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Philanthropy as a Means for Improving Brand Value in The Luxury World: A Case of LVMH
Moet Hennessy Louis Vuitton.
Author’s Name
University
Course
Abstract
The luxury industry is known for the supply of expensive and valuable commodities. The industry is relevant to the economy since it is one of the leaders in annual revenue proceeds. The luxury industrial operation is beyond the normal aspect of value for money. Instead, it is the kind of industry driven by emotional judgement, affluence and loyalty. Therefore, most of the firms within the industry are shifting their focus towards marketing and brand perfectness to be sustainable in the future. To maintain the extended concept of luxury, most players in the industry have begun to be more conscious of their surrounding their employees and their local communities by engaging in philanthropy. However, the depth of philanthropic involvement in the 21st is more focused on building brands by creating an impression of responsibility. This research, therefore, analysed why CSR is more of a marketing tool than a duty by investigating how philanthropy has a significant impact on the brand value of a luxury brand. We met these research objectives using a grounded research theory. More specifically, the theoretical model was built using imputes from interviews with representatives from Louis Vuitton house as a case sample luxury firm which is a component of the LVMH conglomerate, a well-known luxury brand. The results from the research suggest that a fundamental effect of philanthropy is that it portrays a firm as socially responsible thus encouraging loyalty which directly translates into revenue. However, any luxury firm participating in philanthropy is not guaranteed of a valuable benefit. The value gain is dependent on the competency of the philanthropy organisation. Thus it is essential that luxury companies consider an effective CSR implementation to develop their brand value further. Besides, luxury firms are the value drivers of their brand and have to take part in more helpful exercises for a competitive advantage.
Keywords: Philanthropy, brand value, CSR competence
Table of Content
Abstract............................................................................................................................................2
Table of Content..............................................................................................................................3
List of Figures..................................................................................................................................6
List of Abbreviations.......................................................................................................................7
CHAPTER 1....................................................................................................................................8
1.0 Introduction............................................................................................................................8
Background of The Study............................................................................................................9
1.2 Purpose of The Study...........................................................................................................12
1.3 Research Aim and Objectives..............................................................................................13
1.4 Research Questions..............................................................................................................14
LITERATURE REVIEW..............................................................................................................16
2.1 Empirical Analysis...............................................................................................................16
2.2.1. Consumer Perception of the Brand (Brand Experiences)...............................................16
2.1.2 Brand Value and luxury....................................................................................................17
2.2 Theoretical Framework........................................................................................................20
2.2.1 Social Exchange Theory....................................................................................................20
2.2.2 Stakeholders Theory......................................................................................................22
2.3 Research Gap.......................................................................................................................23
2.4 Hypothesis Development.....................................................................................................24
CHAPTER 3..................................................................................................................................26
RESEARCH METHODOLOGY..................................................................................................26
3.0 Introduction..........................................................................................................................26
3.1 Research Design...................................................................................................................26
3.1.1 Research Philosophy:....................................................................................................27
3.1.2 Research Approaches....................................................................................................28
3.1.3 Research Strategy..........................................................................................................28
3.1.4 Choice of Method of Data Collection...........................................................................29
3.1.5 Time Horizons...............................................................................................................29
3.1.6 Techniques and Procedures...........................................................................................30
3.2 Sampling..............................................................................................................................32
3.2.1 Sampling Strategies.......................................................................................................32
3.3 Validity and Reliability........................................................................................................33
3.4 Ethical Consideration...........................................................................................................34
CHAPTER 4..................................................................................................................................35
FINDINGS AND DATA ANALYSIS..........................................................................................35
4.0 Introduction..........................................................................................................................35
4.1 Findings................................................................................................................................35
4.1.1 The Emergence of Concepts from Codes Studied in Louis Vuitton.................................37
4.2 Discussion and Analysis of Findings...................................................................................38
4.3 Emerging Theory.................................................................................................................41
4.4 Limitations To The Study....................................................................................................42
CHAPTER 5..................................................................................................................................44
CONCLUSION..............................................................................................................................44
5.0 Introduction..........................................................................................................................44
5.1 Overal Outcomes of The Study............................................................................................44
5.2 Contributions Of this Study............................................................................................45
5.3 Future Research Recommendations.....................................................................................46
5.3.1 Theoretical Investigation...............................................................................................46
5.3.2 Evaluation......................................................................................................................46
5.3.3 Extension of The Similarity Framework.......................................................................46
Reference.......................................................................................................................................47
Appendices....................................................................................................................................51
List of Figures
Figure 2.1 Brand value and firm competency...............................................................................15
Figure 3.1: Saunder et al.’s onion model.......................................................................................21
Figure 3.2 Data collection and analysis process............................................................................24
Figure 4.1: Codes of key points ....................................................................................................32
Figure 4.3: A representation of emergent theory ..........................................................................37
List of Abbreviations
CSR Corporate Social Responsibility
LV Louis Vuitton
LVMH Moet Hennessy Louis Vuitton SE
UNICEF United Nations International Children’s Emergency Fund
CHAPTER 1
INTRODUCTION
1.0 Introduction
From the 1960’s there arose an exceptional need for ethical acts in businesses since most
businesses dealt with unsafe products, polluted the environment, engaged in corruption in pursuit
of enormous profits and power rather than the welfare of employees, customers, and other
stakeholders. However, state regulations are now forcing businesses to limit their harmful
activities to the environment and the society. Besides, the increased value placed by potential
customers and other stakeholders on organisations taking part in CSR has also profoundly
contributed to social development initiatives. Corporate Philanthropy is important for the long-
term sustainability and success of any business (Gonzales, 2017). Therefore, all organisations
today regardless of the industry they operate in have to be progressively careful with the impact
that their internal and external practices have on the society. This is because the current society is
aware of their rights and position. They are highly exposed to a myriad of information (Melo,
2009).
What Is Corporate Philanthropy?
There is no single definition of corporate (Barnes, 2011). However, corporate
philanthropy can be regarded as the continuous commitment by businesses to behave ethically
and contribute to the economic development of the locals while at the same time improving the
quality of life of the workforce and their families (Long, 2012). The most common CSR
activities taken up by companies include charity, response to social disclosure, response to
environmental issues, diversity in the workforce and involvement in the local communities.
There are various synonyms of corporate philanthropy like Corporate social responsibility(CSR),
corporate social behaviour, organizational social responsiveness and social voluntarism
(Pomering & Dolnicar, 2009).
Background of the Study
From some investors’ perspective, philanthropy is a critical business strategy. According
to Zaczkiewicz (2016), the asset value of companies engaging in CSR activities has grown from
about $ 1 trillion in 1997 to around $ 7 trillion currently. Citing from the forum of sustainable
and responsible investment, Zaczkiewicz, (2016) further mentions that stakeholders, mainly
customers have played a critical role of encouraging companies in the luxury world to engage in
philanthropic activities due to the demand they place on the company and their overall
expectations.
Luxury is defined differently by different people. Regardless of the subjectivity in its
definition, luxury is still associated with class and prestige (Gonzales, 2017). However, luxury
brands are becoming more accessible and familiar causing the general characteristics of
uniqueness and exclusivity to reduce (Anon., 2018). Authenticity, legitimacy, reliability, and
superiority are the essential differentiating characteristics of goods in the luxury world and are
therefore value drivers in the luxury world. The world has witnessed a drop in the general
consumption of luxury goods since 2009. The most substantial decrease was noticed in 2016 (Bu
et al., 2018). Therefore, attention in the luxury industry is now focused on maintaining brand
value. Luxury can be categorised based on various aspects and approaches like how others
perceive the luxury, the country of manufacture, and the people involved, the way of
manufacture and selling among others. These classifications are mainly summarised into
physical and psychological attributes. Consumers and the industry depend more on the
psychological qualities more than the physical ones (Gonzales, 2017).
Why Do Organisations Give?
Charity in a non-profitable course that uses a significant amount of profits from a
company. However, in some cases, goods or services produced by a corporation can be of value
to the beneficiaries of a charity. Business involvement with philanthropic organizations for
public purposes has been researched widely. Sargeant and Shang (2017) for instance explain
fundraising in the contemporary world to show how a business’ involvement with non-profits
helps the business become a viable economic entity while also producing social well being.
According to Sargeant and Shang (2017) many small businesses take part in charitable giving in
the best manageable capacity. However, the underlying reasons behind giving is not only to get
rid of the excess inventory and free up warehouse space, but also to earn the hefty tax deduction
advantage, for public relations (PR), to earn their loyalty to a businesses and to ensure a
competitive edge.
The primary motive behind corporate social responsibility in the luxury industry is
marketing. Although there is no harm in making money out of philanthropy, this motive has only
resulted in the partial implementation of philanthropic activities. Organisations dealing in luxury
brands typically work with the mindset of maximising profits for shareholders above anything
else. (corporate social responsibility online, 2018). This idea is firmly backed up by
Zaczkiewicz, 2016), who mentions that bringing CSR activities into the marketing and corporate
identity improves the overall image of the industry as well as developing the relationship
between the organisation and its stakeholders. Such firms are viewed as more responsible firms.
However, the danger of this motive is that CSR could only be used to gain a competitive
advantage while brainwashing the primary purpose of CSR.
Many studies have reported on contextual factors affecting corporate social responsibility
among firms while relying on theories and studies mainly in the west. However, as Montesa and
Rohrbeck (2015) mention, sustainability course is becoming more relevant in the luxury world.
Luxury companies, therefore, must heed the call of providing tools and environment that
facilitate responsible practices.
This study explores LVMH Moet Hennessy Louis Vuitton SE in the luxury world as a
sample case company. The main reason for choosing Louis Vuitton is due to the company's
primary interest in philanthropic actions, its accessibility and the fact that it is the world’s leader
in luxury (Deloitte 2017). LVMH's great interest in philanthropy is evidenced through the yearly
independent Corporate responsibility reports and some activities listed on their website. Since its
creation in 1987, the company has shown a business model that is characterised by dynamic
growth. LVMH comprises of 70 houses producing exceptionally high-quality products in the five
major luxury markets: wines and spirits, Fashion and leather goods, Perfumes and cosmetics, as
well as watches and jewellery. Some of the philanthropic activities LVMH engages in include
ensuring the well being of workers, promoting talent and skills, preventing discrimination and
supporting local communities. For instance, in 2013, LVMH created the LVMH Rise program to
develop leadership styles among young leaders. The program cuts across New York, Rome,
Bulgari, Tokyo among other cities (LVMH, 2017). LVMH also developed a Handi-talents
program which is a recruitment program that helped in placing disabled applicants to work
(LVMH, 2017). The company also opened up networks in 2010 for the young people living in
rural areas of Paris by welcoming them into the company as interns and seniors. One of the
primary principles that LVMH operates on is that it ensures all the houses are responsive and
autonomous. This is one of the guiding principles that motivate the company's philanthropic
exercises (LVMH, 2018). LVMH also makes numerous contribution towards non-profit courses
like Save the Children and UNICEF.
LVMH is one of the many luxury brands that firmly believe in philanthropic initiatives as
a way of giving back to the society. The LVMH group CSR philosophy reads:
We believe that philosophy initiatives in support of those most in need constitute a fitting
way to give back to a society that has enabled our group to thrive” (LVMH, 2018).
This initiative began as early as 1991 by Bernard Arnault, the company’s CEO, for the
improvement of LVMH's corporate image and strategic group development. The LVMH social
responsibility report (2014) indicates that the fundamental principle behind LVMH ‘s corporate
responsibility projects is the respect for people. According to the group executive vice president,
the LVMH creations could not exist in the first place without remarkable men and women who
work hard. Therefore the group’s commitment towards social responsibility means respecting
such people's individuality, developing and transmitting savoir-faire and identification of talents
that share the company's quest or excellence (LVMH, 2017).
The CEO’s dream for LVMH is to place the brand on a global map through CSR. UNGC
has monitored LVMH’s CSR initiative since 2003. Once LVMH became a participant in
UNGC’s social responsibility reporting program, the group’s brand value performance improved
considerably. It increased from EUR 5.6 billion in 2004 to 13.8 billion in 2005- a 146% rise
(Interbrand, 2017). Accordingly, the company's management noted the impact of making the
group's CSR effort more publicly visible on LVMH's brand value. After joining UNGC, they
declared in the LVMH annual report of 2003 that brand image enhancement was a key pillar of
LVMH’s economic performance. They argued,
“[LVMH’s brand]image is an estimable and irreplaceable asset and … each message
must be worthy of the brand” (LVMH, 2004).
Their standpoint showed that they acknowledged the marketing potential of reporting CSR
endeavours. Still, research offers controversial perspectives on philanthropy as a way for luxury
brands to enhance their financial performance.
1.2 Purpose of the Study
Having a brand is more than just a name, slogan or reputation (Guzman & Davis, 2017).
A brand encompasses the entire business including how the organisation conducts itself
regarding philanthropy (Melo, 2009). This directly influences customer perception towards the
business (Nikolova & Arsic, 2017). Brand values are the foundations on which a brand is built
in. Customers are keen and will always want to know what a business stands for and the position
a company takes in addressing matters affecting the society particularly through CSR. Besides
customers only choose to support a course that is important to them. They are attracted to
quality, understanding, integrity, and consistency (Long, 2012). The luxury industry is
competitive. Therefore, luxury firms have to consider how they can win over customers or make
them have the will to pay more for their brands through the image and qualities they portray by
engaging in CSR activities. This study is therefore important for managers in the luxury world
for formulating a proper CSR strategy that is essential for promoting the brand value. The study
provides knowledge to manages and decision makers in the luxury world on how to create a
positive image that will leave lasting impressions on the customers' mind by defining their brand
identity. Moreover, this research will help academicians in conducting follow-up researches as it
will act as a basis for further development of the phenomenon discussed in this study on specific
luxury brands.
1.3 Research Aim and Objectives
A lot of resources and time are used up in philanthropy. The course is generally expensive as
it does not generate immediate profits for the company. However, Philanthropy, of any kind, is
not only the right thing to do but can make a particular brand stand out if done correctly. This is
because philanthropic activities strengthen the culture of the companies and attract various
customers. For efficiency, CSR initiatives must be connected to the company's brand. A brand is
a unique identifier of the company. It is a way a company tells its story. However, linking up a
philanthropic activity to the company's objectives, mission and vision is not easy. For instance,
giving to the community as one approach to philanthropy may not directly provide an authentic
connection that matters to employees, customers, other stakeholders, because there are no
quantifiable bottom-line benefits. This raises the question of how then can a company know if its
philanthropic activities are adding value to the company? Therefore, this study aims to
investigate the connection between charitable activities and the brand value of luxury brands.
Using Louis Vuitton as the leading luxury goods company and as a benchmark for responsible
citizenship in the corporate world, this study generated empirical evidence from primary sources.
To achieve the main aim of the study, this research was based on the following objectives.
1. To identify the CSR practices adopted by companies in the luxury world
2. To analyse the impact of CSR on corporate brand value building
3. To study and compare the financial aspects related to the brand before and after the
organisation embraces CSR practices.
4. To compare and analyse different executives, workers, and customers' perception of
brand building and CSR.
5. To analyse various CSR concerns from both the executives and the customers.
1.4 Research Questions
Charitable actions have an impact on the brand value and the customers' perceptions of the
luxury brand. This study examined the influence of luxury companies philanthropy using the
following research questions.
1. To what extent has CSR been implemented in Louis Vuitton?
2. Does corporate philanthropy play a role in LVMH's brand performance
3. Do Louis Vuitton‘s donations influence people's regard for the company as a socially
responsible firm?
4. Does Louis Vuitton‘s corporate philanthropy affect customers’ purchasing decisions for
luxury brands?
CHAPTER 2
LITERATURE REVIEW
2.0 Introduction
CSR affects the organisation's brand value and the customer perception. This section
reviews the literature on three main parts. The first section of the literature review gives an
overall evaluation of the literature on past studies concerning the significant variable of this
study. The second part discusses a theoretical framework on corporate philanthropy and the
customer’s perspective on the brand value. The last section identifies the research gap basing on
the previously done researches and models.
2.1 Empirical Analysis
2.2.1. Consumer Perception of the Brand (Brand Experiences)
Many scholars have widely researched the concept of consumer value perception on CSR
beyond the face value benefits. Particular research conducted by Barnes (2011), confirmed that
corporate social responsibility has a direct impact on the consumer’s purchasing behaviour. The
analysis empirically measured CSR using Turker's scale and a brand trust scale developed by
Delgado Ballester and Muura-Aleman. Barnes (2011) found out that legal, employee, ethics and
economic issues are the major components that represent CSR and have a direct effect on brand
trust. However, this research was limited since it does not explain explicitly about CSR and the
consumer-based brand relationship.
A separate study by Keller (1993) formed a model of customer-based brand value. From this
model, Keller (1993) conclusively mentions that the two major components of customer-based
brand value our brand image and brand awareness. Keller’s research (1993) was limited to
advising managers on developing the brand strategy but overlooked some areas where the
managerial guidance is necessary when making these decisions. For instance, Keller (1993) only
mentions that managers have a responsibility of ensuring a perfect CSR activity for a suitable
brand value but does not directly explain what managers need to do to improve their brand value.
However, separate research done by Salmones et al. (2005) came up with a different finding.
Salmone et al. 's study (2005) concluded that the only effect CSR has on customers loyalty is
indirectly through service valuation. Their research reveals that consumers not only buy products
and services but instead want to experience what is being sold. These views acknowledge that
consumers are information processors to a more holistic perspective who take into consideration
both the coherent and emotional facet. On the other hand, contrary research by Pomering and
Dolcinar(2009) reported that CSR activities have little or no influence on consumer perception
on any brand since the majority of the consumers are not aware of the CSR methods in use by
organisations despite the organisation's effort to communicate CSR initiatives to the public.
This dissertation further develops Salmone et al. 's study (2005) by analysing how consumers
process philanthropy and decide to stick to or purchase a luxury brand regardless of the prices.
Moreover, this study suggests more considerations in managerial decision making on matters of
CSR that were previously overlooked by Keller (1993). These competencies are the critical
determinants of the brand value through CSR.
2.1.2 Brand Value and luxury
Numerous studies have revealed that there is a direct connection between CSR and brand
value in the luxury industry. One research by Singh and Verma (2017) confirms that there is a
direct relationship between CSR initiatives and brand value. Using a structural equation
modelling (SEM) to test the hypothesis, the study found out that CSR initiatives mediate effects
of enhanced brand image and brand loyalty. The luxury brand is empowered in different ways
especially when firms take part in ethical CSR initiatives that preserve the environment. Singh
and Verma's study (2017) was however limited to a developing economy and majorly focused on
the Indian business perspective.
The sentiment on the positive relationship between CSR and brand value is strongly
supported by Petit (2018) who mentions that CSR initiatives like environmental conservation,
sourcing local materials and maintenance of good working conditions are the key drivers of
luxury brand value. According to her, customers subscribe more to these visible initiatives and
choose to buy products thus building the market share. Moreover, these philanthropic initiatives
contribute to the brand value by mitigating risks in the supply chain.
Gonzales (2017) also narrowed down the CSR aspect to the luxury world. According to him,
brand value is the most significant asset in the luxury world. However, CSR is not an area of
vital interest in the luxury industry since most consumers are not actively demanding more from
luxury firms. Depending on how it is managed, CSR can either build or ruin a brand of any
luxury company. He argued that CSR initiatives not only drive consumer demand but also result
in a competitive advantage which has a direct potential impact on the luxury brand value. A
similar study by Han, Mahmood, and Khan, (2016) also found out from a sample of over 300
customers of a luxury brand that there is a direct relationship between CSR and the purchasing
intentions of customers. However, they had an additional opinion as according to them, the plan
to purchase depends on the individual customer. According to Han, Mahmood, and Khan,
(2016), affluent customers who have an internal value expressive perception show the most
significant intention to purchase luxury brands. Such consumers also pay more attention to CSR
compared to external value expressive consumers. Yoo’s study (2017) gives a supportive opinion
on the circumstances under which CSR can effectively build a luxury brand. According to Yoo
(2017), brand value impact is measured both qualitatively and quantitatively. According to Yoo
(2017), effective CSR encompasses an alliance and reinforcement between social, environmental
and social performances of any luxury company.
A separate study by Guzman and Davis, (2017) concluded that a firm could formulate a
brand win for a luxury firm if it invests in a strategic CSR initiative approach. For instance,
meanings associated with some luxury brands may directly conflict with the impression revealed
by the CSR initiative. This, therefore, may reduce the value consumers attribute to the brand.
According to Sargeant and Jay (2004), charitable initiatives are known to be apealling for seven
main reasons. Part of these reasons have an impact on how consumers view an organisation.
First,the CSR initiative has to ensure utmost customer satisfaction. Second, it has to share in the
organisational beliefs. Third, the charitable exercise has to build the client’s trust through an
enhanced level of customer satisfaction. Fourth, it has to involving multiple engagements. Fifth,
the initiative has to take the beneficiaries on a journey of transformation. Lastly the initiative has
to be transparent and to allow the customers to know their consequences. Apart from Seargent’s
specific requirements in philanthropy, Long (2012) further mentions that situations, where CSR
backfires for the luxury brand, are mainly due to a miscommunication of CSR policies to
consumers. Long (2012) therefore advises that any brand can benefit from CSR initiatives.
However, CSR activity has to be consistent with the particular brands valued by consumers.
Moreover, brand, managers of luxury firms should be keen when passing messages about their
brand by first, differentiating the brand through other factors other than CSR. Second, attributing
their CSR activities to more suitable brands.
Despite the importance of brand value within the luxury world, according to a research done
by Gonzales R. B.( 2017), brand value is not widely understood by the luxury industry and
therefore it is not well managed and leveraged by key players in the industry. This study
develops Singh and Verma's research (2017) as it focuses on a worldwide perspective in a luxury
business environment. Furthermore, this study focuses on how luxury firms can further develop
their brand value through their choice of philanthropic exercise as earlier researched by Guzman
& Davis, (2017); Yoo (2017) and Gonzales (2017).
2.2 Theoretical Framework
2.2.1 Social Exchange Theory
Social exchange theory proposes that social behaviour is a consequence of an exchange
process that aims at maximising benefits and minimising costs (Jones, 2010). According to the
theory, customers usually weigh between the potential benefits and risks before engaging
themselves in any relationship. In case the risks are more than the benefit, there are higher
chances of terminating the relationship. Therefore, customer loyalty to a particular brand is
dependant on rewards they expect to receive. The social exchange theory views value as
something critical but dependant on power and justice for a continuous exchange of activities
between two parties (Jones, 2010).
Brand value is an antecedent of trust and commitment (Jones, 2010). According to
Popoli (2011), CSR initiatives invite a reciprocal exchange. Therefore reciprocity is at the centre
of the relationship between the company and the clients (Aguilera et al., 2007). The social
exchange theory describes the psychological and social processes that drive consumers to
purchase luxury goods from a company they perceive to be socially responsible. The company is
at the centre of a network of external relationship with stakeholders. It has a responsibility of
satisfying the expectations of the stakeholders through the correct choice of philanthropy like
conserving the environment, sponsorships and providing a conducive working environment. In
exchange the company earns trust. The trust directly translates into acceptance of a company's
luxury products (Jones, 2010).
From a strategic brand value management perspective, the value of a brand is as a result
of a company management’s competencies in selecting the most appropriate CSR initiatives that
directly translate into a successful brand image, brand identity and brand awareness among the
stakeholders, particularly customers. This implies that the level of commitment by customers to a
particular luxury brand will depend on the quality if CSR benefits they receive. The figure below
illustrates how well planned values, competencies, and strategies before the execution of any
CSR practice can directly impact the brand image which consequently affects the brand value
only if the customers are satisfied with the CSR effort. This gives a company a competitive
advantage resulting in maximum profits.
Company Values CSR strategy CSR team competency
Corporate social Responsibility exercise
Brand identity Brand Image Brand awareness
Brand value
Figure 2.1 brand value and firm competency
.2.2.2 Stakeholders Theory
Edward Freeman first developed stakeholder theory in 1984 is the publication, Strategic
Management-A Stakeholder's Approach (Nikolova & Arsic, 2017). Stakeholder theory holds
that a company's stakeholders are those people whose support is fundamental to the existence of
the organisation. They include customers, suppliers, employees, political action groups, media,
suppliers, financial groups and governmental institutions (Popoli, 2011). The corporate
environment has to be satisfied to keep the company healthy (Gonzales, 2017). According to
Freeman, getting the stakeholders to swim in one direction gives the company some momentum
and real power (Lankoski et al., n.d.). Therefore, the company’s real success in its brand value
lies in satisfying the stakeholders. A company, thus, should never lose sight of anyone involved
in its success. If it treats people poorly, the ultimate effect may be a drastic downfall.
Stakeholder’s theory is even more relevant in the current luxury business model since
responsibility by a company shapes its value perception by stakeholders in the industry. So then
what is value for stakeholders regarding CSR? Craig McDonald further developed the
stakeholder’s theory while paying attention to CSR. McDonald’s view is simple if a company
competitive advantage
profits
values its brand, it has to act in such a way that they express their CSR activities while focusing
on initiatives and outcomes that make everyone happy.
Companies have a responsibility of documenting their activities and their contribution to
the environment for two main reasons. First, to broaden the customers' view on the brand
relationship and second, for customers to place a value on the customer-company relationship.
Therefore, brand value is more connected to the performance of the organisation.
Customers make a judgment on value based on particular CSR initiatives the organisation
takes part in. According to Lankoski, et al.,( n.d.), This judgment of value triggers customers’
reaction and the customer may either choose to purchase a brand or be loyal to that particular
brand (Gonzales, 2017). The relationship between corporate social responsibility and
stakeholders can also be examined from a perspective of organizational social performance
(Nikolova & Arsic, 2017). Therefore, the management is responsible for making strategic CSR
decisions which largely shape the brand image to the customers and other stakeholders.
From stakeholder's theory, systematic attention to the interest of customers is therefore
fundamental. Luxury firms, therefore, have to operate while bearing in mind that any CSR
decision they make affects the interests of the customers (Melo, 2009). Hence it logical for every
firm in the luxury world to take advantage of this relationship and only take part in CSR
initiatives that maximise brand value.
2.3 Research Gap
Most of the arguments and studies have been done on brand value and corporate social
responsibility. However, most researches have been done from a company level perspective
rather than an industry level perspective (Gonzales 2017). Exploring the effect of CSR in a single
firm hinders the relevance of the research concerning practical application. Therefore this
research takes a more inclusive approach to the exploration of CSR and brand value in a luxury
industry setup. Moreover, very little research has been done on the measure of brand value since
most researches base their analysis from a theoretical perspective rather than a practical analysis
(Long, 2012). By using philanthropy as a determinant of brand value with an integrative
connection to the customer's decision to purchase luxury brands at any cost, this study addresses
a crucial question on whether CSR initiatives are worth undertaking for any luxury firm. This
research builds on previous studies done by others on the impact of CSR on brand value while
analysing Louis Vuitton as a selected LVMH outlet. This research reports on the position of
LVMH’s brand value as one of the well-known luxury brand. This paper also reports the effects
of some commonly done practices in CSR by luxury firms on the brand value as a means of
improving the competitive advantage of the firms.
2.4 Hypothesis Development
The previous subsections analysed the existing empirical evidence and theory that are
connected to the relationship between CSR and brand value. These subsections form the basis for
the development of hypothesis for this dissertation. This subsection elaborates on the different
hypothesis.
The customer’s association with a particular brand is known as the brand image. Brand
image affects both the objective and subjective dimensions of customer perception of a brand.
Brand image is positively affected by CSR (Petit, 2018). As mentioned before in the social
exchange theory, as long as the organisation shows a socially responsible behaviour, customers
will reciprocate with activities that are beneficial for any luxury brand. This is because it creates
a positive attitude towards the company and the products. Customers view a firm that engages in
philanthropy as a socially responsible firm. Therefore, it can be hypothesised that:
HI: CSR initiative has a significant positive impact on the customers’ value on a luxury brand.
Brand image and brand loyalty are the critical determinants of brand value (Montesa &
Rohrbeck, 2015). When the company shows efforts in CSR activities, the company makes their
brand more reliable and memorable and quickly noticed by new consumers which consequently
affects the brand value. Therefore, it can be hypothesised that:
H2: Brand image has a significant positive impact on the brand value
As mentioned earlier by Guzman & Davis, (2017); Yoo (2017) and Gonzales (2017),
corporate social responsibility drives brand value only if it is carefully done. Thus, CSR is being
referred to as a management strategy since it is the responsibility of any company’s management
to make sure that it makes a positive impact on the society. According to Guzman and Davis
(2017), companies have to dedicate departments and competent personnel to take care of the
matters that relate to social responsibility. It can, therefore, be hypothesised that:
H3: A company’s competency in CSR strategy has a positive impact on brand value.
CHAPTER 3
RESEARCH METHODOLOGY
3.0 Introduction
This research used the grounded theory methodology to investigate social processes and
actions facilitated by philanthropy. Louis Vuitton was chosen as the research object of studying
the relationship between brand value and CSR from both the company's perspective and the
consumers’ perspective. Louis Vuitton is one of the outlets of LVMH, the leading luxury brand
in the world (LVMH, 2018). In the past years, LVMH had had an extension of houses all over
the world. Therefore, it is easier to collect data (LVMH, 2017). Besides, LVMH has taken part in
numerous CSR initiatives, and it is regarded as a more socially responsible brand (LVMH,
2017).
3.1 Research Design
The research design is a building plan for the research project (Saunders et al., 2009. This
research used the concept of a research process suggested by Saunders et al., (2009) as illustrated
in figure 3.1.
;
Figure 3.1: Saunders et al.’s onion model (Source: Junid,2006))
3.1.1 Research Philosophy
According to Saunders et al., (2009), the research strategy and methods depend on some
underlying assumptions. The researcher in this study maintained that the external reality
comprised of facts that would provide the theoretical framework of this study. Moreover, the
researcher allowed the theory to emerge from the data. The researcher posed open questions
while assuming that he knew very little about the state of the LVMH group (Birks & Mills,
2011). The researcher's primary aim was to learn from the participants how LVMH group's
philanthropic exercises change their perception towards their products
3.1.2 Research Approaches
There are two types of research processes, the inductive and deductive processes
(Saunders et al., 2009. This research, however, used the inductive approach where the researcher
first developed a theory from the data collected. (Saunders et al., 2009). The inductive approach
involves the search for patterns from the interview responses. This data will continuously and
extensively be analysed multiple times until a new theory emerges (Brown et al., 2002). The
essence of using an inductive approach in this research is because the major aim of this study is
to explore new phenomena of CSR and brand value from a different perspective from what has
been researched earlier. (Yoo, 2017)
3.1.3 Research Strategy
Saunders et al., 2009 defines a research strategy as the path towards the achievement of
the research’s goals by answering the research questions. This research adopted the grounded
theory research strategy. The essence of using a grounded methodology was to derive a theory
from the systematically gathered and analysed data in the research process (Brown et al., 2002).
Besides, grounded theory comprised of well-signposted procedures that made the whole process
of data collection more straightforward (Lawrence & Tar, 2013). Very little research has been
done on the relationship between brand value and philanthropy in the luxury world. Therefore,
the grounded theory makes the most significant contribution in such an area since many variables
relevant to the concept of brand value in luxury brand are yet to be analysed deeply (Lawrence &
Tar, 2013). Other reasons for using grounded theory methodology is that grounded theory
produces accurate and functional results. Also, it does not ignore or simplify the organisational
context of the case study since all the complexities of the LVMH are well taken care of and are
part of the phenomenon (Brown et al., 2002).
3.1.4 Choice of Method of Data Collection
A researcher can either use one or multiple techniques (Saunders et al., 2009). In this
study, the researcher used a mono-method of data collection, where data was gathered
quantitatively, and quantitative methods of data collection were used as well. Interviews were the
primary instrument of data collection. The interview questions had two parts. The first part
attempted to measure LVMH’s brand image from the customer’s perspective. It contained two
parts; the perceived value from CSR activities and a measure of customer’s satisfaction on CSR
activities conducted by the LVMH (see Appendix D). The second part of the interview questions
entailed Louis Vuitton (Company based) measure of brand value with questions further
subdivided basing on the four major metrics; brand awareness, brand preference, financial
analysis and output analysis. All the questions were semi-structured and open-ended (see
Appendix A).
3.1.4.1 Pilot Testing
To improve the final list of interview questions, the researcher did a pretest to ensure that
these questions answer the objectives of the study as suggested by Lawrence and Tar, (2013). He
planned for a random interview with LVMH clients in LV house. After the pretest, the
researcher used the input to make appropriate changes
3.1.5 Time Horizons
According to Saunders et al., (2009), the time taken for research phenomena is dependent
on the chosen research techniques. There are two possible options, the cross-sectional studies
and the longitudinal studies. This research adopted the longitudinal study option. A longitudinal
study is an overtime study of variables. In this case, the same population of respondents was
investigated repeatedly until the researcher found a relatively stable theory from the findings.
The essence of using longitudinal studies is due to the dynamic nature of brand value effect
which is a major variable in this study (Saunders et al., 2009).
3.1.6 Techniques and Procedures.
This is the innermost layer of Saunders et al. 's research design., (2009). The researcher
developed the hypothesis of this study from the theoretical framework and the empirical studies.
Data collected through grounded research was then used to analyse the hypotheses and the
research questions. The study particularly involved four critical steps to test the effect of
philanthropy in improving the brand value of the LVMH brand. First. The researcher made initial
decisions regarding the specific individuals with the knowledge about the research area. Second,
the researcher analysed the initial data until theoretical ideas and concepts begun to appear.
Third, the researcher had to choose more participants by theoretical ideas revealed. Fourth, the
researcher repeated step two and three until theoretical saturation was arrived at. Theoretical
saturation is the point where the events under investigation are considered to have ended. At this
point, the researchers had nothing new to gather from the participants (Birks & Mills, 2011).
All findings and responses from the interviews were written in transcripts (appendices
A-H). The analysis of data started by coding as many important issues as possible mentioned by
the respondents. The initial codes captured from data from the Louis Vuitton team provided
evidence of the effects of philanthropic activities on the brand value. The coding systems were
developed both individually and through team meetings and discussions. After each interview,
the researcher formulated a memo reflecting on the findings and the interviewers’ reactions.
These memos were then compared after the interviews. Figure 3.2 shows the procedure for the
data collection in grounded theory.
Figure 3.2 data collection and analysis
The study used extensive interviews as the instruments of data collection. However, the
researcher had to move back and forth between data collection and data analysis. After
theoretical sampling, coding began immediately. Coding is the process of naming and labelling
data (Brown et al., 2002). In this case, the researcher established codes for raw data from the
start of the interview process. The codes were then used to redirect further data collection where
the codes were developed by their connections with other codes until saturation point.
At first, the researcher conducted semi-structured interviews with the Louis Vuitton's
employees particularly the CSR team, the marketing team, financial department and the
management to assess the financial measures of the brand's monetary value through five
parameters. They include the market share, price premiums, revenue generated by the brand, the
transaction value of the brand and the rate at which the brand ensures sustainable growth. A
Collect data
Code data
organise data
around concepts
categorize related
concepts
link patterns in categories
develop a model
broader focus on this research required analysis of how LVMH's donations and other CSR
activities influence the peoples' view of the firm. This called for further interviews with the
customers spotted within the Louis Vuitton. The questions were semi-trusted. The research team
again used theoretical sampling to obtain data that would shed light on the influence of people’s
regard for the company. Further interviews were conducted with clients within the Louis Vuitton
store. The number of interviews conducted depended on the saturation point of the data. The
interview questions were formulated to encourage flexibility among interviewees. However,
Rubin and Rubin’s (2005) suggestion was followed where the researcher formulated the main
questions then posed follow-up questions based on the answers given by the interviewees.
3.2 Sampling
Theoretical sampling was used. This is the process of collecting, coding and analysing
data simultaneously to generate a theory (Birks & Mills, 2011). Theoretical sampling was the
best since the research's main goal was to explore and describe the outcomes of philanthropy as a
new real-life practice in LMVH brand. Moreover, grounded theory analysis requires that the
researcher builds theory while collecting more data to build the theory further. When a particular
category appears thin, more data need to be collected in that particular category (Lawrence &
Tar, 2013). Therefore, the theoretical sampling was not fully planned before the process of data
collection commenced.
3.2.1 Sampling Strategies
The researcher chose the participants for the interviews using both a convenience
sampling technique and snowballing technique. The convenience technique was used to select
the customers within the Louis Vuitton (LV) stores without a lot of prior arrangement. The
researcher only talked with clients who came to LV house to shop that day. Convenience
sampling was easy, and it was important in this study because it was cheap, easily available and
time-saving (Lawrence & Tar, 2013). Snowballing sampling was used for the LV house
personnel. The researcher booked appointments with only a few people that he had selected by
himself and was confident they had the right lead towards answering some research questions.
As the interviews progressed, the researcher used their referrals to include more participants into
the research particularly to answer questions not previously answered by the first group of
interviewees. The essence of using snowball sampling is that it is more appropriate for situations
where the researcher wants to discover information that he is not aware of like LV's financial
data. (Lawrence & Tar, 2013)
3.3 Validity and Reliability
According to Straub et al. 2004, validity is the ruling out of different hypothesis, while
ensuring the constructs are real, reliable and the instruments used to measure the right content.
Reliability, on the other hand, refers to the extent to which the data collected reflects the real
nature of the phenomenon being investigated (Brown et al., 2002). The research involved many
assurances of quality during data analysis and data collection as suggested by Sbaraini et al.
(2011). First, the researcher kept a detailed analysis of records. Second, the research activities
were supported by the researchers and assistant through a regular research team meeting to
discuss and contextualise all emerging interpretation
In this study, researchers ensured credibility by a prolonged engagement with the
participants. Interviews were done until saturation points where the researcher felt there was no
additional information to be collected. There was also a thick description and assessment of data
(Morrow, 2005). Interview participant checks ensured that there was a respondent validation of
interview transcripts and all concepts that emerged within the research (Brown et al., 2002). To
ensure a reliable data collection process and findings, the researchers ensured a compared
continuously data and comprehensive use of data in the analysis.
Like other qualitative research approaches, the ground theory is subject to errors like a
misinterpretation of the data which threatens the accuracy of the new theory. To mitigate this
risk, researchers relied on respondents’ validation to confirm the researcher's interpretation of
data. In this case, the researcher returned to the interviewees after the interview to confirm the
accuracy of the individual interview transcripts and confirming that the researcher's
interpretation of the data is a direct representation of what the respondents said.
3.4 Ethical Consideration
Throughout the research, the researcher followed particular codes of conduct to prevent
fabrication and falsification of data. Moreover, the conduct of the researcher ensured
accountability, trust and mutual respect between the researcher and the respondents. The
researchers submitted the research proposal to Louis Vuitton’s institutional review board who
ensured that the safety and human right of the respondents within the organisation was not
violated. All participants in the interview participated voluntarily and were prepared and
informed before the research. They were allowed to withdraw from the study anytime they
wished to. Moreover, the researcher notified the respondents about their responsibility and the
possible risks during the interview processes. The researchers protected the respondents from
any harm and assured them of the utmost security. The privacy of the participants was ensured,
and the researchers were only allowed to give information they were willing and comfortable.
They were also assured of safety. The researchers stuck to the aims and objectives of the study
and ensured that there was no form of deception and exaggeration. All the interview questions
were formulated neutrally, with acceptable language while avoiding any kind of discriminatory
or offensive language.
CHAPTER 4
FINDINGS AND DATA ANALYSIS
4.0 Introduction
The main goal of this study was to use grounded theory to describe the impact of CSR on
luxury brand value. The analysed data resulted in a theory that explained the relationship
between CSR and brand value in the luxury world. This section begins with a discussion of key
findings of the research. It further describes how the key elements that led to the theory are
connected to the study. The focus in this chapter was based on the research questions and
hypothesis. The research questions include:
1. To what extent has CSR been implemented in Louis Vuitton
2. Does corporate philanthropy play a role in LVMH brand performance?
3. Do Louis Vuitton’s donations influence the people’s regard for the company as a socially
responsible firm?
4. Does Louis Vuitton’s corporate philanthropy affect people’s regard for the brand?
4.1 Findings
All the important points to the investigations of this study were identified in the
transcripts. All the key points were denoted using letter P. The key points were further identified
with a suffix lv to show they were collected within Louis Vuitton house. The table below
illustrates codes from the key points that emerged during the interviews.
Code Id Key Point Code
Plv1 The quality of LVMH is better than
other brands
Brand image as a determinant of
brand value
Plv2 LVMH products can be recommended
to anyone
Brand image as a determinant of
brand value
Plv3 It is important for LVMH (LV) to work
collaboratively with other corporations
to support local Communities
CSR as a determinant of customers
value perception on a luxury brand
Plv4 LV needs to improve in all its CSR
initiatives
CSR as a determinant of customers
value perception on a luxury brand
Plv5 If LV participates in more
philanthropic exercises, clients will
value its products more
CSR as a determinant of customers
value perception of a luxury brand
Plv 6 LV’s CSR initiatives are perfect, and
nothing needs to be changed
CSR as a determinant of customer’s
value perception of a luxury brand
Plv7 LVMH is the best brand, and anyone
can choose it due to its support for
social responsibility.
CSR as a determinant of customer’s
value perception of a luxury brand
Plv8 The CSR initiatives LV engages in a
lead to various social mentions, website
visits and consequently result in more
sales.
competency in CSR as a determinant
of luxury brand value
Plv9 Customers are willing to pay more for
LVMH products
CSR as a determinant of customer’s
value perception on brand value
Plv10 There are no complaints about the CSR Competency in CSR as a determinant
activities LV participates in. of luxury brand value
Plv11 LV’s sustainable growth, market share,
revenue growth, financial growth,
increase can be attributed to CSR
Competency in CSR as a determinant
of luxury brand value
Plv12 LV’s collaboration with UNICEF is the
most significant initiative that turned
more focus towards the LVMH brand.
Competency in CSR as a determinant
of luxury brand value
Plv13 LV’s collaboration with UNICEF
brought in several hundred of people
into the LVMH page who were directly
pitched to buy more of LVMH
products(necklaces and bracelets)
Competency in CSR as a determinant
of luxury brand value
Plv14 Customers value and buy brands that
are more appealing to them
Brand image as a determinant of
brand value
Figure 4.1: Codes of crucial points
4.1.1 The Emergence of Concepts from Codes Studied in Louis Vuitton
Code Emergence
brand image is a determinant of brand value Plv1 Plv2, Plv14
CSR is a determinant of customers value
perception on a luxury brand
Plv3, Plv4, Plv5, Plv 6, Plv7, Plv9
competency in CSR is a determinant of
luxury brand value
Plv8, Plv10, Plv11, Plv12, Plv13.
figure 4.2 Concepts from Codes
4.2 Discussion and Analysis of Findings
Research question 1: to what extent has CSR been implemented in Louis Vuitton
Some of the initiatives LV engages in include collaboration with UNICEF and the
services they give to their clients and employees. However, a section of customers had no clue
whether Louis Vuitton takes part in CSR or not. Those who had ideas about CSR in Louis
Vuitton showed satisfaction when asked what they would change about the brand’s corporate
philanthropy if given a chance. Most of them were content with what LV does. For example,
Rawan-K noted:
“I saw the collaboration between UNICEF and LV and I was looking into buying the
silver lock pendant, but I felt it’s a bit overpriced. But the cause of this idea is amazing! I
heard many people wowed by the idea from the feedback I have heard. I feel they should
do more things like this.” (Appendix I).
From this example, it is evident that the value of an initiative and the depth of appeal to the mass
is accessed by the ability to touch the hearts of many people.
From, the organisations' response, LV is a leader in the LVMH conglomerate because of
their values and their social reactions towards societal issues. Besides, LV has a personal goal to
help people. When asked about the intent of LVMH in philanthropy, Christopher mentions:
"Regarding personal things, obviously they know they have a lot of funds and a lot of
would say regarding the business I think especially with a luxury brand people would
look on a company a lot better (Appendix B).
The company gave a detailed emphasis on UNICEF collaboration, as it was their biggest success.
Other initiatives include an art exhibition in Paris. When asked about the Initiative that placed
LV on the philanthropic map, Sarah mentions:
“UNICEF collaboration definitely, also in Paris the big project where they built art
exhibition that is charity based” (Appendix A).
Basing on the stakeholder’s theory discussed in chapter two and some responses from the
interview, it is evident that LV takes part in CSR out of an obligation of sustaining the society
under which it operates. From the findings, LV’s involvement is basically towards the
satisfaction of everyone, whether they are affected by the decisions of the organisation or not. As
Lankoski, et al.,( n.d.) mentions, the two concepts of stakeholder and CSR are linked because
stakeholders are part of the motivation for business responsibility. In other words, LV’s
philanthropic effort is more of a strategic action rather than ethical.
Research question 2: Does corporate philanthropy play a role in LVMH brand performance
The central questions that led to this research questions were directed to both customers
and the working personnel within Louis Vuitton. The interviews mainly gave insights to specific
measures like customer satisfaction and the perceived value of the brand. On the other hand, the
organisational feedback was based on how the Louis Vuitton mainly perceived its brand and how
much CSR contributed towards their brand establishment.
Customers of Louis Vuitton had a mixed opinion on the quality of the LVMH. Some of
the clients who responded acknowledged that the quality of the LVMH brand is much better than
the quality of the brands from competitors.
” LVMH brands are nice and fancy, and you look so elegant in them however they are
pricey if you measure quality over the price they are overrated” (Appendix I)
“I think like I don’t know because shoes I wear I mainly LV and the quality for me is
amazing, not amazing but like I mean they last, it’s been one pair I've worn them on a
daily basis for the past three years, and they are still wearable.” (Appendix G).
Some believed that the quality of LVMH was similar to all the other luxury brands.
“I guess for luxury products from LV to other competitors I can't see much of a
difference anymore in quality, it’s hard to compare but because I have known each of
them guarantees utmost quality, and I’ve never had any quality issues with LVMH
products.” (Appendix H).
“Kind of similar to other brands I would say.” (Appendix F)
Others had a bad experience with LVMH and selectively made choices on some products while
ignoring others
“LVMH’s products are similar to their competitors, Louis Vuitton bags are honestly
lighter, and when you hold the bag you feel the quality is good, but its light and the bags
are mainly not leather the Prints Are Canvas so sometimes you say I don't want to buy an
LV bag if it's not leather I prefer buying another bag! I had an issue once one of my bags
got ripped.” (Appendix F)
These responses reflect Long’s opinion (2012). According to him, value perception does
not necessarily have to be actively driven, but sometimes it depends on the nature of the
customers. Therefore, it is possible that an organisation can actively take part in CSR, but that
does not necessarily mean that everyone will like them. Additionally, not every CSR initiative
has an impact on the consumer's purchasing behaviour. As Long (2012) suggests, when it gets to
such a point, the aspect of management competency crops in. The society is packed with various
needs and priorities. Although it is difficult to fulfil all of them, the management should consider
the various diversity aspects when meeting some of the societal demands. After all, the ultimate
goal should not be satisfaction but rather and accurate image of commitment. Long further
emphasises that meanings associated with some luxury brands may directly conflict with the
impression revealed by the CSR initiative. This, therefore, may reduce the value consumers
attribute to the brand.
However, all of the LVMH’s brand clients who were interviewed showed loyalty to the
brand (Appendices A, D, E, F, H & I). This is through their willingness to recommend the brand
to other people and their frequency of purchase. Moreover, the customers had a positive image of
the LVMH commodities. For instance, Sarah would choose to recommend the brand because it
has a positive image. She mentions:
“Yes, probably because I like it, the image as well!”
This, therefore, means that they give meaning to the commodities due to the exceptional
benefits they receive that are not found somewhere else. This concept can be related back to the
Social exchange theory as proposed by Jones (2010). According to him, sometimes customers
perceive a brand to be of higher value due to the trust they place on the firm due to visible and
tangible commitments (Jones, 2010). Popoli (2011), further mentions that these gestures of
commitments invite a reciprocal exchange. Therefore, according to the social exchange theory,
the willingness and the desire to refer others to the brand is a psychological and social process
that is driven by social responsibility.
The organisational side (Louis Vuitton house personnel) had more detailed feedback
concerning this research question. Louis Vuitton engaged in various social corporate plans. Apart
from CSR being their responsibility, Louis Vuitton had its personal goals. They believed that
philanthropy created a reputable impression of the company. Amber, a worker in LV,
particularly mentions:
“I would say clients are willing to pay obviously because as I mentioned before Louis
Vuitton is a brand known across the world we have a reputation that’s consistently upheld
and so people are willing to pay the slightly higher price points unlike that of competitors
such as Goyard which is not as known worldwide it’s not easily recognizable.”
(Appendix C).
This, therefore, means Louis Vuitton had a desire of appearing much better to the public through
philanthropy. The whole process is not only to help people but also to develop the company
considering the expensive nature of CSR. Louis Vuitton’s corporation with UNICEF hit the
headlines and left most people talking about it. According to some personnel in Louis Vuitton
house, the collaboration with UNICEF is one of the CSR initiatives that had the most social
mentions. It directly led to massive visits by people into the LV websites some of which sparked
a lot of interest among clients. This led to increases in sales of the LVMH brand. This claim is
evident through the information given by the respondent.
“The Unicef Campaign was on the front page of the LV website. But at one point it was
the main feature so like when you go on the home page you could see a big banner on the
top that has all the seasonal stu on it and for a long time that was exclusively used forff
Unicef so people who went to the website straight away saw it and advertising campaigns
where elsewhere on social media platforms and there were links that had more
information.” (Appendix B).
“Definitely the Unicef campaign was famous, people were asking for it, they wanted to
come in and see it, and take pictures even our oldest clients.” (Appendix C).
The fact that UNICEF collaboration had a great impact on the value of LVMH is well
explained by Petit (2018). According to her, customers subscribe more to these visible initiatives.
This is also backed up by Barnes (2011) who mentions that customers are internal information
processors. They internalise what they see by themselves rather than what they hear or read. LV
introduced necklaces and bracelets that were mainly for the campaign, and they made people
aware of it. Probably this explains why UNICEF campaign got so many people talking about it
all over.
Research question 3: Do Louis Vuitton’s donations influence the people’s regard for the
company as a socially responsible firm?
The researcher posed random questions to the clients on how they would feel about the
brand if LVMH participated in initiatives that are more philanthropic. The response was honest
and direct as most clients acknowledged they would buy more of LVMH products as they
believe however much the pricing might be, they have faith that at least a section of revenue will
be used for charity. Some of the responses were:
“It does in a way, and it's nice of them to do, but like if I want the bag, I want it no matter
what! It doesn’t a ect my decision to purchase. But it will definitely make the brandff
more appealing to me. “(Appendix D).
“For sure I care about that, at the end of the day you feel like the money you are paying is
going for something, for a better cause in the world. This definitely encourages me to buy
more into the brand and like it even more.” (Appendix E)
“They (LVMH) should definitely spend more as a company on CSR initiatives but it
should be done from the heart, and it should be honest and meaningful not just do it for
the sake of doing it.” (Appendix I)
Moreover, there are scenarios where Louis Vuitton received clients who mainly purchased
LVMH bags just because of the donations LV took part in. According to Guzman and Davis,
(2017) a firm can formulate a brand win for itself only if it invests in a strategic CSR initiative
approach. Therefore, a firm attracts what it portrays through its conduct. One of the most
common responses that emerged from the LV clients, all of them expect a certain level of
responsibility from LV. To some its because LVMH brand makes more money while to some its
because it is their duty. As long (2012), mentions, customers are keen and will always want to
know what a business stands for and the position a company takes in addressing matters
affecting the society particularly through CSR. From the responses, customers only choose to
support a course that is important to them. Those that meet their expectations by social
responsibility. Consequently, most of them will be attracted to the quality, try to understand the
firm, and be consist. All these only come with building trust between LV and customers
themselves.
Research question 4: Does Louis Vuitton’s corporate philanthropy affect people’s regard for the
brand
From the clients' responses, most of them have many expectations from LV. According to
them, it is important for LV to work collaboratively with other organisations to conserve the
environment and to help the members of the society. Some of them view social responsibility as
mandatory, and therefore LV has no choice but to take part. When asked about their opinion
concerning LV's collaboration with other brands to support local communities, Pegah and Rawan
mention:
“Yes, It’s a must! I also think they should make use of the unsold products rather than
burning them! I'm not saying they should give these products directly to charity, but they
should raise funds through selling these products rather than burning them and give the
proceeds to charity” (Appendix I).
“Am, well they should be, as far as I know, Louis Vuitton is working with Unicef and other
charities.” (Appendix E)
The people's regard for the company is accessed through various aspects. Some of the measures
that were used to assess whether corporate philanthropy affects the peoples regard for LVMH
brand include monetary assessment, website visits that were converted to direct sales, the termed
of loyalty in areas that benefit most from the CSR, social mentions, and the purchasing habits of
the customers. For instance, LV had necklaces specifically made for the UNICEF project where
all the proceeds from the sales would be given out to UNICEF as one of the respondents
mentions:
“I think they did quite hard try to integrate it into their sort of social media and online
platforms. They have brought the products that have sold quite well especially the
bracelets, but I wouldn't say they have made it their most hyped project.” (Appendix B)
LV took to the social platforms to inform people about this.
Also, I don't know if you've seen the LVMH Instagram, they tend to post a lot of their
charity events that they do. But concerning its size, I don't think its necessarily right.
(Appendix A).
Generally, the market share of LVMH products is higher in areas that LV participated in CSR.
Clients are willing to pay more for the brand not because it is a luxury brand, but because of the
value, they attach to it (Appendix A). This, therefore, means that clients have positive regard for
the LVMH brand in a competitive luxury market regardless of the similarity of most of the
luxury commodities. Besides, the clients subscribe to LVMH due to the consistency in the
philanthropic culture of LV. LV changes with the changes in time, but at the back of every move,
they make; they still aim at maintaining the trust with its clients (Appendix B).
Basing on monetary terms, LV has shown consistent growth in its financial performance.
Although brand value is an intangible asset, any Strong Brand attracts more sales and stock
investments (Hsu, Wang, & Chen, 2013). Since LV and LVMH began CSR, the corporation has
recorded positive and cumulative positive returns. This research did not dig deeper into financial
analysis. Our analysis was only based on estimations by the respondents.
Also, the idea of customers having high regard for the LVMH brand can also be explained
using the stakeholder's theory as illustrated in Chapter 2. According to Jones (2012), social
exchange theory proposes that social behaviour is a consequence of an exchange process that
aims at maximising benefits and minimising costs. According to the theory, customers usually
weigh between the potential benefits and risks before engaging themselves in any relationship. In
this case, the relationship between the customer to a luxury brand is dependant on the social
benefits the clients get or expect to receive in the future. According to Jones (2012), value
requires power and justice for a continuous exchange of activities between the firm and
customers.
4.3 Emerging Theory
The new ground theory of CSR and brand value can be summarised as follows. CSR has
a positive effect on brand value if competently done. CSR is a determining factor of how
customers view a brand. Customers view a firm that engages in CSR as socially active/socially
responsible. Most customers would want to associate themselves with such a brand. This
association, therefore, builds their loyalty toward that particular luxury brands. Moreover, the
effect of CSR on brand value depends on prior planning and competency. Thus, the management
and the CSR team have to select appropriate CSR initiatives to involve themselves in with care.
The consequent effect is the purchase of luxury goods at a higher price (price insensitivity),
loyalty, and bulk purchasing. Figure 4.3 below is a representation of the facets of the emergent
theory that were concluded from this study.
Brand image
Product quality
Customer satisfaction
Figure 4.3: A representation of the emergent theory
4.4 Limitations to the Study
The whole process was time-consuming. Planning for the interview, seeking authority
from the organisations, scheduling the interview dates was a process. The researcher, however,
used a piece of advice by Morrow (2005) where he developed a comprehensive study guide to
ensure he worked for a short time. Also, some of the interviewees did not show up on the day of
the interview. The interviewee, therefore, had to budget for extra time.
The responses from the interviewees were limited to their personal experiences and
knowledge. For instance, some interviewees avoided giving financial details of the company
because they had no clue. Some clients did not have any idea of LV's involvement on CSR.
Responses from such persons interfered with the data analysis process and conclusions. This is
because the analysis was done based on their limited understanding.
Management’s competency Leads to zero
complaints Leads to a massive
focus following from the public
Leads to more sales that have an impact on financial growth
Customer’s perception on CSR CSR is a customer's
expectation of a luxury brand
CSR has to be perfect to create a positive image
Customers purchase a brand that is from socially responsible firms
Socially responsible firms are attractive
Brand
value
It was difficult to verify the responses from the interviews especially on matters regarding the
financial statements. The analysis, therefore, was limited to what the respondents mentioned.
Lawrence and Tar (2013)suggest that the researcher should not have any preconceived
ideas before conducting grounded research to ensure that the formulated theory is purely from
findings. However, the researcher encountered some problems when scheduling for interviews
with the LV top personnel. Most of them were busy and demanded a specific agenda before
confirmation of the interview appointments.
There was uncertainty on saturation points since it depended on the interviewer's
judgment. However, the interviewer repeated the interviews until he was confident that the
research was not yielding any new data. Besides, the researcher followed Brown et al.'s advice,
(2002), where he was required to commence coding the data right from the start of the interview
process without necessarily waiting for all data to be collected before beginning the analysis
process.
CHAPTER 5
CONCLUSION
5.0 Introduction
Prior research on the effects of CSR on brand value was either focused on the customers
perspective of financial perspective only. Besides, most of the work done by previous
researchers overlooked the fact that CSR's effect on a luxury brand is a direct facet of
management's competency. The primary motive of this research was to develop a substantive
theoretical framework that could suggest the explanation of the relationship between brand value
and CSR in a more holistic way by incorporating both a consumer's perspective and
organisational perspective. This concluding chapter summarises the major contributions of this
study, the potential impact and the directions for future work. This chapter also summarises the
findings that tried to meet the following major research objectives.
1. To study and compare the financial aspects related to the brand before and after the
organisation embraces CSR practices.
2. To compare and analyse different executives, workers, and customers' perception of
brand building and CSR.
3. To analyse various CSR concerns from both the executives and the customers.
The four objectives are discussed basing under the research questions of this study. This is
followed by the implications of these findings to the management.
5.1 Overal Outcomes of The Study
Research Question 1: To what extent has CSR been implemented in Louis Vuitton
The research found that LV as one of the luxury brands in CSR is committed to social
responsibility. It is the heart of marketing strategy for the organisation. All examples suggest that
LVMH and most luxury brands focus on sustainability when taking part in CSR since the
industry is mostly driven by emotions and the concept of influence rather than rationality. Louis
Vuitton’s focus, for example, is how they help the communities they do business with. The firm
has a committed to help the young people through the digital art program and UNICEF initiative.
The company is also vocal on social and environmental issues.
Research question 2: Does corporate philanthropy play a role in LVMH brand performance
Through the different CSR initiatives, LV is directly telling a story to consumers who are
also interested in sustainable development. As Barnes (2011) mentions, marketing is mainly
focused on brand image. This research found some strong indications that show that corporate
philanthropy indeed pays off. The research found a positive financial growth in LV and
increased revenue from increased sales. However, this research did not link CSR directly to
financial performance but considered financial growth as a secondary consequence of an
established brand.
Research question 3: Do Louis Vuitton’s donations influence the people’s regard for the
company as a socially responsible firm?
The moral duty of all corporations including those in the luxury industry is to act
responsibly. Therefore the customer's regard for a company lies in how it has conceptualised
CSR. One of the emerging opinions of most interviewees from this research is that consumers
showed that their attachment and regard for the LV was based on what it does for them and the
society at large. The research further concluded that apart from personal appreciation, consumers
who love LV and regard it as a socially responsible firm are more likely to recommend the brand
to their peers.
Research question 4: Does Louis Vuitton’s corporate philanthropy affect people’s regard for the
brand
This research also found that brand association is directly linked to CSR. Customer-based
brand value is a broad phenomenon. However, this study only focused on the perceived quality,
brand loyalty and brand association. It was revealed that customers might choose to purchase an
LVMH product from LV not because it is a luxury brand but because they believe that proceeds
from their purchase will support a charitable course somewhere. The aspect of price insensitivity
was also revealed. For instance, LV used to sell necklaces to support the UNICEF initiatives.
Despite the cost, people still gladly bought them. Lastly, customers show loyalty to brands from
socially responsible firms. This is evident through the frequency of purchase of the brand and the
satisfaction clients show.
The use of grounded theory made the research more successful. This is mainly because it
enabled the researcher to discover more about the interactions of customers with the brand under
study. This discovery, therefore, gave a more detailed response on all the parameters that were
used to measure brand value. Besides, as Gonzales B (2017), mentions, the aspect of novelty
made the research more valid since the theories that emerged from the respondents were not in
any way tied up to any preexisting theories. During the study, a lot of focus was placed on how
exactly people view LVMH as a luxury brand that participates in CSR rather than measuring the
extent of the value tied to the brand. Further analysis was on the progress on the value of the
brand from the past to the present to assess the following effects on brand value with the
consistency and increase in CSR initiatives.
The systematic method of analysis of the codes that emerged during the interviews,
comparisons of the empirical evidence and theories was the basis of the grounded theory for this
research which is, CSR is has a positive effect on the brand value depending on the competency
of the mastermind behind the philanthropy exercise. This model was created through the
experiences of the customers and the information given by the organisational personnel. This
theory is, therefore, evidence of the need for an interconnection between the management of a
luxury brand and the customers in all their initiatives through proper communication. This is
because customers and the general public cannot value what they do not see. Therefore the
framework suggests that in pursuit of meeting all societal responsibilities luxury organisations
need to lay down all the activities they engage in through various platforms like social media and
annual financial releases.
5.1 Contributions Of this Study
According to Guzman & Davis (2017), many people abandon brands that do not show actons
of social responsibility. Therefore incompetence and ignorance of philanthropy place a luxury
brand at a disadvantage in the marketplace. Luxury firms have to act with integrity and be
truthful to any claims they make regarding social responsibility and environmental conservation.
The main intention for creating a logical connection between CSR and brand value is to generate
knowledge that will hopefully inspire managers of luxury brands, marketing managers and CSR
organisers on the importance of CSR to any luxury brand. The study will also add to the existing
literature and will be a basis for the development of further research and theories in the future.
5.2 Management’s Implications
The sustainability course though CSR is subjected to various challenges like financial
constraints, changing social needs and behaviours. This research concludes that there is a
positive relationship between CSR and brand value. The model proposed in this study is helpful
to managers especially in circumstances that they have to relate business performance and
philanthropy. Moreover, through this model, managers can consider CSR as a marketing tool
besides the normal responsibility function. The model further suggests the aspect of management
competency as an important element of CSR. Competency will not only have an impact on the
other parties benefiting from CSR but will also bring a positive outcome to the business.
5.3 Future Research Recommendations
5.3.1 Theoretical Investigation
An open theoretical concept that arises from this research pertains to the luxury brand
management. Brand managers know the exact position of the position of luxury products in the
market. Their main reason is not only to attract more customers but also to improve the
organisational management of their brands. It would be more substantial to dig deeper into the
role of brand managers in the luxury world in maintaining brand value.
5.3.2 Evaluation
More additional research approach will be important for a further understanding of the
concept of the relationship between luxury brands and brand value. This research relied on a
grounded analysis where a theory was formulated from interview findings. The suggested
research strategies that would improve the understanding of this concept include the use of
experiments, survey, case study, action research, ethnography and archival research.
5.3.3 Extension of The Similarity Framework
This research is done explicitly in the luxury industry. The theory developed is meant to
address the luxury industry. However, the study can be extended to all the other sectors including
the textile industry, sports fashion industry among others. Researching all industries is significant
because a brand value is a vital element of industrial innovation and development.
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Appendices
Appendix 1
Transcription of Interview: Part B: Measuring Company’s Effects on Brand Value
Participant: Sarah H. Position: Team Manager @ L.V.
Metric 1: Brand Awareness (Directed towards marketing purposes) 1. How would you describe
your brand, knowing it’s part of the conglomerate “LVMH”?
Response:
I think it’s a leader within the LVMH conglomerate their values definitely speak through in
terms of their beliefs in remaining strong to their heritage, I think they have a strong brand value
that they consistently push forward through and you could definitely see that they do lots of work
with other partners within LVMH and making it feel on a bigger scale than it is on its own.
2. Are there any social mentions and reviews about Louis Vuitton or LVMH?
Response:
Yeah, loads!!
3. What is the search volume trend of your brand and products since the company started to
engage in philanthropic exercises?
Response:
I think it’s very much becoming more apparent, I feel that within Louis Vuitton itself they do,
even within the stores locations they very much pro case it we have products specially sold for
UNICEF purposes, so we had the necklaces and all the profits go to UNICEF so I think very
much it’s becoming more aware and more apparent to clients within a store area, again on kind
of social media, technology, the website has always now information regarding UNICEF and
what we do for them, so social media such as Instagram platforms I feel that Louis Vuitton is
taking advantage of these platforms and its name to support programs such as UNICEF
Metric 2: Preference Metrics (Directed towards customer service) 1. Do you think customers are
willing to pay much more for LVMH products?
Response:
Yes, 100%
2. To what extent do you think customers agree with the Louis Vuitton brand and product
provision?
Response:
Very strongly, lots of Louis Vuitton Clients are very much loyal to the brand and I say again the
Heritage within it lives through out, I think clients very much buy into that, they like the heritage
the loyalty to the brand and what it means, it’s directly forever changing, we are constantly
changing to keep up with the times but remaining true to our clients is very important.
3. Are there any complaints from clients on CSR activities the company engages in?
Response:
No, no.
4. Are there any suggestions or any positive feedback about Louis Vuitton’s CSR Initiatives?
Response:
I think a lot of clients, a lot of the older Clients that have been loyal to LV for many years are
finding that the brand is changing through designer shifts but we also are getting a lot of new
clients and the newer generation such as the millennials are very much becoming more apparent
within the brand and I think the way that the brand is leading, charities are becoming a bigger
thing apparently now a-days, and millennials appreciate the connection between the two so I
don’t think there is any complaints.
Metric 3: Financial Metrics (Directed towards financial operations) 1. How can you rate the
sustainable growth of Louis Vuitton?
Response:
I think they keep moving forward, always understanding the business around you, and keeping
relevant. Technology is definitely a means for the business to grow, and charity is very important
within the company so the brand feels like it’s giving back instead of just taking in.
2. Based on the rate of return, volatility, turnover and liquidity ratios overtime, what is the trend
since Louis Vuitton started taking part in CSR activities?
Response:
Not really, I wouldn’t say so.
3. How can you rate the trend in stock market performance? What is the average monthly return
from stock exchanges?
Response:
*Confidential*
4. What is the market share of LVMH brands (Louis Vuitton) particularly in the areas where the
company has invested a lot of effort in community help programs and other philanthropic
activities?
Response:
*Confidential*
5. Based on the trend of LV’s revenues, do you think LVMH brands extract more value from
customers on an annual basis?
Response:
Yes
Metric 4: Output (Directed towards CSR initiatives)
1. What are your thoughts on sales of LVMH products within the locality and surrounding where
the company has initiated a number of CSR activities?
Response:
I don’t think it’s known well by clients specifically and directly, I think definitely in terms of
staff but obviously the heads of the businesses market this worldwide which within itself I think
raises awareness. Also I don’t know if you’ve seen the LVMH Instagram, they tend to post a lot
of their charity events that they do. But in terms of its size I don’t think its necessarily right.
2. Is there a particular campaign, environmental conservation course, sponsorship, or partnership
within an LVMH brand (Louis Vuitton) that brought in several hundreds of people to LVMH’s
landing page (LV website)? Were they directly pitched to buy more of that specific product?
Response:
UNICEF collaboration definitely, also in Paris the big project where they built an art exhibition
that is charity based.
3. What are some of the goals the company has when engaging in philanthropy? Has the
company achieved some of them?
Response:
Bringing awareness through UNICEF and they very much report not only just to clients but also
to
Appendix B
Transcription of Interview: Part B: Measuring Company’s Effects on Brand Value
Participant: Christopher D. D. Position: Key Holder @L.V.
Metric 1: Brand Awareness (Directed towards marketing purposes) 1. How would you describe
your brand, knowing it’s part of the conglomerate “LVMH”?
Response:
I would describe it as one of the world leaders in terms of the luxury fashion industry, mostly
luxury fashion retail, I think it’s an extremely historic brand in terms of some of the brands in
LVMH, and obviously one of the founding brands, I think it’s one of the most recognizable
fashion brands in the world.
2. Are there any social mentions and reviews about Louis Vuitton or LVMH?
Response:
Yes, they have quite a large social media presence especially through means like Instagram they
do as well have advertising campaigns but they are not as big. I think the majority of their
advertising is mostly done through social media and things like that so I definitely think that they
invested in that most recently and they do spend a lot of time and effort on their website as well
obviously that’s not social media but in terms of their online presence I think they do have a lot
in terms of that compared to some other luxury companies.
3. What is the search volume trend of your brand and products since the company started to
engage in philanthropic exercises?
Response:
If I’m honest, it must have brought some people but I wouldn’t say right now if you say to
someone Louis Vuitton they think Oh! UNICEF! The collaboration of UNICEF! I think they did
quite hard try to integrate it into their sort of social media and online platforms, obviously they
have brought the products that have sold quite well especially the bracelets but I wouldn’t say
they have made it their most hyped project.
Metric 2: Preference Metrics (Directed towards customer service) 1. Do you think customers are
willing to pay much more for LVMH products?
Response:
Yes, but I don’t think that’s because they are part of LVMH, I think it’s just because the brands
LVMH has chosen to have and the way LVMH has evolved them I don’t think people would say
Oh I want a Givenchy bag because its LVMH, I think they would say I want a Givenchy bag
because its Givenchy. LVMH is just a bit more there to keep the name of the brands alive.
2. To what extent do you think customers agree with the Louis Vuitton brand and product
provision?
Response:
The view of the brand has in the recent years gone down slightly I’d say compared with the past,
I think people obviously still love it as a brand but I think people believe that they spend a little
bit less on quality control and things like that and with quality issues I would say in the sort of
sector of people. If you ask a random person on the streets his opinion would be the same he
would say it’s so expensive, it’s so luxurious. But if you ask a client that’s been Loyal to LV for
a very long time the view would change slightly to worse compared to 30 years ago.
3. Are there any complaints from clients on CSR activities the company engages in?
Response:
I’ve had people ask how much from the collaboration with UNICEF goes to UNICEF but no one
ever complained about CSR activities or philanthropic activities.
4. Are there any suggestions or any positive feedback about Louis Vuitton’s CSR Initiatives?
Response:
We definitely had clients saying that this company is too good as a brand to deal with issues of
poverty or starvation or charities, but I think definitely the people are behind it, even though
many think LV didn’t do it as good as they should have, obviously it’s a start and its better than
not doing it.
Metric 3: Financial Metrics (Directed towards financial operations) 1. How can you rate the
sustainable growth of Louis Vuitton?
Response:
It’s always growing as a brand in terms of everything whether they are doing it the wrong or
right way, I think it is always growing and I don’t think as a company it will fall out of fashion,
some companies like Gucci or Balenciaga they are very weak in terms of investing in them. At
the moment obviously they are very big but they will fall back down, whereas LV no matter
what they do I think it’s always going to be perceived as one of the biggest fashion brands if not
the biggest.
2. Based on the rate of return, volatility, turnover and liquidity ratios overtime, what is the trend
since Louis Vuitton started taking part in CSR activities?
Response:
Monetarily yes it did benefit Louis Vuitton, I think they did it in a very clever way, there wasn’t
loads and loads of products, it was more clear to clients one product, if purchased a donation will
happen instantly. Unlike other companies where they talk yeah we will donate 5% of our
takings... LV had a more personal experience where the client will come to purchase the item for
the sake of the donation. It wasn’t like oh o bought a bag and it happens that 5% of the amount I
paid went to UNICEF! In terms of that it has increased in that area! LV did not benefit in terms
of the business but the items they did where very good and it was cleaver making them limited to
make people want them more, because for LV they believe if you saturate the market nobody
wants the product, they did the typical LV strategy as in make it scarce but make it meaningful.
3. How can you rate the trend in stock market performance? What is the average monthly return
from stock exchanges?
Response:
Not over my head! Sorry.
4. What is the market share of LVMH brands (Louis Vuitton) particularly in the areas where the
company has invested a lot of effort in community help programs and other philanthropic
activities?
Response:
N/A
5. Based on the trend of LV’s revenues, do you think LVMH brands extract more value from
customers on an annual basis?
Response:
Yes, because the brands in LVMH are brands that are trusted by clients and brands that are more
sustainable, unlike competitors within the Kiering Conglomerate like Gucci, Balenciaga,
Alexandre McQueen, they are large brands but they are trendy brands but in LVMH brands are
more timeless, people would obviously be more willing to spend money in our brands rather than
in other trendy brands.
Metric 4: Output (Directed towards CSR initiatives) 1. What are your thoughts on sales of
LVMH products within the locality and surrounding where the company has initiated a number
of CSR activities?
Response:
Potentially yes, but if they have been doing this work in other areas it hasn’t been hugely
advertised. If you go to a middle eastern store and ask the clients if they are doing works down 5
miles, the road I’m not sure if they would know. It wasn’t advertised a lot! If you know what I
mean.
2. Is there a particular campaign, environmental conservation course, sponsorship, or partnership
within an LVMH brand (Louis Vuitton) that brought in several hundreds of people to LVMH’s
landing page (LV website)? Were they directly pitched to buy more of that specific product?
Response:
The UNICEF Campaign was on the front page of the LV website. But at one point it was the
main feature so like when you go on the home page you could see a big banner on the top that
has all the seasonal stuff on it and for a long time that was exclusively used for UNICEF so
people who went to the website straight away saw it and advertising campaigns where elsewhere
on social media platforms and there was links that had more information.
3. What are some of the goals the company has when engaging in philanthropy? Has the
company achieved some of them?
Response:
The goals in terms of personal things, obviously they know they have a lot of funds and a lot of
ability to influence people so in that way there is an essences to help people but in the same time
I would say in terms of the business I think especially with a luxury brand people would look on
a company a lot more better, if they know they take part in philanthropic activities, obviously its
more old fashioned to think of a company as just being very cold and we don’t help anyone we
are Luxury and we don’t deal with less fortunate people; That stereotype nowadays is broken
especially for LV being forward thinking and deciding not only that it’s good for the people they
are helping but also for brand image.
Appendix C
Transcription of Interview: Part B: Measuring Company’s Effects on Brand Value
Participant: Amber C. Position: Senior Client Advisor
Metric 1: Brand Awareness (Directed towards marketing purposes) 1. How would you describe
your brand, knowing it’s part of the conglomerate “LVMH”?
Response:
Louis Vuitton is a very Luxurious, well known, wanted by everyone brand, it’s part of the niche
market.
2. Are there any social mentions and reviews about Louis Vuitton or LVMH?
Response:
Yes, definitely, there is a large presence for LVMH brands on social media, for instance when
we changed our creative director it was all over the social media and across various platforms,
also recently our chairman was mentioned in the news so there is a lot of coverage both in
regards of products and brand awareness.
3. What is the search volume trend of your brand and products since the company started to
engage in philanthropic exercises?
Response:
I would say definitely the demand for it was high due to the fact that such a large corporation is
being involved in something that is so demanded across the world, also due to the price point of
the product as well helped. It was in high demand due to that being the easy access into the
brand.
Metric 2: Preference Metrics (Directed towards customer service) 1. Do you think customers are
willing to pay much more for LVMH products?
Response:
Yes, not just because its LVMH, with luxury clients are more willing to spend more because
when you’re buying luxury you know there is going to be a higher price point. I would say
clients are willing to pay obviously because as I mentioned before Louis Vuitton is a brand
known across the world we have a reputation that’s consistently upheld and so people are willing
to pay the slightly higher price points unlike that of competitors such as Go yard which is not as
known worldwide it’s not easily recognizable.
2. To what extent do you think customers agree with the Louis Vuitton brand and product
provision?
Response:
I’d say Its 50 50 some of our clients obviously understand that it’s a brand with lots of heritage
and lots of the least and lots of promises and lots of clients like to buy into that, they are not just
buying the product they are buying into the brand, where is opposite with other people some just
buy it because it’s just a Louis Vuitton item they take the heritage and all of that for granted
3. Are there any complaints from clients on CSR activities the company engages in?
Response:
No. Luckily enough I haven’t received complaints about that! I wish not to
4. Are there any suggestions or any positive feedback about Louis Vuitton’s CSR Initiatives?
Response:
No, to be honest the only feedback I get is in regards of products.
Metric 3: Financial Metrics (Directed towards financial operations) 1. How can you rate the
sustainable growth of Louis Vuitton?
Response:
LVMH is hugely growing obviously due to the fact that designers are moving to other brands
internationally. LVMH as a conglomerate saw a 10% increase in the first quarter of this year so
its definitely rapidly growing. It’s a corporation that’s forever expanding and looking into new
dynamics and new paths to follow
2. Based on the rate of return, volatility, turnover and liquidity ratios overtime, what is the trend
since Louis Vuitton started taking part in CSR activities?
Response:
It did hugely increase off course, our collaboration with UNICEF was very successful and our
most recent release sold out on the spot.
3. How can you rate the trend in stock market performance? What is the average monthly return
from stock exchanges?
Response:
I would not be able to answer that directly.
4. What is the market share of LVMH brands (Louis Vuitton) particularly in the areas where the
company has invested a lot of effort in community help programs and other philanthropic
activities?
Response:
This is a grey area, I cannot answer that
5. Based on the trend of LV’s revenues, do you think LVMH brands extract more value from
customers on an annual basis?
Response:
Yes, definitely!
Metric 4: Output (Directed towards CSR initiatives) 1. What are your thoughts on sales of
LVMH products within the locality and surrounding where the company has initiated a number
of CSR activities?
Response:
In regards of not only making the people more aware of the issues happening across the world
and concerns, it’s made our clients more aware because the fact of such a big corporation such
as LVMH or Louis Vuitton to be more specific, are doing our best to see what we can do to help,
and the things that we can put in place. And this made our clients more aware of the fact that we
are a brand with heritage, we are a family oriented brand and that we see the consents of the
world and therefore they can also see it through our eyes. For us to recognize it as a corporation
it makes its importance more obvious for clients.
2. Is there a particular campaign, environmental conservation course, sponsorship, or partnership
within an LVMH brand (Louis Vuitton) that brought in several hundreds of people to LVMH’s
landing page (LV website)? Were they directly pitched to buy more of that specific product?
Response:
Definitely the Unisex, people were asking for it, they wanted to come in and see it, and take
pictures even our oldest clients.
3. What are some of the goals the company has when engaging in philanthropy? Has the
company achieved some of them?
Response:
Outside of KPI’s I don’t believe I can share anything else.
Appendix D
Transcription of Interview: Part A: Customer Perception on Brand Value Participant:
Marie-Noel A. 42
Metric 1: Customer Satisfaction
1.Compared to LVMHs’ competitors in the luxury world are the quality of their products better
worse or similar to others
Response:
I would say better
2. Would you recommend LVMH brands to somebody else?
Response:
Yes.
3. How important do you think it is for LVMH to work collaboratively with other organizations
to
support local communities?
Response:
I don’t know if they do that but they should definitely work with communities and charity works.
4.What would you do so differently from what LVMH does in terms of social responsibility
activities?
Response:
Work on helping the environment, not killing so many animals.
5. Why did you choose to stick to (an) LVMH brand(s)?
Response:
Because first Its a known brand, that’s what really attracts me about LV, so I feel like the fact
that it’s a really old brand and how its spread internationally and its history shows that it’s a
really good brand, second their bags are super practical and they can fit my everyday necessities
for daily use.
6. What do you like about their brands?
Response:
I feel that the brand image hasn’t been changing much, I feel it’s something they should really
change because the new generation they should work on because the new generation is more
aware of what’s happening around them and how they are effecting the community around.
Because that’s what I feel they are concerned with. Now effectively I am a client but I don’t
know for how long I will stay because you have a lot of brands around that are being more
socially responsible.
7. What is you your favorite LVMH brand and why?
Response:
I like Celine the most but I’m not really a client. Maybe one day but definitely Celine first and
then LV
Metric 2: Perceived Value
1. How much confidence do you have in LVMH brands when choosing to make purchases from
them?
Response:
I’m always very confident I will have great quality and the best product out there
2. How many purchases have you made from the company? How satisfied are you with the
purchases? Can you share more details about some of your purchases?
Response:
Between 7 or 8, and my favorite are the classic LV bags the never full and the speedy bag. I love
how practical they are
3. Compared to what you pay for the services you get; how do you rate the value of services
LVMH Brand’s offer?
Response:
They are of very high value; you pay for what you get!
Extra Question:
1. Have you ever heard of the Louis Vuitton UNICEF collaboration?
Response:
Oh wow! I didn’t know I think this is definitely important to go on and they should share it more
with the new growing generation.
2. Does this encourage you to buy more of a brand?
Response:
It does in a way, it’s nice of them to do, but like if I want the bag, I want it no matter what! it
doesn’t affect my decision to purchase. But it will definitely make the brand more appealing to
me
Appendix E
Transcription of Interview: Part A: Customer Perception on Brand Value Participant:
Pegah R. Age 36
Metric 1: Customer Satisfaction
1.Compared to LVMHs’ competitors in the luxury world are the quality of their products better
worse or similar to others
Response:
Kind of similar to other brands I would say
2. Would you recommend LVMH brands to somebody else?
Response:
For sure
3. How important do you think it is for LVMH to work collaboratively with other organizations
to
support local communities?
Response:
Amm, well they should be, as far as I know Louis Vuitton is working with UNICEF and other
charities.
4.What would you do so differently from what LVMH does in terms of social responsibility
activities?
Response:
They are making so much money so they should I guess guess invest in more charitable work
and help the world.
5. Why did you choose to stick to (an) LVMH brand(s)?
Response:
The services they give to their loyal clients and the quality of their products, also the after sale
service and care that they give for their clients to extend the life of their products and keep them
timeless
6. What do you like about their brands?
Response:
The quality the history, they all come from somewhere and represent something and the
inspiration behind every brand I like it, the quality the shapes and designs of their products and
the designers they have, like the current designer of Louis Vuitton Nicolas Guisqueire like I
remember when he was in Balenciaga and then he moved to LV Balenciaga went so much down
and after that Alexandre wang took over and people where still going to Balenciaga and still
asking for the Nicolas Gasquiere collections.
7. What is you your favorite LVMH brand and why?
Response:
I think I would say Dior because they are the most stylish and they are the most stylish brand in
LVMH and plus quality they have some certain standards they don’t go below them, unlike LV
where they have trashy customers coming for their cheap products like the speedy and never full,
Dior doesn’t have these kind of stuff they have a certain high starting point they don’t go below
it.
Metric 2: Perceived Value
1. How much confidence do you have in LVMH brands when choosing to make purchases from
them?
Response:
I will say yes after all these years that I’ve been a loyal client, except for crocodile bags because
I’ve never yet purchased one. But I’m always confident with my purchase.
2. How many purchases have you made from the company? How satisfied are you with the
purchases? Can you share more details about some of your purchases?
Response:
I’m very satisfied with what I’ve got from LVMH brands and I’ve got many I don’t know the
exact number, and my favorite is for example t
3. Compared to what you pay for the services you get; how do you rate the value of services
LVMH Brand’s offer?
Response:
I was buying a bag for my mom and I had to call her to make sure that that’s the one She wants,
and in the store the woman that was helping me was not great, was very inpatient and had an
attitude towards me even though I ended up paying around £5000 but then she was like really,
come on, she has to make a decision quicker. But when I went home I thought about it and that’s
not the right way to deal with the client I need to call them and talk to head office of Dior so I
called and complained and 2 days after they sent me an apology letter in a really nice card and 2
candles with a dust bag filled with flowers. It was really nice of Dior that they looked into the
client history and see that she is buying from us around 3 bags a year so they could see my name
and know what I’ve bought over the years. I love the candles! It shows that they care about their
clients and they don’t just talk they act! they did something. Which is why I love their service.
Extra Question:
1. Do you think if LVMH brands participate in more Philanthropic activities do you think it will
make u like the brand more?
Response:
For sure I care about that, at the end of the day you feel like the money you are paying is going
for something, for a better cause in the world. This definitely encourages me to buy more into the
brand and like it even more
Appendix F
Transcription of Interview: Part A: Customer Perception on Brand Value Participant:
Sara D. Age 21
Metric 1: Customer Satisfaction
1.Compared to LVMHs’ competitors in the luxury world are the quality of their products better
worse or similar to others
Response:
LVMH’s products are similar to their competitors, Louis Vuitton bags are honestly lighter and
when you hold the bag you feel the quality is good but its light and the bags are mainly not
leather the Prints are Canvas so sometimes you say I don’t want to buy a LV bag if it’s not
leather I prefer buying another bag! I had an issue once one of my bags got ripped.
2. Would you recommend LVMH brands to somebody else?
Response:
Yes, probably because I like it, the image as well!
3. How important do you think it is for LVMH to work collaboratively with other organizations
to
support local communities?
Response:
Yes, like LV and unite! I really like the idea I think they should do more of that! I even tried to
purchase the new bracelet when I went into the store and it was sold out all around the world!
4.What would you do so differently from what LVMH does in terms of social responsibility
activities?
Response:
No I think what they do is enough and great!
5. Why did you choose to stick to (an) LVMH brand(s)?
Response:
The quality and the price are great!
6. What do you like about their brands?
Response:
I feel especially with LV they do stuff for a younger generation! I was in the store and I saw the
new patches collection! It makes me feel they are a young brand.
7. What is you your favorite LVMH brand and why?
Response:
Dior, I love everything there! Wow.
Metric 2: Perceived Value
1. How much confidence do you have in LVMH brands when choosing to make purchases from
them?
Response:
I’m pretty much confident obviously!
2. How many purchases have you made from the company? How satisfied are you with the
purchases? Can you share more details about some of your purchases?
Response:
I don’t know how many items I’ve purchased they are many! I use thought mostly my black
alma bag from LV, I also have the Dior which I use a loot its light I can wear it in different ways
put it on my shoulder, around my waste or as a clutch for evenings or weddings. I also got my
first pair of shoes form lv just now because I didn't find any light colors at Hermes
3. Compared to what you pay for the services you get; how do you rate the value of services
LVMH Brand’s offer?
Response:
The services are very high, the lady helping me was so nice she made me buy everything! They
fixed my bag and really served me well.
Appendix G
Transcription of Interview: Part A: Customer Perception on Brand Value Participant:
Karim B. Age 28
Metric 1: Customer Satisfaction
1.Compared to LVMHs’ competitors in the luxury world are the quality of their products better
worse or similar to others
Response:
I think like I don’t know because shoes I wear I mainly LV and the quality for me is amazing,
not amazing but like I mean they last, it’s been one pair I’ve worn them on a daily basis for the
past 3 years and they are still wearable.
2. Would you recommend LVMH brands to somebody else?
Response:
Yes.
3. How important do you think it is for LVMH to work collaboratively with other organizations
to
support local communities?
Response:
It’s a good image for them, it makes them generate more money.
4.What would you do so differently from what LVMH does in terms of social responsibility
activities?
Response:
Yeah because not everyone they do caters to everyone! You know like there are some people
who cannot participate in everything they do. They have to do something more accessible to
everyone.
5. Why did you choose to stick to (an) LVMH brand(s)?
Response:
Because their stuff are nice, the good quality as well.
6. What do you like about their brands?
Response:
They are nice brands, each one of them is different, they are not comparable.
7. What is you your favorite LVMH brand and why?
Response:
LV.
Metric 2: Perceived Value
1. How much confidence do you have in LVMH brands when choosing to make purchases from
them?
Response:
10/10, not worried or skeptical about anything when I buy.
2. How many purchases have you made from the company? How satisfied are you with the
purchases? Can you share more details about some of your purchases?
Response:
Mainly shoes! A lot of shoes and wallets.
3. Compared to what you pay for the services you get; how do you rate the value of services
LVMH Brand’s offer?
Response:
They are mainly good, like you want them to personalize your item with your initials and they
say they need one weeks but they will do it in 2 hours for you, they are very helpful!
Extra Question:
Do you think it’s important for them to do more Charity work and why?
Response:
Like its important yeah, like maybe it’s not as important for me as it would be to other people but
I think it is! They should help people with the lots of money they make. They should also think
of where they get the leather from and do it in a more responsible way. Because I’m sure there is
a negative
Appendix H
Transcription of Interview: Part A: Customer Perception on Brand Value Participant:
Justin E. Age 27
Metric 1: Customer Satisfaction
1.Compared to LVMHs’ competitors in the luxury world are the quality of their products better
worse or similar to others
Response:
amm I guess for luxury products from LV to other competitors I can’t see much of a deference
anymore in quality, it’s hard to compare but because I know each of them guarantee utmost
quality and I’ve never had any quality issues with LVMH products.
2. Would you recommend LVMH brands to somebody else?
Response:
I definitely will because my circle of friends has the same interest as me in fashion and luxury
goods and if you think about good quality and fashion I immediately think of LVMH products on
my mind when I want to recommend something.
3. How important do you think it is for LVMH to work collaboratively with other organizations
to
support local communities?
Response:
It’s an interesting twist of things, I think it adds to their brand image and value and it’s a good
way to give back to the world with regards to social responsibility.
4.What would you do so differently from what LVMH does in terms of social responsibility
activities?
Response:
I guess Just be more involved in giving back to the community, having bigger programs not just
seasonal programs but really being able to get people involved not just for certain lines but all
their products for customers to have the option to give back to communities and for those that are
less fortunate.
5. Why did you choose to stick to (an) LVMH brand(s)?
Response:
Well am I always used the brand ever since I was a kid, my people ahead of me, my parents my
uncles and aunts, people I know normally really Regard LVMH and LV products as really the
epitome of luxury so to have an item from Louis Vuitton is really something to be proud of to
show you that you have achieved something so to me it’s a symbol of achievement which is why
I really respect it.
6. What do you like about their brands?
Response:
I like the twist they put to each brand so each brand really has a certain character that I admire, m
not a big fan of all their brands but I really like how Louis Vuitton sticks to that luxury and how
they add a twist to it especially with their new designer Virgil Abloom even with their other
brands like Kenzo Givenchy I really like the distinct character that each has.
7. What is you your favorite LVMH brand and why?
Response:
I definitely will go with LV itself the reason is I have regarded it ever since I was kid, it shows to
me that someone has really achieved something, really has worked when they have this product.
It’s not about the style or the price of the product its really how it ads twists to it and how it’s a
classic brand where you really see the history and prestige it has when you see a product from
them.
Metric 2: Perceived Value
1. How much confidence do you have in LVMH brands when choosing to make purchases from
them?
Response:
It takes me a while before I buy a product I really do my research I make sure I’m making the
right decision, normally for brands like this that cost a lot of money it takes me a while because I
want to make sure I’m making the right decision. So yeah I want to make sure I don’t regret
anything. I never had any problems with LVMH products I’m very confident these are very
durable because of my experience; I also know the services they give back are amazing.
2. How many purchases have you made from the company? How satisfied are you with the
purchases? Can you share more details about some of your purchases?
Response:
I’ve purchased more than a handful I would say, I have a wallet and a few sneakers and some
luggage, ammo I’m a very simple on the go guy, I love my sneakers so I have so many sneakers
from different brands and I think having LV sneakers is a nice way to add a twist to my sneakers
game, I also like to add a bit of luxury to my every day wear so I want things I use every day to
be the best items I have I got a wallet that I can use appreciate and use every day. I also have the
horizon carryon luggage because I love traveling and I love having the best items with me
wherever I go. The ones I use often I want to make sure they are the best.
3. Compared to what you pay for the services you get; how do you rate the value of services
LVMH Brand’s offer?
Response:
I would give them maybe a 9.5 I’m very happy with the customer service they provide, they
make sure excellent customer service is given but off course you can’t avoid waiting in line and
sometimes some problems occur but it has been a very good experience so far but there is a place
for improvement as always.
Appendix I:
Transcription of Interview: Part A: Customer Perception on Brand Value Participant:
Rawan K. Age 24
Metric 1: Customer Satisfaction
1.Compared to LVMHs’ competitors in the luxury world are the quality of their products better
worse or similar to others
Response:
LVMH brands are nice, and fancy and you look so elegant in them however they are pricey, if
you measure quality over price they are overrated.
2. Would you recommend LVMH brands to somebody else?
Response:
Yes, definitely!
3. How important do you think it is for LVMH to work collaboratively with other organizations
to
support local communities?
Response:
Yes, It’s a must! I also think they should make use of the unsold products rather than burning
them! I’m not saying they should give these products directly to charity but they should raise
funds through selling these products rather than burning them and give the proceeds to charity.
4.What would you do so differently from what LVMH does in terms of social responsibility
activities?
Response:
I saw the collaboration between Unisex and LV and I was really looking into buying the silver
lock pendant but I felt it’s a bit overpriced. But the cause after this idea is really amazing! I heard
many people wowed by the idea from the feedback I have heard. I feel they should do more
things like this.
5. Why did you choose to stick to (an) LVMH brand(s)?
Response:
They are Very Classy brands, very chic, they are not intricate and definitely not sophisticated,
I’m a very simple person and I’m not funky at all! And LVMH brands in a way define my style.
6. What do you like about their brands?
Response:
Their classiness and chic style.
7. What is you your favorite LVMH brand and why?
Response:
I have many favorite brands but my main favorite 2 are Louis Vuitton and Dior
Metric 2: Perceived Value
1. How much confidence do you have in LVMH brands when choosing to make purchases from
them?
Response:
Very confident, when I’m going to purchase an item from any LVMH brand I go to their stores
with full confidence and trust in their brand and products.
2. How many purchases have you made from the company? How satisfied are you with the
purchases? Can you share more details about some of your purchases?
Response:
I have more than 20 products just from Louis Vuitton, but from other LVMH brands, I have even
more than that. My first Louis Vuitton product was my never full GM bag, I used it during my
college years and I have to say it’s never full!! I used to put my jacket, my books, my shoes...
and it’s so light, not heavy at all. And shoes my favorite is my LV heritage leather boots, I also
have an alma bb in red and an alma mm in black I also have silk and wool scarfs from LV in
different colors, shapes and sizes. I Also have the petit malle in monogram. I have the twist as
well, and the Eva clutch. I also have the Louise Clutch in black patent leather
3. Compared to what you pay for the services you get; how do you rate the value of services
LVMH Brand’s offer?
Response:
The services they provide are very good but the service in their stores is slightly disappointing,
it’s always busy in their stores and the Sales Associates have a bit of ego, and I walk into these
stores worldwide to buy not to waste their time so they should treat customers better. It’s very
important to satisfy your clients.
Extra Question:
1. Do you think if LVMH brands participate in more Philanthropic activities do you think it will
make u like the brand more?
Response:
they should definitely spend more as a company on CSR initiatives but it should be done from
heart and it should be honest and meaningful not just do it for the sake of doing.
Appendix J
Transcription of Interview: Part B: Measuring Company’s Effects on Brand Value
Participant: Daniel P. F. Position: Store Manager @ Louis Vuitton
Metric 1: Brand Awareness (Directed towards marketing purposes) 1. How would you describe
your brand, knowing it’s part of the conglomerate “LVMH”?
Response:
Its one of the most high profile luxury brands in the world
2. Are there any social mentions and reviews about Louis Vuitton or LVMH?
Response:
Yes
3. What is the search volume trend of your brand and products since the company started to
engage in philanthropic exercises?
Response:
This information is not publicly shared, most of the Philanthropic activities done by us as a
company is not widely advertised, its more localized done between and by our teams and mainly
shared on linked-in between us. But in the case of Louis Vuitton & Unicef definitely yes, people
were slightly more aware of that and more engaged.
Metric 2: Preference Metrics (Directed towards customer service) 1. Do you think customers are
willing to pay much more for LVMH products?
Response:
I think clients will pay more for any product thats well crafted and thats Hot, and something that
they have saved up for and admired for so long.
2. To what extent do you think customers agree with the Louis Vuitton brand and product
provision?
Response:
I think you either buy into a Brand or you don’t. It ether relates to you or it doesn’t, clearly there
are many people in the world that this brand does not relate to, and no matter what you do you
won’t be able to appeal to them. And on the other side you have people that need the latest
collection from us and are always up to date with all our universes.
3. Are there any complaints from clients on CSR activities the company engages in?
Response:
No
4. Are there any suggestions or any positive feedback about Louis Vuitton’s CSR Initiatives?
Response:
No, I’ve never heard or been exposed to any feedback regarding our CSR activities. prior to that
we did receive several times feedback regarding our collaboration with the art world and there
was a lot of appreciation towards that, and how attached the brand is to the art world. But not
CSR activities.
Metric 3: Financial Metrics (Directed towards financial operations) 1. How can you rate the
sustainable growth of Louis Vuitton?
Response:
Absolutely, since the mid 90’s there’s been huge growth
2. Based on the rate of return, volatility, turnover and liquidity ratios overtime, what is the trend
since Louis Vuitton started taking part in CSR activities?
Response:
I think CSR is important to all companies and it’s something that we all engage in to some
extent, but o think its not the main reason behind the growth.
3. How can you rate the trend in stock market performance? What is the average monthly return
from stock exchanges?
Response:
Confidential
4. What is the market share of LVMH brands (Louis Vuitton) particularly in the areas where the
company has invested a lot of effort in community help programs and other philanthropic
activities?
Response:
I think its more localized from the fundraising point of view, we recently did a 10k run as
employees of Louis Vuitton to raise funds for Unicef as well as a bike ride which is happening
next week from London to Cognac to raise money for Unicef as well, but on the other hand we
have the lock-it collaboration with Unicef which obviously was more global effect and had a
wider effect as it was more publicized and the involvement with Unicef worked very well.
However our smaller more localized initiatives help in keeping our teams engaged with
philanthropic activities and making them more aware. It doesn’t raise a lot of money on the scale
of things but it keeps the idea alive across the company and keeps a good spirit between the
team. Its just a bit of fun!
5. Based on the trend of LV’s revenues, do you think LVMH brands extract more value from
customers on an annual basis?
Response:
Yes absolutely but not because of charity work. We grow every year.
Metric 4: Output (Directed towards CSR initiatives) 1. What are your thoughts on sales of
LVMH products within the locality and surrounding where the company has initiated a number
of CSR activities?
Response:
I think it might have but I don’t know what happens in other regions.
2. Is there a particular campaign, environmental conservation course, sponsorship, or partnership
within an LVMH brand (Louis Vuitton) that brought in several hundreds of people to LVMH’s
landing page (LV website)? Were they directly pitched to buy more of that specific product?
Response:
Definitely UNICEF in 2016, but I’m sure Mr. Arnault does more things on a local level with
universities, etc. And im sure he does things on a much wider scale but not that I’m aware off now.
3. What are some of the goals the company has when engaging in philanthropy? Has the
company achieved some of them?
Response:
I don’t know what they are set out to do but it’s definitely clearly important as a company now to
have involvement with Corporate Social Responsibility but I’m not clear on what the initial goal
isexactly.