PARIS — French luxury group LVMH Moët Hennessy Louis Vuitton has launched its first Human Rights Charter, underscoring the importance of protecting brand reputation as consumers place growing emphasis on good corporate citizenship, WWD has learned.

The document published on Wednesday guarantees the enforcement of universal principles, freedoms and fundamental rights as laid out in international conventions, including the International Bill of Human Rights.

It also engages the responsibility of the group’s suppliers and other business partners — a key point given the supply chain scandals that have plagued the luxury sector over the last two years.

“Respect for human rights is both an ethical imperative and a condition for the sustainability of the group’s operations,” LVMH said in the document seen by WWD.

The group has named Julie Vallat vice president, human rights, reporting to Olivier Théophile, group senior vice president, social engagement. Vallat, who joined at the end of April, is charged with steering the implementation of the roadmap across LVMH and its 75-odd brands, which include Dior, Louis Vuitton, Tiffany & Co. and Sephora.

The executive joins the group from beauty giant L’Oréal, where she was vice president, human rights, since 2019. Prior to that, Vallat was head of human rights at energy major Total.

She will be backed by a Human Rights Council made up of experts from the public, private and nonprofit sectors whose role is to provide independent advice and help identify emerging issues.

The Human Rights Charter, which applies in all countries where LVMH operates, sets out detailed guidelines covering areas including labor conditions, discrimination and harassment, cultural appropriation, environmental protections and armed conflicts, among others.

LVMH namely reinforces its pledge to protect personal data amid a rise in cybersecurity attacks targeting a slew of high-profile brands and retailers, from M&S, Co-op, Adidas and The North Face to Harrods, Louis Vuitton, Chanel and Dior. It also promises not to contribute to armed conflicts or serious human rights violations in conflict-affected areas.

“The group seeks to identify and prevent situations in which its activities, business relationships or supply chains could support, finance or benefit from such situations and, where applicable, to withdraw responsibly from a conflict zone,” it said, noting this applied particularly to the sourcing of materials or resources from affected areas.

At a time of declining spending on personal luxury goods, reputational risk has become a key battleground for brands committed to ensuring the highest standards of quality.

In Italy, prosecutors have tackled the endemic issue of undocumented workers, pursuing several brands for failing to properly audit their manufacturers, some of whom subcontracted production to sweatshops.

In response, companies have begun strengthening their internal controls and compliance measures. Loro Piana has reaffirmed its commitment to improving its supply chain auditing, severing ties with suppliers found in violation of its agreements, as did Valentino and Giorgio Armani.

Meanwhile, Dior vowed to take a larger proportion of its production in-house and in 2024 created a new industrial department tasked with strengthening its overall production capacity over the long term and ensuring the continuity of its know-how.

LVMH said it required all its business partners to comply with the new charter, in addition to its Supplier and Business Partner Code of Conduct.

“Given the complexity of global supply chains, the group requires its business partners to put in place appropriate mechanisms, including preventive measures, traceability, monitoring and remediation measures. They are also responsible for ensuring that their own partners and subcontractors comply with these principles,” it said.

It has also put in place an internal reporting platform, LVMH Alert Line, with an accompanying whisteblower policy that requires a confidential and independent investigation “within a reasonable period of time, and in a proportionate manner.”

The group recently formed a Vigilance Committee tasked with overseeing the charter. It includes four members of the executive committee, among them Antoine Arnault, group director of image and environment. 

Criteria related to CSR and sustainability are factored into the performance-related pay of senior LVMH executives, including chairman and chief executive officer Bernard Arnault.