June 28, 2024
Cited article by Reuters
HRRC aligns with efforts to safeguard human rights, echoing concerns over Shein's labor practices and supporting measures to ensure corporate responsibility in the fashion industry.
News Brief
On June 26, the UK-based human rights group, Stop Uyghur Genocide, launched a legal campaign to prevent Shein, a fast-fashion retailer, from listing on the London Stock Exchange (LSE). Represented by the human rights law firm Leigh Day, the group has urged the UK's Financial Conduct Authority (FCA) to block the listing due to concerns over Shein's labor practices. Despite Shein's claim of a zero-tolerance policy towards forced labor and efforts to ensure supply chain transparency, the FCA has not commented on the matter. Amnesty International UK also condemned the potential listing, labeling it a "badge of shame" for the LSE due to Shein's "questionable" human rights standards.
In June, Shein confidentially filed papers with the UK's market regulator, signaling its intention to pursue a London initial public offering (IPO) later this year. While Shein asserts that it is investing in enhancing governance and compliance across its supply chain, the FCA has limited powers to investigate or enforce actions related to the Modern Slavery Act or tax legislation. The debate over Shein's potential IPO underscores the ongoing scrutiny of the company's labor practices and the broader issues of corporate responsibility and human rights in the fashion industry.