Shein Cracks Down on Child Labor

Fast-fashion retailer Shein has disclosed two instances of child labor within its supply chain in its 2023 sustainability report, coinciding with its preparations for a potential £50 billion listing on the London Stock Exchange. The company, which reported a £1.5 billion profit last year, has faced increasing scrutiny over its labor practices, particularly as it offers ultra-cheap clothing prices. Shein stated that both cases were swiftly resolved, involving the termination of contracts with underage workers and ensuring they received outstanding wages and medical check-ups. Founded in China and now headquartered in Singapore, Shein has been criticized for its reliance on low-paid labor in China. The company has implemented stricter audits and policies to combat labor violations, including a zero-tolerance stance on forced labor. In 2022, 0.3% of its audits revealed child labor violations, a figure that has reportedly decreased to 0.1% in 2023. Shein has also faced backlash from advocacy groups, including a petition against its UK listing that has garnered over 43,000 signatures. As Shein moves forward with its IPO plans, it has engaged top public relations firms and joined the British Retail Consortium to bolster its image. However, concerns persist regarding labor practices in its supply chain, particularly in light of allegations of forced labor in regions like Xinjiang, China. British officials have echoed these concerns, questioning whether Shein should be allowed to operate in the UK at all. In response to the growing criticism, Shein has committed to enhancing its governance and transparency, particularly regarding environmental and social governance (ESG) practices. The company has also reported a shift towards sourcing products from suppliers closer to its consumer base to reduce carbon emissions associated with transportation.