From philanthropic to creating shared values: Suggestions for 'Beauty for A Better Life,' by L'Oréal Indonesia

This study investigates the "Beauty for A Better Life" (BFBL) program executed by L’Oréal Indonesia, which is an educational project designed to empower underprivileged women by providing them with technical skills in the beauty industry. Although BFBL has made significant contributions to the economic empowerment of women, it remains disconnected from L'Oréal's fundamental business operations, thus affecting its long-term sustainability. This research employs a qualitative case study methodology to investigate the potential transition of BFBL from a Corporate Social Responsibility (CSR) strategy to a Creating Shared Value (CSV) concept. The objective is to secure long-term financial sustainability, establish structured career pathways, and ensure alignment with L'Oréal’s fundamental business principles. This study uses qualitative research methodologies, including NVivo-based thematic analysis of interviews conducted with the Head of Sustainability at L’Oréal Indonesia, beneficiary of the BFBL program, and representatives from non-governmental organizations. The research aims to identify essential strategies for the integration of BFBL within L'Oréal’s talent pipeline. The findings imply that beneficiaries of the BFBL program encounter difficulties in gaining formal employment in beauty-related industries within six months of their completion of the program, which demonstrates deficiencies in job placement and workforce alignment. Moreover, BFBL's dependence on philanthropic funding puts it vulnerable to budgetary reductions, therefore weakening its long-term effectiveness. The research shows that L'Oréal Indonesia has the potential to further improve the effectiveness of the program by integrating Creating Shared Value (CSV) principles. This could be achieved by establishing connections between graduates and L’Oréal’s distributor networks, developing structured career trajectories, and incorporating the Beauty for Better Life (BFBL) initiative into L’Oréal’s recruitment strategy. These strategic enhancements will bolster L’Oréal’s business sustainability while promoting long-term socio-economic development.