Strategic CSR and sustainability in the luxury industry as a driver of corporate reputation

The paper aims to understand how Corporate Social Responsibility (CSR) in the luxury sector can improve the brand reputation. The paper provides an analysis of the drivers that are leading to a growing integration of social responsibility and sustainable development principles in the competitive strategies of luxury firms. In particular it focuses on strategic and organizational innovations emerging in the luxury industry and provides an overview of emerging innovative business models, coherent with sustainability. Particular attention is devoted to analyses the role of CSR as a driver of reputation; starting from literature review, are examined the factors that most influence the reputation in the brand-based global luxury fashion industry, highlighting a gradual shift from reputation based on product quality to one focused on sustainability. The theoretical analysis is supported by 3 cases of Italian companies which represent best practices in CRS reputation by Standard Ethics Italian Index: Luxottica, Brunello Cucinelli and Damiani.