Society

Lafarge's success draws on the diversity of its 76,000 employees in 78 different countries. The Group:

• encourages non-discrimination,
• promotes the employment of handicapped people,
• encourages worldwide mobility as a means to share best practices.

Lafarge's Sustainibility Ambitions called for 20% of the Group's senior executive management roles (Lafarge Hay grade 18+) to be filled by women by 2012. To achieve this, the Group appointed a Diversity & Inclusion Director in 2010. In addition, one third of its business units offered a specific recruitment and/or career development plan for women.

The Group's rules and internationalization policy require that the executive committee of each operational unit has at least 1 member who is not a native of the country where the unit is located.

Lafarge supports its employees throughout their careers. The Group has established:

• an Organization and Human Resources Review which defines training and recruiting needs,
• a motivating salary policy,
• training at all levels of the Group,
• an online job exchange,
• cooperation projects between trade unions and employees.

In terms of internal training, focus is put on health and safety, which reflects the Group's number 1 priority. Lafarge also offers e-learning modules to its employees. In 2010, the use of this on-line training tool increased significantly with 8,500 (vs 3,000 in 2009).

Training also concerns local communities, for example:

• training program in building trades in India,
• basic computer skills training for young women in India to improve their status and condition,
• safety training in everyday life in Korea.

When restructuring is necessary, the Group actively assists its employees in their search for work or professional retraining. A dedicated manual has been produced to provide relevant guidance to operational units.

In 2010, the number of external jobs created through the local economic development program increased significantly (over 1,600 jobs created vs. less than 500 in 2007).

Lafarge promotes dialog with employee representatives. In 2005, the Group signed a social responsibility agreement with 3 international trade unions. Its ambition is to see the fundamental social rights defined by the conventions of the International Labor Organization (ILO) respected throughout the world. These include:

• the abolition of child labor,
• the elimination of discrimination in the workplace,
• freedom of association,
• the right to collective bargaining.

The European Works Council was created in 1995 to provide a forum for dialog and exchange among employee representatives from the European Union. The topics of discussion are very diverse and include economic, social and financial issues.

Lafarge encourages its employees to act in accordance with the Group's Principles of Action, which promote the sustainable development of its activities over the long-term.

As the Group's operations are very localized, it is the responsibility of each site director to:

• develop on-going, transparent dialog with local communities,
• implement practical programs in the field.

Sustainable development objectives form part of each manager's personal objectives. The results achieved are evaluated during an annual interview. The manager's bonus is calculated in part on the basis of these sustainable development results.