Fast-fashion giant Shein revealed in its recent sustainability report that it uncovered two instances of child labor within its supply chain last year. The company, known for its trendy and affordable clothing, disclosed that it found minors under the age of 15 working for manufacturers producing goods for Shein. While the specific locations of these child labor cases were not disclosed, Shein took immediate action upon discovery.
Upon identifying the violations, Shein promptly suspended product orders from the implicated suppliers. The company stated that both cases were swiftly resolved through remediation efforts, including terminating contracts with underage workers and ensuring they received any owed wages. Shein resumed collaboration with the manufacturers after implementing enhanced screening procedures for new hires.
These revelations come amidst mounting scrutiny from advocacy groups, such as Amnesty International UK, regarding Shein's labor practices and environmental impact. Concerns raised by these groups have even led to resistance against Shein's potential listing on the London Stock Exchange.
Originally founded in China and now headquartered in Singapore, Shein reportedly sought to submit a confidential IPO application to the U.S. Securities and Exchange Commission last year. In response to the identified child labor cases, Shein updated its policies related to labor violations in October 2023.
Prior to the update, Shein's protocol involved suspending orders from suppliers engaging in practices like child or forced labor, allowing a 30-day window for remediation. The revised policy now dictates immediate termination of ties with any suppliers found to be involved in such violations.
