Fashion giant Shein is facing mounting pressure from state officials, who are calling on the company to provide concrete evidence that it does not engage in the use of forced labour within its supply chain before it can proceed with its highly anticipated Initial Public Offering (IPO).

This demand comes as part of increasing scrutiny on corporations’ ethical practices.

Concerns over Shein’s labour practices have been fuelled by reports and investigations into the company’s supply chain.

As the online fashion retailer prepares to go public, state officials across the United States have voiced their unease about the potential involvement of forced labour in Shein’s production processes.

Officials from multiple states now demand transparency from Shein, insisting that the company demonstrate its commitment to ethical labour practices.

The demand includes detailed reports, audits and any other evidence that can substantiate Shein’s claim of not using forced labour at any stage of its production or distribution.

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By GlobalData

Shein’s response crucial for IPO

The pressure on Shein to provide assurance against forced labour has placed the company at a critical juncture. A successful IPO, which could value Shein at a substantial amount, largely depends on the fashion giant’s ability to address these concerns adequately.

Ultimately, Shein’s upcoming IPO will come under a growing spotlight as state officials intensify their call for proof that the company is free from forced labour in its operations.

The outcome of this scrutiny will undoubtedly impact the fashion retailer’s financial future and may set a precedent for other companies facing similar ethical challenges.