At SHEIN, we strive to not only improve the lives of those in the communities we reach and operate in, but also ensure we remain accountable to our network of suppliers. We do this through third-party audits, trainings, community programs, volunteering initiatives and philanthropic giving across our global value chain.
SUPPLY CHAIN ACCOUNTABILITY
SHEIN does not own or operate any manufacturing facilities. Instead, we work with a network of contract manufacturers to procure products that carry the SHEIN brand. SHEIN has created a multilingual, dedicated Ethics and Compliance channel for employees and our suppliers’ employees to raise concerns about suspected violations of the Code of Ethics. The channel enables anonymous complaints, and each complaint is investigated.
Ensuring Accountability and Upholding Our Standards
SHEIN works with independent third-party quality assurance auditors such as Intertek, TUVR, SGS and Openview to manage suppliers of SHEIN-branded products and monitor their compliance to the Supplier Code of Conduct. This includes compliance requirements related to health and safety, environment, labor and social welfare. In 2022, we announced that we would double our investment in the SHEIN Responsible Sourcing (SRS) program to US$4 million, enabling SHEIN to increase the frequency of unannounced spot-checks and invest more in training suppliers to comply with our Code of Conduct.
The SRS policy ensures that all factories and companies that supply to SHEIN comply with local laws and regulations as well as international conventions and standards. In 2022, SHEIN, directly and with third parties, quadrupled the number of audits it performed, conducting over 2,800 audits across supplier facilities.
SUPPLY CHAIN Empowerment
Supplier Community Empowerment Program
Our Supplier Community Empowerment Program (SCEP) is an initiative that advances supplier partners and their communities at different stages of their development, providing factory and facility enhancements, training and upskilling for workers and services for communities within the supplier ecosystems in Brazil, China and Turkey. Through the program, SHEIN has been implementing long-term initiatives to empower supplier partners across four key pillars: factory enhancement, technology innovation, training support and community engagement. In 2022, SHEIN spent US $1.3 million to upgrade 83,000 m2 of supplier workspace covering 29 facilities and approximately 4,500 workers. In April 2023, SHEIN announced a total of US $70 million of funding for the SCEP over five years.
SHEIN supplier, Mr. Liao, founded his factory in 2007. Since then, his business has grown into an independent industrial group employing over 1,000 people working on SHEIN products. He benefited from SHEIN’s Supplier Community Empowerment Program in 2022.
The renovation plans for his factory included the improvement of 30,138 sq. ft. of factory space accommodating 160 employees. Another 430,556 sq. ft. factory is currently under construction and should be completed by the end of 2023. “SHEIN’s continued empowerment subsidies made this possible,” explained Mr. Liao.
SHEIN Spotlight Program
In 2021, we established the SHEIN Spotlight Program to empower the communities of suppliers we source from and the families within them. SHEIN Spotlight provides financial support to help families in need due to financial hardship caused by major illnesses. The SHEIN Spotlight Program provides 46,000 workers in 254 factories the opportunity to apply for grants and has awarded grants to 251 families, totaling over $300,000 since its inception.
Our Spotlight Program also organizes summer camps for children of workers at our supplier factories, who work in different cities in China. So far, around 280 children have participated in and benefited from our summer camp program. We expand the program every year, and it now runs at 34 of our supplier facilities.
In 2023, SHEIN launched AcceleraSHEIN – a global seller empowerment program. We support sellers in achieving their business goals while selling with SHEIN through education and training programs, among other benefits.
As part of the program, 100,000 high-potential and high-performing marketplace sellers will receive incentives and mentorship to hit annual sales milestones of US$100,000 within three years. Additionally, 10,000 sellers are fast-tracked to achieve US$1 million in annual sales within three years.
GIVING BACK TO OUR GLOBAL COMMUNITY
Building on our work in 2022, SHEIN announced in 2023 that it was allocating US $35 million dollars over five years to expand or fund new global or in-country social impact activities focused on empowering women, promoting gender equality, supporting the development of young people and poverty alleviation.
At SHEIN, we aim to empower our different stakeholder communities with the tools, capabilities and funding to improve and change lives, whether in their personal or professional capacity.”
Molly Miao, Chief Operating Officer
The following are some of the initiatives that we supported in 2022:
Mexico: SHEIN and the Asociación Mexicana de Ayuda a Niños con Cáncer (AMANC) foundation built an integrated partnership from the ground up to support Mexican children with cancer. This includes a monetary donation of US $60,000, organizing activities to fulfill the dreams of children with cancer, conducting workshops on emotional and mental health support for parents and children taught by experts and in-kind donations of new clothing for the children and their families.
United Kingdom: SHEIN is partnering with Dress for Success Greater London, a charity that provides styling, mentoring and interview support to unemployed women to help them succeed in job interviews. Since 2020, SHEIN has donated over US $140,000 to the charity providing support to 450+ women in their journey toward economic independence.
Philippines SHEIN supported Save The Children Philippines through a monetary donation of US $40,000 and over 5,700 pieces of kids clothing to provide more than 1,000 children and 500 families impacted by Super Typhoon Odette with relief and early recovery assistance.
SHEIN Allocates Additional US$85 Million for Global Community Empowerment
Commitment brings support for “people” pillar of company’s ESG roadmap to US$155 Million