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本篇essay代写-LVMH’s Social Performance将从企业对动物权利的行为，影响社会和利益相关者的环境，特别是可持续发展的积极和消极的方式进行分析。本篇essay代写由51due代写平台整理，供大家参考阅读。

Corporate social performance nowadays has getting an increasing attention from the general public as its behaviours not only give an impact on corporate’s stakeholders but also judged by the common citizens. “Since modern business organizations are embedded within broader social structures that are comprised of economic and political institutions, scholars have theorized about and empirically confirmed that such institutions exert great influence on their behaviour” (Campbell, Hollingsworth & Lindberg, 1991). 

The Louis Vuitton Moët Hennessy (LVMH) Group was founded by Bernard Arnault, possesses about 120,000 employees and more than 50 brands now, which make it the largest luxury company around the world. Its business involves five fields: Wines & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewellery and Selective Retailing. “Respect for these values is one of the keys to the performance of LVMH Houses, engaging them with contemporary times and society. The Group has made sustainable development a strategic priority since its creation. Today, this commitment establishes a clear position regarding the issue of the ethical responsibility of businesses in general, as well as the distinctive role played in society by a group such as LVMH, in France and around the world” (LVMH.com).

This paper will analyse from the positive and negative way of the corporate’s action towards animal rights, environment that influence the society and stakeholders, especially on the sustainable development. In the end, the paper will reach a conclusion from the analysis that compared with its negative effects, whether LVMH group has contribute more on society so that their critical issue can be narrowed to some extent. 

The case against LVMH

As mentioned above, Fashion & Leather goods is one of the five main businesses of LVMH group, their luxury brands and products gain its popularity among the wealthy, particularly in some Asian society. A controversy that would be raised within this field is that the animal fur used in the leather goods and how their suppliers obtained from the animals. The PETA has indicated that “what you may not know is that cows, dogs, and other animals suffer and die for the production of leather items—and their deaths are no less horrible, heartbreaking, or appalling than those of animals killed for their fur” (Leather vs. Fur: Which is worse?). “Fur has been a constant in fashion every year for—well, forever, if you start from when it was a necessity and jump to when it was a luxury. But in recent seasons, it’s become an even hotter commodity” (Courtney Iseman, 2015).

Animal welfare campaigners have protested a Fendi (one of a LVMH brand) fur couture show of Karl Lagerfeld’s 50th tenure anniversary at 2015. “Paris-They knew it would be controversial. Before the show, attendees received emails asking everyone to bring formal identification as security at the venue’s entrance will be strict” (Vanessa Friedman, 2015). Some economic experts inferred that the fur’s comeback is due to the financial crisis, people are focus on how to recover the economy but ignored the harm to the nature resources. Actually, this kind of dispute is widespread among the fashion industry, but regardless of companies’ reputation, their primary concern is to fulfil stakeholders’ expectations. Nevertheless, the utilize of the animal furs in its fashion & leather goods house seems not affects its financial status, the company “ recorded a 4% increase in revenue, reaching €26.3 billion, for the first nine months of 2016. Organic revenue grew 5% compared to the same period in 2015” (LVMH.com). 

Another point that made LVMH’s fur business controversial is how brutal their suppliers treat on animals. It has been revealed that ostriches in South Africa were killed ruthless in slaughter houses, and most of their furs were sold to some top European luxury company, LVMH is one of them. The majority of the ostriches were less than 1 year and even some of them were just come to the world several days, their feathers were deplumed when they were still alive. LVMH’s purchasing department manager Emanuela Carletti stated that “Excellence means also respect, an essential ingredient to quality. Respect for the well-being of the animals together with life conditions of the local populations” (LVMH Annual Report, 2015). However, the way of this company to reach so high profit may make people to discover its improper behaviour to the society. Although its stakeholders’ benefits are not reduced by its social interaction, but it is hard to say whether its business will influenced by the performance in the future.

The case for Louis Vuitton

Being a world leading company, in addition to focus on improve the expectation for its stakeholders, the company contributed to social welfare in its model. For instance, LVMH hold welfare institutions such as LVMH-ESSEC Chair, LVMH House and LVMH Asian Research Fellowship. Another action which can be highlighted is its environmental protection measures. It started to establish its environmental department at 1992, and “since 2011, LVMH Group has implemented comprehensive measures aimed at incorporating key environmental indicators in brands and corporate strategy” (Gardetti and Torres, 2013). A global well known company should not only exist to run its own business and make a profit, it is more important to survive longer and make an admirable reputation which in turn influence its operation. “LVMH established an internal carbon fund in November 2015, the first such initiative in the history of the Group, it invested 5 million euro into the fund” (Monica Karski, 2015). “Carbon trading — whereby a company or individual pays money towards emissions-reducing projects in order to ‘offset’ its own emissions — is a marketplace model for controlling climate change that began in earnest a decade ago” (BOF team, 2015). A fact of this activity is it stimulates the company’s employees in Rome to take public transport or walk to workplace instead of driving their own car to cut down the carbon emission. “Continuing to reduce our greenhouse gas emissions will be another major goal: we have set ourselves the target of reducing the emissions relating to our production facilities, logistic facilities, and stores’ direct and indirect energy consumption by 25% between 2013 and 2020” (Antonio Belloni, 2015).

The company has listed main concerns for the environment of its five business houses, applied to saving energy resources and combating climate change, protecting and saving water resources, waste recovery, reduction in impact of production and transformation of raw materials, specifically through eco-design and protecting ecosystems and natural resources. Figures illustrate that the company has made great efforts to the environment. For example, the water pollution has decreased by 18% to 3,418 tons of COD/year and the greenhouse gas emissions dropped by 2% to 246,328 metric tons CO2 equivalent (LVMH environmental report). The LVMH Group has tried to answer its stakeholders’ questions towards environmental performance via several methods including videos, e-news, advertisement and social networks to maintain communication with its internal and external stakeholders. At the other hand, “the concern for solid relationships with its suppliers also leads the group to support and guide them in establishing and following the best environmental and social practices, while raising their awareness and educating them about sustainability and responsible procurement issues specific to their own businesses” (Social Responsibility Report, 2014). Its environmental responsibility to the society which involves stakeholders, suppliers, customers, employees, and civics made the sustainable development a visible and transparent process. “It paints a picture of a corporation that has strong commitments to sustainable development through various initiatives. In particular, LVMH focuses on the life cycle of its products by ensuring their sustainability from design to disposal” (Lisa Simkus, 2010). “At constant scope, LVMH succeeds to improve most of the environmental indicators; a positive outcome compared to the 6% of organic revenue growth” (Environmental Report, 2015).

Conclusion

The social performance of LVMH Group has showed up in both positive and negative side. This paper chooses two typical aspects to elaborate the company’s behaviour towards the society. It is not complicated to launch a business but it is never easy to maintain a global company since it will encounter lots of problems which addressing concerns by its stakeholders, customers, suppliers and publics. The utilization of animals’ furs would definitely make the animal protection organization and animal lovers to resist its products and its activities. It is also not a wise decision for the group to harm the animal rights and break the natural resources to get a high profit and then meet the stakeholders’ anticipation. What is more, it allows its suppliers’ merciless towards animals and claim that it has a policy on animals and the nature. However, LVMH has done with all its forces to improve the environmental condition and to facilitate its social performance in several ways. It can be inferred from its environment report that some realistic steps are begin to have impact on the environment and the company is encourage its employees and customers to live by a greener lifestyle, after all, it has a number of loyalty followers around the world. To summarize, as a global famous corporate, although the financial status looks smashing, LVMH need to focus more on its controversial behaviours and then keep steadily to its environmental friendly sustainable development.

References

Antonio Belloni. 2015. LVMH Environmental Report. 

BOF team. 2015. Can 'Carbon Funds' Help Fashion Brands Tackle Their Environmental 

Campbell, Hollingsworth & Lindberg. 1991. Governance of the American economy. New York: Cambridge University Press.

Courtney Iseman. 2015. It's 2015. Fashion Is Full of Vegans. So Why Is Fur Still Trendy? 

Emanuela Carletti. 2015. LVMH Annual Report. 

Gardetti and Torres, 2013. Strategic Management and Sustainability in Luxury Companies. The Journal of Corporate Citizenship.

Leather vs. Fur: Which is worse? PETA Org 

Lisa Simkus, 2010. Sustainability within the French Luxury Consumer-Goods Market: The Role of Business and Consumer Demand. Bachelor of Commerce.Vol.3:71-85

LVMH.com. ‘Engaged with Society’. 

LVMH.com. 2016. ‘5% organic revenue growth in the first nine months of 2016’.

LVMH Social responsibility Report, 2014. 

Monica Karski, 2015. LVMH invests more than €5mn in an Internal Carbon Fund. Fashion Network News 

Vanessa Friedman. 2015. The Material World of Fendi, Boucheron and De Beers. 

The New York Times.

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