Basic underlying assumptions are the implicit behaviors deeply embedded in an organization that form the basis of its actions.

Looking at LVMH, it's clear that it's a luxury conglomerate with a strong focus on exclusivity. The group owns brands such as Louis Vuitton, Loewe, Guerlain, and Bulgari, all of which are in the premium sector. Exclusivity goes hand in hand with LVMH's next core belief: Excellence. The organization constantly strives to deliver outstanding performance to its customers. That's why LVMH's portfolio includes brands that focus on craftsmanship and quality as well as designers who leverage artistic creativity. Furthermore, the group seeks to combine timelessness and innovation to maintain consistency. Timelessness comes naturally to the various prestigious Maisons, as most of them have a long history and heritage. Through its investments in and support of visionary designers who push the boundaries of fashion and its creation of the LVMH Prize for Young Fashion Designers, LVMH also demonstrates that innovation is an all-encompassing theme that must be addressed to remain relevant in the future. Finally, the company is focusing on diversification. The organization consists of five divisions: Wines & Spirits, Fashion & Leather Goods, Fragrances & Cosmetics, Watches & Jewelry, and Selective Retailing, as well as other activities, including Hospitality and Media. Bringing together different businesses under one roof enables LVMH to reduce market risks, grow in different areas, and create a holistic image of the luxury experience.

Espoused values are officially endorsed beliefs that determine how an organization presents itself to the outside world. In the case of LVMH, the company has three commitments.

The first relates to people and corporate social responsibility. The group puts people at the center of its activities and focuses on four main objectives: cultivating individuality, promoting a safe and healthy work environment, achieving excellence through expertise, and contributing to a better society. For each objective, LVMH defines a yearly action plan that illustrates the improvements made. For example: In 2023, 1.6% of its employees had a disability. The group aims to increase this figure to 2% by 2025 to promote diversity. The company has also created a health and safety charter to foster employee well-being.

The organization's second core value is sustainability. LVMH launched LIFE 360, a program setting objectives for 2023, 2026, and 2030. These goals are based on four pillars: creative circularity, biodiversity, climate, and traceability and transparency. Furthermore, the group has established a reporting system to monitor progress. One of the sustainability goals for 2026 is to completely eliminate the use of virgin, fossil-based plastics in packaging. In 2023, 7,942 tons of this material were disposed of. Additionally, LVMH is working with its suppliers and other players in the luxury industry to further develop traceability tools and strengthen transparency.

The conglomerate's final major commitment is to philanthropy. In this area, the luxury group focuses on facilitating access to art, heritage, and art education, as well as medical research and social solidarity initiatives. Its initiatives bring together artists, intellectuals, and scientists to promote cultural exchange and enrich heritage. The opening of the Fondation Louis Vuitton in 2014 has been LVMH's biggest investment, underlining the company's commitment to enduring culture and unique stories.

Artifacts are the concrete, tangible elements of an organization's culture.
In this sense, LVMH's 75 unique Maisons are its most significant expressions. They embody exclusivity, heritage, and savoir-faire, representing the pinnacle of luxury. Additionally, various artifacts represent the brands, and thus the group, to the outside world. For instance, La Galerie Dior and Le Café Maxime Frédéric at Louis Vuitton in Paris offer visitors an opportunity to experience exclusivity firsthand. The organization has also launched a number of initiatives to maintain its public profile, such as the LVMH Prize for Young Fashion Designers and the Fondation Louis Vuitton.

Overall, we have seen that LVMH is committed to putting its core values and underlying assumptions into practice. To this end, the organization has launched its own initiatives and developed action plans to measure progress and continue improving. By embodying and acting on its deeply rooted beliefs and values, LVMH ensures transparency, honesty, and openness with the public. In this way, the conglomerate demonstrates that it is not just window dressing, but truly cares about its mission and objectives. This holistic economic approach is crucial for LVMH, ensuring the organization's continued relevance.