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Investors Pressure LVMH on Labour Rights After Dior Linked to Italian Sweatshops

Some shareholders are asking the luxury giant to take more aggressive steps to monitor its supply chain after Italian prosecutors alleged factories manufacturing for Dior exploited workers.
A Dior store
Dior said last week it has cut ties with the suppliers in question, that they were only partially assembling leather products. (Courtesy)
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BoF PROFESSIONAL

Europe’s top asset manager Amundi and other LVMH investors want the $370 billion luxury behemoth controlled by billionaire Bernard Arnault to take more aggressive steps to monitor its suppliers’ treatment of workers after Italian prosecutors disclosed alleged

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Further Reading

Italian Sweatshop Probe Is a Wake Up Call for Luxury Brands

An investigation into labour exploitation in fashion’s Italian supply chains has already entangled Armani and LVMH, accusing the companies of failing to adequately oversee their suppliers. Incoming EU regulation means such lapses in oversight could soon come with penalties of up to five percent of global revenue.

Is Luxury Finally Set for a Sustainability Reckoning?

Amid growing disillusionment with luxury brands, a series of Italian investigations linking major players like Dior and Armani to sweatshop labour is putting new pressure on the sector's most powerful asset: brand image.

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