Shein, a prominent online fashion retailer, has been under increased scrutiny regarding its labor practices and supply chain transparency. Recent investigations have highlighted concerns about working conditions and the sourcing of materials used in its products.
In August 2024, Shein's sustainability report revealed two instances of child labor within its supply chain. In response, the company suspended orders from the involved suppliers and implemented stricter policies, including immediate termination for severe breaches. Shein also conducted audits of its suppliers, increasing from 664 in 2021 to 3,990 in 2023, primarily using third-party agencies. These audits aim to ensure compliance with labor standards and improve working conditions.
Despite these efforts, concerns persist. A follow-up investigation by the Swiss NGO Public Eye in May 2024 found that workers at Shein's suppliers in southern China continued to face illegal working hours and piecework wages. Interviews with factory employees indicated that working conditions had not significantly improved, raising questions about the effectiveness of Shein's audits and the credibility of its sustainability claims.
Additionally, in January 2025, UK lawmakers criticized Shein for evading questions about its cotton supply chain during a parliamentary hearing. The lack of transparency regarding the sourcing of cotton, particularly from regions like Xinjiang, where forced labor concerns have been raised, has further intensified scrutiny of the company's practices.
Shein has stated its commitment to improving labor conditions and supply chain transparency. The company has invested in strengthening governance and compliance across its supply chain and has engaged with independent agencies to conduct regular audits of supplier factories. However, the effectiveness of these measures remains a topic of ongoing debate, as investigations continue to uncover labor violations within its supply chain.
As Shein continues to expand its global presence, addressing these labor and transparency issues will be crucial for maintaining consumer trust and meeting international standards for ethical business practices.