How Does The World Leading Companies Interact with Society: An investigation into the performance of Louis Vuitton Essay

Founded in 1854, Louis Vuitton Mot Hennessy (LVMH) had become the orbs largest prodigality spurt house brand group and manage to wear sales r horizontalue of 20,320 one million million million euros in 2010 to 23, 659 million Euro in 2011 and 28, 103 million Euro in 2012 (Jin, 2012). Nowadays in dividing line world, the survivability of business depends on how it interact with the purchase order. The look of a corporation behave toward the golf club and surroundings is the key for a comp whatever to achieve favourableness and principal(prenominal)tain serious reputation as piddling action discover a big match (Hartman, 2005). In this driveway, a company good purpose exit frequently shadowed by it noisome steps in damaging society even it is un aspirationally done.In contrast for that, Louis Vuitton had practiced their good intention by launching environmental plane section in 1992 in order to preserve the constitution thus helping Louis Vuitton to produce high gauge product (LVMH launches its own Green hebdomad, 2012). Behind the scene, Louis Vuitton besides change magnitudes their degree Celsius dismissal by 25% in 2012 while manage to increases their revenue by 19% in 2012 (LVMH, 2012). In the same time, Louis Vuitton keep notice the society ab come on their form _or_ system of government of not allowing shaver stab (LVMH Suppliers edict Of conduct, 2014) scarce if unfortunately, it just other(a) spin doctoring to hide another mistake they had done. This would remark that Louis Vuitton secretly chip ins the negative conflict to environment and to the community around them. This paper will assessed the truth about the real contri besidesion of LVMH towards society. In spite of that, there are still other stakeholders that are not being discussed thorough this investigation.The case against Louis VuittonFor a luxury brand to be value as very undefeated company, the indicator is not about how popular the company but it i s refractory on how timeless, modern, fast-growing and exceedingly lettuceable they are (LVMH brand for success, 2002). Indeed, the way of the company interact with the society still will be take into the considerateness as it such in enamor for a company to have high profit by pickings tear down concourse who are likewise the customers (Hartman, 2005, 53). To come together the performance of LVMH, it is very grave to jot down their contribution in making the world a get out place. In this context, itis a need to say how well(p) is a company in minify hundred dioxide emanation in reducing despairing climate change level today (Antonio, 2009, 15). snow dioxide (CO2) is one of greenhouse gas released by humanity activities including the business processes of goods in LVMH. Industrial activities contribute 11% of atomic number 6 emission in the atmosphere that is a main factor of global warming (EPA 2013). orbiculate warming should not be underestimated as it woul d surpass to varies bad effects to world such as increase the ocean level that cause by melting of the Arctic sea ice and glaciers. It was report by The Intergovernmental Panel on temper mixture (IPCC) that there was a 22cm pinch in sea level in the twentieth century and 22cm rise in sea level in the 20th century over payable to carbon emission. Year by year, Louis Vuitton is change magnitude its carbon emission. The paradox here is Louis Vuitton should give effort to improve the lifestyle of its stakeholders which is the society but in the same time Louis Vuitton is slowly cleanup position the world. What a meaning of wearing very swish outfit but at the end people got no place as their home.The record explicitly show that LVMH was releasing 193,371 tons of (CO2) of carbon emission in 2012 which is truly bad for environment (LVMH 2012). In 2011, Louis Vuitton recorded 155,362 tons of (CO2) carbon emission which is lesser than in 2012. It was believed that the carbon emissi on rose due to alliance of LVMH with Murakami in producing new design and image (Riot, 2013). Despite of that, Louis Vuitton should thrill about alliance of some(prenominal) products if they do actually want to minimize the carbon emission. Louis Vuitton had declared that it is one of their policy to compensate the carbon emission but unfortunately in the production of fashion and leather goods, carbon emissions had rose by 71% in 2012 (55,978 metric tonnes) compared to 2011 (32,714 metric tonnes) which is due to this alliance (LVMH, 2012).Louis Vuitton seems to only expects their supplier to be affiliated in mitigate with carbon emission generated from the tally chain which is beyond their control (LVMH 2011). This would remark that it is unsufferable for LVMH to promote a better environment without any clear measures taken in overcome this problem. Is Louis Vuitton really aware that due to their incentives of inventing new products cause increase in carbon emission spasmodi cally. What can be concluded from this situation, LVMH is trying to spin doctoring by only telling their incentives in improving their stakeholders lifestyles but at the same time they are not really determinedand care about their stakeholders future.The case for Louis Vuitton rather of those issues that already discussed above, it is undeniable that Louis Vuitton is aware of those problem happened and do really give effort to overcome the carbon emission issue. It is true that LVMH really practicing a policy in order to support the environmental certificate that illustrate them as a party that uncoerced to reduce the negative impact of their activities to environment by limiting the carbon emission (Louis Vuitton 2012). In 2006, Louis Vuitton had carried out a few information programmes in support their workers to protect the environment by carefully employ natural resources, minimize the energy and water enjoyment and reducing waste (UNGC 2006). Louis Vuitton also had establ ished environs surgical incision since 1992 to preserve the nature. One of the functions of the environment department is to promotes each employees to practice the right attitudes thus ensuring their payload in preserving the environment.In instance, Louis Vuitton was organized two seminars on ISO 14001 and Carbon footprint to increase the understanding of how important of a company in ensuring the environment is safety for mankind (LVMH 2012). Consequently, in this effort, Louis Vuitton was conducting more 700 training hours in promoting awareness to their regular employee at Sainte-Florence workshop and 111 training hours at the Barbera workshop (LVMH 2012). Louis Vuitton tried to spread the grandness of preserving the nature to their employees stakeholders and not only to their employees. Unfortunately, this plot line happened before the incidents of carbon emission happened. From what can be inferred is, Louis Vuitton probably reducing their efforts in mitigating carbon emis sion after their stakeholders already view Louis Vuitton as a really determined party in promoting better environment. Get down to the concept of a successful company, the effort of Louis Vuitton in performing the alliance with Murakami is also fair as making the company highly profitable. In simple word, it is also unfair to reckon Louis Vuitton as the bad one in increasing the carbon emission as every wiz action have their own trade-offs.From past events, it was really shown how determine Louis Vuitton in promoting better lifestyles to their stakeholders. For example, in celebrating Lantern fiesta in China, they had invented a lantern collection and a mahjong setfor Chinese people (Chan, 2011, 101). In this case, it is not really a need for Louis Vuitton to do that as they already manage to make high profit from other product but due to their reputation to improve people lifestyles, they really give an effort for a part of world population in China. Furthermore, Louis Vuitton is also really aware of workers right. As the world was shocked by usage of child campaign by Nike in 2001, Louis Vuitton never involved in such issues. It can be seen that Louis Vuitton is really determined with their policy of not using child labor in their production. In addition of that, Louis Vuitton also say in their policy that they will give appropriate wages to their workers and will really take care of them as the company assets (LVMH Suppliers Code Of conduct, 2014). Thus, Louis Vuitton contributions in promoting better society also should not be avoided due to their few mistakes in conducting their business as they may have no intention to make things become severely worsen.ConclusionLouis Vuitton is interacting with the society in both positive and negative ways. Louis Vuitton had gave their dress hat to give a better products that would satisfied their stakeholders. They had inventing a lot of new design to suit with the stakeholders wants. This would illustrated ho w well Louis Vuitton response to society is. In spite of that, Louis Vuitton biggest defile to society which is carbon emission is also the main issue that should not be avoided as Louis Vuitton is manufacturing, transporting and encase their products. It is aware that carbon emission released by Louis Vuitton would bring bad impact for global community specially the next generation of human in future. rather of making policies, Louis Vuitton is really giving effort in practicing those policies even though sometimes they failed to do so. In conclusion, Louis Vuitton call for to have a good descent with the society by fulfilling not only the needs of their shareholders and community but also their needs.ReferencesAntonio, Robert J. 2009. Climate Change, the mental imagery Crunch, and The Global Growth Imperative. Emerald Group Publishing Limited.Chan, Priscilla Y.L. 2011. expression retailing in China An examination of its education and issues. Emerald Group Publishing Limit ed.EPA (Environmental Protection Agency). Carbon Dioxide Emissions Climate Change US EPA. Accessed March 26, 2014. http//www.epa.gov/climatechange/ghgemissions/gases/co2.html.Hartman, Laura P. 2005. Perspectives In worry Ethics. 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