According to the company, it put a temporary stop to orders coming from the suppliers in question and didn’t start doing business with them again until they made more of an effort to resolve the problem.
The disclosure seen in Shein’s 2023 sustainability report coincides with rumors that the company intends to go public with the sale of shares.
The working conditions at factories in its supply chain have drawn criticism for the corporation.
“With remediation measures that included ending contracts with underage employees, guaranteeing the payment of any unpaid wages, setting up medical examinations, and easing the resolution of both instances quickly,
After making the necessary corrections, the contract manufacturers were allowed to go back into business.”
Shein said that its supplier policies have since been strengthened. Any infractions pertaining to forced labor or child labor are now grounds for contract termination immediately under the new regulations.
The two cases, according to the firm, were discovered in the first nine months of 2023; none were discovered in the final quarter of the same year.