Shein has admitted to two cases of child labour at its suppliers last year. The Chinese fast-fashion giant tries to counter criticism of its business model by increasing the number of audits.
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The company reported child labour at two suppliers in its newly released 2023 sustainability report, adding that it stopped orders with the suppliers concerned until they took action to address the problem. In addition, the company has revised its supplier policy: henceforth, the relationship will be terminated immediately in case of serious violations.
Last year, Shein says it conducted 3,990 audits of suppliers, quite an increase compared to the 2,812 audits in 2022 and barely 664 in 2021. The problem of child labour is decreasing, the Chinese online retailer claims: in 2021, 1.8 % of audits found minors in the workplace, down to 0.3 % in 2022 and 0.1 % last year.
Shein is expanding these measures to counter criticism that its ultra-cheap business model is incompatible with ethical business practices. The fast-growing company has every interest in polishing its image in the run-up to its planned London IPO, after plans for a US IPO were forced to be called off.
