Loréal sa

It operates in the sector of consumer staples, and it is the largest cosmetics company in the world and is specialized in skincare, make-up, hair care, and perfume. The financial investors are: Mrs Françoise Bettencourt Meyers and her family, who is the major owner of the company with a 33. 14% stake, International institutional investors with a 29. 12% stake, Nestlé with a 23. 18% stake, French institutional investors with a 8. A has three directors from the Bettencourt Meyers family. There are also two directors who represent Nestles’ shareholding in L’Oreal S. A. The company has two directors who represent employee’s shareholding. L’Oreal S. A devotes itself in assuming responsibility as a way of providing strategic reflection. The company’s board of directors focuses on strategic issues which transform L’Oreal S.

A to a more digital, universal and sustainable company. The company is continuously updated on its Group’s operations, financial results, customer’s expectations market trends, and competitor’s information. This enables the company to be informed throughout the year and grab any potential investment opportunity that may arise. The role of the board of directors involves monitoring the changes in best practices and ensure that they are reviewed regularly. With regard to this, L’Oreal S. A conducts a review of modus operandi on an annual basis (L’Oreal, 2018). Through this, the board of directors can identify which items to prioritize. The annual review enables the company to achieve its long term strategic goals. 02 billion in 2017. L’Oreal has convened an ordinary and extraordinary meeting to be held on Thursday, 18th April 2019 at 10.

00 a. m. Palais des Congres, 75017 Paris. After reviewing the report issued by the Statutory Auditors, the net income was €3,594,895. 41 in 2018 compared to €3,051,329. 20 in 2017 (L’Oreal, 2019). During the annual general meeting, the Board of directors proposes an ordinary dividend of €3. 85 per share which represents an increase of 8. Fabienne Dulac for the next four years (L’Oreal, 2019). Ms. Dulac, a French national has a degree in History and Modern Literature. Dulac, aged 51 years had worked with the Ministry of Home Affairs of France before taking the position of Head of Marketing and Communication in VTCOM. Dulac has diverse knowledge in multimedia communication, customer relationships and business development. A was faced with a contractual case involved Steven J. Trzaska, the plaintiff. According to the court, Trzaska was employed as an in house patent for the L’Oreal, United States.

The company fired him for failing to violate certain ethical rules which govern the legal profession. Trzaska complained that the dismissal violated the employment law of New Jersey (Findlaw. Additionally, the attorney was also supposed to follow professional conduct and regulations which guides the legal profession. Trzaska was admitted to the bar in Pennsylvania and therefore was governed by the professional conduct outlined by Pennsylvania Supreme Court (Findlaw. com, 2017). Based on this, the attorney was barred from submitting or filing any false statements or bad faith patent applications. Any violation against the standards would lead to the attorney being summoned by the Rules of Professional Conduct. However, Trzaska failed to identify any product that offended patent application but explained to the management that he would never do so a thing, even if the minimum quota were not met.

Later, L’Oreal failed to heed Trzaska’s protests. After several weeks, L’Oreal USA offered him several compensation packages as long as he leaves the company. However, if Trzaska decided to stay, he would continue back with the company’s demands (Findlaw. com, 2017). The plaintiffs also asserted that these hair products do not provide the advertised benefits, but damaged their hair. The plaintiff argued that they would not have purchased the products if they had not known they lack Keratin. The plaintiffs also argued that they paid an extra $20 premium price following the labelling and advertisement made on the product. L’Oreal responded to the complaints arguing that the product’s labelling is accurate and does not relate to pricing.

L’Oreal maintains that it’s the role of retailers to charge their consumers. The main concern on this issue is that L’Oreal created a parallel distribution in the 1990s in countries like Russia, Ukraine, and Belarus for its products like Guy Laroche and Lancome. Janez Mercun is the latest individual from Slovenian who launched the latest complaint against Owen-Jones. Mercun had entered into a contract with L’Oreal to distribute products in this region. Mercun argued that the parallel network company was opened via a Dubai based firm to avoid taxation from French authorities (The Guardian. com, 2019). Jean-Paul Agon, as he tries to put the Bettencourt behind the company. According to Jean-Paul, the revelations are relating to a dispute case that occurred in 1998 and has already been settled.

Despite the allegations, the courts have ruled in favor of L’Oreal, five times. In 2003, the company argued that the accusations were unfounded and are a falsely way of opening a case that had been closed back in 2003 (The Guardian. com, 2019). The company is also widely known all over the world which has increased its market share. The board of director’s composition is used as a strategic goal by L’Oreal in identifying new trends and opportunities. This is essential for the accomplishment of L’Oreal objectives. There have been various challenges imposed on the company especially to the former directors which are damaging the company’s reputation. References Findlaw. com/blog/2018/08/court-greenlights-class-action-against-loreal-over-mislabeled-hair-products/ L’Oreal (2018) Annual Report 2018. Retrieved from: https://www.