April 18th 2014

To our stakeholders:

I am pleased to confirm that Oriflame Cosmetics reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.
In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Magnus Brännström
CEO

Responsible business practices are the key to Oriflame’s success and future growth. Whether in the day-to-day business activities or the impact of the products, Oriflame is committed to achieving ever higher standards of social and environmental performance to accelerate its long-term vision of becoming a sustainable company.

At Oriflame we are committed to acting responsibly and with respect to all the people affected by our operations – employees around the world, Oriflame Consultants, subcontractors in our supply chain and, of course, the customers who buy our products. Oriflame respects and supports international human rights principles and seeks to avoid complicity in human rights abuses. We support the principles contained within the Universal Declaration of Human Rights and fundamental International Labour Organization Conventions and we actively participate in the United Nations Global Compact. To strengthen internal knowledge and understanding of human rights, an education program focusing on key management is being developed and will be launched in 2015. As part of advancing the Company’s efforts, Oriflame also participates in the Swedish Network for Business and Human Rights, a business network focusing on exchanging best practices.

In our new Code of Conduct, updated and launched during 2013, we state:

“Our five operating principles spell out how we should act, think and work. See them as a checklist for the way we carry out our work every day.

Respect people

• Show respect, concern and care for every individual, regardless of position, title or situation.
• Treat everyone in an equal and respectful way regardless of gender, ethnicity, nationality, age, sexual orientation, political or religious affiliation, or physical capacity.
• Act in a transparent, honest and ethical manner.

Focus on customers

• In an ever-changing world, it is vital that we anticipate, understand and address the changing needs and expectations of our customers (including consultants and leaders).
• We need to foster a culture that welcomes change and encourages continuous learning.

Demand quality

• Set high standards and deliver on our promises. Develop aspirational products of excellent value marketed at affordable prices.
• Offer quality service and demonstrate professionalism in all our business processes.
• Develop quality work relationships among the employees, consultants, suppliers and investors.

Seek simplicity and cost efficiency

• Look for simple solutions to complex problems.
• Maintain a down-to-earth attitude, avoid hierarchies and share best practice.
• Achieve objectives while spending no more than required.

Pursue sustainability y and long-term growth

• Choose long-term profitability over short-term gain and find solutions that work over time.
• Act as good corporate citizens, showing a strong sense of social responsibility.
• Respect nature and strive to minimise our impact on the environment.”

ORIFLAME CONSULTANTS

Oriflame’s view of corporate social responsibility includes applying a responsible business model, which empowers people and provides them with tools to enrich their lives.

A founding principle of Oriflame was to give people an opportunity to earn an extra income or run their own business and, in so doing, improve their lives. Oriflame offers an attractive business opportunity for its Consultants around the world, making it easy and risk-free to join. Through paying out bonuses and other forms of recognition, Oriflame distributed more than €350 million directly to its Consultants in 2013, many of whom are women in developing countries. Being an Oriflame Consultant means personal growth and development through free training programs and belonging to a company with a human touch and a friendly, dynamic and global community.

Besides making money from the first day of operations, being an Oriflame Consultant means personal growth and development through free training and belonging to a company with a human touch and a friendly, dynamic and fun global community. When joining, Oriflame Consultants get the chance to run their own business – setting their own targets, planning income and working hours – thereby improving and in some cases even completely changing their lives. The majority of people who join Oriflame shop merely for themselves, their families and a few friends, while others go on to make a full career with Oriflame, building a business and recruiting other Oriflame Consultants to their networks. However, Oriflame’s direct contact with each and every one of its Consultants is important for ensuring the spirit and passion of the sales force.

Oriflame Consultants operate according to the Rules of Conduct for Independent Sales Consultants. The rules outline a set of principles for appropriate business behaviour, honesty and truthfulness, fair, thoughtful and responsive treatment of customers and high integrity and responsibility standards.

Oriflame offers a variety of training programmes for its Consultants, focusing on both personal development and business skills including product knowledge. Advanced training is provided through the Oriflame Academy. The core training of the Oriflame Academy is conducted by the leaders in the networks, while more advanced modules are predominantly managed by Oriflame’s employed sales management representatives. Oriflame has developed and implemented online versions of these training courses and these e-learning courses are now important complements to physical meetings.

ORIFLAME FOUNDATION

In order to reach its full potential, all of Oriflame’s community work is gathered under one umbrella – the Oriflame Foundation. The Foundation is an independent Luxembourg Foundation founded by Oriflame Cosmetics S.A. with the aim of increasing the overall level and quality of community investment provided across Oriflame markets. This will be achieved through financial support, dedicated resources and global coordination. Guiding and structuring all community investment activities in this way enables improved impact, best practice sharing and increased overall community investment across different markets.

The Foundation is an independent Luxembourg Foundation founded by Oriflame Cosmetics S.A. with the aim of increasing the overall level and quality of community investment provided across Oriflame markets. Guiding and structuring all activities in this way enables improved impact, best practice sharing and increased overall community investment across different markets. The Oriflame Foundation provides grants from its own funds to selected projects initiated by Oriflame’s local markets and contributing with donations when Oriflame Consultants are involved in fundraising.

Oriflame’s community involvement efforts are focused on various activities, which also go beyond traditional classroom-based education, and range from building social skills and mentoring to supporting orphans and foster families. For example, in Spain, after collecting money for two years, “La peque Aldea”, a kindergarten specially built for children coming from unstable families, finally opened its doors. Thanks to Oriflame Consultants’ support and constant effort, 48 children are now receiving education and have their basic needs covered

Oriflame seeks to contribute to efforts and projects that create long-term positive effects and providing education is one of the most effective ways of achieving this. The primary mission of Oriflame’s community involvement is therefore to help children and young women by means of a wide range of educational initiatives, providing them with opportunities to change their lives for the better and enabling them to fulfil their dreams.

Efforts are focused on various activities, which also go beyond traditional classroom-based education, and range from building social skills and mentoring to supporting orphans and foster families. For example, in Spain, after collecting money for two years, “La peque Aldea”, a kindergarten specially built for children coming from unstable families, finally opened its doors. Thanks to the Oriflame Consultantour Sales Force’s’ support and constant efforts, 48 children are now receiving education and have their basic needs covered.

In Sri Lanka Oriflame collaborates with the Foundation of Goodness since 2009, which ambition is to empower disadvantaged rural communities to have equal opportunities to excel as the urban sector. Funds are raised through special accessories and cosmetic products, but also Oriflame led fundraising activities, such as a fashion show, collection and donation of goods and special educational programs for the children in the villages.

From the beginning, Oriflame has strived to support NGOs and charity organisations around the world. These include the World Childhood Foundation, founded by HM Queen Silvia of Sweden and co-founded by Oriflame and the Af Jochnick Foundation.

To identify the right projects to support, the Oriflame Foundation has recognised SOS Children’s Villages as its preferred global NGO partner. One such example is the co-operation with SOS Children’s Villages in Latin America, which includes all Oriflame’s Latin American markets and has led to successful fundraising and a high level of involvement from both Oriflame Consultants and employees. The partnership includes both a long-term contribution to the SOS Children’s Villages’ work and special initiatives for the children.

VOLUNTEERING AND FUNDARAISING

To support communities, Oriflame’s employees and Consultants are encouraged to engage in local volunteering projects and each employee is offered one day per year of paid leave to volunteer for good causes in their markets. Volunteering initiatives can range from different types of community service activities to fundraising.

All Oriflame’s markets have the opportunity to take part in local volunteering initiatives, which are run in conjunction with the markets’ local NGO partners or as bespoke projects developed by the markets themselves. 2013 marks the third year in which markets had the opportunity to have their employees take part in volunteering activities. While small at first, the number of Oriflame markets participating in volunteering is steadily growing.

Oriflame also supports projects in different markets through the sale of specially developed global accessories, and regionally selected cosmetic products. This is supplemented by local fundraising events organised by Oriflame employees and Consultants.

SUPPLIERS

Through audits and close co-operation with suppliers, Oriflame works to ensure compliance with labour standards and principles and its own guidelines. Oriflame has developed a comprehensive Supplier Code of Conduct valid for all suppliers globally and this document outlines requirements regarding working conditions, health and satefy, discrimination and environmental impact. The work to improve the Company’s supplier management process is ongoing. Oriflame adopts a risk based, 5-step approach which sets out requirements and details how suppliers are prioritised, evaluated, scored and developed. During 2013 a new self-assessment tool was launched to strategic suppliers.

The trial results were positive and the tool will be further rolled out to all key suppliers during 2014. For accessories suppliers, Oriflame works in co-operation with established trading houses that conduct annual audits of their subcontractors. In addition to these audits, Oriflame conducts its own audits to ensure compliance with the Supplier Code of Conduct, and verify that necessary actions are taken for any non-compliance. During 2013 audits were also carried out of all the key trading houses themselves to evaluate their systems and processes. Oriflame has staff located in both China and India dedicated to conducting audits of working conditions and environmental matters. In 2013, Oriflame audited 23 percent of global accessories suppliers, just missing its 25 percent target.

CONSUMERS

Oriflame’s products are designed to make consumers feel good about themselves, whether through the use of Oriflame cosmetics or wellness products. Moreover, consumers can at all times rest assured that all products are safe to use.

For Oriflame, the safety and wellbeing of its consumers are crucial. All cosmetic products are formulated to be safe in accordance with the provisions of the European Cosmetics Regulation (EC No 1223/2009) and other major international regulations. In markets where regulations are less developed, Oriflame applies the European regulation requirements for safety as a minimum.

A step-wise approach to safety evaluation of cosmetic products is employed at Oriflame and performed throughout the product development process. First, Oriflame’s teams rigorously evaluate all new raw materials to ensure they meet our purity and quality requirements and are safe for use. A safe concentration for each ingredient in each product type is then evaluated before the safety of each final product is confirmed by testing at independent specialized laboratories using human volunteers and non-animal testing methods.

The safety evaluation process continues even after the product has been launched by actively collecting feedback from consumers and using it to further bolster product safety.

The above safety evaluation process applies to 100 percent of Oriflame’s cosmetic products and certificates of safety are present for all of the Company’s products on the market – over 1,000 products in total.

The same stringent safety measures also apply to the wellness products. All ingredients in the Wellness by Oriflame range are of the highest food grade purity, fully approved internationally for use in food, and selected for optimum safety and efficacy.

Wellness products are formulated to comply with EU Regulation (EC No 178/2002) which lays down the General Principles and Requirements of Food Law and other related European legislation. In addition to this, they are also formulated in accordance with global health authorities’ recommendations, including the World Health Organisation, the Institute of Medicine and the Nordic Nutrition Recommendations. To further ensure the safety of the range, products are evaluated by reputed Swedish experts in the field of medical science and nutrition.

In 2013 there were no incidences of non-compliance with regulations and voluntary codes concerning the health and safety effects of Oriflame’s cosmetic or wellness products during their life cycle in any market.

The key actions taken by our company to implement human rights policies, reduce risks and respond to violations include:

• In 2013 Oriflame kept working alongside the Swedish Network for Business and Human Rights in order to share ideas with other engaged companies, identify areas of action and get assistance.
• We have incorporated Sustainability and Human Rights risks into our normal business risk assessment process, and are taking actions to manage them accordingly.
• In 2013 Oriflame launched an updated version of our Code of Conduct. The Code applies to employees and lays out the way we do business, our mission and vision, core values and operating principles. The Code of Conduct is a public document and is available for employees in Oriflame’s intranet as well as on our corporate website. The Code of Conduct is a guide for our daily work and also for important decisions. It applies at all times to all Oriflame regardless of role and position – the Code of Conduct is the foundation for everything we do.
• Along with the Code of Conduct, Oriflame developed an e-Learning course in which employees are trained on it and have the opportunity to make a formal commitment to live by Oriflame’s principles and values.
• We train / inform employees on human rights issues and the Oriflame policies via the Oriflame Academy Training programme
• In 2013, a new governance committee was created, a special committee meant to deal with business ethics and compliance.
• We have a confidential email address to which employees can email any concerns they may have. The owner of this email address is Corporate HR and emails sent to this address will be treated confidentially and will not be forwarded to anyone without the approval of the sender. This email can be used when in doubt regarding any issues relating to Oriflame policies / code of conduct etc.
• We have initiated dialogues with various stakeholder groups to better understand the expectations of all our stakeholders. They range from consultant meetings and consumer questionnaires to investor dialogues. In addition, cooperation with non-governmental organisations (NGOs) to discuss sustainability challenges and receive regular feedback on the Company’s efforts is seen as vital for accountability and continuous improvement. In 2013, Oriflame continued to meet with NGOs in individual meetings as well as in industry meetings focusing on specific environmental and social challenges.
• Oriflame adopts a risk based, 5-step approach which sets out requirements and details how suppliers are prioritised, evaluated, scored and developed. During 2013 a new self-assessment tool was launched to strategic suppliers. The trial results were positive and the tool will be further rolled out to all key suppliers during 2014.
• Through audits and close co-operation with suppliers, Oriflame works to ensure compliance with labour standards and principles. Besides Oriflame’s own guidelines, international standards are used as a basis for audits performed. For non-cosmetic suppliers, Oriflame works in co-operation with well-established trading houses that conduct annual audits of their subcontractors. In addition to these audits, Oriflame conducts audits to “check the auditor” to ensure compliance to Oriflame’s Supplier Code of Conduct and that necessary actions are taken for any non conformance. Oriflame has staff located in China and India dedicated to conducting audits of working conditions as well as environmental matters.
• During 2012, responsibility for Human Rights issues were identified as sitting within the newly formed Sustainability Team. Oriflame commits to respect human rights for those touched by our operations, and so, Human rights principles have been integrated in the new sustainability strategy launched in 2013, establishing the following commitments;
• Educate our employees on our business responsibility to respect human rights. All in global management team by 2015.
• Respect Human Rights by setting up a corporate HR Due Diligence Process by 2015 which includes the requirement to conduct HR risk assessments for all new markets.
• Continue implementation of the Oriflame Global Supplier Evaluation Program.

Oriflame monitors performance regarding human rights in numerous ways.
- Sustainability is a regular point at Executive Committee meetings as well as on the annual budget and target discussion.
- When it comes to human rights and ethical issues among our suppliers, we conduct our own audits, focusing mainly on our highest risk suppliers to ensure that they comply with our ethical policies. Oriflame has staff located in both China and India dedicated to conducting audits of working conditions and environmental matters. In 2013, Oriflame audited 23 percent of global accessories suppliers, just missing its 25 percent target.

Our three core values within the company are Togetherness, Spirit and Passion.

Our five operating principles are:
- Respect people
- Focus on Customers
- Demand Quality
- Seek simplicity and Cost Efficiency
- Pursue Sustainability and Long-term Growth

Oriflame’s success is created by the people in and around the Company – employees around the world, Consultants with their businesses, suppliers who produce raw materials, components or products and of course the customers who buy the Company’s products. Each individual is important in making Oriflame the leading beauty company selling direct. It is therefore natural that Oriflame acts responsibly and with respect towards all the people affected by its operations.

In its four regions, Oriflame offers a truly global working environment with around 7,300 employees located in offices all over the world, and approximately 3.4 million independent Oriflame Consultants selling to and serving customers in over 60 countries. Moreover, Oriflame’s operations provide employment to a great number of people at external production sites in the Company’s supply chain.

CORPOR ATE CULTURE

Oriflame’s people are the reason for its success. Diversity among employees and Consultants, and indeed among customers, is a key factor in the Company’s great creativity and constant development. Oriflame operates in a multitude of languages on four continents where values, religious beliefs and political convictions vary tremendously from region to region. At such a global company, a strong and distinct corporate culture is key to the strong sense of belonging which characterises Oriflame – and also to the Company’s success through the years.

Oriflame’s culture is based on entrepreneurship and respect for and belief in people’s capabilities. Oriflame strives to become the number one workplace with an inspiring corporate culture, by paying attention to the dreams and goals of both employees and Oriflame Consultants. The aim is for everyone joining Oriflame to experience a stimulating and dynamic work situation that makes them grow as people and professionals. Oriflame’s core values derive from the team-playing, passionate people in the organisation, characterised by the pursuit of new solutions and excellent results. Three guiding core values shall permeate all relationships and actions at Oriflame – Togetherness, Spirit and Passion.

Oriflame works hard to ensure that everybody involved in the Company’s mission understands the core values and principles of the Oriflame culture. For employees, besides the Code of Conduct which is rolled out to all employees, the Oriflame Way is a one-day seminar presented by senior managers for this purpose. The seminar is given in English, Russian and Spanish to fully reach the target audience, and CEO and President Magnus Brännström has personally conducted several of these training sessions. As of 2012, the Oriflame Way seminar is available as an e-learning version for all employees for increased access. For Oriflame Consultants, the Company’s core values are presented and discussed in the business opportunity presentation, at conferences and other gatherings and are embedded in all Oriflame Academy training and modules.

CREATIVITY FROM DIVERSITY AND EQUALITY

Oriflame aspires to reflect the globally diverse audience that it serves. In addition to hiring the best talent, Oriflame believes that diversity of gender, nationality and culture leads to the creation of better perspectives, ideas and products. With a presence in more than 60 countries, Oriflame is a global company offering a truly international working environment for its employees. The Company aspires to reflect the globally diverse audience that it serves. In addition to hiring the best talent, Oriflame believes that diversity of gender, nationality and culture leads to the creation of better perspectives, ideas and products. Each office worldwide is a venue for diversity and shared experiences. The international environment offers opportunities to work with people of many different nationalities, participate in global projects or transfer to a position in another part of the Oriflame world.

Oriflame performs a salary analysis every 3 years in one of the Group Support Offices. Next one will be done in 2015. Last one was conducted in 2012, and the results show that the Company is reaching its objectives in this area. Oriflame always strives for representative distribution with regard to gender and ethnicity for all categories of employees. Oriflame’s overall workforce is predominantly female and it therefore also aims to have a higher share of women in management positions. In 2013, women represented 37 percent of the global management team, constituting the Company’s top 250 managers.

WORKING ENVIRONMENT

Oriflame is committed to providing a safe and healthy working environment for all employees. The Company strives to reduce risks of ill health and accidents and to improve the working environment at all offices and factories. Internal human resource policies aim to ensure compliance with all international laws and labour standards.
In our Code of Conduct we state:

“Our diffe rences make us stronger

As an international company operating around the world, Oriflame is diverse and multicultural in its very nature. This strength is a quality we embrace.
Diversity is essential for our success: by bringing together people with different cultural and social backgrounds, we get new perspectives and can come up with innovative ideas. The multicultural nature of our workforce is one of our greatest assets and a real source of inspiration. It allows us to have a true understanding of all our markets, create the very best products and provide world-class service.

Working environment

We respect human rights and work to ensure a safe, secure work environment for all employees, in all our offices and factories.

Health and safety

Health and safety always come first, and are extremely important for Oriflame. We undertake to comply at all times with local and national health and safety requirements. We encourage a healthy life style for our employees to maintain a healthy workforce.
Our work locations are reviewed to minimise potential safety and security risks for our people and the people who work with us.
We strive for a safe and secure environment.

Conditions of employment

We are committed to respecting all applicable labour laws and regulations, including minimum-wage rates and working-hour requirements, and we never employ staff below the national minimum age for employment. We strictly oppose all forms of forced labour and child labour as well as other forms of exploitation of children and minority groups.

Freedom of association

We also believe in an environment characterised by openness and fair treatment. All employees have the right to freedom of association; this means that Oriflame employees always have the right to join or not join unions and also the right to collective bargaining. We strive to foster healthy relationships with our colleagues’ labour representatives. We undertake to respect all international laws and regulations regarding communication with work councils and unions.

Discrimination

We are against any form of discrimination. We make sure that every single employee gets the same opportunities for individual development and career regardless of gender, ethnicity, nationality, age, sexual orientation, political or religious affiliation, or physical capacity.

Our recruitment process focuses solely on finding the right person for the job. We strongly believe that every employee should be judged on three criteria: performance, experience and potential.

Harassment

When it comes to harassment, we have a zero-tolerance policy.

No form of physical, verbal or non-verbal harassment is ever accepted – whether it’s unwelcome behaviour of a sexual nature, bullying, constantly or repeatedly ignoring a colleague, or any other form of hostile conduct.

Privacy

Privacy is a key consideration at Oriflame. We respect international and national privacy laws in all our business activities.
Best time of your career

Working at Oriflame isn’t always easy – it can be fast-paced, challenging – but it should always be a pleasant experience, one that helps you grow as a person and a professional. Coming to work should be something you look forward to every day, an exciting time, and the best years of your career. “

The key actions taken by our company to implement labour policies, reduce labour risks and respond to labour violations include:

- The Oriflame Academy Training programme which focuses on our Code of Conduct as well as all our HR policies, covering all relevant labour issues

- The confidential email address to which employees can email any concerns they may have. The owner of this email address is Corporate HR and emails sent to this address will be treated confidentially and will not be forwarded to anyone without the approval of the sender. This email can be used when in doubt regarding any issues relating to Oriflame policies / code of conduct etc.

- In 2011, Oriflame’s supplier requirements were reviewed and a new comprehensive Supplier Code of Conduct was developed. During 2013 a new self-assessment tool was launched to strategic suppliers. The trial results were positive and the tool will be further rolled out to all key suppliers during 2014.

- Through audits and close co-operation with suppliers, Oriflame works to ensure compliance with labour standards and principles. Besides Oriflame’s own guidelines, international standards are used as a basis for audits performed. For non-cosmetic suppliers, Oriflame works in co-operation with well-established trading houses that conduct annual audits of their subcontractors. In addition to these audits, Oriflame conducts audits to “check the auditor” to ensure compliance to Oriflame’s Supplier Code of Conduct and that necessary actions are taken for any non conformance. Oriflame has staff located in China and India dedicated to conducting audits of working conditions as well as environmental matters.

- A global employee survey was designed and tested in 2013 and will be applied on 15 entities in 2014 covering a large part of the Oriflame population (60% of the workforce)

Oriflame monitors performance regarding labour issues in numerous ways.

-When it comes to diversity, for example, statistics are taken regarding the global top 250 employees (gender / nationality / training received etc.) four times per year and on a local level.

- Senior management review all relevant statistics / people concerns / labour issues etc. annually during the Global People Review

- For accessories suppliers, Oriflame works in co-operation with established trading houses that conduct annual audits of their subcontractors. In addition to these audits, Oriflame conducts its own audits to ensure compliance with the Supplier Code of Conduct, and verify that necessary actions are taken for any non-compliance. During 2013 audits were also carried out of all the key trading houses themselves to evaluate their systems and processes. Oriflame has staff located in both China and India dedicated to conducting audits of working conditions and environmental matters. In 2013, Oriflame audited 23 percent of global accessories suppliers, just missing its 25 percent target.

As a multinational company Oriflame has a significant impact on the surrounding world. At a time when the planet is facing serious threats from climate change, loss of biodiversity and resource scarcity, Oriflame has an important role to play in pursuing more sustainable business models in all parts of its operations.

Oriflame has been working with environmental issues all along its almost five decades of operations and has been expanding its efforts gradually to cover a larger scope of sustainability issues. Responsible business practices has been, and still are key to Oriflame’s success and future growth. Whether in its day-to-day business activities or in the impact of its products, Oriflame is committed to achieving ever higher standards of social and environmental performance to accelerate progress towards its long-term vision of becoming a sustainable company. In 2013, Oriflame continued its efforts to integrate sustainability into all areas of its business. Whilst progress has been made, Oriflame recognises that this is a long journey and there is much more still to be done.

In order to expand and deepen its work on sustainability, Oriflame adopted a new comprehensive sustainability strategy in 2013, with a broader set of commitments covering product development, social issues and environmentally focused targets.

Achieving environmental sustainability is a key goal of the sustainability strategy. Oriflame is continuously working to reduce its key impact areas; ensure that raw materials used are sourced from renewable and sustainable materials whenever possible, that emissions to air and water are reduced, that waste is minimised and finally that the impacts from activities, events, projects and facilities are reduced. The initial focus is on areas where initiatives have the most impact; however these goals apply across Oriflame’s value chain and the scope is gradually increased.

PRODUCT DEVELOPMENT

To successfully improve the environmental profile of Oriflame’s products, sustainability must be fully integrated into the entire product development process. When formulating new concepts, Oriflame strives to design innovative products that, where possible, use ingredients with a low environmental impact and are ethically sourced. Many Oriflame products are inspired by nature, and the aim is to incorporate plant ingredients and actives in the product formulations. Materials from protected or endangered flora and fauna species are not used. All raw materials go through a sustainability review process, and scientific reports on environmental issues are continuously monitored. This enables the Company to take action and, where possible, phase out the use of certain ingredients that may have negative impact on the environment and replace them with alternatives with lower impact.

For example, all Oriflame’s primary surfactants, primary conditioning agents and preservatives have a good biodegradability profile. Oriflame’s key packaging materials consist of paper, plastics and glass. The Company is continuously working on initiatives to reduce the components’ environmental impacts, for example by selecting materials from renewable sources, by reducing the total materials used, making sure that as many packaging components as possible are recyclable and finally by gradually increasing the share of recycled materials. One main initiative involves gradually introducing PCR (Post Consumer Recycled) plastics into bottles, tubes and jars. In addition, recycled glass has been introduced, but the supply situation of this material is proving challenging due to a very low total market demand.

Oriflame is continuously launching new products under its Ecobeauty brand. The lessons learnt from developing Ecobeauty are now being used in the development of other Oriflame products. Oriflame views Ecobeauty as an innovation “laboratory” and a symbol of the Company’s wider commitments to implementing more sustainable business practices. It is also being used as a tool to educate Oriflame Consultants about sustainability issues.

Oriflame offers a range of cosmetic products with the highest natural, ethical, social and environmental standards. In November 2011, Oriflame launched the brand Ecobeauty, becoming the first global cosmetics brand ever to offer a cross category range certified by four independent organisations. During 2012 new products were launched within Personal & Hair Care, Colour Cosmetics and Fragrances.

Ecobeauty includes a broad range of cosmetics with a minimum of 95 percent of ingredients from traceable, renewable and more sustainable sources. The line is completely free of any animal derived substances, parabens, silicone, mineral oils or synthetic fragrances. The entire range is made to be environmentally responsible – from the contents of the products to the packaging; the plastic is recyclable and contains recycled content, while the perfume bottle is made of recycled glass and the wooden cap is sourced from credibly certified forests.

SUPPORTING LOCAL INITIATIVES BY FAIRTRADE

Oriflame collaborated very closely with the Fairtrade organization to achieve new standards for cosmetic companies. Ecobeauty is the first ever cross category cosmetics range to be certified by Fairtrade. By purchasing through Fairtrade-certified sources, Oriflame supports local communities to improve the lives of local farmers. In Burkina Faso, a women’s cooperative is guaranteed not only a fair price for its shea butter but also a Fairtrade Premium used to develop the local community. In Kerala, a southern Indian state, Oriflame, through Fairtrade, supports local coconut oil farmers, providing steady income, sustainable business opportunities and improved working conditions.

To Oriflame, the launch of Ecobeauty is another step in the Company’s efforts towards more sustainable operations in relation to the environment, as well as supporting people and the communities. It is also a way of meeting an increased demand for selling cosmetic products with high ethical and environmental standards.

The international organisations that have accredited the Ecobeauty range are Fairtrade, Ecocert, The Vegan Society and the Forest Stewardship CouncilTM (FSCTM).

SUSTAINABLE SOURCING

A large proportion of the environmental impact of Oriflame’s products occurs beyond the direct scope of the Company’s operations. Sourcing of raw materials, such as paper and palm oil is therefore a critically important impact area.
Oriflame uses palm oil as an ingredient in numerous cosmetic formulations. Since there are serious environmental pressures caused by the palm oil industry’s rapid expansion into eco-sensitive areas, the sourcing of sustainable palm oil continues to be a key focus area for Oriflame. Since 2010 Oriflame has purchased Green Palm credits covering 100 percent of its consumption, and the long-term goal is to source 100 percent physically segregated palm oil. In 2013, Oriflame’s palm oil approach resulted in a high score, 11 of 12 possible points, in WWF’s Palm Oil Buyers’ Scorecard, ranking companies on their palm oil sourcing practices.

PAPER GUIDELINE

Paper and wood-based products are Oriflame’s number one raw material, used in packaging materials as well as in publications, especially catalogues. In 2010, Oriflame started working in collaboration with the Rainforest Alliance, a global conservation organisation, to develop a responsible paper sourcing strategy and set ambitious sustainability targets. A paper guideline has been rolled out to all Oriflame catalogue and folding box suppliers globally and data on use and statistics on sources are gathered on an annual basis to ensure progress. In 2013, focus was put on following-up compliance among the Company’s main corrugated board suppliers, and the results showed that [99 percent] of the material surveyed complied with the company’s guidelines. The target of sourcing 75 percent of paper and board packaging and publications material from credibly certified or recycled origin was therefore achieved in 2013, two years ahead of schedule.

WATER

During 2013, Oriflame conducted a study assessing the lifecycle impact of water withdrawl and on ecosystems for seven representative products. The results are being analysed and will be used to prioritise further work within this area.

EFFICIENCY IN OPERATIONS

Increasing the sustainability profile of Oriflame’s own facilities and operations is a key priority. The goal is to pursue LEE D™ Green Building scheme certification for all new construction and major renovations and pursue environmental effectiveness on all premises. In 2013, the audit program, which was launched in 2012, continued to be rolled-out at internal production sites, warehouses and offices, focusing on energy efficiency and reducing greenhouse gas emissions. At all Oriflame’s production sites, there are detailed programs with the aims to reduce not only energy and greenhouse gas emissions but also waste and water consumption. Each of these areas is the subject of targets to be met.

In September 2013, the new Global Distribution Center in Noginsk, Russia, was awarded LEE D™ silver certification, making it one of the few industrial projects in Russia to gain such an independent certification. The production facility under construction at the same site is still in the process of being LEE D™ certified prior to completion.

The Noginsk project incorporated several innovative environmentally conscious measures, from building materials, energy use and how the facility functions with regard to the local environment. For example, a number of initiatives have been designed to lower the building’s energy consumption, for example the improved energy generation efficiency resulting from the nearby cogeneration plant, thus using locally generated energy. The façade is triple-glazed and a highly efficient mechanical ventilation system facilitates a more efficient building operation. In addition, an aluminium-zinc roof ensures that summer heat is not absorbed into the building, thereby reducing the need for air conditioning.

Transportation to the site has been planned to limit the use of cars by reducing car parking, encouraging the use of cycling for local workers and by the provision of a company bus service to transport workers from nearby villages. The quality of the indoor environment has a significant influence on health, productivity, and quality of life. Focus has been to create a healthy indoor environment through system design, construction quality control and careful attention to material specification. Internal fit-out materials have been selected with environmental impact in mind; these include materials with a high percentage of recycled content, the use of local and regional materials and wood certified by the Forest Stewardship Council. When operations started in the Noginsk Global Distribution Centre in 2013, it became Oriflame’s first LEED™ certified building. Oriflame will continue to pursue LEED™ Green Building scheme certification for all new constructions and major renovations.

A strategy for improving the environmental profile of all offices worldwide is implemented and includes the provision of manuals for all office managers and guidelines for employees regarding energy use, recycling and other sustainability tips.
In 2012, roll-out of a new audit program started at internal production sites, warehouses and offices, focusing on energy efficiency and reducing greenhouse gas emissions. At all Oriflame’s production sites, there are detailed programs with the aims to reduce not only energy and greenhouse gas emissions but also waste and water consumption. Each of these areas is the subject of targets to be met by 2015. A proportion of the Company’s electricity demand has been moved to certified renewable sources. At the Swedish and Polish production sites, 100% of electrical energy is sourced from certified renewable sources starting from January 2013. In addition, significant technical improvements have been implemented. Our Gross emission has decreased by 5% and Net emission has decreased by 42% in absolute terms since 2010.

Oriflame is also implementing a strategy for improving the environmental profile of all its offices worldwide. This is seen as a way to engage employees and Oriflame Consultants in the Company’s sustainability work. It includes the provision of manuals for all office managers and guidelines for employees regarding energy use, recycling and other sustainability tips. The office initiative has successfully been rolled out in all regions, and has seen a high degree of employee engagement. Implemented actions range from smaller items such as starting recycling initiatives and installing motion sensors, to larger investments in energy efficiency or renewable materials when refurbishing or moving offices. In 2013, 90% of Oriflame’s offices and service centres were surveyed on recycling practices. Findings include that 30% of locations recycle at least three different materials. Most common materials are paper (60% of locations), carton (53%), plastic (31%) and glass (25%). The main reason not to recycle is the lack of infrastructure, as answered by 20% of respondents.

LOGISTICS

Oriflame’s overall supply strategy is to move the sourcing of products and printing of catalogues closer to the current and future Group Distribution Centre facilities and major markets. The aim is to improve transportation routes and thereby reduce greenhouse gas emissions and energy consumption, a strategy that has been successful.

The vast majority of the Oriflame’s shipments are conducted by sea and truck freight. The packaging and loading routines for ship containers and trucks are continuously being reviewed to optimize space usage, thereby reducing energy consumption. The average number of pallets shipped in each truck and container have increased by more than 50 percent since 2010. When selecting road carriers the aim is to utilise Euro 4, 5 and 6 standard trucks wherever possible, thus reducing particle emissions. Oriflame also works hard to limit air shipments to the greatest extent possible.

Key initiatives to implement environmental policies, address environmental risks and respond to environmental incidents include:

Environmental Training

In the Company’s internal education programme, the Oriflame Academy, a section dedicated to sustainability issues is now included for all levels. For key management there is also a workshop programme on the integration of sustainability into everyday business processes. This is complemented by ongoing communication through the Oriflame intranet and other channels.

Organising for Sustainability

A plan that targets the Company’s key impact areas has been developed. As part of the plan, ethical and environmental risks are continuously being identified, assessed and addressed. Oriflame has also published a range of commitments and targets designed to improve performance. The plan is regularly updated, with new commitments added and existing standards raised. Oriflame’s goal is one of continuous improvement and during 2013 the plan will be reviewed and particular emphasis will be placed on clarifying the direction on social issues. Clear commitments and targets will be presented. Oriflame’s sustainability plan is overseen by the Chief Executive Officer and the Board of Directors. The responsibility of fulfilling Oriflame’s ambitious commitments also sits firmly within every part of the organisation. To ensure that the sustainability agenda permeates all parts of the business, a section dedicated to sustainability issues is now included for all levels of the Company’s internal education programme, the Oriflame Academy. This is complemented by on-going communication through the Oriflame intranet and other channels. Oriflame is also working on new ways to engage employees as well as our 3.4 million Oriflame Consultants globally on these crucial issues.

Environmental Commitments:

In order to expand and deepen its work on sustainability, Oriflame adopted a new comprehensive sustainability strategy in 2013, with a broader set of commitments covering product development, social issues and environmentally focused targets. Achieving environmental sustainability is a key goal of the sustainability strategy. Oriflame is continuously working to reduce its key impact areas; ensure that raw materials used are sourced from renewable and sustainable materials whenever possible, that emissions to air and water are reduced, that waste is minimised and finally that the impacts from activities, events, projects and facilities are reduced. The initial focus is on areas where initiatives have the most impact; however these goals apply across Oriflame’s value chain and the scope is gradually increased.

The sustainability plan contains a series of commitments across key areas: source renewable and sustainable materials whenever possible, reduce emissions to air, reduce emissions to water, reduce solid waste, and reduce impact from Oriflame activities, events, projects and facilities.

Performance according to our indicated commitments is reported on and described annually.

1. Source renewable and sustainable materials whenever possible.

1.1 Commitment: Source 100% certified physically segregated palm oil by 2020.
Progress: On plan. In 2012 Oriflame launched a foaming product with RSPO segregated certified sustainable palm kernel oil. We aspire to increase use of certified physically segregated oil palm products over the next few years to demonstrate our support for the RSPO. However, currently there is a limited amount of certified physically segregated palm oil products available, making progress slower than we would wish.

1.2 Commitment: Promote sustainable palm oil by purchasing green palm credits to cover 100% of our consumption. Progress: Previously achieved / Ongoing. Green palm credits purchased to cover our full 2013 volume.

1.3 Commitment: Source 75% of wood fibre from credible certified sources by 2015, 100% by 2020.
Progress: 2015 Target Achieved. With the support of the Rainforest Alliance we conducted a first supply chain analysis of the corrugated board purchased at our top 10 manufacturing and warehouse facilities. The results showed a 99% compliance with our paper commitment, most material being from recycled sources. In total, all paper and board surveyed in 2013 (catalogues, packaging cartons and corrugated board) therefore showed a compliance rate of 95%, well above the 2015 target of 75%. We will keep working to ensure that 100% of our paper is proven acceptable by our policy.

1.4 Commitment: Source 100% of catalogue paper from credibly certified origin by 2016.
Progress: On plan. For the third year running we conducted a supply chain analysis of our catalogue suppliers. During 2013, 94% of catalogue paper used was fully compliant with our paper commitment, i.e. sourced from a credibly certified source with an intact chain of custody (up from 84% during 2012).

1.5 Commitment: Source 75% of display packaging cartons and leaflets from FSC certified sources by 2013.
Progress: Achieved. The supply chain analysis of our packaging cartons and leaflets purchased during 2013 revealed that 92% of the material used was FSC certified, a significant increase from 53% during 2012 and well above the target of 75%. In total 96% was compliant with Oriflame’s general paper guidelines.

1.6 Commitment: Source 100% of display packaging cartons and leaflets from FSC certified sources by 2016.
Progress: New.

1.7 Commitment: During 2014, investigate possibility to source more sustainable cotton.
Progress: New.

2. Reduce emissions to air

2.1 Commitment: Reduce CO2 emissions from global Oriflame operations by 50% by 2020.
Progress: On plan. During 2012 total greenhouse gas emission from Oriflame’s operations decreased by 10% in both relative and absolute terms. Since the base year 2010, relative emissions are down 18%. Progress for 2013 will be published online by Q3 2014.

2.2 Commitment: Reduce CO2 emissions from factories by 20% by 2015.
Progress: On plan. We are continuously increasing our renewable energy share. At the Swedish and Polish production sites, 100% of electrical energy is sourced from certified renewable sources starting from January 2013. In addition, significant technical improvements have been implemented. Our Gross emission has decreased by 5% and Net emission has decreased by 42% in absolute terms since 2010.

2.3 Commitment: Reduce energy use in factories by 15% by 2015.
Progress: On plan. Energy use in absolute terms has decreased by 11% since 2010. Despite this, energy use per unit has increased by 2% since 2012. We are still working to meet the 2015 target.

2.4 Commitment: Increase renewable energy in factories to 70% by 2018. Long-term ambition to achieve 100% renewable energy in Oriflame owned buildings.
Progress: New. Currently 68% of total electrical consumption and 42% of total energy consumption at Oriflame’s factories is renewable.

3. Reduce emissions to water

3.1 Commitment: Use only biodegradable cleansing ingredients in 100% of our Personal Care products.
Progress: Updated. Commitment has been rephrased with a more limited scope, unfortunately suitable biodegradable alternatives are not always available for certain high performing hair care formulations.

3.2 Commitment: Start to phase out plastic micro beads in all new products from 2014.
Progress: New.

4. Reduce solid waste

4.1 Commitment: Reduce waste disposed at all our factories by 10% by 2015.
Progress: On plan. Waste produced per unit has decreased by 17% since 2010, in absolute terms this represents a decrease of 37%.

4.2 Commitment: Send no waste to land-fill from our factories by 2020.
Progress: New. Oriflame’s two largest factories (OPP and OPS) have achieved zero waste to landfill during 2013, this represents approximately 90% of all waste produced at Oriflame’s manufacturing sites.

4.3 Commitment: Increase recycling of packaging by gradually introducing recycling facilities at our service centres worldwide.
Progress: Behind plan. In 2013, 90% of Oriflame’s offices and service centres were surveyed on recycling practices. Findings include that 30% of locations recycle at least three different materials. Most common materials are paper (60% of locations), carton (53%), plastic (31%) and glass (25%). The main reason not to recycle is the lack of infrastructure, as answered by 20% of respondents.

5. Reduce impact from Oriflame activities, events, projects & facilities

5.1 Commitment: Pursue LEE D™ Green Building scheme certification for all new construction and major renovations and pursue environmental effectiveness on all our premises.
Progress: On plan. Oriflame’s new Global Distribution Centre in Noginsk, Russia, was awarded LEE D™ silver certification during 2013. The manufacturing facility in the same location is in the process of being certified. This is also the case for our new facility under reconstruction in Roorkee, northern India.

5.2 Commitment: Reduce water use at all our factories by 10% by 2015.
Progress: On plan. Water consumption per unit has increased since 2010 due to a drop in units produced. In absolute terms a decrease of 16% since 2010 was achieved.

In our Code of Conduct we state:

• Legal compliance: As a minimum requirement, Oriflame is committed to full compliance with legal or regulatory requirements and industry standards in every country where the business operates. In addition we commit to the 10 Principles of the United Nations’ Global Compact (grouped under Human Rights, Labour, Environment and Anti-Corruption). If local or national laws or international guidance documents do not provide adequate guidance, we apply and follow Oriflame’s own policies and procedures.

• Bribery is never permitted: Employees at Oriflame are not permitted to give or offer anything of value, to anyone for the purpose of obtaining or retaining an unfair business advantage. This could be, but is not limited to, for example, cash, gifts to family members, forgiveness of debts, loans, entertainment, meals and travel, political and charitable contributions, business opportunities and medical care.

• Representation:

A Giving items of value: We recognise that gifts, hospitality, and entertainment are sometimes important parts of doing business, but we must take care to ensure our actions are appropriate and cannot be misunderstood or damage Oriflame’s reputation. We recognise that there are cultural differences between countries where in some cases a company is expected to provide gifts of reasonable value, especially during holiday seasons, as part of an established business practice. In accordance with the Oriflame Global Representation policy, any gift, hospitality, entertainment, or other representation item must be approved in advance by the regional or group functional VP Finance, or alternatively by Corporate Committee or Chief Financial Officer if VP Finance is involved. Any gifts, or any other representation, must be in line with local and international regulations. If confronted with a request for a gift, hospitality, entertainment or other item of value as a condition of doing business, employees must immediately report the request to the regional or group functional VP Finance and refuse. Events, hospitality or entertainment involving employees must never be of a nature that could affect or damage our reputation. Always remember that we are all Oriflame ambassadors.

B Receiving items of value: Employees may accept and keep gifts if their value is in accordance with accepted business practice and Oriflame policies, and as long as those gifts could not be seen as improperly influencing their business judgment. Employees must not accept gifts, payments, returns, entertainment or other items of value that might appear to place them under obligation to perform, or not perform, certain actions.

• Accurate accounting and record-keeping: We must ensure we follow all applicable standards, principles, laws and practices for accounting and financial reporting. As employees we must also ensure that no part of any payment is to be made for any purpose other than what is fully and accurately described in Oriflame’s books and records. No undisclosed or unrecorded accounts are to be established for any purpose. False or artificial entries are not to be made in Oriflame’s books and records for any reason. Personal funds must not be used to get around any of the prohibitions included in this document.

• Antitrust /competition: At Oriflame, we conduct business in accordance with all applicable antitrust/competition laws. This applies to all Oriflame employees. These laws prohibit agreements or understandings between competitors that may restrict competition (agreements on price, markets or customers, price discrimination and so on). These laws are complex but it is important that they are fully understood and followed by employees who have any interaction, whether directly or indirectly, with an actual or potential Oriflame competitor.

• Conflicts of interest: Engaging in business with any firm that is owned, managed by, or which employs an Oriflame employee or a close relationship (relative or friend) of an Oriflame employee constitutes a conflict of interest, and shall therefore be disclosed to the company. Having an undisclosed financial interest in any firm that is doing or seeking to do business with Oriflame, or that is a competitor of Oriflame, also constitutes a conflict of interest. However, ownership of less than 1 per cent of the shares of a publicly-traded company is not deemed to be a breach of this policy. Should a situation of conflict of interest arise it is the employee’s obligation to disclose the interest to Oriflame and remove oneself from the decisionmaking process relating to the situation. Any deviations to this rule should be approved by the regional or group functional VP Finance, or alternatively by the Chief Financial Officer, should a Vice President Finance be concerned. Oriflame employees and their close relatives (spouse, partner, siblings, parents and children) cannot work as Oriflame leaders (consultants managing other consultants). Any deviation to this rule shall be disclosed to the company and approved by the Corporate Committee.

• Inside trading: At Oriflame, we place restrictions on how and when employees are allowed to trade in Oriflame shares. These restrictions relate to insider trading regulations and standards of behaviour. Inside information refers to information that has the potential to affect the share price but which has not been made public, such as that contained in a quarterly report before its release. The term “insider” refers to anyone with access to such information. No employees are permitted to trade shares during the “closed-window” period before the release of a quarterly or annual report. Permanent insiders, such as board members and senior management, must take great care to abide by additional restrictions that apply to them. These permanent insiders, and their immediate families, must report any intention to buy or sell shares to our Chief Financial Officer or alternatively to Investor Relations. Oriflame employees who are not deemed to be permanent insiders may trade in shares without prior notification, but must comply with the general insider rules as well as with our policy of no trading during the closedwindow period. If you have any doubts or concerns in this matter it is important that you consult your immediate manager or Oriflame Investor Relations.

• Communication: Communication is vital for Oriflame as a world-class business based on honest relationships and trust. We are dedicated to fair treatment, openness and accountability – principles that strengthen our operations. In line with our Group Communication Policy, our communications should strengthen confidence in the company and the brand as well as counter any risks of a loss of that confidence. Our ultimate aim is to create shareholder value. Our approach to communications must therefore be active, open, accurate and rapid, with information being readily available. As a listed company we must ensure that our communications comply with the limitations imposed by NASDAQ OMX Nordic. This means that, unless specifically authorised to do so, employees may not provide information about Oriflame’s financial performance, or issue forward-looking statements that have not yet been made public. Managers at all levels are responsible for internal communications within their departments, so they are required to stay up-to-date on Oriflame’s business concepts, objectives and strategies.

• Information security and intellectual property: In a digital world, much of our corporate information is stored and transmitted electronically. This can improve the efficiency of our communications and systems, but can also create challenges in keeping information secure. It is in everyone’s interest to protect Oriflame’s data and systems, and to make sure our digital activities reflect the company’s values. It is our responsibility to ensure that the company’s IT systems are used efficiently, ethically and lawfully, and that they are used only for business or related activities. Likewise, physical assets such as laptops – and the information they contain – must always be treated with care. Remember that you, as an employee, are responsible for all computer transactions made with your user ID and password. Laptops and storage devices should therefore never be left unsecured. Whenever employees use the Oriflame IT and e-mail systems, all company domains and mailboxes, they are representing the company in their activities. This means you have to do so ethically, lawfully, and in compliance with our company values and policies. To ensure compliance, and protect the interests of Oriflame, our customers and others, Oriflame has the right to access, and when necessary disclose, records of how employees have used telephones, e-mail, the internet, and other computer files and information, to the extent that this is allowed by local legislation. Everyone at Oriflame is legally required to comply with all copyright laws and proprietary software-licence agreements. Non-compliance can expose Oriflame and the responsible employees to civil and/or criminal penalties. All specific rules about the protection of information at Oriflame are re-grouped in a dedicated global policy.

All employees receive the Oriflame Code of Conduct. If in doubt regarding any issues in the Oriflame Code of Conduct employees are encouraged to email to a separate email address. Emails sent to this address will be treated confidentially and will not be forwarded to anyone without the approval of the sender. This email can be used when in doubt regarding any issues in the Oriflame Code of Conduct.

Training regarding the Code of Conduct and Oriflame Policies are an integral part of the Oriflame training system, The Oriflame Academy. An e-Learning course regarding to Code of Conduct is available to employees and is part of this training system. During this course employees are trained on the Code of Conduct and make a formal commitment to live by Oriflame’s principles and values.

During 2013 a new Governance Committee was created in order to deal with business ethics and compliance.
Oriflame is a member of the Direct Selling Association (www.dsa.org) where our CEO is vice chairman, which works to promote ethical business practices in the direct selling industry.

Compliance and Non Compliance Procedures

Reporting Procedures: Conduct or actions that are, or may for good reasons be perceived as, infringements of National Laws or the Oriflame Code of Conduct, are to be reported. Employees are encouraged to report any such conduct or action to their superiors, or, if the superior is involved in the situation or will not act upon it, to the next level in the organisation. We expect superiors/ managers to treat reported matters seriously and in compliance with Oriflame's policies and values. If employees are in doubt about the interpretation or application of any law or regulation, they are encouraged to contact the Corporate Legal Department. In accordance with the Code of Conduct, no one will be discriminated against or punished for reporting, in good faith, actual or suspected infringements.

Our reporting procedure has been developed to help if employees discover a breach of the Code of Conduct. The first step should be to report the breach to the line manager, and if not possible, then to the manager’s manager. Employees may also choose to report their concern by sending an e-mail to an address that created for that purpose.
Concerns can also be reported anonymously by using an e-mail address that does not reveal the employee’s identity. The e-mail address is owned by the general Counsel.

The report will be handled with the utmost confidentiality. Oriflame will not tolerate any form of retaliation against an individual who makes a report in good faith regarding an actual or potential violation of the Code of Conduct.

Our priority is always to resolve any damage or injury stemming from a breach of the Code of Conduct. If a breach could threaten the safety of employees or customers, for example, the first step is to remove the potential danger. Other examples of breaches can include improper gifts or entertainment, inappropriate behaviour in the workplace or the release of confidential information.
Oriflame has a wide range of disciplinary measures available to match the severity of the breach of the Code of Conduct. Minor, first-time breaches incur milder reprimands, while more serious offences can lead to more severe consequences, up to employment termination. Should the breach of the Code of Conduct negatively affect Oriflame, its consultants, consumers, employees and business partners, the company also reserves the right to take any legal remedy available to it to protect its reputation and to protect itself from financial exposure.

In 2013 Oriflame launched an updated version of our Code of Conduct. The Code applies to employees and lays out the way we do business, our mission and vision, core values and operating principles. Along with the Code of Conduct, Oriflame developed an e-Learning course in which employees are trained on it and make a formal commitment to live by Oriflame’s principles and values.