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Swarovski’s latest drop is a sobering departure from its usual glittering collections and collaborations. Today, the brand is releasing a new documentary, part of the BBC’s The Climate and Us series, that highlights the work of Joshua Ichor, a hydrologist who — after surviving a severe typhoid infection — developed a hand pump monitoring system and clean water kiosks for communities in Africa. Ichor is a graduate of the Swarovski Foundation’s Creatives for Our Future programme, promoted together with the United Nations.
Now 10 years in, and on the heels of launching the Creatives programme in 2021, the Swarovski Foundation has grown louder about its work. Since its founding, the foundation has supported a variety of activities ranging from education to public health. In 2014, it partnered with Médecins Sans Frontières to fight Ebola in West Africa, and more recently supported Mothers2Mothers in Mozambique following this year’s cyclone. It’s a way to both grow its impact and drive growth for the brand that founded it.
Luxury companies, both established and fledgling, today consider philanthropy part and parcel of their business and are beefing up their efforts. Cartier created its philanthropic foundation, Cartier Philanthropy, in 2002, adding the Cartier Women’s Initiative Awards in 2006 and, more recently, Cartier Red Club in 2019. Messika, a diamond-focused jewellery house founded almost 20 years ago, launched its foundation in 2021.
Brand purpose and responsibility are “non-negotiable”, per a 2023 report on luxury consumer trends by BCG and Altagamma, and have been accelerated by upcoming regulations, especially in the European Union, which focus on transparency and disclosure. It’s also driven by consumer expectation, the report shows: 65 per cent of consumers consider a brand’s sustainability credentials when choosing whether to buy from it (up 4 percentage points on 2019), rising to 72 per cent for Gen Z. A report by American Express released in September 2023 notes that “brand values” (68 per cent) is the second influential factor when purchasing luxury goods right after “high-quality products” (78 per cent) and is followed by “sustainability” (67 per cent).
“Consumers now genuinely care about the philanthropic efforts of brands, and employees also echo this sentiment,” comments Sarah Willersdorf, Boston Consulting Group’s global head of luxury. “Engaging in philanthropy fosters consumer and employee loyalty. This is especially significant for younger millennial and Gen Z employees who, as a general trend, seek out companies that strive to make a positive impact on society and are committed to social causes, ranging from DEIJ (diversity, equity, inclusion and justice), to sustainability and broader social impact,” she says — highlighting how “attracting great talent remains one of the biggest challenges in luxury”.
However, philanthropy does not shield companies from reputational hazards. Businesses are always at risk of potential public backlash if their actions are perceived as inauthentic or if their claims verge on greenwashing or “purpose-washing”.
“When engaging in philanthropic work, it is crucial for brands to maintain authenticity and stay true to their brand values and DNA; this is paramount to avoid appearing instrumental and opportunistic in surfing the ‘higher’ purpose,” says Federica Levato, partner at consultancy Bain in Milan specialising in fashion and luxury goods. “Eventual backlash from practices not perceived as authentic by consumers might result in long-lasting business consequences,” she warns.
Consumers may negatively react to philanthropic actions with commercial ends, which is why companies such as Swarovski usually keep business and charitable communications separate.
Swarovski CEO Alexis Nasard is aware of the risks and benefits of philanthropy and is open about its commercial advantages. “We have to be honest, part of this activity is also commercial. Because today, for many of our consumers, particularly the millennials and Gen Z consumers, it is a healthy element for brands to be good citizens and to have a very robust and sincere ESG agenda that they live every day,” Nasard says. He also adds how “governments and international authorities are becoming much more rigorous when it comes to the standards expected from companies”, and that philanthropy helps build up “human capital”. “Having a foundation with such a footprint and influence in the world makes it easier for us to attract talent and retain employees as they consider their work much more meaningful,” Nasard adds.
The pace of philanthropic activity has markedly picked up since the Covid-19 pandemic. Many luxury businesses joined the war-like efforts to provide vital medical and paramedical materials, as well as to contribute and offer assistance. All these endeavours have made some brands, whose goods are only affordable to a small percentage of the population, more relevant to a bigger audience. In 2021, during the pandemic, Van Cleef & Arpels launched ‘De Mains En Mains’, a charitable initiative created in partnership with the French Ministry of Education to initiate young people to jobs in jewellery-making.
“Many young people were struggling to define their future career choices, and our maison wanted to reach out to this population, to let them discover jewellery professions and realise that these little-known occupations are accessible,” explains CEO Nicolas Bos. Two more editions have followed, and a third one will run from 25 November to 3 December in Lyon. Last year, Van Cleef & Arpels welcomed 6,000 visitors, with 290 students and 36 adults undergoing training. “Our employees are particularly proud of De Mains En Mains, because it completely illustrates the values of transmission and education dear to the Maison,” says Bos.
“Philanthropic activities are a way to break barriers between consumers and employees and ultimately to federate a large number of stakeholders into a long-term vision,” observes Laurent François, managing partner of the luxury creative agency 180 Global in Paris.
While, in the past, businesses used to support a wide range of charitable causes, philanthropy now forms an integral component of a brand’s strategy and image. The purpose of the Swarovski Foundation was to bring together the various pro-bono initiatives that the company had always carried out since its founding in the 19th century.
Levato points out that communicating about results promotes transparency and accountability — Cartier Philanthropy, for example, produces an annual report on its work. “Brands have also been adopting a much more structured and systematic approach in organising and implementing their philanthropic efforts, increasing efficiency and effectiveness, while generating tangible results,” she says.
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