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Appendix


ETHICAL CONSIDERATIONS

Animal testing. It is the corporate goal of The Estée Lauder Companies to seek the complete elimination of animal testing on cosmetic products and ingredients worldwide. It is our policy not to test on animals nor to ask others to test on our behalf except where required by law. We were one of the first companies to mandate complete replacement of animal tests on finished products. We voluntarily stopped testing our products on animals nearly 20 years ago. We have been in the forefront of efforts to devise and use in-vitro and clinical tests that do no harm to living entities while ensuring safe, efficacious products for our customers. We partner with associations and institutions worldwide to achieve our corporate goal.

Supplier conduct. We expect our suppliers of raw materials to meet the same stringent standards of occupational conduct that we set for ourselves.

We are currently updating our Raw Materials Coding Package to help our suppliers work with us to provide us with the finest ingredients that meet our strict environmental and safety standards.

In addition, new vendors must agree to operate under a detailed supplier agreement that we will monitor for compliance. Key components address:

  • Child labor
  • Minimum wages and overtime compensation
  • Safe working conditions
  • Observance of local occupational regulations
  • Environmental responsibility

    Precautionary Principle: The traditional definition of the Precautionary Principle has three elements: threat of harm; scientific uncertainty; and preventive, precautionary action. According to experts in this area, the final test for knowing when to apply the Precautionary Principle is the combination of threat of harm and scientific uncertainty.

    At this time, ELC is reviewing this complex process which must take into consideration the differing regulatory obligations in the countries where we operate, the shifting nature of information and opinion on environmental matters, and our responsibilities to all of our Company's stakeholders, including our consumers. In the meantime, we comply with applicable worldwide regulations, continuously monitor our products for safety and actively analyze peer-reviewed research.

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