A just-published Reuters investigation found gaps in Dior's required supply chain disclosures. Can the brand take more reputational bruising?
Photo wall at the on-going Lady Dior House retail/exhibition
Dior has not quite salvaged its corporate reputation even after the explosive Reuters reveal that investigations by Italian authorities looked into the deplorable working conditions at one of its bag manufacturers. As a consequence, the case also uncovered what Dior paid for one of the bags before dramatically marking it up for retail. In their latest report, the result of a "review of company filings", Reuters found that Dior is "behind on disclosures required by UK law about working conditions in its supply chain". Is there something amiss in their British arm of their global business? One would imagine that after what has happened in Italy, Dior would have become extra vigilant when it came to supply-chain oversight. If what Reuters found is true, it is possible that Dior is not too concerned with non-frontline operations as long as all appear dreamy and desirable in their stores.
According to the latest that Reuters published online just two hours ago, there were lapses in Dior's declarations on two fronts: under what conditions their workers in their supply chain were operating and "outdated statements on its website of a third-party certification that it terminated more than a year ago". It does not say why the UK authorities had not kept a close watch on this legal requirement. According to the news agency, in Britain, the "Modern Slavery Act of 2015 requires companies with UK turnover of 36 million pounds (about S$60.87 million) or above to publish annual statements on their websites detailing the steps they are taking to combat forced labour in their business and supply chains globally." Following inquires made directly to Dior, the maison quickly posted a 2023—the last was in 2020—modern slavery statement, but as Reuters noted, there was none for 2021, as well as 2022.
In a reply to the inquiry Reuters made, Dior said through a written statement: "We have been preparing an up-to-date modern slavery statement, which... has now been published on our website." Only after the press went probing? Or has Dior not been able to publish an accurate statement, given the yet-to-conclude investigations in Italy? It is hard to say how the latest news would impact Dior's reputational standing. They have, up till now, remained rather untainted. In fact, Dior's visibility received a perceptible boost when their couture ateliers whipped up dresses for the likes of Lady Gaga and Celine Dion at the controversial opening ceremony of the Paris Olympics. But it is not just that. There is also experiential activities, such as the traveling Dioriviera cafe-and-shop and the current exhibition-cum-retail-exercise, Lady Dior House, at the former Zouk on Jiak Kim Street. Just go on, indifferently.
File photo: Chin Boh Kay for SOTD
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