These companies consider CR as a means to maintain an ethical image and avoid brand criticism in order to preserve their reputation of exellence and prestige. As reputation is the main competitive advantage of luxury companies, their CR strategy is orientated towards the preservation and diffusion of the image of a responsible business.
Therefore, they concentrate their CR efforts on managing operaional risks, managing negative environmental impacts, controlling risks in the supply chain on issues such as human and labour rights through codes of conduct and audit programmes, and via strategic philantrophy in the communities in which they operate. We could quote the adhesion to mechanism to diffuse and regulate practices in the industry, such as the Responsibility council , which is commited to the regulation of human rights and social and environmental practices in the gold and diamond supply chain. Other examples include environmental management systems to regulate CO2 emissions, water and waste. Strategic philanthrophic activities include supporting NGOs' work with local communities or the transmission of traditional skills to apprentices.
Example of brands that could belong to integrative CR because they have a moderate score on their CR performance: Tiffany, Richemont, Burberry, Hugo Boss, Luxottica, Swatch and Hermes.
Describe your image here.
Describe your image here.
This group of companies consider CR mostly under its traditional compliance and moral philanthropy form, such as setting up charitable foundations or sponsorships, employee volunteering in non-strategic areas and risk management and CR to cope with risk associated with supply chains. There is no inclusion of environmental sustainability or policies to reduce negative environmental impacts. Four out of the five companies have a general opacity concerning working conditions in terms of training, health and safety; most of the companies appear as a CR blank screen to the public. Common characteristics include sponsorship of he arts and charities through corporate foundations and employee volunteering programmes.
Example of brands that could belong to Philanthropic CR because they have a loe score on their CR performance: Coach, Prada, Ralph Lauren, Safilo and Armani.
Companies in that you could refer to Innovative CR approach CR from a strategic perspective, in order to obtain a competitive advantage in the industry, by conciliating innovation and traditional skills. This group of companies believes that sustainability pursued with innovation and creativity can be a part of their business model and they emphasise the role of sustainability innovation in their corporate sustainability strategy. By doing so, they concentrate their CR efforts on their core business, in order to create value both for the company and society.
therefore, companies in this cluster are concentrating their sustainability efforts on key aspects for luxury brands. Common characteristics of this cluster include integrating environmental performance when designing luxury products, improving their offer of eco-products and communicating their sustainability initiatives to consumers. This emphasis on innovation is suplemented by a risk management approach aimed at managing their operational environmental and social impacts, as well as various forms of corporate philantrophy. Some representative examples of this cluster's initiatives are the development of environmentally friendly prodcuts considering their life-cycle, including material sourcing, bioversity protection, and end-of-life impact management, such as green chemistry or eco bags, as well as direct communication to consumers about sutainability, for example in the form of smartphone applications to orient clients towards sustainable consumption.
Example of brands that could belong to innovative CR because they have a high score on their CR performance: ELC, LVMH, L'Oreal, Shiseido and Kering.
Resource article: Diversity of human capital as a driver for corporate responsibility engagement (the case of the luxury industry) By Catarina Pessanha Gomes and Masaru Yarime.