Shein has uncovered two child labour cases within its supply chain, prompting policy changes.
- The incidents were detected between Q1 and Q3 2023, as revealed in Shein’s 2023 Sustainability Report.
- Offending manufacturers were given 30 days to resolve issues before resuming work under stricter guidelines.
- Shein has since altered its policy to immediately terminate relationships with suppliers found violating labour policies.
- This news emerges amid speculation of Shein’s potential £50bn public offering on the London Stock Exchange.
Shein, a prominent fast fashion retailer, identified two instances of child labour in its supply chain during the first to third quarter of 2023. According to their recently published 2023 Sustainability Report, these incidents involved two contract manufacturers who were subsequently tasked with remediation efforts. The manufacturers were required to address the outstanding wages and arrange necessary medical check-ups and repatriation for the underage workers involved.
The suppliers were permitted to continue operations with Shein once they met these requirements within a 30-day period. However, this discovery has led to significant policy changes at Shein pertaining to its supply chain management. As of October 2023, Shein’s strategy involves the immediate termination of business relations with any supplier found to be in breach of their child labour policies. “Our approach prior to October 2023 was to immediately suspend orders from the supplier and give them 30 days for remediation, failing which Shein would terminate our business relationship with them. Now, however, we will immediately proceed to terminate the business relationship with the supplier upon discovering the violation,” Shein stated.
The revelation of these child labour cases and subsequent policy revisions come amidst ongoing reports suggesting that Shein is contemplating a direct public offering on the London Stock Exchange, potentially valuing the company at an estimated £50 billion.
Shein’s discovery of child labour cases has resulted in immediate policy changes and reflects broader implications for the company.
