Amnesty International has condemned the possibility of SHEIN listing on the London Stock Exchange. The fashion giant’s questionable labour and human rights practices are at the forefront of this controversy.
Allegations of Exploitation
SHEIN, known for its low-cost fashion, is facing serious allegations regarding its labour practices. Workers in its supply chain reportedly earn less than 4 US cents per garment. Additionally, the company has been accused of using cotton harvested through forced labour.
Dominique Muller, a researcher at Amnesty International, expressed her concerns: “It’s deeply troubling that a company with questionable labour and human rights standards could benefit from a listing on the London Stock Exchange.” Muller emphasised that this move might encourage other companies to follow suit.
A ‘Badge of Shame’
Muller believes that allowing SHEIN’s flotation would be a “badge of shame” for the London Stock Exchange. She argues that it perpetuates a system where the wealthy benefit by exploiting the poor.
The process devalues workers, products, and the environment. According to Muller, it undermines societal values.
Call for Accountability
Muller has called on the UK government to prevent a “race to the bottom” in corporate and human rights standards. She insists that companies should be held accountable for any environmental harm and human rights abuses.
Muller also advocates for affected workers to have access to justice through UK courts. This would ensure that companies are responsible for their entire supply chain.
Environmental Concerns
SHEIN’s business model involves subcontracting to smaller producers in China. This often results in little transparency regarding worker pay or conditions.
Many of SHEIN’s garments are made from synthetic fibres derived from fossil fuels. These materials contribute to environmental degradation.
The rapid accumulation of these garments in landfills primarily affects communities in the Global South. Despite SHEIN’s claims of using independent auditors, there is a lack of transparency in their supply chain.
Recent Engagements with Amnesty International
SHEIN, originally founded in China and now headquartered in Singapore, has recently engaged with Amnesty International. They provided some details about their supplier auditing and garment recycling schemes.
However, significant concerns remain unresolved. The scrutiny over SHEIN’s labour practices and environmental impact continues to mount.
Amnesty International urges stringent safeguards and accountability measures before SHEIN’s potential flotation proceeds.
Lack of Transparency
SHEIN claims to use independent auditors to assess conditions at its subcontractors. However, they do not disclose supplier details.
The company also lacks transparency in the sourcing and traceability of raw materials used in its supply chain.
Muller highlighted that SHEIN needs to implement transparent and binding safeguards covering their entire supply chain.
Financial and Social Implications
The IFS has highlighted the UK’s significant debt level, near-record high taxes, and increased public spending.
Muller argues that amidst this economic background, the UK authorities and the London Stock Exchange should not facilitate SHEIN’s listing.
She insists that stringent and transparent measures are essential to protect human rights and environmental standards.
The Role of the London Stock Exchange
As SHEIN prepares for its potential London listing, the role of the London Stock Exchange is under scrutiny.
Amnesty International is urging the Exchange to adopt transparent and binding safeguards. These measures should cover internationally accepted human rights standards.
If SHEIN’s claims of using independent auditors and their Supplier Community Empowerment Programme are credible, it should be demonstrated clearly and openly.
The debate over SHEIN’s London Stock Exchange listing is far from over. Amnesty International demands transparent safeguards and accountability before any flotation proceeds.
The controversy highlights the importance of upholding human rights and environmental standards in global business practices.
