Chinese fast fashion giant Shein has revealed it discovered two instances of child labor within its supply chain last year, prompting the company to intensify its oversight of its manufacturing partners. The company has temporarily halted orders from the implicated suppliers and will only resume business once they enhance their measures against such issues.
In the latest sustainability report, Shein disclosed these cases as it gears up for a potential stock market launch. The company has faced ongoing criticism regarding working conditions in its factories.
Shein stated that both child labor incidents were swiftly addressed, including terminating contracts with underage workers, settling unpaid wages, providing medical examinations, and facilitating the return of these individuals to their families when necessary. After implementing corrective actions, the contract manufacturers were allowed to resume operations.
The company has revised its supplier policies, establishing that any violations related to child or forced labor will lead to immediate contract termination. Shein noted that these two cases were identified during the first three quarters of 2023, with no such incidents reported in the last quarter.
As preparations for its stock market debut continue, the company filed preliminary documents for a London listing earlier this year.
Concerns have been raised at high levels regarding the company’s ethical practices. A prominent U.S. Senator previously warned about serious ethical issues tied to Shein, emphasizing its connections to the Chinese government. Furthermore, allegations of exploitative labor practices, including excessive overtime, have surfaced in reports from advocacy organizations.
In response to these criticisms, Shein has affirmed its commitment to a zero-tolerance policy for forced labor and a respect for human rights, emphasizing transparency and ethical sourcing throughout its supply chain. The company is reportedly making concerted efforts to enhance working conditions in light of these ongoing concerns.
