Critical Essay Analysis for Louis Vuitton

1 Found helpful • 6 Pages • Essays / Projects • Year: Pre-2021

Louis Vuitton: An analysis of the company’s social performance in regards to the environment. Companies always aim for the maximization of profit and increase in the number of stakeholders. The world is a competitive place for all the companies but to remain in the game, they need to perform accordingly to their customers’ needs and satisfaction which will boost their revenue and also help them to be established as a renowned and trustworthy image. LVMH Moët Hennessy Louis Vuitton SE was founded in 1987 by Bernard Arnault and ever since that, it has developed itself into one of the world’s leading fashion brands which generated a total revenue of more than 29 billion euros (40 billion dollars) in 2013 (BOF 2014). Louis Vuitton has over 3000 stores globally which employs more than 110000 people and is present in over 50 countries. LVMH has always participated actively and taken the lead in new and rising markets which is undoubtedly the most international lavish conglomerate (BOF 2014). The main key for a company to earn higher profits and develop a good reputation depends mostly on how the company behaves towards the society and the environment in which it is performing (Hartman 2005). Louis Vuitton is also ranked 19th among the world’s most valuable brands (Forbes 2016). This essay will analyze about how Louis Vuitton has contributed to the environment it has been performing at from both positive and negative aspects. The case against Louis Vuitton: Humans breathe out carbon dioxide gas which is also released from the production of goods by LVMH. Around 21 % of the greenhouse gas emission in the atmosphere of the United States is made from industrial activities (EPA 2014). This is one of the main reasons for global warming which should not be neglected since it would lead to various harmful changes in the world, for instance, the rise in the sea level which is caused due to the melt down of the Arctic sea ice and glaciers. The Intergovernmental Panel on Climate Change (IPCC) reported that there was a rise of 22 cm in the sea level during the 20th century due to the emission of carbon dioxide (IPCC 2010). Louis Vuitton is contributing to the emission of carbon which is increasing every year. The contradiction here is that although LV is giving continuous effort to make better the lifestyles of its stakeholders (which is the society), it is also simultaneously ‘destroying’ the world. Most of the customers barely realize that despite all the luxury they can buy from Louis Vuitton, how on the other side the Earth, due to all these carbon emissions, is slowly meeting its doom day by day. LVMH released 193,371 tons of Carbon Dioxide emission in 2012 which was significantly higher compared to that of 2011’s which was 155,362 tons (LVMH 2012). This again increased in 2013, a total of 223,314 tons of Carbon Dioxide gas was released (LVMH 2013). In 2014, the amount of Carbon Dioxide emitted into the atmosphere was significantly higher, 260,840 tons (LVMH 2014). It was assumed that the rise in the emission of carbon was because of the partnership of LVMH with Murakami in preparing innovative designs and patterns (Riot 2013). In spite of that, LV should take into consideration the alliance of many products if they are really keen to reduce the emission of carbon. Although LV has declared a policy to recompense the carbon emission, it failed to control this in 2012 which rose by 25 % approximately when compared to that of 2011 (LVMH 2012). It seems that Louis Vuitton completely relies upon its suppliers to be committed in reducing the carbon emission which is produced from the supply chain and is far away from their control (LVMH 2011). This completely shows LVMH’s negligence in creating a better environment free from harm. This also shows LVMH’s carelessness at taking proper efficient measures to somehow mitigate the problem. Louis Vuitton is not really concerned about how due to their approaches towards processing innovative products is increasing the emission of carbon periodically. In other words, LVMH is trying to spin doctoring by only mentioning about their approaches and methods in flourishing their

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