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LVMH

More information about the LVMH Group can be found on the company’s website. 

The LVMH Group is made up of the following fashion brands:

  • Louis Vuitton;
  • Céline;
  • Berluti;
  • Kenzo;
  • Givenchy;
  • Marc Jacobs;
  • Fendi;
  • Emilio Pucci;
  • Thomas Pink; and
  • Donna Karen.  

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1. Ethical code?  -  yes

LVMH’s Supplier’s Code of Conduct can be found on the company’s website.  

2. Code applies to supply chain?  -  yes

LVMH’s Supplier Code of Conduct states:

‘We require strict compliance with these standards on the part of all our suppliers, their factories, subcontractors, as well as their own suppliers.’

3. Living wages?  -  no

We said to LVMH in an email dated 17 December 2012:

‘Your supplier code of conduct makes commitments on wages but does not explicitly commit to paying workers in your supply chain a “living wage”.   Is there a particular reason for this?  Has LVMH done any research to assess how much workers in supplier factories (particularly outside the EU) are actually paid and whether their wages could be considered a ‘living wage’ in the countries in question?’

However, LVMH were not willing to provide further information.  Their response, in an email dated 20 December 2012, was:

‘Please note that we have sent you the most recent information that we have given externally about supply chain issues.  We will use your follow-up questions to consider ways in which we can further improve our reporting on these issues in the future.’

4. Factory address list?  -  no

P.16 of LVMH’s 2011 Reference Document indicates that over half their fashion and leather goods are produced in their own factories, and where subcontractors are used, the majority of these are in the European Union, where labour laws are relatively strict and reasonably well-enforced.  It states:

‘Generally, the subcontracting used by the business group is diversified in terms of the number of subcontractors and is located primarily in the country of origin of the brand: France, Italy and Spain. Overall, the use of subcontractors for Fashion and Leather Goods operations represented about 45% of the cost of sales in 2011.’   

We asked LVMH in an email dated 17 December 2012:

‘Are you able to provide a little more info on this – in particular, roughly what percentage of fashion subcontracting takes place outside France, Italy and Spain?’ 

We also said to LVMH in the same email:

‘In the interests of transparency, something we are keen to know more about is where exactly goods are being produced.  A couple of fashion brands have been leading the way on this, in providing a full list of all their supplier factories.  Is this something LVMH would be able to consider doing for its fashion lines?’

However, LVMH were not willing to provide further information.  Their response, in an email dated 20 December 2012, was:

‘Please note that we have sent you the most recent information that we have given externally about supply chain issues.  We will use your follow-up questions to consider ways in which we can further improve our reporting on these issues in the future.’

5. Factories audited every 2 years?  -  no

We said to LVMH in an email dated 17 December 2012:

‘Your 2011 Reference Document mentions that in 2011, 453 social and/or environmental audits were carried out – are you able to share a little more about your procedures for social audits (e.g. Do in-house staff regularly visit suppliers to carry out checks or audits, how often is each supplier audited as a minimum, are audits unannounced, do audits include confidential interviews with workers selected by the auditor not management, is there a way in which workers in your supply chain can confidentially contact LVMH to raise any issues of concern?)’

However, LVMH were not willing to provide further information.  Their response, in an email dated 20 December 2012, was:

‘Please note that we have sent you the most recent information that we have given externally about supply chain issues.  We will use your follow-up questions to consider ways in which we can further improve our reporting on these issues in the future.’

We asked them to reconsider whether they could tell us more in an email dated 17 January 2013.  Their response, in an email dated 23 January 2013, still did not provide any further information but did suggest that they would be able to share more soon.  It said:

‘The information on audits will be updated and published in our 2012 annual report which we are currently preparing.We would be happy to discuss our auditing procedures with you after our results have been announced and you have access to the new information.’

6. Company staff visit factories?  -  no

We said to LVMH in an email dated 17 December 2012:

‘Your 2011 Reference Document mentions that in 2011, 453 social and/or environmental audits were carried out – are you able to share a little more about your procedures for social audits (e.g. Do in-house staff regularly visit suppliers to carry out checks or audits, how often is each supplier audited as a minimum, are audits unannounced, do audits include confidential interviews with workers selected by the auditor not management, is there a way in which workers in your supply chain can confidentially contact LVMH to raise any issues of concern?)’

However, LVMH were not willing to provide further information.  Their response, in an email dated 20 December 2012, was:

‘Please note that we have sent you the most recent information that we have given externally about supply chain issues.  We will use your follow-up questions to consider ways in which we can further improve our reporting on these issues in the future.’

We asked them to reconsider whether they could tell us more in an email dated 17 January 2013.  Their response, in an email dated 23 January 2013, still did not provide any further information but did suggest that they would be able to share more soon.  It said:

‘The information on audits will be updated and published in our 2012 annual report which we are currently preparing.We would be happy to discuss our auditing procedures with you after our results have been announced and you have access to the new information.’

7. Unannounced factory checks?  -  no

We said to LVMH in an email dated 17 December 2012:

‘Your 2011 Reference Document mentions that in 2011, 453 social and/or environmental audits were carried out – are you able to share a little more about your procedures for social audits (e.g. Do in-house staff regularly visit suppliers to carry out checks or audits, how often is each supplier audited as a minimum, are audits unannounced, do audits include confidential interviews with workers selected by the auditor not management, is there a way in which workers in your supply chain can confidentially contact LVMH to raise any issues of concern?)’

However, LVMH were not willing to provide further information.  Their response, in an email dated 20 December 2012, was:

‘Please note that we have sent you the most recent information that we have given externally about supply chain issues.  We will use your follow-up questions to consider ways in which we can further improve our reporting on these issues in the future.’

We asked them to reconsider whether they could tell us more in an email dated 17 January 2013.  Their response, in an email dated 23 January 2013, still did not provide any further information but did suggest that they would be able to share more soon.  It said:

‘The information on audits will be updated and published in our 2012 annual report which we are currently preparing.We would be happy to discuss our auditing procedures with you after our results have been announced and you have access to the new information.’

8. Confidential audit interviews?  -  no

We said to LVMH in an email dated 17 December 2012:

‘Your 2011 Reference Document mentions that in 2011, 453 social and/or environmental audits were carried out – are you able to share a little more about your procedures for social audits (e.g. Do in-house staff regularly visit suppliers to carry out checks or audits, how often is each supplier audited as a minimum, are audits unannounced, do audits include confidential interviews with workers selected by the auditor not management, is there a way in which workers in your supply chain can confidentially contact LVMH to raise any issues of concern?)’

However, LVMH were not willing to provide further information.  Their response, in an email dated 20 December 2012, was:

‘Please note that we have sent you the most recent information that we have given externally about supply chain issues.  We will use your follow-up questions to consider ways in which we can further improve our reporting on these issues in the future.’

We asked them to reconsider whether they could tell us more in an email dated 17 January 2013.  Their response, in an email dated 23 January 2013, still did not provide any further information but did suggest that they would be able to share more soon.  It said:

‘The information on audits will be updated and published in our 2012 annual report which we are currently preparing.We would be happy to discuss our auditing procedures with you after our results have been announced and you have access to the new information.’

9. Published audit results?  -  yes

P. 10 of the ‘Sustainable Development’ section of LVMH’s 2012 Annual Report contains a summary of their latest audit results.  

10. Worker complaint procedure?  -  no

We said to LVMH in an email dated 17 December 2012:

‘Your 2011 Reference Document mentions that in 2011, 453 social and/or environmental audits were carried out – are you able to share a little more about your procedures for social audits (e.g. Do in-house staff regularly visit suppliers to carry out checks or audits, how often is each supplier audited as a minimum, are audits unannounced, do audits include confidential interviews with workers selected by the auditor not management, is there a way in which workers in your supply chain can confidentially contact LVMH to raise any issues of concern?)’

However, LVMH were not willing to provide further information.  Their response, in an email dated 20 December 2012, was:

‘Please note that we have sent you the most recent information that we have given externally about supply chain issues.  We will use your follow-up questions to consider ways in which we can further improve our reporting on these issues in the future.’

We asked them to reconsider whether they could tell us more in an email dated 17 January 2013.  Their response, in an email dated 23 January 2013, still did not provide any further information but did suggest that they would be able to share more soon.  It said:

‘The information on audits will be updated and published in our 2012 annual report which we are currently preparing.We would be happy to discuss our auditing procedures with you after our results have been announced and you have access to the new information.’

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