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CSR and leadership development strategy is a very effective development as far as social and community involvement are involved in the operations of an organisation particularly those which specialize in manufacturing luxury brands. This helps create a culture of trust and integrity where the employees increasingly want to be part of an organisation that provides stronger values, ethics and even spirituality (Guarnieri, R. & Kao, T. 2008). Values and ethics are ought to be the guiding principles in the operations of any organisation.

Accordingly, an IBM report (2008) posits to the effect that, “programs like the Global Citizens Portfolio help sustain the company’s commitment to its employees and the communities in which they live and work, reinforce a culture of trust and responsibility, and ultimately contribute to business success. ” Thus, incorporating CSR strategies in the operations of the organisation has many advantages such as creating mutual trust among the stakeholders of the Company which can be a source of competitive advantage as a result of the credibility that will be created in the process.

As such, CSR strategy driven by leadership development is very effective in that it will stimulate positive employee performance while at the same time cultivating a sense of trust among the members of the community it will be operating in. This strategy can be very effective for PPR since there will be likely chances of appealing to the concerns of the stakeholders. To what extent can the conflict between luxury branding and environmental concern be solved?

Concern for the environment is one very important aspect that is driven by the notion of sustainable development which posits to the effect that the activities of an organisation should not compromise the future generations to enjoy the same resources. Pinault concurs that, “Luxury is associated with pleasure, individualism, unreasonable enjoyment … thoughtlessness and waste, while sustainable development is synonymous with ethics, collectivity and restraint. ” However, according to Porter, M. E. & Kramer, M.

R. (2006), there are mainly three requisites that ought to be taken into consideration as far as CSR and environment are concerned. There is need to ensure that there is willingness among the stakeholders to pay, low transaction costs and there should also be social acceptability for the transactions made. In this particular scenario, it can be noted that the essence of business is not only to reap profits but to promote sustainable development that is meant to be beneficial to the future generations.

Whilst it has been noted that Pinault’s concern for humanity does not involve reduction of prices of the goods sold, there is need to create a fine balance between branding of the luxury products and the environmental concerns. This can be achieved through embarking on the use of more user friendly raw materials that do not cause severe damage to the environment while at the same time ensuring viability of the organisation. A luxury brand denotes prestige and it must not be compromising on quality.

Whilst the notion of CSR is gaining consideration through the need for environmental concerns, it is highly recommendable that Pinault should streamline the operations of the organisation in such a way that the products retain their value and luster while at the same time striving to minimise the impacts of environmental degradation through its activities. During the process, it would also advisable for the company to embark on projects that would in turn cultivate part of the benefits to the society in a bid to create goodwill on behalf of the communities.

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