Shein Reports Child Labour Incidents Amid Increased Supply Chain Scrutiny

Chinese fast fashion powerhouse Shein has disclosed that it uncovered two instances of child labour within its supply chain last year, highlighting its ongoing efforts to tighten oversight of its manufacturing partners. The company revealed these findings in its 2023 sustainability report, which comes as Shein prepares for a potential public offering.

In response to the discovered cases, Shein immediately suspended orders from the implicated suppliers and only resumed business once these suppliers had implemented measures to address the issues. “Both cases were resolved promptly, including actions such as terminating contracts with underage workers, ensuring payment of any outstanding wages, arranging medical checkups, and facilitating repatriation to their families or legal guardians where necessary,” Shein reported. “After proper remediation, the contract manufacturers were allowed to resume operations.”

Shein has since strengthened its supplier policies, establishing new rules that mandate the immediate termination of contracts in cases of child labour or forced labour violations. The company noted that these violations were identified during the first three quarters of 2023 and that no such cases were reported in the final quarter of the year.

The disclosure comes as Shein is rumored to be preparing for a public listing. Reports suggest that the company filed preliminary documents for a London stock market listing earlier this year. This potential move has attracted scrutiny from various quarters, including prominent US politicians.

In June, Marco Rubio, a key Republican on the US Senate Intelligence Committee and a supporter of former President Donald Trump, expressed serious concerns to then-UK Chancellor Jeremy Hunt regarding Shein. Rubio’s letter highlighted “grave ethics concerns” and criticized Shein’s “deep ties to the People’s Republic of China,” alleging that “slave labour, sweat shops, and trade tricks are the dirty secrets behind Shein’s success.”

A Shein spokesperson responded to these concerns by asserting the company’s commitment to ethical practices. “Shein has a zero-tolerance policy for forced labour and is dedicated to upholding human rights. We are committed to maintaining transparency throughout our supply chain and require our contract manufacturers to source cotton only from approved regions,” the spokesperson stated.

This response came shortly after a report from the Swiss advocacy group Public Eye, which highlighted persistent issues such as excessive overtime among workers in Shein’s supply chain. In reaction to the report, Shein assured that it was actively addressing the issues raised and had made “significant progress in improving working conditions.”

As Shein continues to face scrutiny and work towards addressing ethical concerns, the company’s handling of child labour incidents and its efforts to enhance supply chain transparency will be closely watched by investors and advocacy groups alike. The potential public listing adds a new layer of pressure for Shein to demonstrate its commitment to ethical business practices and corporate responsibility.