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Summary BOH4M Grade 12 Business Ethics Report: Shein’s Unethical Labor Practices and Worker Exploitation

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This 16-page Grade 12 BOH4M Business Ethics report explores Shein’s unethical labor practices in the fast fashion industry. It covers critical issues like child labor, poor working conditions, excessive working hours, and low wages, supported by credible sources (Reuters, CNN, BBC). The report includes a stakeholder analysis, financial and reputational costs to Shein, the company’s response, and a critical evaluation of its ethical standards. Perfect for high school students studying business leadership, corporate responsibility, or sustainability in the fashion industry.

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Ethics in Action: Shein’s Unethical Labour Practices



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Introduction

With millions of customers drawn to its huge range of fashionable yet reasonably priced

clothing, Shein has come out as a significant force in the fast-fashion sector. The company was

established in China and is currently a well-known worldwide e-commerce brand. Its ability to

provide fashion fast and affordably has contributed to its explosive growth. However, there is a

downside to this success: in 2023, concerns showed significant unethical labor practices in

Shein's supply chain. There is an obvious gap between Shein's public image and the reality of its

production, as evidenced by reports of child labor and poor working conditions at supplier

factories. These actions go against Shein's own agreements to maintain ethical company behavior

as well as breaking international labor standards such as Convention No. 138 of the International

Labour Organization. In addition to taking advantage of weaker employees, these allegations

manipulated customers and put Shein at significant financial and reputational risk as public

pressure grew. This study looks at Shein's labor violations, the individuals involved, their

financial impact on the business, its response initiatives, and a critical evaluation of its ethical

standards.

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Unethical Issues: Child Labour and Poor Working Conditions at Shein

In 2023, Shein, an important fast-fashion brand, came under serious criticism for following

unfair labor practices. Although the business has expanded rapidly by offering cheap clothing,

reports have exposed significant issues with clothing’s manufacturing process. These include all

allegations of dangerous working conditions in its factories and child labour. These actions

violated Shein’s commits as well as international labor laws. In order to demonstrate the

importance of these problems, their impacts on individuals, and reasons they are considered

unethical, this section examines them in detail using recent research.

Child Labour

Child labour is the action of employing minors to perform tasks that could put danger their

physical, mental, and moral development as well as dismiss them the basic rights, such as the

right to attend school. Zhu also gave the ages of the children Shein previously said it found

working at suppliers in 2023 as 15 years and 11 months, and 15 years and 9 months (Reuters,

2025). Additionally, the International Labour Organization’s Convention No. 138 mentions, "The

minimum age specified in pursuance of paragraph 1 of this Article shall not be less than the age

of completion of compulsory schooling and, in any case, shall not be less than 15 years" (ILO,

1973). There are major ethical consequences to child labor. Because they are unable to defend

themselves or pursue legal action, children—especially those from low-income families—are

more likely to be taken advantage of. At Shein’s supplier factories, children were employed in

violation of ethical standards, with the company taking steps such as terminating contracts and

arranging medical checkups after discovering these cases (Reuters, 2024). Not only does this

hurt the children, but it also shows that Shein's manufacturing inspection system does not work

properly. These issues grow because the company relies on a large number of low-cost suppliers

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5 mei 2025
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16
Geschreven in
2024/2025
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SAMENVATTING

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