The France-based juggernaut created the Corporate Foundation yesterday, a charitable organisation that has a budget of €40m over five years to be used to encourage education, promote scientific research and help vulnerable people.

CosmeticsDesign.com reported earlier this week on the developing ethical trend and in particular the tendency for beauty companies to support charities.

"Today, economic success must be achieved in tandem with social responsibility," said Beatrice Dautresme, CEO of the newly created L'Oreal Corporate Foundation.

Mintel analyst Nica Lewis told CosmeticsDesign.com that cosmetic companies were responding to customer demands for ethical products and were pursuing environmental and charitable programmes.

She said that the charity trend fits into the broader and fast developing ethical trend, which incorporates eco-friendly, fair trade and sustainable products.

L'Oreal chairman Lindsay Owen-Jones said: "L'Oreal Corporate Foundation marks a new milestone in the history of our Group.

"It is an additional step in our determination to look beyond our economic success towards a broader notion of social responsibility."

The new foundation will work with a number of organisations to pursue its charitable goals.

Through its 2.5 million hairdresser salon partners, L'Oreal will raise awareness about AIDS and will also extend its "For Women in Science" programme with UNESCO.

In addition, the largest cosmetics company in the world says it intends to help vulnerable women by giving them access to cosmetics to help them rebuild their confidence and self-esteem.

The foundation will work with other charitable groups to help female cancer sufferers cope with the effects of their illness and fund medical consultations for marginalised women.