Lvmh's Dior Italian Unit Cleared of Labour Exploitation Allegations
An Italian court has lifted controls on LVMH's Dior Italian unit after the company adopted required organisational model and supplier control procedures, resolving relationships with 'at-risk' suppliers quickly and developing best practices that received court approval. The Milan court had imposed special administrations on the fashion brand last year due to allegations of labour exploitation in its manufacturing process. Dior has strengthened its operations along the supply chain, setting a new benchmark for best practice in the industry.
- This decision highlights the importance of swift action by companies to address alleged labour exploitation and implement necessary reforms, potentially setting a precedent for similar cases in the fashion industry.
- How will the transparency and accountability measures implemented by Dior be scaled up across the luxury supply chain to prevent future instances of worker exploitation?