why CSR have relation with business

Topics: Corporate social responsibility, Business ethics, Environment Pages: 8 (1556 words) Published: September 30, 2014

Dear XXX
I am writing the letter to provide several recommendations for Louis Vuitton based on a series of analysis of Global Compact Principles. In contemporary periods, the behaviors of business ethics and social corporate responsibility have been regarded as one source of competitive advantages for the majority of multinational firms. In other words, the companies are more willing to follow the principles of Global Compact in order to build up the competitiveness for achieving long-term benefits. In the following parts, I will list the key point of Global Compact Principles. In addition, two principles which have been followed well by the company will be described and another two principles which have not been followed by LV will be explored as well. Finally, I will identify the benefits for stakeholders of LV in terms of Global Impact Principle. As one large and reputational luxury global brand, Louis Vuitton has successfully built up the outstanding brand awareness of its bags and leather goods. Based on the description of official website of LV (2013), your company has continually provided great fashionable products including bags, leather goods, luggage, shoes, jewellery and watches. I am very interested in the outstanding performance of your company in the luxury industry. There are ten major principles of Global Compact which can be divided into four essential sections including human rights, labor standards, environment and anti-corruption. To be more specific, first of all, it is imperative for firms to respect various human rights when dealing with business activities (Kell 2005). In addition, from the perspective of labor standards, the firms should not only uphold the freedom of association and effective recognition of the right to collective bargaining, but also avoid the child labor and discrimination in the workplace. Furthermore, it is essential for firms to take responsibilities to protect and then develop environment when conducting businesses. Finally, the firms should avoid the behaviors of corruption, since the interests of firms will be influenced negatively (Kell and Levin 2003). Based on the business behaviors of Louis Vuitton, you company has taken effective measures to follow the principles related to human rights and environment, which include: Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; Principle 2: Undertake initiatives to promote greater environmental responsibility To be more exactly, for one thing, Louis Vuitton has set up several programs to protect the employee’ human rights, which include in-house training policies and the construction of satisfactory work condition and so on. In that case, the employees of LV could be definitely respected and then experience one comfortable environment in the workplace. For another thing, in terms of environmental protection, your company has continually donated funding to support various non-profitable organizations and governments to improve the environment. In other words, Louis Vuitton has taken a precautionary approach to actually take the responsibility of support environmental protection, which is definitely respectful and ethical (Louis Vuitton 2013). However, some other companies in the same industry have several inappropriate behaviors related to the protection of human rights and the support of environmental responsibilities. To be more exact, Nike can be regarded as one typical negative example, since the company has not only failed to provide safe work environment, but also signed contracted with the cotton factories hiring slave labor. For example, according to the report of international business times (2013), the factories of Nike in Cambodia are suffering from various strikes because Nike paid low income and provided terrible working environment. As a result, the strikes had resulted 23 people injured and the...

Cited: 27 August 2013]
Armani & Sustainability 2013, How Sustainable is Armani, The Website of Rank A Brand, New York, viewed 28 August 2013,
< http://www.rankabrand.org/sustainable-luxury-brands/Armani>
Sean, V. & Gary, F. 2004, ‘Ethics Training and Businesspersons’ Perceptions of Organizational Ethics’, Journal of Business Ethics, 52(4).381-394
Whitehous, L. 2003, ‘Corporate Social Responsibility, Corporate Citizenship and the Global Compact: A New Approach to Regulating Corporate Social Power?’ Journal of Global Social Policy, 3(3): 299-318, cited 25 August 2013,
< http://gsp.sagepub.com/content/3/3/299.short>
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