Last week [22 August 2024], online fashion retailer SHEIN published its 2023 Sustainability and Social Impact Report, in which it was revealed that two ‘incidents of child labour’ had been uncovered in its supply chain.
In the report, SHEIN states: “From Q1 to Q3 2023, our SRS audits uncovered two cases of child labor in our supply chain. Upon discovering these violations, SHEIN suspended orders from the contract manufacturers and undertook investigations.
“In accordance with the SRS Policy in place at the time, errant suppliers were given 30 days to remediate their offences. Both cases were resolved swiftly, with remediation steps including terminating contracts with underage employees, ensuring the payment of any outstanding wages, arranging medical checkups and facilitating repatriation to parents/legal guardians as needed.
“SHEIN also ensured the contract manufacturers strengthened their processes for screening new hires, such as checking and maintaining records of all employees’ IDs. Following appropriate remediation, the contract manufacturers were permitted to resume business.”
It confirmed that since these incidents, it has changed its child labour and forced labour policies, stating that it “will immediately proceed to terminate the business relationship with the supplier upon discovering the violation”.
The release of this report follows an investigation by Swiss advocacy group Public Eye in May 2024, which claimed that some SHEIN suppliers are continuing to work 75-hour weeks, even after the group’s initial report in 2021 exposed such working conditions in facilities in Guangzhou, China.
In its official reply to Public Eye, the retailer said: “SHEIN works with a network of third-party contract manufacturers globally. We are fully committed to managing our supply chain responsibly, and to supporting our supplier partners in providing working conditions that meet international standards for health and safety, labour and social welfare.
“Like all our industry peers, we recognise that there is still much to be done to raise conditions across the manufacturing supply chain. While no one company can solve these issues alone, we are committed to playing our part, and working with other industry stakeholders, to address these challenges.”
In June 2024, reports claimed that SHEIN had filed initial paperwork taking steps to become listed on the London Stock Exchange (LSE). This prompted action from campaign groups, calling for the company’s flotation on the stock exchange to be blocked.
That month, The Guardian reported that Stop Uyghur Genocide, a UK-based human rights charity that alleges minority Uyghur people are being used as forced labour at some of SHEIN’s cotton suppliers in China’s north-western Xinjiang region, had begun a legal campaign against the planned stock market listing. In a letter to the Financial Conduct Authority (FCA), the group said: “any attempt by SHEIN to list on the LSE should be refused”.
On 11 June 2024, US senator Marco Rubio sent a letter to then-UK chancellor of the exchequer Jeremy Hunt and FCA CEO Nikhil Rathi, warning him against “SHEIN ethics concerns”.
In the letter he said: “SHEIN previously sought to list in New York City, but failed due to concerns about its unethical and irresponsible business practices. At the time, I warned US securities regulators about SHEIN’s alleged exploitation of slave labour and trade loopholes. I now feel a duty of friendship to repeat these warnings and urge caution before the United Kingdom allows SHEIN to list in London.
“Slave labour, sweatshops and trade tricks are the dirty secrets behind SHEIN’s success… I trust you will treat these allegations against SHEIN with the utmost seriousness, investigate them fully and take appropriate action to protect investors.”
