Chinese fast fashion company Shein has revealed that it discovered two cases of child labor in its supply chain last year, leading the company to tighten its oversight of the suppliers that produce its clothing.
According to the company’s 2023 sustainability report, Shein temporarily stopped placing orders with the involved suppliers. Business was only resumed after these suppliers took measures to address the issue, as reported by the BBC.
This announcement comes as Shein is reportedly preparing to go public by offering shares on the stock market. The company has previously faced criticism over working conditions in the factories within its supply chain.
Shein stated that both cases were resolved quickly, with the steps taken including terminating contracts with underage workers, ensuring that all owed wages were paid, arranging medical checkups, and facilitating the return of the workers to their parents or legal guardians, if necessary. Once the necessary actions were taken, the suppliers were allowed to resume their business with Shein.
The company has since strengthened its supplier policies. Under the new guidelines, any violations related to child labor or forced labor will result in the immediate termination of contracts. Shein noted that these two cases were identified during the first nine months of 2023, and no further incidents were found in the final quarter of the year.
This disclosure comes as Shein prepares for a possible public stock offering. The BBC reports that the company filed preliminary documents for a listing in London earlier this year.
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