The case presented in the article by Wilson (2014), “Louis Vuitton Accused Of Racism, Slapped With Racial Discrimination & Harassment Lawsuit?” demonstrates the unwillingness of major corporations to invest in the development of organizational culture. The same is present with LVMH as it seems to not nourish employees’ behavior in a way that can be considered sustainable and safe. A key component of the contemporary management philosophy is the acknowledgment of management’s social responsibility, both to society as a whole and to the individuals who work in the firm. Louis Vuitton demonstrated that it is willing to resolve any issues that arise from its employees’ unethical behavior, but it is necessary to address the urgency of prevention measures.
Various methods may be taken to disrupt harmful behavior in the shape of any unethical discrimination, such as racism. The company provides a document that strictly imposes respect and promises to uphold moral responsibility to stay vigilant at any sign of activity that may harm society and individual rights. It states that the company ensures the proper conduct of its operations and “encourages the continuous improvement of social and public health conditions” (LVMH, 2021, p. 10). However, LVMH needs a more definitive approach to organizational behavior.
Therefore, strategic transformational and people-centered changes need to be introduced. Strategic transformational change refers to the revision of the company’s mission, the introduction of new technology, and employee training and development. People-centered change implies new hires and changes in the job descriptions. Consequently, a five-step action plan will elevate the situation and prevent further lawsuits and improve the company’s image.
Firstly, the company needs to address equality and intolerance towards discriminative behavior within its mission statement. Secondly, the company should be increasing the internal diversity of human resources via new hires. Thirdly, new technology for monitoring and reporting any form of discrimination discreetly and securely should be introduced. This change in the management tools may instill confidence in the change for employees and shareholders. The fourth action should be the incorporation of employee training and development programs aimed at increasing tolerance and ethically acceptable behavior — sensitivity training (Robbins & Judge, 2017). The fifth action could be a change in the roles and responsibilities that will indicate if a higher-ranking employee is overstepping his or her boundaries or violating a company code of conduct. Hence, making such conflict resolution easier and swifter for the management.
References
LVMH (2021). LVMH Code of Conduct. Web.
Robbins, S. P., & Judge, T. A. (2017). Organizational behavior. Pearson Education Limited.
Wilson, J. (2014). Louis Vuitton sued over shocking racist allegation. HuffPost. Web.