Corporate social responsibility

[Guest guest]

Dear John,

The attached article seems relevant to sponsors of events

like elephant polo. Cartier is one example. Tag Heuer could be another.

Regards,

http://www.tdg.ch/pages/home/tribune_de_geneve/english_corner/news/news_detail/(\

contenu)/165120

 

WWF critical of luxury firms

 

| 08h47 A report co-authored by a Geneva consultant that ranks the world's

top brands calls for a deeper commitment to ethical values.

Photo: Greg Armfield (WWF-UK) | Authors of the report done WWF, Jem Bendell

(left) and Anthony Kleanth

 

MC | 29 Novembre 2007 | 08h47

 

A report released today by the WWF environmental group slams luxury brands,

including those based in Geneva, for their lack of environmental and social

awareness. The 50-page report offers a ranking of the " ethical performance "

of the world's top 10 publicly traded luxury goods firms and finds that all

of them lose their luster when their activities are judged according to

sustainable values.

 

The report gives three French companies the highest marks, with L'Oréal

coming out on top, followed by Hermès and LVMH. But no company was awarded a

grade of more than C plus, with the top-rated Swiss company, Swatch,

recording a D in sixth place, just two places ahead of Richemont, the

Geneva-based company. Tods, the Italian fashion firm, ranked last with an F.

 

 

The report was co-authored by Jem Bendell, of Geneva-based Lifeworth

Consulting, who said the ranking was based on the companies' own

sustainability reporting, in addition to the way they were judged in the

media and by non-governmental organizations. The report was conducted for

the WWF's British chapter but it is meant to send a warning message globally

to companies in the luxury field. Among the concerns touched are ecological

damage from mining (precious metals and stones such as diamonds), the

environmental problems of hunting and wildlife trade (furs and products made

from endangered species) and maltreatment of employees (an issue that

impacts a range of products, including watches, jewelry, textiles and

fashion).

 

L'Oreal is beginning to respond to the challenges, the report indicates. The

company's managing director of sustainable development, Pierre Simoncelli,

is quoted as saying that the report " demonstrates that a quality product

must involve a quality value chain, where everyone in that chain benefits

and their environment is sustained. " The WWF said it commissioned the study

to fill a gap in information about the environmental and social performance

of top corporations in the luxury field.

 

The report calls for " deeper values " in an industry that faces a credibility

problem as consumers become more aware of ethical issues around the world.

" Obviously this has implications for business, " Bendell said. " The industry

will get that luster back when companies achieve excellent quality in all

business processes, including social and environmental aspects. "

 

The report suggests that discriminating consumers are demanding more from

luxury items, traditionally seen as hallmarks of personal success. In China

and India, sales of such goods are rapidly expanding in societies with

widening disparities between very rich and extremely poor people. Displays

of conspicuous consumption in these societies are sometimes seen as a threat

to social cohesion. In Beijing, for example, authorities have banned the use

of billboards to advertise luxury products and services.

 

Affluent consumers who are well-educated and concerned about ethical issues

are beginning to seek luxury goods that reflect their concerns for a better

world, the report says. So items that generate wellbeing, not only for

purchasers, but for those involved in the production chain and in the use,

reuse and disposal of products, stand a better future, its authors conclude.

 

 

Bendell cites Brazilian brand Osklen, which has a store in Geneva's Old

Town, as an example of the new exemplary purveyor of luxury. The brand uses

sustainable materials and promotes environmental awareness. Bendell is the

founder of a Geneva-based social network CSR, with more than 300

participants. For more information check DeeperLuxury.com

<http://www.tdg.ch/www.Deeperluxury.com>