Shein, the Chinese fast fashion giant, has reported discovering two instances of child labour within its supply chain in 2023, according to its latest sustainability report. This disclosure comes as the company is gearing up for a potential stock market listing, with recent filings indicating interest in a London IPO.
The company has responded by tightening its supplier policies and suspending orders from the implicated suppliers until they took corrective actions. Shein’s measures included terminating contracts with underage workers, ensuring any unpaid wages were settled, arranging medical care, and facilitating the repatriation of minors to their families.
The cases were identified in the first nine months of 2023, with no new incidents reported in the last quarter. In a bid to enhance transparency and ethical practices, Shein has implemented stricter rules, making any violations related to child or forced labour grounds for immediate contract termination.
This move comes amid ongoing scrutiny over Shein’s labor practices. Earlier this year, U.S. Senator Marco Rubio voiced concerns about the company’s labor conditions and its connections to China, criticizing its ethical standards. Despite Shein’s assurances of a zero-tolerance policy towards forced labour and its commitment to human rights, advocacy groups like Public Eye have reported persistent issues, including excessive overtime in the supply chain.
As Shein prepares for its potential London listing, it faces increased pressure to demonstrate genuine improvements in labor practices and supply chain transparency.
