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Shein will invest $15 million to handle labour concerns in supply chain

Shein has committed to investing $15 million in supply chain improvements over the next three to four years, as well as $4 million annually to increase surprise supplier audits. This comes after claims of labour exploitation against the industry titan of ultra-fast fashion were made in October. In October, a documentary said that Guangzhou manufacturers making clothes for Shein paid their employees as little as 3p for each garment.

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The goal of the $15 million investment made by the fashion company Shein to strengthen its supply chain is to complete more than 30 projects by the end of 2022. Shein claims that over 2,600 independent supplier audits were financed in the previous year. The SRS programme, which aims to ensure equal treatment across vendors, would get a twofold increase in funding. According to Deepak, Shein’s statement does not contain endorsements from its clothing producers and their unions. Experts concur that audits frequently overlook or ignore breaches. According to Shein, a “multi-channel feedback mechanism” has been put in place for employees at its contracted facilities. 

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