Review of LVMH’ towards environmental LVMH was formed by the merger of two companies that is Louis Vuitton and Moet Hennessy. They operate in various markets of luxury products, such as, wines and spirits, fashion and leather goods, watches and Jewellery, perfumes and cosmetics retailing among others, also, its a private company. The company consists of 70 brands with various category of products such as Bulgari, Moët ; Chandon, Marc Jacobs, Fendi, Loewe, Donna Karan, Celine and Edun. and obviously Louis Vuitton, and has over 4,370 stores worldwide, with over 145,000 employees.
Its revenue for 2017 was 69,502,273.66 dollars. Bernard Arnault, the CEO of LVMH, is the richest man in France with a net value of 29 billion dollars. It competes with different businesses like Hermes, Bottega Veneta, Balenciaga, Yves Saint Laurent, Richemont, Stella McCartney, Gucci, Alexander McQueen, Boucheron, and Sergio Rossi. As the company is well known for its brand image, it is always concerned with its corporate social responsibility (CSR). CSR is a new concept which advocates that businesses need to be aware of their impact to society, and need to preserve and contribute to the environment, along with taking a responsible approach towards the various stakeholders like, consumers, employees, government, and environment.The company took an initiative towards animal well-being by drafting a new version of ‘Animal Sourcing Principle’ for their company.
which focuses on animal welfare in supply chains ( ).the company is also a member of ORSE (Observatoire sur la Responsabilité Sociétale des Entreprises) which emphases on stopping discrimination and respect individuals. Despite being so much involved in the social activities, the company is still lacking some ethical responsibilities towards the environment.A negative side of Louis Vuitton A research was conducted by ethical consumer in 2017 that exposed, LVMH used hazardous chemicals that are quite harmful for the environment especially due to dying of fabrics and man-made fibres which releases different harmful chemicals and were a threat to the environment. The use of parabens, triclosan and phthalates were commonly involved in the cosmetics industry.
As LVMH is a luxurious brand which deals in leather products such as shoes, bags, wallets, jackets, belts and many more. Every product made up of leather undergoes a process of tannery (leather extracting). A major research also came up with some facts regarding the process of tanning that includes use of chemicals to form a mixture of leather in a specific proportion to earn good profit therefore, it involves use of chemicals like, arsenic, sodium, cyanide, trivalent chromium sulphate, sodium sulphide, sulfhydrate and tannery effluent. These chemical further consists of pollutants and solid gases which gets exposed to the environment and creates an imbalance to the atmosphere especially towards land, water, air. A negative side showed by Louis Vuitton was regarding racism towards their employees, burning the unsold merchandise at the year end, animal violation, especially crocodile cruelty in Vietnam which involved large number of productions in leather.Louis Vuitton do not sell their products on discounts so that everybody pays the ssame price for the product.
To avoid selling products at a cheaper rate or discount to sustain the market value therefore, they prefer burning the unsold stock. Burning of unsold stocks kills the