Shein has taken decisive action after identifying cases of child labour within its supply chain, as detailed in its 2023 Sustainability Report. The discovery led to significant policy changes to prevent future occurrences. The policy updates aim to ensure immediate termination of suppliers found engaging in unacceptable practices. Consequences for identified suppliers included remediation requirements.
- In 2023, Shein discovered instances of child labour at two suppliers, prompting immediate action.
- Suppliers were required to address the issues within 30 days, including paying outstanding wages and arranging medical checkups.
- Policy changes now mandate instant termination of business with suppliers found violating child labour policies.
- This development occurs amid speculation about Shein’s potential £50bn flotation on the London Stock Exchange.
In the first to third quarter of 2023, Shein uncovered two instances of child labour in its supply chain, signalling a grave concern over ethical practices. The company’s 2023 Sustainability Report, released on 23 August, highlighted these lapses and prompted swift remedial actions.
The child labour cases were discovered at two contract manufacturers. Both suppliers were instructed to resolve the issues within a 30-day timeframe, which included ensuring the payment of any outstanding wages and facilitating medical examinations. Furthermore, arrangements for the repatriation of underage workers were mandated.
Previously, Shein’s policy included suspending orders from non-compliant suppliers and allowing a 30-day period for remediation. If the supplier failed to comply within this timeframe, Shein would terminate the relationship. However, following these recent discoveries, Shein has instituted a zero-tolerance policy.
As of October 2023, Shein’s updated policies dictate an immediate termination of business relationships with any supplier found to be engaging in child labour, reflecting a stricter stance on ethical compliance.
The timing of this policy reinforcement coincides with discussions on Shein’s significant business plans, including a rumoured flotation valued at approximately £50 billion on the London Stock Exchange.
Shein has reinforced its commitment to ethical supply chain practices, ensuring future compliance with stringent labour standards.
