Shein: Reaction to the Problem

Much of the concern surrounding Shein's unethical practices stems from their unwillingness to disclose information, respond to inquiries, or participate in interviews. Shein appears to focus on shutting down and redirecting ethical issues rather than addressing them directly. For example, in the summer of 2023, a group of designers filed a RICO lawsuit accusing Shein of multiple violations, such as stealing designs. Shein claims that designs were not stolen, although many are extraordinarily similar, stating, 'This claim is built on nothing but conjectures and conveniently placed buzzwords. We have asked the court to dismiss the lawsuit, and we will continue to defend ourselves against these claims that are without merit.' There have been fifty-three outstanding lawsuits alleging copyright infringement cases against Shein, with twelve of them currently ongoing.

Artist design on the left compared to stolen Shein art on the right

Shein has developed a habit of making empty promises when ethical issues are exposed in the media. Problems arose in 2021 and even earlier, concerning the mistreatment of workers and violations of labor laws in many of their manufacturing plants. On the United States Shein website, the company claims to invest 'substantial efforts and resources' in its supplier audit system. Although these claims appear to be a step in the right direction, fast forward to 2023, and the same ethical issues remain just as prevalent.

 A 2022 documentary by Channel 4 exposed the continuing exploitative working conditions that still remain after the "substantial efforts and resources" were supposedly invested into stopping such a problem. As a result, Shein released a statement, "We are extremely concerned by the claims presented by Channel 4, which would violate the Code of Conduct agreed to by every Shein supplier. Any non-compliance with this code is dealt with swiftly, and we will terminate partnerships that do not meet our standards." Unfortunately, such a response seems to be the Shein norm while yielding little to no actual ethical improvements.

Watch Channel 4's Documentary Here: 
https://www.channel4.com/programmes/inside-the-shein-machine-untold

Employee ethical issues remain a significant concern, but there is evidence that Shein is working towards a more environmentally stable business model. Recently, Shein has faced criticism for the vast amount of clothing quickly ending up in landfills due to the low-quality fabrics used in the manufacturing process. Additionally, the creation of such low-quality fabrics releases a significant amount of carbon, surpassing the United Nations' target limit. In 2023, Shein appears to be attempting to move away from this harmful model by creating platforms that allow Shein users to sell unwanted products to other consumers rather than discarding them. Furthermore, Shein has dedicated $50 million to an extended producer responsibility fund.

Some people see this as a step in the right direction, while others, such as Liv Simpliciano, the policy and research manager at Fashion Revolution, see this as a cover-up, stating, 'If you have an on-demand model done at scale, producing small amounts of thousands of styles, that is overproduction by a different name.' It remains to be seen if Shein will hold true to these commitments, as they are still wary about the future environmental impacts, saying, 'There is quite a bit of work to do in taking synthetic fibers and being able to recycle them multiple times.'

Exponential growth over the past few years has opened Shein up to increased scrutiny. Bipartisan lawmakers, in 2023, are urging market regulators to require the fashion giant to disclose potential forced labor practices before the company's initial public offering. The issue largely surrounds the supposed mistreatment of Uyghurs, a Turkic ethnic group from East Asia that is marginalized in China. Allegedly Shein has been falsifying reports of forced or underpaid labor of its supplier factories, some of which are located in the Xinjiang Uyghur Autonomous region of China. This false reporting directly violates the Uyghur Forced Labor Prevention Act which was established in 2021. Shein responded to said accusations by stating, "Our suppliers must adhere to a strict code of conduct that is aligned to the International Labor Organization's core conventions. We have zero tolerance for forced labor." Although Shein claims the products are not created using Uyghur forced labor, experts believe it is very easy to manipulate and falsify audits from these manufacturing locations. It remains to be seen if Shein will release accurate, unmanipulated reports in an attempt to succeed at their initial public offering in the United States. 

Sources:

https://abcnews.go.com/US/online-retailer-shein-catapulted-top-fast-fashion-controversy/story?id=104247391

https://www.cnbc.com/2023/05/01/shein-china-congress-forced-labor-inquiry.html

https://www.drapersonline.com/news/shein-responds-to-channel-4-documentary-claims

https://us.shein.com/Supplier-Code-of-Conduct-a-1096.html

https://www.reuters.com/sustainability/sustainable-finance-reporting/analysis-shein-vows-cut-clothing-waste-can-ultra-fast-fashion-brand-really-2023-09-18/

Comments

  1. Elvira KabanovaNovember 14, 2023 at 8:21 AM

    I'm aware of the issues with Shein for falsifying reports and violating forced labor regulations. There is a waste of clothing that hurts the environment, and I do not support buying things from Shein.

    ReplyDelete

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