Analysis Of Louis Vuitton Moet Hennessy's Corporate Controversy
This report was commissioned to analyze Louis Vuitton Moet Hennessy’s corporate controversy and examine its causes, social and environmental impact and the nature and adequacy of response to it from the organization. This analysis is carried out in the light of UN Global Compact principles.
United Nations Global Compact was formed on 26 July 2000, with an aim to encourage corporations around the globe to adopt sustainable and socially responsible policies, aligning their strategies and operations with universal principles on human rights, labour, environment and anti-corruption, and take actions that advance societal goals (United Nations, 2015). Since then, UN Global Compact has become world’s largest corporate sustainability initiative with 8343 participating companies from 162 countries and 34,388 public reports. (United Nations, 2015) …show more content…
The company has been submitting is communication on progress annual reports to the UN Global Compact as well but in the year 2010 due to secretly acquiring shares of its smaller rival, LVMH got involved in a legal battle with Hermes Paris. The legal fight lasted for four years and LVMH was found guilty of wrong doing in order to acquire the shares of its competitor. However, LVMH never admitted the accusations and claimed to be innocent. The financial market regulatory authority of France known as AMF launched and investigation into LVMH’s actions and penalized the company with $10.4 million fine, largest in the history of