California Transparency In Supply Chains Act

Christian Dior Inc. ("CD US"), the Dior fashion business, supports the goals of the California Transparency in Supply Chains Act of 2010 (the "Act"). This Statement is published in accordance with the Act. CD US strives to be a model example of human rights and fair labor practices throughout its business activities. For the Dior beauty company, please see Christian Dior Perfumes LLC. at California Transparency in Supply Chains Act for Dior Fragrance & Beauty.

Business Overview

Structure. CD US is a company of the Christian Dior fashion group, headquartered in Paris, France (“CD group”) and is posting this Statement for the purposes of the Act. The corporate office of CD US is in New York, N.Y. The CD group has subsidiaries in several countries around the world and is one of the brands of the Louis Vuitton Moet Hennessy group (“LVMH group”). The codes, policies and practices that apply to CD US emanate from the CD group and the LVMH group (as further described below).

Activities. CD US does not produce any of the products it sells. The manufacturing of Christian Dior products is entirely managed by the CD group and CD US is the importer of record of such merchandise into the U.S. for sale in the U.S. CD US sells the merchandise to consumers in its boutiques or online from its website or through a Dior boutique in a department store in the U.S. The merchandise is a line of ready-to-wear, leather goods, shoes and accessories, fine jewelry and timepieces, as well as home products.  

Supply Chains. CD US engages mostly domestic suppliers in the U.S. The CD group and/or the LVMH group retains suppliers outside of the U.S. on behalf of CD US. Due diligence of these non-U.S. suppliers is done at the level of these groups, and the agreements with these suppliers are negotiated on behalf of CD US and other entities by either the CD group or the LVMH group. This enables CD US to benefit from well-established supply chains of these two groups.

CD US chooses the best suppliers based upon their ethics, honesty, and integrity in their business dealings, as well as the social and environmental principles by which they operate. As a responsible corporate actor, CD US has long since integrated standards of the Act into its daily business practices and how its suppliers are selected.

 The actions of CD US in this area include the following:

Verification Requirements For Suppliers Policies On Human Rights.

The aim of CD US is to eliminate any risk of modern slavery, human trafficking, forced labor or child labor in its business operations and in its supply chains. As part of the LVMH group, CD US supports the continual improvement of social, societal, and health conditions, which are key factors in development and in the protection of persons.

The LVMH group promotes the fundamental principles, rights and freedoms adopted by the international community, and in particular the Universal Declaration of Human Rights, the International Covenants on Civil and Political Rights and on Economic Social, and Culture Rights, the United Nations Guiding Principles on Business and Human Rights, the fundamental conventions of the International Labour Organization, the OECD Guidelines for Multinational Enterprises, especially Chapter IV., the United Nations Global Compact and the related Sustainable Development Goals, the United Nations Declaration on the Rights of Indigenous Peoples, and the United Nations Women’s Empowerment Principles. 

These standards are central to our responsible business policies and are the foundation for many of CD US’s labor-related policies.

Code of Conduct for Employees. CD US requires its employees to comply with the LVMH Code of Conduct for employees (“Employee Code”). In performing their duties, all employees must comply with and promote human rights every day.

The LVMH group is implementing a new Employee Code to replace the prior Employee Code. The Employee Code reflects our commitments to ethics and integrity, social and environmental responsibility and sets out the rules that each employee must follow in their day-to-day activity. The Employee Code informs employees that a key link in our value chain is to share our values with our suppliers, and employees must ensure that suppliers agree to comply with the requirements in the LVMH Supplier Code of Conduct (“Supplier Code”). If the supplier does not comply with the Supplier Code, CD US may demand that the non-compliance be corrected, suspend purchasing, refuse to accept deliveries or return any goods until remedial measures are being taken, and may terminate the business relationship with any such supplier.

Employees acknowledge compliance documents (Employee Code, Dior Anti-Corruption Code of Conduct, LVMH Alert Line Procedure, and Conflict of Interest Declaration) on an annual basis via an online compliance campaign. New employees acknowledge these documents upon joining CD US as part of the onboarding program.

Supplier Code of Conduct. Prior to engaging any new supplier, CD US requires its suppliers to sign and comply with the Supplier Code and to agree not to use forced labor and/or child labor. The Supplier Code is well known by our suppliers who understand that they need to comply with it and to ensure compliance across its own supply chain. The Supplier Code also covers topics such as respect of human rights, business ethics, environmental responsibility, data protection, diversity and inclusion, and compliance with laws and regulations. It is presented to suppliers during the selection process along with an anti-corruption assessment, requiring suppliers to accept it to proceed with the selection process.

The LVMH group continues to attach great importance to ensuring that each of the entities in the LVMH Group, including CD US, and their suppliers share a set of common rules, practices and principles with respect to ethics, social responsibility and protection of the environment. Supplier relations are anchored in responsibility, fairness and integrity. Suppliers must respect the ethical principles presented in the Supplier Code and ensure that their own suppliers do the same. The Supplier Code has been updated overtime since it was first established in 2008.

Specifically with respect to labor standards:

“The LVMH Group does not tolerate any form of abusive or illegal labor in its supply chain such as forced labor or human trafficking. All forms of forced labor, slavery, servitude or trafficking in human beings by Suppliers, as well as withholding identity papers or work permits or requiring workers to deposit a bond or the use of any other constraint, is strictly prohibited. All workers are entitled to accept or leave their employment freely. Suppliers must respect workers freedom of movement. Suppliers cannot require workers to work to repay a debt to them or to a third party.”

The Supplier Code is available on the dior.com US website: the footer “Ethics & Compliance” is the link to the LVMH site with access to the Code: https://www.lvmh.com/news-documents/lvmh-supplier-code-of-conduct/.

Alert Line. The LVMH alert line: this online system enables employees and third parties to report in good faith violations (or risks of violation) of various types of ethical and other concerns, including those pertaining to forced labor and/or child labor. Individuals can choose to remain anonymous when submitting a report. The LVMH Alert Line can be accessed through LVMH.com or at https://www.lvmh.com/lvmh-alert-line/ or on dior.com via the footer “Ethics & Compliance.”

Supplier Audits

The Supplier Code puts suppliers on notice that CD US reserves the right to audit its suppliers to ensure ongoing compliance with this Code.

As noted above in the Employee Code, the Supplier Code likewise puts suppliers on notice of the demands CD US may have of suppliers who do not comply with the Supplier Code.

Verification of Supplier Compliance

CD US requires its suppliers to sign and to adhere to the Supplier Code. 

Maintaining Accountability

In the event CD US becomes aware of any actions or conditions not in compliance with the Supplier Code, CD US reserves the right to demand corrective measures as well as the right to terminate an agreement with any supplier who does not comply with the Supplier Code.

Training to Company Employees

Training to Company Employees

CD US and its employees endeavor to respect the laws and regulations and conducts its business according to principles outlined in the International Labour Organization and the United Nations Universal Declaration of Human Rights. CD US requires its employees to acknowledge various compliance documents to ensure compliance with legal and human rights laws across the U.S. Concerned employees will also have to take an anti-corruption training. CD US intends to implement training on forced and child labor law compliance.

CD US will continue to evolve and adapt its policies and procedures to a changing world to reflect its unwavering commitment to ethical business principles.