Introduction

Currently, sustainability is the key driver of innovation and profitability (Nidumolu, Prahalad & Rangaswami 2009). This will help companies to create new products and services that will benefit the people, the planet and the profit (Porter and Kramer 2011). In other words, companies understood that their business couldn’t work without the triple bottom line: Social, Environmental, and Economy. Also, known as the three pillars of sustainability which are people, planet, and profit. These three components help companies to be successful without disregarding any issues around them and to be focusing in all their stakeholders rather than shareholders.

 In addition, a study coordinated by Eccles & Serafeim (2013) has specified that committed companies prioritize the most material environmental, social, and governance (ESG) issues and produce major innovations in products, processes, and business model. If companies integrate the ESG concept and innovate their products and production line, they would see an increase on their profit. In fact, when companies engage all the step they need to follow with the EGS, this process would be in a short-term profit and this would make a big impact in the TBL.

Our research based on how L’Oréal is implementing the concept of shared value (Porter and Kramer 2011) into its strategies by focusing on long-term success rather than short-term. Shared value can be applied in three different ways; by reconceiving products and markets, by redefining productivity in the value chain, and by enabling local cluster development (Porter and Kramer 2011)

L’Oréal was founded in 1909 by Eugène Schueller, is a worldwide known beauty care company that is committed to 130 countries and five continents. They are specialized in cosmetic, makeup, haircare, and perfume. Its products are for everyone and all ages. L’Oréal is all about empowering a woman everywhere and not just with beauty care. The L’Oréal group is very efficient and effective for wanting and having a close relationship with their consumers. For this to be made possible L’Oréal has ingeniously located their facilities in all dominated geographical regions.  L’Oréal continually works on many projects to ensure that their products are high quality and affordable luxury.

Our purpose for this case study is to obtain the result of the following questions:
·      What are the materially issues L’Oréal is confronting?
·  How is L’Oréal addressing the Triple Bottom Line (TBL)- Social, Environmental, and Economy (People, Planet, and Profit)?
·     How L’Oréal is implementing the concept of shared value? (Porter and Kramer) 

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Contributors

Esterlin Moronta
Cristal Francisco
Kayreen Labarrere