Is CSR still optional for Luxury Brands, or can they afford to ignore it?
DOI:
https://doi.org/10.52756/ijerr.2023.v35spl.016Keywords:
M14, M38, M48, O38, O44, P25, P28Abstract
Can we learn survival and success in isolation? Can Luxury Companies afford to think of Corporate social responsibility (CSR) as an optional aspect? This paper discusses pioneering steps towards CSR in the context of the rapidly expanding luxury market. This further impels these brands to tradeoff between Profit-Planet, revisiting the initiatives and impediments pragmatically. The scholars have advocated the inspirational forces behind CSR contributions varying from the environment's need to strengthen goodwill to serve sustainability/existential crisis to institutional expectations. The stakeholders have augmented expectations from luxury brands towards society with each passing year in proportion to the revenue. This shift not only bags goodwill and promotes positive word-of-mouth in the industry but also enhances the brand's reputation. Luxury brands, often seen as symbols of opulence and exclusivity, are inherently expected to demonstrate social and environmental responsibility. Additionally, there is a growing awareness among consumers who seek brands that align with their values, making CSR a strategic imperative for luxury companies to maintain their brand reputation and customer loyalty. CSR is crucial for luxury companies, especially from a long-term sustainability and Sustainable Development Goals (SDGs) perspective. These market giants are at par with the SDG goals: SDG 1(No Poverty), SDG 3 (Good Health and Well-being), SDG 4 (Quality Education), SDG 8 (Decent work and economic growth), SDG 10 (Reducing inequalities), SDG 12(Responsible Consumption and Production), etc. In essence, CSR is not just a moral imperative for luxury companies, it is a strategic necessity that aligns their business objectives with the global agenda for sustainable development, ensuring long-term viability and relevance in a rapidly evolving world.
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