Luxury Brands: What Are They Doing About Social Responsibility?

Luxury Brands: What Are They Doing About Social Responsibility? David S. Waller, Marketing Discipline Group, University of Technology Sydney Anurag G. Hingorani, Marketing Discipline Group, University of Technology Sydney Abstract Although luxury goods may be synonymous with extravagance, lavishness, and even waste, it may appear to be a contradiction that a number of companies that manufacture and sell luxury brands have also discovered the value of being socially responsible. With growing criticism of the high costs and exploitation in the manufacture of luxury goods, some companies are increasing the extent to which corporate social responsibility and sustainability issues feature in their business practices. This paper will look at the issues regarding luxury brands and social responsibility, and will focus on LVMH Moët Hennessy Louis Vuitton, the world‟s largest luxury goods conglomerate.

Introduction Despite the recent global financial crisis and continuing economic troubles worldwide, sales of luxury brands are growing. According to the Luxury Goods Worldwide Market Study, luxury spending in 2011 rose 8% to €185 billion ($US274 billion) in 2011, with growth in the US, Europe and China, which was after a fall in sales in 2008 and 2009 (Holmes 2011). Brand names like Chanel, Yves St Laurent, Louis Vuitton and Tiffany & Co. have become household names and brands that some people aspire to purchase and wear. However, luxury brands have also been often criticised for being extravagant, overpriced, exploiting third world suppliers, and wasteful when many people are struggling financially. As luxury brands promote themselves to the global audience, some companies are increasing the extent to which corporate social responsibility (CSR) and sustainability issues feature in their business practices.

This paper will explore the issues related to luxury brands and social responsibility, with a particular focus on LVMH Moët Hennessy Louis Vuitton, the world‟s largest

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