Since the last 20 years, ethically affected consumer behaviours and ecological concerns are transforming the industry of luxury brands. For such strong brands, perceiving environmental and social responsibility is being highly strategically prioritized. For the millennial group of innovative entrepreneurs, ethical objectives can be identified as effective responses and potent motivators for challenging the scope of economic development. The level of sustainable growth is extremely essential and customers expect the creation of balance by companies between resource preservation, local establishment, human rights, cultural change, and expertise (Bullock, 2017).
Luxury brands show specific involvement in the utilization of biodegradable and organic plant fibres, fur and leather, by the further elimination of chemical products that are potentially toxic. Due to the increased awareness of consumers, various luxury brands are utilizing organic material for their products. Many luxury fashion brands have attained the label of Global Organic Textile Standard certifying the share of fibres that can be obtained as a result of organic agriculture (Joy et al., 2012). In addition, the overall demand for such supplies by brands has assisted in the protection of endangered animals.
In the past, various agreements were issued between Lora Piana (the designer) and vicuna breeders in Peru. As a result of the agreements, the species obtained adequate protection with the provision of exceptional quality, well designed raw material. In addition to the limitation of negative externalities, all of the approaches can be related to actual strategic choices (Bullock, 2017).
By focusing on the wellness and health of customers, luxury brands can be successful in providing opportunities to them regarding the creation of value. The current luxury industry will not have any future in the absence of sustainable development. 13 per cent of the luxury buyers follow specific criteria related to ethics and sustainable development. Though it is low, the figure is increasing as in the year 2017 it was only at 2 per cent (Li and Leonas, 2019).
Apart from quality, the customers of luxury products have succeeded in adding sustainability and transparency in the additional requirements. Having more information, they hold the tendency of favouring long- term investment and good quality. This particular paradigm makes it necessary for brands to adopt sustainable and ethical commitment, for highlighting the aspect of traceability.
Successful luxury brands have established good audits for performing or entrusting independent contractors. Jewellery is also a valuable industrial example under which traceability is a necessary concern with respect to image (Joy et al., 2012). There was a launch of the Kimberley Process for addressing key concerns related to raw diamonds and their provenance among public opinions. 99 per cent of the global production is covered under this process.
Two key aspects related to the implementation of more ethical and responsible standards and practices are establishment of regulations at international and local level, and the key business initiatives (Li and Leonas, 2019). If regulation assists in the creation of minimum standards, there is seldom specificity. All across the luxury industry, there are two key areas of ethical consideration, Jewellery and Fur. For Jewellery, there is the Kimberley Process and for fur, there are specific heterogeneous and regional constraints. There is complete ban on fur farms all across UK and in 6 federal states (out of 9) in Austria. Fur farms have also been categorized as unviable in economic terms in Switzerland. However, there are still very limited regulations in China, Canada, and other nations (Bullock, 2017).
Ethics and
sustainability has turned out to be a huge priority for current luxury
consumer. There is an urgent requirement of upscale labels and luxury practices
for fulfilling the ethically inclined and aspiring culture. Sustainability and
ethics is a major concern due to the enhanced awareness about the environment
and the society. Even though they are not as effective for the creation of
actual change, every single effort counts for the preservation of our
environment and the entire habitat living on it.
References
Bullock, G., 2017. Promoting Sustainable Management: World Wildlife Fund’s Hybrid Strategy to Change the Luxury Industry. In Sustainable Management of Luxury (pp. 235-255). Springer, Singapore.
Joy, A., Sherry Jr, J.F., Venkatesh, A., Wang, J. and Chan, R., 2012. Fast fashion, sustainability, and the ethical appeal of luxury brands. Fashion theory, 16(3), pp.273-295.
Li, J. and Leonas, K.K., 2019. Trends of sustainable development among luxury industry. In Sustainable Luxury (pp. 107-126). Springer, Singapore.