Chinese fast fashion giant Shein has revealed that it found two cases of child labor in its supply chain last year as it ramps up efforts to monitor the companies that produce the clothes it sells. The company temporarily halted orders from the suppliers involved and only resumed business with them after they took steps to address the issue.
In its 2023 sustainability report, Shein disclosed that both cases of child labor were swiftly resolved, with measures taken including terminating contracts with underage workers, ensuring payment of outstanding wages, providing medical checkups, and facilitating repatriation to parents or legal guardians as needed. The contract manufacturers were allowed to resume business after appropriate remediation.
Shein has since tightened its supplier policies, making any violations of child labor or forced labor grounds for immediate termination of contracts. The company stated that the two cases were uncovered in the first nine months of 2023, with no further instances found in the last quarter of the year.
The revelation comes as Shein reportedly prepares for a potential stock market listing. The BBC understands that the company has filed initial documents for a London listing earlier this year.
However, Shein has faced criticism for the working conditions in factories within its supply chain. US Senator Marco Rubio raised concerns about “grave ethics concerns” and Shein’s connections to China, citing issues such as slave labor and sweatshops. Shein has maintained a zero-tolerance policy for forced labor and emphasized its commitment to respecting human rights.
Despite these challenges, Shein has made efforts to address issues raised by advocacy groups. The company stated that it is working diligently to improve conditions in its supply chain and has made significant progress in enhancing working conditions.
As Shein continues to navigate scrutiny over its supply chain practices, the company remains focused on addressing concerns and upholding ethical standards in its operations.
