🔍 Shein Uncovers Child Labor
In a recent sustainability report, Shein revealed finding two cases of child labor in its supply chain from Q1 to Q3 2023. These violations were discovered during regular audits of its suppliers. Shein defines children as anyone under 15 years old. In China, it is illegal to employ anyone under 16. While Shein did not disclose which factories were involved or the number of children, it acted quickly by suspending orders and launching investigations.
📜 Policy Response and Changes
Upon identifying child labor violations, Shein suspended the manufacturers involved and required them to resolve the issues within 30 days. This included terminating contracts with the underage employees, ensuring any unpaid wages were settled, providing medical checkups, and arranging for the children to return to their families. As of October 2023, Shein implemented a stricter policy: any contractor found using child labor will be immediately terminated.
🛠️ Supply Chain Challenges
Shein’s complex and dispersed supply chain complicates its ability to monitor working conditions effectively. Products sold by Shein are sourced from various manufacturers, making oversight challenging. Despite investing $15M in 2022 to improve factory conditions and increase audits, follow-up investigations in 2023 revealed ongoing labor issues, such as 75-hour workweeks in some China-based factories.
💼 Public Image and Future Prospects
As Shein continues to face criticism over its labor practices, it has attempted to improve its image by inviting influencers to tour factories and hosting public events. However, the negative scrutiny persists. Experts suggest that the company’s plans to go public in the US may be at risk, with recent reports indicating a shift in focus to a London IPO. Valued at $66B in 2023, Shein's future remains uncertain.
Do you think Shein’s changes are enough to fix its issues?
