A unit of Dior has been released from court oversight, which was established following an investigation in Italy that connected the brand to sweatshops near Milan.
This investigation highlighted a hidden economy of low-cost manufacturers within the luxury supply chain, revealing deficiencies in the monitoring systems that large brands claim to have to prevent labor exploitation.
Dior stated that it collaborated with court-appointed experts to improve its supply chain practices and “set a new standard for industry best practices.”
Armani, another brand implicated in the investigation, was also released from court supervision recently.
Dior expressed its commitment to “maintaining our values of transparency, integrity, and respect throughout our supply chain.” The company added, “We continue to oversee and, when possible, enhance our internal processes to ensure fair and equitable working conditions for all individuals who contribute with dedication and skill to the creation of the highest quality Dior products.”
Learn more:
What Happened to Italy’s Luxury Sweatshops Investigation?
Nearly a year has passed since Italian prosecutors associated Armani and Dior with sweatshops around Milan as part of an inquiry that could scrutinize several other fashion brands. In response, officials and industry leaders have moved to strengthen regulations over the luxury supply chain.
Disclosure: LVMH is part of a consortium of investors that collectively holds a minority stake in The Business of Fashion. All investors have signed documentation ensuring BoF’s complete editorial independence.
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