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Frontiers in Business, Economics and Management
ISSN: 2766-824X | Vol. 7, No. 3, 2023
187
EthicsandSustainabilityinTheJewelleryIndustry
Yun zh i Lin1, a, Na Sai2, *
1Economic Department of University of Illinois Urbana-Champaign, US
2Beijing Language and Culture University, China
aLinyunzhi0424@gmail.com, * Corresponding author: 2561821225@qq.com.
Abstract: Sustainability and ethics have never ceased to be the major concerns for the fashion industry. It plays a crucial role
in influencing consumers' decisions during the process of consuming products. The jewellery industry must consider ethics and
sustainable development as integral parts of its development. There are numerous industry reports and statistics that demonstrate
how important sustainability is to today's young consumers. The jewellery industry is expected to exhibit a high level of
commitment to environmental protection and ethical standards. Despite the fact that the non-renewable nature of mineral
resources as raw materials for jewellery appears to contradict the concept of sustainability on the surface, more and more
organizations and institutions within the jewellery industry are actively committed to sustainability. The purpose of this article
is to gather relevant cases of jewellery brands in the industry, and analyze the current situation and future plans of the jewellery
industry in terms of ethics and environmental protection, in order to provide some suggestions for future development.
Keywords: Sustainable development, Responsible for mining, Ethical considerations of the jewelry industry.
1. Literature Review
1.1. What are ethical and sustainability?
Sustainable development was defined in the Brundtland
report in 1987 as development that meets future needs without
compromising the ability of future generations to meet their
own needs. There are several concepts related to human
development. These concepts include the satisfaction of basic
needs, the cooperation and equality of all actors, and even the
integration of the various components of development.
(United Nations, 1987)
In order to achieve sustainable development,
environmental and resource constraints must be taken into
consideration, and in particular, the social environment must
be protected against vulnerability that could lead to a decline
in human well-being. Consequently, issues of inequality and
justice are prevalent in this concept. As stated in the first
principle of the Rio Declaration, “Human beings are at the
centre of concerns for sustainable development. They are
entitled to a healthy and productive life in harmony with
nature.”Sustainable development will be enhanced by respect
for the environment, but will not be an end in itself. As a result,
sustainable development has increasingly become understood
as a search for balance between social, economic, and
environmental aspects. This has also been achieved through
the development of indicators. (United Nations, 1992)
The importance of advancing sustainable processes in the
jewellery sector can be seen through the annual sustainability
reports routinely published by several luxury jewellery brands
and groups and their constant emphasis on their commitment
to environmental protection.
1.2. Exploration of ethical and sustainable
practices in the jewellery industry
Cartier, VanCleef & Arpels, and other jewellery brands
within Richemont are committed to taking active
measures in four areas: people, groups, resources, and the
environment. In 2022, 92% of the electricity they generated
came from renewable sources. Richemont has also decided to
cease the use of PVC in all products and packaging by
December 2022. As part of their commitment, the company
plans to use 100% renewable energy by 2025, track the gold
used, and only source diamonds and jewellery from Jewellery
Council-certified suppliers, and collaborate with other
industry organizations to promote best practices in the supply
chain. (Richemont, 2022)
Meanwhile, Kering, the world's second-largest luxury
goods group, is not new to the issue of sustainability. Kering
has been embracing sustainability as a core philosophy for
more than a decade now, encompassing a variety of
environmental, social, and ethical concerns, including the
development of an environmental profit and loss statement,
the evaluation of raw material suppliers, energy efficiency
and commitment to reducing the environmental profit and
loss of the Group's supply chain by 40% by 2025 and to
achieve 100% traceability of its products by 2025. As Kering
indicates, the company is not just concerned with sourcing
heavy metals and gemstones that have been clearly sourced,
but also with adhering to ethical practices, ensuring a minimal
carbon footprint, and using eco-friendly packaging during the
sourcing process. (Kering, 2023)
There are many sectors in which ethics and sustainability
are practiced. Transparency and responsibility are required in
the production of sources and in the use of sustainable
materials with a minimal impact on the environment. The
provision of a safe work environment and the payment of
fair wages are also essential. The "Blood Diamond Affair" of
the 1990s remains the most relevant negative report on the
industry almost thirty years after it broke, and this has led to
the public remembering and demanding that the jewellery
industry adopt a more ethical approach to sustainability. As a
result, many jewelry manufacturers ensure that ethical
considerations are taken into account when selecting raw
materials, which places high demands on ore miners. As a
result of the industry's unanimously high ethical requirements,
the safety of mining in the ore industry has remained
extremely high. Furthermore, some of the countries that are
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open to ore mining are poorer countries. Consequently, the
industry is also committed to creating a variety of
humanitarian benefits, such as providing employment
opportunities to local citizens and supporting local education.
There is almost always some level of engagement in these
good causes by companies that are able to consider corporate
responsibility. In spite of this, the environmental impact of
jewellery should not be underestimated beyond ethical
considerations. The jewellery industry must address a number
of issues. The most significant of these impacts are soil
erosion, dust pollution, industrial effluent pollution, heavy
metal pollution during the mining of ore, and the consumption
of water and the emission of carbon dioxide during the
processing of jewellery. The mining process is transparent and
workers are expected to maintain a high level of hygiene. A
thorough analysis of the entire production line can be
conducted to determine the origin of the materials and to
consider the impact on the environment or community.
Reusable or recycled materials are also considered in the
production process.
According to McKinsey's study on the attitudes of German
and British consumers regarding sustainability and the
fashion industry, 88% of people are willing to pay more in
order to reduce the environmental impact of fashion products.
Sixty-seven percent of consumers agreed that they would use
products made from recycled materials, while sixty-one
percent agreed to choose products made from recycled
materials and environmentally friendly packaging. It is
therefore likely that in the near future, ethical and sustainable
decoration will be a major factor in consumer choice and a
major trend to which the jewellery and decoration industry
will adapt, in order to develop creative work that is both
enjoyable and environmentally friendly.The global
management consultancy McKinsey & Company reports that
consumers are increasingly considering sustainability when
making purchasing decisions. In the coming years, fine
jewellery purchases influenced by sustainability are expected
to more than triple, providing an opportunity to make a
difference for the jewellery industry as well as brands to
demonstrate their commitment to environmental protection
and sustainable processes to consumers. Furthermore, they
may need to increase transparency and traceability in their
supply chains as well as eliminate superficial marketing
techniques. (Granskog et al., 2021)
It is also possible that cultivating diamonds as an emerging
jewellery material may contribute to the sustainability of
jewellery. Refining the diamond raw materials needed for
these products involves mining, whether for damage to the
ground, to develop mineral resources, or to dispose of
subsequent processing waste. This causes huge
environmental pollution and damages the ecological balance.
The cultivation of diamonds for the sake of environmental
protection, sustainable economic development, as well as the
development of the economy and the environment plays an
important role from this perspective.
Several jewellery companies have developed their own
environmental standards of practice because they believe they
have an obligation to protect the environment. A brand of
man-made diamond jewelry called Lightbox was launched by
De Beers, the world's largest diamond supplier, in 2018 along
with the opening of a new factory aimed at increasing the
production of man-made diamond jewelry. This move serves
both as a means of connecting with younger generations as
well as meeting the brand's strategic need for sustainability. A
significant period of growth is expected for lab-grown
diamonds, and making diamonds accessible to the general
public is crucial. Additionally, the De Beers Group has
already begun the process of setting up a carbonneutral mine.
The group first discovered that kimberlite has the ability to
absorb carbon five years ago. Kimberlite is a unique rock that
absorbs very high concentrations of carbon dioxide like a
sponge; unlike plants and trees, it does not require planting
and will not run out. Only one percent of all rocks on this
planet are known to be kimberlite. In order to conduct field
tests, the group has invested millions of dollars and partnered
with several university research laboratories. Carbon dioxide
will be locked in kimberlite forever, thereby offsetting 30%
of the mining process' carbon footprint. (The De Beers Group,
2023)
A standardised mining process is expected to be phased in
within a few years if this sustainability initiative from the De
Beer Group is successful. An ethical and environmentally
friendly supply chain using recycled and man-made materials
would be the hottest path to sustainability in the jewellery
industry.
Pandora recently announced that it will stop mining gold
and silver by 2025 and use recycled gold and silver instead.
As stated by the brand, recycled silver has a third of the
carbon footprint of mined silver, while recycled gold emits
600 times fewer emissions than newly mined gold. (Pandora,
2023)
1.3. Related controversies
In spite of the fact that synthetic diamonds and recycled
metals may seem to consumers as environmentally friendly
materials than mined diamonds and metals, there is
considerable debate within the industry regarding whether
these materials are actually environmentally friendly. The
mining of natural diamonds produces is much more fewer
carbon dioxide emissions per carat than the mining of
synthetic diamonds.
A comprehensive study on the impact of diamond mining
has been published by the Diamond Producers' Association
(DPA).It was conducted independently by Trucost and
estimated that carbon dioxide emissions would be equivalent
to driving 628 kilometers in a standard vehicle. Compared to
synthetic diamonds, which require massive amounts of
electricity to produce in factories, this figure is 69% less per
carat. This finding adds weight to recent criticisms of
synthetic diamonds and their "green" credentials.
Furthermore, the report found that diamond mining by DPA
members generated US$16 billion in socioeconomic benefits.
This included boosting local employment, and providing
more than 77,000 jobs. It also paid around 66 per cent above
the national average salary, contributing to government taxes
and royalties, and investing in infrastructure. (Roden, 2019)
There are also problems with recycled metals being ethical,
as many brands today do not have certification marks on their
recycled gold materials. This makes it impossible to trace the
legitimacy of the source, as much of the recycled gold is not
recycled from old jewellery, but is smuggled in from conflict
zones via unfair trade practices. A scandal involving recycled
gold was uncovered by the BBC in 2014 in which a Dubai
refinery purchased around four tonnes of silvercoated gold
from gold suppliers in conflict zones, in violation of trade
agreements that prohibited gold from conflict zones from
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entering the global supply chain. It is unlikely that the gold
could be traced back to its source after it had been re-smelted
by the refinery, however, it is likely that it was 'cheated' from
poorer regions through unfair trade practices, where it was
manufactured by exploiting people and illegally employing
children. (Verity, 2014)
2. LVMH and Kering as Case Studies
2.1. The Kering Group
As part of Kering's brand strategy, sustainability is one of
the most significant components. It is the Group's ongoing
commitment to sustainability that permeates the operating
models of its brands. François-Henri Pinault's approach to
sustainability is based on three pillars. Through the use of
innovative tools and practices, as well as the application of
rigorous
standards, Kering is committed to reducing its
environmental impact and protecting the planet. By 2025, the
company aims to reduce its environmental profit and loss
account by 40% and its carbon emissions by 50%.
Kering is committed to preserving its rich heritage through
its supplier training platform and various process training
programmes. It is also committed to promoting diversity in
the workplace and striving to be a model employer by
providing an inspiring and caring work environment for all its
employees.
In order to develop new sourcing solutions and empower
future generations, Kering collaborates with start-ups and
academia. In 2013, the Materials Innovation Lab (MIL) was
established in order to produce sustainable fabrics. The watch
and jewellery sectors have also been established a laboratory.
Kering collaborated with the Fashion for Good-Plug and Play
accelerator in 2017. In order to ensure sustainable innovation,
the program identifies and supports pioneering start-ups.
Additionally, Kering launched The Fashion Pact in 2019 with
the support of French President Emmanuel Macron, a global
alliance of fashion and textile companies (ready-to-wear,
sportswear, lifestyle and luxury) as well as suppliers and
distributors, united by a common core of environmental
objectives aimed at stopping global warming, restoring
biodiversity, and protecting the oceans. It is estimated that
more than 60 companies in 14 countries have signed the
agreement and joined the Kering Group's mission to date.
As expected of a luxury goods group, where attention to
detail is everything and a major differentiator,
Kering's sustainability plans and rules are very specific and
resulting in very specific achievements: Kering must ensure
that all leather it purchases does not come from cattle hides
grazing on rainforest-cleared lands in order to meet its
environmental profit and loss targets. It is clearly stated in the
purchasing guidelines that purchases should not negatively
affect natural populations and should conform to the highest
possible standards of wild harvesting. Heavy metals are no
longer present in the leather used by the flagship Gucci brand.
In order to improve the traditional tanning process, which
used toxic chromium and cyanide, the Kering Group
partnered with chemical industry experts and two university
teams.
Fur for Gucci's kangaroo fur-lined loafers comes from
proven wild populations in Australia. With its Python
Conservation Partnership, Kering is committed to finding
sustainable and ethical solutions for python skin (for clutches,
satchels, etc.) in the next decade. To date, Gucci has sourced
30kg of gold directly from a Peruvian mine, making it the
largest ethical gold purchase in the luxury industry.
A partnership between Kering and Worn Again has been
formed to extract cotton and polyester from used textiles and
use them to produce textiles and clothing. Approximately 77%
of the Group's paper consumption is certified by a third party
to ensure sustainable forest management and sustainable
sourcing, or it is recycled.
Kering Materials Innovation Lab has been created to
highlight innovations in raw materials, processing, and
manufacturing through a comprehensive library of
sustainable materials and a team of technical experts.
The launch of the program to implement best practices in
textile mills has been a first for the luxury industry. In order
to support the monitoring and sustainable management of the
Nile crocodile trade in Madagascar, Kering and the
International Trade Centre (ITC) have formed a partnership
to develop a multi-year program.
The example above illustrates that Kering's sustainability
plans and objectives extend to the brand portfolio as well as
the group level. The Kering sustainable development vision
is assimilated and understood within the organization since
the initiatives and vision originate from the CEO. The Kering
Group established a sustainability department in 2003,
released its first Environmental Profit and Loss Statement
(EP&L) in 2011 - an innovative method for measuring the
environmental impacts of business activities in monetary
terms - and published the Kering Standard in 2018, an
official list of advanced industry environmental and social
standards for 2018.
Nevertheless, why does Kering place such a high value on
sustainability? According to the CEO of the company, a
sustainable business model offers a competitive advantage,
creates value, drives growth, and, generally, contributes to a
healthier planet. A strong sustainability strategy has great
potential for Kering as an organization. Sustainability is taken
very seriously within the organization, as evidenced by a
significant amount of additional coverage every year. Several
awards have been presented by Kering as a result of the
subsequent results. The group was awarded the inaugural
Socially Responsible Investment Analysts Forum
Responsible Investment (FIR) Award in 2014, its first award
in recognition of its outstanding environmental, social, and
governance contributions.
A report entitled released by the Kering Group in May 2021,
outlined the Group's ambitious vision of a holistic circular
approach to development and challenged the industry to
rethink how resources and products are produced, used, and
extended. This third edition of the Kering Generation Award
for Sustainable Innovation focuses on recycling raw materials,
recycling product design, and recycling business models,
bridging the "5 Rs": Re-design, Reuse, Recycle, and Eco-
Renewable. Using Recycle, Regenerate, and Educate as a
methodology, we explore strategies and solutions related to
the recycling concept from the industry to the consumer, thus
exploring the concept and practice of the circular economy in
the fashion industry holistically.
2.1.1. A review of the circularity practices and
achievements of the Kering Group's brands
Gucci
As part of Gucci-up, a circular economy initiative, waste
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from the production process is upgraded and repurposed. In
retail and e-commerce channels, virgin, single-use plastic will
no longer be used starting in 2020. Packaging for the new
product is fully recyclable.
Through the "Carbon Farming" project, farmers are
assisted in transitioning to recycled agriculture. Purchasing
raw materials from recycled agricultural sources. In 2021,
Gucci developed a groundbreaking new material, Demetra,
derived primarily from renewable and biobased resources.
Saint Laurent
Increasing the efficiency of leather cutting and reusing
leftover leather from the production of handbags for the
production of small leather goods. The backroom floors of
some newly opened shops are made from leather trimmings,
giving the trimmings a second life.
Bottega Veneta
The design team participates in Circular. Courses on
circular fashion in the fashion industry. In the footwear and
ready-to-wear collections, biodegradable polymers and
recyclable plastics will be used as well as recycled nylon. An
investigation into the disposal of recyclable and non-
recyclable waste in shops in a circular manner. In June 2022,
the Bottega Series collection will be announced at the 2022
Global Fashion Summit in Copenhagen. It is the goal of the
Bottega Series to challenge the notion of seasonality and
create timeless pieces that can be passed down from
generation to generation.
Balenciaga
The 360° presentation of the Balenciaga Winter 22
collection featured a long hooded wrap coat made of
EPHEATM, an innovative material derived from mushrooms.
Combining men's and women's wear and designing two
collections simultaneously maximizes the use of fabric and
reduces the environmental impact of production.
Alexander McQueen
Developed an innovative buy-back recycling solution with
the Vestiaire Collective, the 'Brand Certified' service.
Boucheron
The Ultime concept collection of Jack de Boucheron
jewellery was introduced in 2022. In the new Ultime concept
piece, the playful simplicity of the Jack de Boucheron
collection has been reinterpreted in Cofalit, a material that is
derived from recycled industrial by-products that have
undergone vitrification and inertification.The launch of
Precious For The Future, the brand's first social and
environmental impact report. There are three main categories
of efforts made by the Boucheron team: sourcing of raw
materials, operations, and commitment to inclusion and
diversity.
Pomellato
By using the traditional Japanese restoration technique of
kintsugi (also known as gold restoration), Japanese artists
restore damaged stones with gold.
Brioni
A lifetime of changes can be accommodated by the
stitching of the suits. Maintenance and aftersales services are
provided by the brand.
As part of the Kering Group's blueprint for sustainable
innovation, in March 2017 the Group partnered with global
innovation platform Plug and Play to launch a European start-
up called "Plug and Play - Fashion for Good". The aim is to
find innovative solutions across the entire chain of the fashion
industry, from alternative raw materials to recycling
technologies, to transform thinking and thus extend the life of
products. In line with Kering's philosophy of "weaving the
future of sustainable fashion", the China-based Kering
Generation Award for Sustainable Innovation was established
in December 2018 to recognize and support innovative
solutions in the areas of alternative raw materials, green
supply chains, retailing, and circular economy. Chinese start-
ups that are tackling challenges and contributing to the
environment and society are recognized and supported by this
program.
A second edition of the Kering Generation Award for
Sustainable Innovation will focus on
biodiversity-related issues in 2021, supporting start-ups that
aim to provide clean water, protect soil health, provide
support for animal welfare, and educate the public about the
connection between fashion and nature. In December 2022,
the third edition of the Kering Generation Award for
Sustainable Innovation will be launched, with the theme
"Going Full Circle", focusing on circular economy concepts
and practices in the fashion industry and exploring the full
chain of development from the industry side to the consumer
side. During May 2021, Kering’s report, which outlines the
Group's vision of a holistic circular approach to development.
It highlights concrete actions taken by its brands around
circular development, which are highly aligned with the
Group's strategy for combating climate change and preserving
biodiversity. According to Kering's commitment to openness
and transparency, this newly released report is part of its
sustainable strategy for rethinking how it produces, uses, and
extends its resources.
2.2. LVMH (in the case of Tiffany)
A compendium ofevents from 1995-2023
1995: Tiffany urges the US Department of the Interior to
reject the construction of a gold mine that threatens
Yellowstone National Park.
1999: Tiffany prioritises participation in the Kimberley
Process Certification Scheme in the United States.
2000: The Tiffany Foundation is established to focus on the
company's philanthropic endeavours.
2002: Tiffany establishes a wholly owned subsidiary,
Laurelton Diamonds Inc., to manage its global diamond
supply chain. Tiffany begins offering benefits to domestic
partners in the United States.
2003: Tiffany stops buying gemstones from Burma in
support of the US Freedom and Democracy in Burma Act,
which protects human rights.
2004: Tiffany stops selling coral jewellery due to threats to
coral and coral reef communities and begins to encourage
other jewellers to practice the same to raise customer
awareness of the issue. Tiffany urges the U.S. Forest Service
to reject the proposed mining of the Rock Creek Mine in the
Cabinets Ridge Wilderness of Montana.
2005: Tiffany is the first jeweller to embrace Earthworks'
"No Dirty Gold" campaign, which establishes inspiring social,
human rights and environmental standards for the extraction
of gold.
2006: Tiffany is the first to install solar power in two of its
New Jersey factories.
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2009: Tiffany is the first in the jewellery industry to speak
out strongly against the proposed development of the 'Pebble
Mine' in Bristol Bay, Alaska, calling attention to the need to
protect this ecosystem. Tiffany's Board of Directors
establishes a Corporate Social Responsibility Committee.
2011: Tiffany joins the UN Global Compact and commits
to aligning corporate practices with universal sustainability
principles.
2013: The company establishes a second-generation
greenhouse gas reduction goal of a 15 percent reduction in
emissions between 2013 and 2020.
2015: Tiffany joins other outstanding companies in
committing to 'net zero' greenhouse gas emissions by 2050.
Appointment of Anisa Kamadoli Costa as Tiffany's first Chief
Sustainability Officer, having previously served as Tiffany's
Chief Architect for Environmental, Social and Governance
(ESG) matters (since 2003).
2017: The Tiffany Save the Wild collection was launched
to help raise funds for flora and fauna conservation and to
raise awareness for the conservation of elephants (joined by
rhinos and lions the following year). All profits were donated
to the Wildlife Conservation Network (WCN). Tiffany signed
the UN Women's Empowerment Principles.
2018: After a decade of collaboration, the Responsible
Mining Guarantee Initiative (IRMA) issued the
groundbreaking Standard for Responsible Mining. Tiffany is
a founding member of the IRMA Steering Committee and has
been encouraging positive change in our industry.
2019: Tiffany launches the Diamond Source Initiative, a
commitment to provide information on the origin (country or
region of origin) of each new, independently certified
diamond purchase - an important step towards transparency
in the diamond industry. As part of the modernisation of
Tiffany's Social and Environmental Responsibility
programme, Tiffany further refined its Supplier Code of
Conduct and began to share it publicly, with translations
available in 16 languages. The following year, Tiffany
released its Supplier Code of Conduct Guidelines, which
publicly spelled out more details about its expectations for
suppliers. Tiffany established employee resource groups in 12
chapters in four countries/regions, including multicultural,
women, rainbow communities and life stages. The company
rolled out unconscious bias training for all Tiffany employees
globally.
2020: The Tiffany Foundation celebrates its 20th
anniversary. The Foundation is privileged to support
organizations that protect the natural world and empower
communities, and in its first two decades, it has awarded more
than $85 million in grants. As the Foundation enters its third
decade, we continue our efforts to support organizations
dedicated to preserving the Earth's precious lands for future
generations. In an industry first, Tiffany will be the first global
luxury jeweller to share information about newly sourced,
independently certified diamonds from their country of origin
with its customers by launching the Diamond Artisan Trail
programme. The programme, which outlines the steps of
cutting and polishing, grading and setting, is a pioneering
move towards traceability and transparency in diamond
sourcing. Building on its 25-year legacy as a leader in
sustainable luxury, Tiffany has launched the 2025
Sustainability Goals, a boldly envisioned roadmap designed
to guide the company and inspire the broader industry to drive
positive change across the three pillars of product, people and
planet. Our goals are also aligned with the United Nations
Global Goals Framework to address the major social
challenges identified by the international community.
2021: For the first time, Tiffany purchases artisanal gold
certified by Fairmined (Fairmined). We believe that sourcing
responsibly mined artisanal gold can have a positive impact
on miners and their communities. 2022-2023: Tiffany will be
the first to launch TOSHI delivery services in New York and
London in 2022, with plans to expand to other cities in 2023.
Build or renovate more sustainable buildings in boutiques,
manufacturing facilities, offices and distribution facilities. All
major new construction, expansion, renovation and interior
fit-out projects meet Le adership in En ergy and Environmen tal
Design (LEED) Silver or higher certification standards.
3. Methodology
In this research, the case study methodology, which was
developed within the social sciences, has been used
(Eisenhardt, 1989; Yin, 2013). In addition to being used in the
social sciences, such as psychology, sociology,anthropology,
sociology, economics, but also in practice-oriented fields such
as environmental studies, humanitarian work, education, and
business studies. The case study method is a highly effective
method for gaining a better understanding of a complex issue
or object. It can extend experience and add strength to what is
already known through prior research. Case studies
emphasize detailed contextual analysis of a limited number of
events or conditions and their relationships.
From a comparative study between two representative case
studies, this method can be used to develop one or more
theoretical propositions that can be applied to an industry.
This is done by summarizing the distinction and
connections in sustainable development between the two
brands. Further research, supporting or denying them, might
drive the proposal of a general theory or a model (Dyer &
Wilkins, 1991; Eisenhardt & Graebner, 2007). The process of
data collection and validation can be divided into two major
phases. For a start, primary data were collected from
magazines and newspapers and from the brand’s website.
After this, secondary data were collected through semi-
structured interviews with open-ended questions available
online. Both of these data sources are official. Therefore, to
some degree our research is reliable. Nevertheless, there is
always the potential for bias when collecting data from
sources that are connected to the subject of research. For
example, the brand's website may only present information
that is favorable to the company. It is imperative to consider
all data sources with a critical eye in order to get a well-
rounded understanding of the subject. However, the way how
jewelry brands behave in line with the sustainable principle is
not a quantitative phenomenon that can be measured entirely.
For this reason, the case study methodology we use as a
quantitative research method unlike qualitative research
lacks the support of face-to-face interviews that are carried
out at the level of top management. It is unavoidable that our
research is a kind of lagging indicator.
4. Conclusion and Insights
There is a rapidly growing literature addressing the issue of
sustainability in the luxury fashion industry. The literature
reflects a growing awareness of the significant environmental
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and social impacts that industry practices have on the
community and local area. The analysis was applied to the
two most prominent luxury fashion holding companies,
LVMH and Kering. This research provides insight into how
these companies are responding to the challenges posed by
the industry, and how the fashion industry as a whole can
move towards a more sustainable future. Both of these
companies, in comparison to other organizations, have given
prominence to all environmental aspects, recording high
levels of performance in all areas of sustainability. This is in
a similar fashion to what is established in the literature.
For the luxury sector and in particular the fashion market,
social responsibility offers a competitive advantage. This is
because it allows companies to differentiate themselves from
their competitors, as well as increasing their appeal to both
current and potential customers. Additionally, it can be a very
effective way to attract and retain talent, as more and more
people are looking for companies that are committed to
sustainability. Concepts such as ethics, respect for the
environment, and the consideration of all stakeholders should
be central to companies’strategic vision. This becomes
especially pertinent in today's market, where companies must
demonstrate a commitment to sustainability and ethical
behavior in order to stay competitive and build customer trust.
Moreover, a strong commitment to sustainability is
becoming increasingly attractive to job seekers, making it a
powerful tool for recruitment and retention. Consumers'
increased sensitivity to the topic of sustainability causes
fashion brands to improve their reputation by integrating
social responsibility into their value proposition. It is known
that the fashion brand Patagonia has been able to leverage its
commitment to sustainability to attract new customers and
retain existing ones. Studies conducted on leading companies
in the fashion market indicate that social responsibility as a
mere marketing tool is increasingly becoming an integral
element of the value proposition and a driver of company
success (Corbellini & Marafioti, 2013). In this way, ethical
concerns extend to the entire value chain and to all the
stakeholders, integrating into a strategic vision of long-term
budgetary and societal success.
Furthermore, customers and investors alike are more likely
to support a business with strong ethical values and principles,
as these often help to create trust and brand loyalty.
Knowledge of the changed competitive context in which
companies find themselves operating inevitably leads
sustainability to become a powerful driver of innovation. This
perspective, in a phase of growing affirmation, reflects on
the need for luxury sector companies to redirect their strategic
approach toward transforming social responsibility and
sustainability into a competitive opportunity to benefit
individual companies or the sector overall.
Luxury fashion brands in the future will be forced to view
sustainability as a business imperative, like excellence in
quality sustainability, in fact, represents a long-term source of
luxury brand differentiation, a spur for innovation and a tool
for attracting and retaining talents; besides sustainability
generates efficiencies opportunities which can enhance the
firm’s competitiveness in the global luxury marketplace.
Kering's holistic approach to sustainability is embodied in the
Group's corporate mission, which seeks to redefine fashion's
relationship with sustainability. Each of the Group's brands
acts to redefine quality as it relates to sustainability as well as
to redefine the concept of luxury that incorporates
environmental concerns. To achieve this goal, the company
needs to create a culture of responsible stewardship,
encouraging employees to think innovatively and act
responsibly to create a society that is more sustainable and
inclusive.
Following this research, I would like to offer some
suggestions from three viewpoints: social, ecological, and
economic. Companies should also facilitate the ability to
ensure the well-being and financial satisfaction of their
human resources, create benefits for communities, and
support collective causes from a social perspective. For
example, companies could offer flexible work hours, provide
daycare services for employees, or even provide subsidized
housing for lowincome communities. In terms of the
environment, we should consider the availability and
renewable natural resources, energy efficiency, cooperation
between companies, circular economy strategies and
compensation, and internalizing environmental costs. For
instance, companies should encourage the use of public
transportation for their employees or provide incentives for
those who choose to drive electric cars. On the economic front,
we need to be focused on cost efficiency, flexibility, and the
ability to handle crises in a flexible and resilient manner. For
instance, companies may want to consider diversifying their
supply chains to increase their resilience in the face of
economic or environmental disruption.
5. Author Contributions
This paper was joint ly completed by Lin Yunzhi and S aiNa,
both of them have made equal efforts in the research of this
topic, and their contribution to the paper is average. It is
hereby explained.
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