Disclosure and the L'Oreal Group
- A brief history of the company
- A presentation of the activity of the company, its SBUs, its products or services
- A presentation of the company's organization chart
- Explaining the positioning of the enterprise market, the corporate or business strategy and its competitors
- Future of the company: Development of projects and New products?
Disclosure in accounting terms means information disseminated by a company to the general public. This information may be about financial performance, future forecasts, current operations, etc. that might interest investors. Disclosure is becoming an important issue among international groups. The companies on the exchange CAC 40 have really given this a serious thought.
This document, will discuss the case of L'Oreal as part of a study. It will see if the disclosure by L'Oreal fulfils the obligation of financial institutions and meets expectations of the shareholders of the company. L'Oreal wants to be transparent with its shareholders.
So, it has been disseminating information through its website. This is not only to forge a relationship with its shareholders, but also to educate them. L'Oreal has all the documents specified according to the regulations imposed in all the places it is present. Hence, it fulfils its obligation towards the financial institutions.
These documents only show information like strategy and finance and the annual report that can interest the investors. L'Oreal is already being heavily rewarded for the quality of its financial and legal documents, but the company might not say no to a bit of process improvement. Apart from the brand building it does through disclosure, L'Oreal will also have to concentrate on the aspect of marketing.
Governance quality, the ACC report and good ratings of the company can guarantee a certain reliability in the information. However, total reliability of financial information can not be affirmed. Indeed, financial communication is established by the leader some accounting manipulation can occur.
Financial communications company is both a communication of financial and strategic visual communication but also a focus on the colors, graphics and a unique presentation found in all documents regardless of their target. Thus the form can guide the reading ofwritten information.
The origin of L'Oreal goes back to 1907, when Eugene Schueller was developing a formula for synthetic hair dye called the Aureal. On July 30, 1909, he founded the French Society of harmless hair dyes with Andre Spery. In 1936, it became a limited company and in 1939 the company took the name of L'Oreal.
Today, L'Oreal is a leader in the market for cosmetics and beauty and has five operating divisions: professional hair care products, consumer products, luxury goods, cosmetics and The Body Active Shop.
Organized by distribution channels, the L'Oreal group has four operating divisions: professional products, consumer products, luxury products and active cosmetics. Galderma and The Body Shop, have full activities that are directly related to the branch. L'Oreal also has interests in various activities such as fine chemicals, health, finance, design, advertising, insurance.
The L'Oreal share is listed in Paris and is a component of the CAC 40 index. This is the main stock market index of the Paris and is determined from the 40 largest market capitalizations French. One can see that the changes follow the variations of the CAC 40. As against, the title increases the profitability is much faster than that of the CAC 40. Between 2004 and 2007 the title is booming. L'Oreal has acquired many brands to be recognized as world number 1 on the cosmetics market.
Tags: L'Oreal Group, financials disclosure of the groups finances, information dissemination through the web