Chinese fast-fashion retailer Shein has disclosed the discovery of child labor within its supply chain, as highlighted in its recently published 2023 Sustainability Report. The report confirmed two cases where suppliers employed children under the age of 16 last year. This revelation comes at a critical time for Shein, as it prepares for its initial public offering in London and faces increasing scrutiny over its business model and factory conditions.

Renowned for its affordable and trendy clothing, Shein has taken steps to address the labor violations by intensifying its factory audits in China. Although the report did not specify the locations where children were employed, the company announced the suspension of orders from the implicated suppliers. These suppliers were only reinstated once they had strengthened their hiring processes. Shein assured that both cases were swiftly resolved, allowing the contract manufacturers to resume business.

Shein's report emphasized its commitment to ramping up supplier policies and preventing any future child labor or forced labor violations. Under new rules, any instances of such violations would result in the immediate termination of contracts. Despite not disclosing the exact number of child labor cases, the report did provide data on the percentage of audits that uncovered minors in the workplace. These figures stood at 1.8% in 2021, 0.3% in 2022, and 0.1% in 2023.

Back in June, Florida Senator Marco Rubio voiced ethical concerns regarding Shein's alleged ties to the People's Republic of China in a letter addressed to the UK Chancellor at the time, Jeremy Hunt. Senator Rubio warned of potential labor issues such as slave labor, sweatshops, and trade secrets behind Shein's success. These concerns followed a report by Swiss advocacy group Public Eye, which highlighted excessive overtime faced by Shein workers.

As Shein prepares for its upcoming IPO, the company's commitment to addressing labor violations in its supply chain will be under intensified scrutiny. Strengthening supplier policies and enforcing strict consequences for any violations will be paramount for maintaining credibility and meeting international labor standards. Shein has not only acknowledged the child labor instances but has also taken steps to rectify the situation and prevent future occurrences.