Christian Dior`s Violation of Supply Chain Ethics: A Threat to the Brand?

Case Code: BECG196 Case Length: 7 Pages Period: - Pub Date: 2025 Teaching Note: Available

Price: Rs.400 Organization: Christian Dior SE Industry: Cosmetics & Toiletries Countries: Italy Themes: Operations and Supply Chain Management , Brand Equity,Supply Chain Management,Ethics in Business

Abstract Case Intro 1 Case Intro 2 Excerpts

Introduction

In June 2024, the Italian unit of Christian Dior SE (Dior), Manufactures Dior Srl (MDS), was placed under court administration for one year due to labor exploitation issues reported within its supply chain. Dior was a subsidiary of French multinational luxury goods conglomerate Louis Vuitton Moët Hennessy (LVMH). By the end of the week in which the news broke out, LVMH’s stock price had plunged from US$ 830 to US$ 765 per share, demonstrating the adverse financial impact of the scandal. Industry observers thought that the court judgment also had a significant negative impact on the brand reputation of both Dior and LVMH..

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