Quality Control (QC): This is all about detecting defects in finished products.

Through processes
such as inspections, testing, and corrective measures, QC ensures uniform product quality.

1. What are the financial implications of investing in employee training and development
programs for quality control personnel in the cosmetics industry?

To ensure efficient and effective service delivery, training is needed to update and
upgrade the skills, knowledge and experience of the staff of any organization,. To achieve
optimal operation, an entity requires investment in training; employees should be equipped
with the right skills which are acquired through intensive training (Rabiu, 2020). Absence of
these programmes often manifest tripartite problems of incompetence, inefficiency and
ineffectiveness (Mahira, 2017).

Rabiu, M. (2020). Research methods for business. A skill building Approach. Bauchi: Ramadan
Printing Press Absence of these programmes often manifest tripartite problems of incompetence,
inefficiency and ineffectiveness (Mahira, 2017).

https://www.researchgate.net/publication/
355796625_THE_RELATIONSHIP_OF_TRAINING_COST_TRAINING_NEEDS_AND_TRAINI
NG_SELECTION_CRITERIA_ON_STAFF_PERFORMANCE_OF_FEDERAL_INLAND_REVE
NUE_SERVICE

Example:

Notes: Implementing comprehensive training and development programs for quality control
personnel can mitigate such risks. Regular training on safety protocols and product testing
procedures can ensure compliance with quality standards and reduce the likelihood of scandals.

2. What are the financial implications of implementing sustainability initiatives in quality

control processes within the cosmetics industry?

3. How do non-compliance in quality control standards affect the valuation of cosmetics

companies?
https://www.ftc.gov/news-events/news/press-releases/2014/06/loreal-settles-ftc-charges-
alleging-deceptive-advertising-anti-aging-cosmetics
 Notes: Adhering to internationally recognized quality control standards such as ISO 22716
for cosmetics manufacturing can enhance company valuation by demonstrating commitment
to quality and regulatory compliance.

4. How does inadequate quality control impact the financial performance of cosmetics
companies?

A notable example of financial challenges associated with maintaining product quality and safety
standards in the Philippines' cosmetics industry is the Avon Philippines scandal in 2018. The
company faced allegations of selling expired products and misleading claims about product
efficacy, leading to a decline in sales and reputational damage.

5. What are the financial repercussions associated with non-maintenance of product

quality and safety standards in the cosmetics industry?

The international scandal involving Johnson & Johnson's baby powder products in 2018 is a
prime example of the financial implications of quality control failures. The company faced
thousands of lawsuits alleging its talc-based products were contaminated with asbestos,
resulting in massive legal settlements and damage to its brand reputation.