirror of the ever-changing world, a diverse workforce is better equipped to deal with change, be in tune with the environment, and represent a key to L'oreal being a great place to work. The organization's diversity efforts are built on a long commitment to diversity, which began in 1974 with the "Schueller" leave, a maternity policy named after the company's founder that gives women an additional four weeks leave in addition to the statutory requirements and which can be taken, in full or in part, until the child is two years old. In 2000, L'oreal adopted an Ethics Charter describing its values and practices as a global company and implemented several initiatives, such as the adoption of policies concerning diversity and inclusion practices, the appointment of specific diversity roles, the inception of diversity training, and participation in career fairs. For example, L'oreal's US operations appointed a vice president for diversity in 2002. He introduced the recruiting strategy of "fishing in different ponds" to signal that where the organization looked for diverse talent was as important as whom they were looking for. The organization identified seven different ponds and over time more than 60 percent of the US general managers were women compared to a L'oreal international average of about 33 percent. In addition, minority representation increased from 13.9 percent in 2001 to 16 percent in 2004. The US program reinforced its diversity and inclusion initiatives by including diversity objectives as part of a manager's annual performance review. That practice was eventually expanded, and today diversity objectives are included on a worldwide basis. The US diversity program was largely responsible for L'oreal receiving the inaugural Diversity Best Practices 2004 Global Leadership Award for creating an environment of diversity and inclusion for employees, customers, and suppliers. Momentum for diversity and inclusion efforts at the global level also increased in 2004 with the signing of the Diversity Charter, along with 35 other large French organizations, and the appointment of a global diversity director. The charter represented a national effort to promote pluralism and diversity as strategies for success. It visibly committed the organization to pursue a variety of initiatives, including raising awareness, incorporating diversity progress metrics in annual reports, and implementing policies that promoted diversity throughout the corporation. Diversity within L'oreal came to be defined as "a mosaic of visible and invisible differences . . . which influence attitudes, behaviors, values, and ways of working within the professional environment." The new global diversity director assembled a team that developed an explicit diversity strategy. The strategy involved five action levers, including recruitment and integration, training, career management interventions, management and inclusion, and communication. These five evers were expected to drive results along six dimensions, including nationality, ethnic and cultural background, social promotion, gender, disability, and age. The team believed the biggest obstacle to implementation was the cultural differences between the countries and a low- evel of awareness of the benefits that a diversity and inclusion strategy could bring. That is, many of the workforces in the emerging market countries were quite homogenous relative to the United States and France, their economies were growing fast, and their leadership teams had little experience or understanding of diversity related practices. The US experience thus provided some important internal benchmarks for the global team. In recruitment and selection, when L'oreal's international organization revised its web-based application process, it deleted requests for certain kinds of information that might contribute to recruiting biases. These included home addresses, a type of information that French studies suggested was among the most discriminatory, as well as information related to gender, age, and nationality. The US and global training organizations collaborated to make diversity and inclusion part of the core curriculum for all major leadership development training programs. One of the global diversity team's initial activities was a two-day diversity workshop that included over 8,000 managers from 32 countries. The workshop explained the company's diversity and inclusion strategy and created opportunities for managers to establish goals and action plans to make diversity and inclusion practices a reality in their countries. The managers' reactions to the diversity and inclusion strategy were mixed, depending on their organizational role and the country they represented. Many wondered if this was a "flavor of the month" issue, believed they were already managing with diversity in mind, or had more important business issues to address. However, many managers also realized the potential of diversity and inclusion and became aware of some personal biases. These managers were used to leverage the diversity effort as it rolled out globally. Together, L'oreal's diversity and inclusion initiatives have produced impressive results. From 2010 to 2015, the percentage of women in its workforce increased from 64 to 69 percent, including a 12 percent increase on the executive committee, a 9 percent increase on management committees, and a 16 percent increase in international brand managers. L'oreal participates in the International Dual Career Network, a group of 22 global organizations and 60 local groups that assists in finding work for a transferred employee's partner. The company also developed a "Business Charter for Disability" with the International Labor Organization (ILO) and posted significant improvements in hiring and including disabled employees. For example, 65 different L'oreal units in more than 14 countries are involved in programs to integrate disabled people. L'oreal is certified in 30 countries for achieving the Gender Equality European and International Standard (GEEIS) and the Global Business Certification Standard for Gender Equality (EDGE) L'oreal continues to measure its progress by benchmarking the company against leading Fortune 500 companies that are recognized as best in class along different dimensions, such as gender, disability, race, and color. A "Diversity Dashboard" of about 30 indicators provides a continuous picture of how the organization compares to its diversity objectives and serves as an important reporting and communication device with senior leaders and human resources teams. In 2006, L'oreal was recognized with the World Diversity Leadership Council's Diversity Innovation Award, and in 2007 Ethisphere magazine ranked the organization as one of the "world's most ethical companies." Most recently, L'oreal was ranked #1 in Equileap's 2017 global gender equality ratings against 3,000 companies in 23 countries." 1. How does L'oreal's diversity and inclusion initiatives help them as an organization? 2. What strategies are they using? What action levers are not part of their worldwide diversity strategy? 3. Are there any benefits that L'oreal can identify as part of this transition process