Responsible Luxury Business - Research Paper Example

RESPONSIBLE LUXURY BUSINESS of the of the Introduction The goods which are demanded more with the increase of disposableincome of people are known as luxury goods. Individuals purchase luxury goods for showing off his status. Luxury goods are more costly than necessary goods. With the increase of income level of people the demand of luxury products are increasing day by day. Most of the companies are getting into the business of manufacturing and selling luxury products. The companies provide some extra benefits or attributes with luxury products which help to attract more customers. There are many famous companies involved in the business of luxury products. For holding their positions in the market the companies design their luxury businesses in sustainable way. This helps the firms to enhance the core values of their business. Sustainable business approaches of luxury businesses benefit the environment and their employees. As a result these companies are able to create strong position in market. This research paper deals with the luxury brand Gucci. Sustainability of this luxury business will be discussed in this paper. Various sustainable approaches of this company will be highlighted here. This research paper will focus on views of different authors regarding sustainability in luxury business. A business incorporates different standards for making its luxury business more sustainable. Research question The research question of this paper is, “What is the role of sustainability in responsible luxury business”? Objectives The objectives of this research paper are as follows: Highlighting the responsibility of luxury business. Indentifying the sustainable approaches of luxury business. Focusing on the core values of responsible luxury business. Impacts of sustainable business approaches on local and international business environment Literature review As per the authors, Crane and Matten, in the modern business environment sustainability has become an important factor for achieving growth and success. Sustainable business creates positive impact on employees, customers and society. With the help of sustainable approaches a company enhances its business activities. The authors state that in the changing business environment the luxury companies are focusing more on their responsibilities towards society, employees and environment. They are performing various activities which help them to portray their corporate social responsibilities. The products of the luxury brands are highly desired by people. These products are of high standards. For this reason the luxury companies maintain their standards by performing good social activities. Brand name or reputation of luxury business plays a vital role in selling their products. When this type of company performs various sustainable activities then its reputation gets enhanced and the popularity of the brand increases. Therefore sustainable business processes of luxury business help the company to attract more customers (Crane and Matten, 2010). According to the authors, Moore and Birtwistle sustainable business practices not only attract customers but also help the company to satisfy its employees and improving their performances. By sustainable measures a company provides various types of benefits to its employees. They get many facilities form the company for which they feel motivated to perform their job. As a result the performance levels of the employees are also enhanced by this. The authors state that luxury products are highly priced because of their extremely good quality and high standard. For manufacturing such products luxury, business requires highly skilled and creative employees. This type of employees helps to grow the business of luxury brands. The luxury business performs different types of sustainable activities for retaining its highly skilled and efficient employees. As a result the firm gets strong support from its employees for selling its luxury products. Various responsibilities performed by luxury business makes its employees more responsible about their jobs and their duties towards society (Moore and Birtwistle, 2004). As per the authors, Hitchcock and Willard, core values of a business need to be designed in such a way which provides sustainability in its business process. The core values of the business guide the performance and activities of the employees. If the core values of business encourage sustainable activities then the employees also get involved in performing those activities. Moreover the business values also help the customers to understand the efforts given by the business for helping society and people. This will increase the trust among the customers towards the brand. This helps the company to enhance the value of its luxury products on the mind of the customers (Hitchcock and Willard, 2009). According to the authors, Joy, Sherry, Venkatesh, Wang and Chan, in the present days a company takes many measures for making its business sustainable. It focuses on developing its local community where it is operating its business. Big companies or brands get involved in performing responsible activities in international communities and forums. Various measures are taken by these companies for protecting environment and reducing environmental damages. All of these measures help the companies to prove themselves as responsible citizens. Many big luxury brands are involved in performing responsible activities for benefiting society and people. By this process these companies build strong relationships with their customers and attract many new customers. The importance of sustainable issues and factors are increasing day by day for growth and development of business. For this reasons many luxury companies are designing and manufacturing products which are eco friendly and cause minimal damage to the environment. The authors also highlight that the customers have become very conscious about various environmental factors. They prefer to purchase the products which cause less or no harm to people and environment. Luxury business does not have large number of customers. This type of business only serves specific set of wealthy customers who are very much concerned about their class and social status. These customers purchase high valued luxury products after considering many factors. So for attracting such customers luxury business design its products selling model in such a way which highlights the company’s efforts in performing responsible activities for society, employees etc. Some luxuries brands make the customers feel that by purchasing their luxury products the customers can not only show off their status symbol but also can help the society in many ways. This sustainable approach helps to grow their business for a long time (Joy, Sherry, Venkatesh, Wang and Chan, 2012). Methodology Research methodologies are of two types. They are qualitative and quantitative. Qualitative research methodology deals with analyzing various views and opinions of authors and experts. Various research problems are solved by analyzing opinions of different experts. In this type of research method relevant information are gathered mainly from secondary sources. Quantitative research method is performed by using various statistical tools, charts, tables, graphs etc. In this type of research method information is gathered directly from field and then necessary data is extracted from information by using statistical tools. In this research method the researchers put more emphasis on accurate data for developing the research report. Some researchers use both qualitative and quantitative research methodology for getting correct information. In this particular research paper qualitative research method is implemented. Relevant information of this report is collected from different journals, books, websites etc. The views of various experts and authors are analyzed for knowing the research topic in more detailed way. In this research paper secondary research methods have been used. This is because this research methods help to conduct the research quickly. The researchers did not use primary research method because sometimes conducting primary research becomes very complex which hampers the entire research process. Findings Gucci is one of the famous luxury brand which deals in different types of fashion products. It is an Italian company which sells highly priced fashion products. The luxury products of Gucci are very much demanding among the wealthy people. This company is present in various countries of the world. Gucci targets specific set of customers for selling its luxury products. The company has taken various measures for attracting its target customers and establishing its position in the market. One of its important measures is performing responsible activities for benefiting the society, people and employees etc. Gucci performs various corporate social responsibilities which help the company to enhance its position international market. CSR activities also help this luxury company to attract many customers. Gucci’s business sustainability Gucci manufactures and designs its products as per the taste and preference of its target customers. This luxury brand performs various types of activities which create positive impacts on society. The company is not only concerned about its profitability. It is also concerned about the people and the society. The company believes by helping people it will be able to enhance its business reputation and brand image. For this reason Gucci spends large amount of money in performing various social activities. This company manufactures all eco friendly products. Many products of Gucci like its bags, shoes are handmade. Gucci uses less number of mechanical or electronic devices for manufacturing its products. So the company consumes less amount of power and causes very little pollution while manufacturing its products. Virtuous approach Gucci performs many corporate social responsibilities which plays a vital role in connecting the brand with the customers. CSR activities of Gucci help to increase the popularity of the brand in various parts of the world. CRS activities of the firm help to develop the local community in which it is operating its business. Gucci also performs activities by which the company takes part in various international events for promoting social or environmental issues. Business operation of Gucci is designed in such a way which facilitates the firm in achieving sustainability (Neil, 2010). For making its business sustainable Gucci managed its reputational risk by performing social activities. CSR activities also helped the company to handle the pressure of its trade unions. This facilitates the business to become sustainable for long term. Employees Highly skilled labor is used by Gucci. The company provides various types of benefits to its employees which motivate them to produce high quality of luxury products. Gucci is very much concerned about its employees. They are very valuable asset for the company. Gucci encourages creativity and innovation of its employees. These approaches help the firm in developing various types of products and making the business sustainable. The employees put huge effort in manufacturing different products of Gucci. Their huge efforts are always compensated and appreciated by giving them good salary and career growth. Gucci looks after the safety and security of its employees by providing them many facilities (Kotler and Keller, 2011). The creativity of its employees is recognized by giving them financial and non financial rewards. By satisfying the employees in this way Gucci makes its business process sustainable. Environmental In luxury goods industry Gucci is the first company who had signed an agreement for reducing CO2 emissions its manufacturing and supply chain process. The company puts strong efforts in reducing negative impacts on environment for its fashion house operations. Gucci appointed a manager who looks after the environmental issues of the company. While manufacturing its product the company maintains the ecological responsibilities of its business. Gucci does not use any hazardous chemical in its products. The firm uses animal skins and furs for its premium priced products by taking legal permissions (Hopwood, Mellor and OBrien, 2005). The company is also involved in performing animal welfare practices. These environmental measures help Gucci to make its business sustainable in the long term. Local Sustainability in luxury business of Gucci is also achieved by involving the company with various local events and functions. Gucci has its business operations in many parts of the world. For reaching its target customers and making its brand more popular, the company often sponsors various things in local events and festivals. The retail stores of Gucci assist in conducting fashion events in the area where it is operating its business (Estes, 2009). By this process the firm aware the customers about its various types of products. International Gucci is also involved in performing many activities at international level for making its luxury business sustainable. In China the company provides medical and educational assistant to the children. Gucci also helped in developing creative talent among Chinese people. The company established Amblyopic Medical Training Centre in China. This approach helped the company to enhance its image in international market. Gucci optimized its cargo transport system in international market for reducing the emissions of CO2. Gucci uses limited energy in all of its shops. This sustainable measure helps the company to reduce misuse of electricity which saves a lot of money. Gucci has collaborated with Kering Corporate Foundation for reducing violence against woman. This CSR activity facilitates the company to enhance its position in the mind of its customers (Dyllick and Hockerts, 2002). Different levels of a responsible luxury Every company needs to maintain a specific standard of their products and services for performing their responsibilities towards employees, society, environment and customers. These specific standards help the company to achieve sustainability in its business. Employees: Companies provide strong growth opportunities to their employees for encouraging them to deliver good performances. Recognition and good salaries motivates the employees in enhancing the profitability of the company. By this process the companies develop high quality of creative products and services. Organizations provide equal opportunities to their employees for enhancing their careers. Men and women are treated equally within the companies. Environmental: In the present business environment, companies design their business process and operations in such a way which help them to reduce negative impacts on environment. The companies try to use fewer amount of hazardous chemical in its products which cause harm to people and animals. Companies focus on reducing the use of non renewable natural resources (Daily and Huang, 2001). Local: For making the business sustainable firms performs various activities which help them to improve the localities where it is operating its business. Companies promote their products by conducting local events, educational program and health programs. International: Firms establish business sustainability by getting involved in many international events. This helps the firms to create its strong position in international market. Many companies get involved in various social events of different companies for making its products and service popular among the people (Wells, 2013). Conclusion In the modern business environment the companies are focusing on various sustainable approaches for growth and development of their business. Sustainable approaches include various things which affect the productivity of the companies. Luxury firms are also involved performing various measures which help them to achieve sustainability. This report highlights many things about the company Gucci which affect its business sustainability. The company has taken many measures in providing benefits to its employees. This helps the firm to increase its productivity and performance of its employees. Local and international measures are taken by Gucci for enhancing its brand value and making its customers aware of its contributing in building good society. The business activities of the company are designed in such a way which facilitates the company in reducing its negative impacts on environment. Views of different authors regarding different sustainable business approaches are discussed in this case. References Crane, A. and Matten, D. (2010). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford: Oxford University Press. Daily, B. F. and Huang, S. C. (2001). Achieving sustainability through attention to human resource factors in environmental management. International Journal of Operations & Production Management. 21(12). pp. 1539-1552. Dyllick, T. and Hockerts, K. (2002). Beyond the business case for corporate sustainability. Business strategy and the environment. 11(2). pp. 130-141. Estes, J. (2009). Smart green: how to implement sustainable business practices in any industry - and make money. New Jersey: John Wiley & Sons. Hitchcock, D. E. and Willard, M. L. (2009). The business guide to sustainability: Practical strategies and tools for organizations. New York: Earthscan. Hopwood, B., Mellor, M., and OBrien, G. (2005). Sustainable development: mapping different approaches. Sustainable development. 13(1). pp.38-52. Joy, A., Sherry, J. F., Venkatesh, A., Wang, J., and Chan, R. (2012). Fast fashion, sustainability, and the ethical appeal of luxury brands. Fashion Theory: The Journal of Dress, Body & Culture. 16(3), pp. 273-296. Kotler, P. and Keller. L.K. (2011). Marketing Management, Fourteenth Edition. New Jersey: Pearson Education, Inc. Moore, C. M. and Birtwistle, G. (2004). The Burberry business model: creating an international luxury fashion brand. International Journal of Retail & Distribution Management. 32(8), pp. 412-422. Neil, B. O. (2010). Acting as a business: strategies for success. New York: Random House LLC. Wells, G. (2013). Sustainable business: Theory and practice of business under sustainability principles. UK: Edward Elgar Publishing. Read More