Dior pinned again by the law

In the UK, a specific law on modern slavery - known as the Modern Slavery Act - obliges companies with sales of £36 million or more (around $46 million) to make public their annual declarations on measures taken to combat forced labor and the various forms of modern slavery. According to a Reuters press release, until July 19, Dior's website continued to display obsolete declarations concerning a former certification, despite the fact that they had been invalid for over a year.

Currently in the spotlight as premium sponsor of the Olympic Games through LVMH, Dior is attracting other, far less glorious lights. On July 17, a Milan court accused the company's Italian factories of failing to carry out the necessary checks on their subcontractors. The judicial investigation revealed that these subcontractors had supplied Dior products made "under exploitative conditions" in several factories and workshops located in the province of Milan.

Following this accusation, the brand announced in a press release its full cooperation with the Italian authorities: "Aware of the seriousness of the violations committed by the suppliers in question and of the improvements to be made to its controls and procedures, the House of Dior is cooperating with the Italian judicial authorities". The prestigious house of the LVMH group then added that "no new orders will be placed with these suppliers in the future".

Jean-Jacques Guiony, the group's CFO, said that Dior would be implementing a new strategy to step up controls on its supply chain, make audits more effective and check subcontractors' working conditions in greater detail.

The laws of several countries are increasingly demanding that companies involved in luxury goods production set an example for the entrepreneurial world in terms of Environmental, Social and Governance (ESG) criteria.

In its updated statement on modern slavery - longer and more detailed than the 2020 statement - the French brand says Christian Dior UK is planning training to raise employee awareness of modern slavery and encourage them to take action if they suspect wrongdoing.