Communication in Business

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Moreover, LVMH is putting effort to be more environment-friendly by adopting green technology for their warehouse, logistics and transportation. Using electric vehicles at Hennessy and Moet and Chandon helps to cut down 80% of CO2 emission (LVMH, 2016g), meanwhile the clean energy used for delivery in some other brands contribute to reduce 10 metric tons per year (LVMH, 2016h). Beside electric, solar power also mentioned as renewable energy for LVMH’s construction.

In the past, to achieve what was emphasize in the Environmental Charter of high level of environmental performance, LVMH was holding several training program for their employee. Through those activities, their employees were encouraged to protect the environment throughout production. For example, to obtain ISO14001 certification, seminars were organized, and hundreds training hours were delivery to make sure their employee can meet the challenge involved (LVMH, 2012).

Furthermore, LVMH have joined the Green Week since 2010; that allows LVMH to raise their voice discussing the impact on environment. LVMH have sent to the conference their practices. LVMH’s sub-brand introduced several projects proving sustainable such as Louis Vuitton internal Green Week, Kenzo’s “Blue takeover”.

Conclusion

In summary, how LVMH interacts toward the society brought both negative and positive impact on their stakeholders. Although there is no companies that totally environment friendly and sustainable, it was concluded that luxury brands are required to adopt environmental practise due to the effects occurred. Since environmental policy could be a part of corporate social responsibility, stakeholders would show their power in some case. According to the recent report from Positive Luxury (2016), not only customers determine brand image base on their sustainable performance but also other stakeholder will consider, linking to impact on gathering investment or government relationship. On one hand, LVMH activities damage the environment in every aspect like production, distribution and transportation. On the other hands, LVMH understand their duty on improving their environmental practise. It can be denied that making profit is the most important purpose of a business. It also true that company will get more advantage by fulfills stakeholder needs. To be aware of that, LVMH put their effort to spread out a sustainable image throughout their environmental policy and practice.

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