ĐẠI HỌC QUỐC GIA HÀ NỘI

Trường Đại học Kinh tế

BÀI TẬP LỚN

HỌC PHẦN: CORPORATE SOCIAL RESPONSIBILITY

Student: Trần Mai Phương

Student ID: 21050307
Class: QH-2021-E QTKD CLC1
Lecturers: Ph.D Trần Thị Hiền

Hà Nội – 2024

1
TABLE OF CONTENTS:
1. Executive Summary: ............................................................................................................3
2. Introduction: .........................................................................................................................3
3. Findings .................................................................................................................................4
4. Discussion: .............................................................................................................................5
5. Conclusion:............................................................................................................................8
6. Recommendations: .................................................................................................................9
REFERENCES: ........................................................................................................................10

2
1. Executive Summary:

Shein, the global leader in fast fashion, faces a significant challenge: reconciling its
business model of ultra-low prices and rapid product turnover with growing consumer
demand for sustainable practices. This challenge is further amplified by documented
instances of dangerous working conditions within its supply chain. This case study
analyzes Shein corporate social responsibility (CSR) practices, particularly concerning
labor rights, supply chain transparency. Critics point to allegations of poor working
conditions, low wages, and potential labor exploitation within its supplier network.
Additionally, concerns exist regarding the lack of transparency in Shein's supply chain,
raising doubts about ethical sourcing and responsible manufacturing practices. To solve
these problems, Shein should prioritize labor rights and strengthen supply chain
transparency. Because if not, Shein can being boycotted, damaged brand reputation, and
potential regulatory scrutiny.

2. Introduction:

SHEIN is a Chinese company dealing with fashion clothes that operates all its business
online. The company is primarily based in China, with its headquarters there. Founded in
2008, SHEIN business analysis says that currently, it is the world’s largest fashion retailer.
Shein has revolutionized the fashion industry with vast selection of trendy clothing at
rock-bottom prices. This affordability comes at a cost, however. Fast fashion is known for
its environmental impact, including resource depletion, pollution, and textile waste. In
2021, Public Eye did an investigation on the working conditions at the factories of Shein’s
suppliers in Guangzhou, China, where it found that thousands of employees worked 12
hours a day sewing together fabrics for the fast-fashion giant. These factors create a
conflict with the growing demand for sustainable alternatives among environmentally and
socially conscious consumers.

3
3. Findings
3.1. Theoretical basis:
According to ISO 26000 : 2010 (E), 6.4.6 Labour practices issue 4: Health and safety at
work, “Health and safety at work concerns the promotion and maintenance of the highest
degree of physical, mental and social well-being of workers and prevention of harm to
health caused by working conditions. It also relates to the protection of workers from
risks to health and the adaptation of the occupational environment to the physiological
and psychological needs of workers. The financial and social burden on society of work-
related illness, injuries and death is heavy. Accidental and chronic pollution and other
workplace hazards that are harmful for workers may also have impacts on communities
and the environment. (For more information on environmental hazards, see 6.5.) Health
and safety concerns arise over dangerous equipment, processes, practices and substances
(chemical, physical and biological).”
We should follow these instructions to shown the violation of human rights: Health and
safety at work at Shein group.
3.2. Reality:

Labor rights issues:

The rise of TikTok has fueled a trend of "Shein hauls," where young users showcase their
hauls of trendy clothing from Shein at incredibly low prices. This popularity is fueled by
Shein adding thousands of new styles daily to meet demand. However, the hidden cost of
this affordability is revealed in unsafe working conditions within Shein's supply chain.

Despite Shein's claims of safe work environments, research exposes dangerous realities.
Workers are forced to navigate cluttered hallways and stairwells with no clear escape
routes in case of fire. Poor ventilation and lack of windows subject employees, who often
iron clothes in stifling heat, to health risks. These cramped and unsafe conditions raise
serious ethical concerns about Shein's labor practices.

Shein's labor violations extend far beyond unsafe working environments. Workers
interviewed by investigative journalists lacked formal contracts and had short tenures,
suggesting high turnover and a lack of job security. Factory owners exploit this situation
by dictating harsh terms without legal agreements. Public Eye's report exposes workers
toiling for "11 hours a day" with no contracts or social security contributions, exceeding
the legal maximum of 40 hours per week. A 2021 investigation revealed that workers
were compensated on a piecework basis, meaning their pay depended on the number of
garments produced. More complex items yielded slightly higher pay, but workers
reported these wages to be lower than in previous jobs. Additionally, the investigation
4
found that these workers lacked formal employment contracts and weren't offered any
insurance benefits. Fear of losing their only viable job option silences these workers,
making them vulnerable to forced labor practices. These findings paint a disturbing
picture of exploitation within Shein's supply chain.

In short, the popularity of Shein hauls on TikTok highlights the allure of fast fashion's
low prices. However, this convenience comes at the expense of worker safety and ethical
production standards.

Lack of transparency:

Concerns swirl around Shein's labor practices and environmental footprint due to the
company's failure to disclose details about its supply chain, including material origin and
factory conditions.

Shein's website boasts a social responsibility statement: "We're in the 'doing good'
business," promising positive impacts on wardrobes and the environment and even claim
“the world is our runway” for sustainability. However, a closer look exposes a different
story. A simple search for recycled polyester, touted as a preferred fabric, yields a mere
single item in the men's bottoms category, dwarfed by a staggering 3,600 non-recycled
options. Similarly, the majority of their cotton garments are blended with synthetics, and
natural fibers seem scarce across all collections. This lack of readily available sustainable
materials casts doubt on their commitment to eco-friendly practices. Furthermore, the
obscurity surrounding their supply chain leaves room for concern regarding ethical
production standards.

To maintain low production costs, Shein's suppliers often outsource orders to smaller,
densely packed factories in populated areas. These facilities frequently operate outside
China's labor regulations, raising concerns about potential fire safety hazards.
Additionally, the absence of formal contracts between Shein and many of these factories
creates an accountability gap. Consequently, Shein lacks assurances that workers are
receiving fair treatment and mandated benefits.

4. Discussion:
4.1. Causes of Conflict:

• Fast-Fashion Model: The emphasis on low prices and rapid product cycles
incentivizes unsustainable practices like the use of cheap, synthetic materials and the
disposal of unsold clothing, leading to landfill waste. Additionally, pressure to meet
tight deadlines can lead to prioritizing speed over worker safety.
• Prioritizing profit margins: Shein's production model emphasizes speed and cost-
cutting measures, resulting in concerns about worker well-being and product quality.
5
 This high-volume approach reportedly subjects garment workers in China to harsh
conditions, including excessive overtime under harsh lighting, potential exposure to
harmful chemicals in dyes and lead, and potential health risks for both workers and
consumers. Furthermore, to minimize construction expenses, workshops may lack
essential safety features like emergency exits and secure windows, raising fire safety
concerns.
• Consumer Awareness: While consumer interest in sustainability is rising, price
remains a significant factor in purchase decisions. Many consumers may be unaware
of the human cost behind rock-bottom prices.
• Variations in regulatory landscapes: Across different regions, enforcement of social
and environmental regulations can be inconsistent. This inconsistency can create
environments where companies like Shein face potentially fewer repercussions for
their actions.

4.2. Impact:
• To shein:
- Ethical criticism: Shein has been criticized for lack of transparency in its
supply chain, poor labor conditions and negative environmental impact. Due to
this, they can lose a significant number of customers.
- Fierce competition: The fast fashion industry is a highly competitive industry,
Shein must continuously innovate and improve to maintain its leadership
position.
- Legal risks: Shein may face legal risks due to violations of labor and
environmental regulations.
• To the employees:
- Poor working conditions: Workers in Shein's supply chain often work in poor
safety, hygiene and health conditions.
- Overworking: The fact that the workers are paid per item of clothing
encourages them to work more hours. In addition, a documentary produced by
the British Chanel 4 revealed that SHEIN clothing makers get paid as little as
£0.03 per item, to sew at least 500 pieces of clothing per day, working up to 18
hours in a single day. Experience disturbances in their personal lives, they can’t
have much time for family, friends, or even plan for future career progression.
- Financial remuneration is not guaranteed: Cost-cutting measures to maintain
financial stability could result in wage reductions or even layoffs. This might
leave remaining employees shouldering a heavier workload without additional
compensation. In addition, they were not provided with labor contracts, making
Shein's guarantee of remuneration to workers worse.
• To the environment:

6
 - Excessive carbon dioxide emissions: The fashion industry, including Shein, is
a major contributor to climate change. Shein boasts a 57% production volume
increase and a corresponding 52% rise in emissions from 2021 to 2022. Despite
claiming to implement mitigation programs, their rapid growth outpaces these
efforts. Reports suggest that despite an efficient business model, Shein's reliance
on virgin polyester and high oil consumption creates CO2 emissions equivalent
to nearly 180 coal-fired power plants.
- Water pollution and toxic chemical: Greenpeace's tests in Germany found
harmful chemicals exceeding EU regulations in various Shein items, including
clothes and shoes for all ages. Similarly, a University of Toronto investigation
revealed a toddler's jacket from Shein with lead levels nearly 20 times higher
than safe limits, and a purse exceeding lead content by more than five times.

- Textile waste and unsustainable materials: Shein's fast-fashion model fuels

textile waste. Their "take-make-dispose" approach, with 200,000 new items
daily, leads to frequent discards ending up in landfills for centuries. The rapid
production prioritizes quantity over quality, further contributing to waste.
Additionally, concerns exist about Shein's use of cotton potentially linked to
forced labor in China's Xinjiang region, despite a US ban on such cotton.
Loopholes in customs allow Shein to sell these clothes in the US market.

Shein needs to find ways to balance affordability with sustainability and ethical
production. Focusing solely on low prices perpetuates negative environmental and
social impacts. However, prioritizing ethical production and sustainability might
increase costs and impact its competitive edge.

4.3. Alternative solutions:

• Environmental Sustainability:
- Reduce reliance on virgin materials: prioritize recycled or organic materials
to lessen its environmental footprint.
7
 - Improve supply chain transparency: Increased transparency allows for better
monitoring of production practices and ensures responsible sourcing.
- Implement sustainable manufacturing processes: invest in cleaner production
technologies and water treatment facilities.
- Reduce carbon footprint: optimizing logistics and energy-efficient operations
• Labor Practices:
- Ensure fair labor conditions: conduct regular audits and collaborate with
independent organizations to verify ethical labor practices throughout its supply
chain.
- Improve worker compensation and benefits: Offering fair wages, contract
and benefits can improve worker well-being and reduce the risk of exploitation.
- Combat forced labor: Shein needs to implement robust measures to eliminate
the use of cotton or other materials potentially linked to forced labor.
• Transparency and Consumer Trust:
- Enhance supply chain transparency: Providing clear information about
sourcing, production processes, and labor practices builds trust with consumers.
- Improve garment quality: Investing in better materials and construction can
increase product durability and reduce waste.
- Develop take-back programs: Shein can offer garment recycling or donation
options to encourage responsible disposal and reduce textile waste.
- Address ethical concerns: Proactively addressing concerns about
environmental impact, labor practices, and product quality demonstrates a
commitment to improvement.

5. Conclusion:

The fast fashion industry thrives on fulfilling consumer desires, often at the expense of
ethical and sustainable practices, along with safe working conditions for factory workers.
This prioritizes short-term gains over long-term responsibility.

To achieve impactful Corporate Social Responsibility (CSR) practices, Shein must

prioritize ethical labor conditions, increased supply chain transparency, and
environmental responsibility. Recognizing these critical areas and actively pursuing
improvements will enable Shein to operate more sustainably, cultivate stakeholder trust,
and contribute meaningfully to the social and ecological well-being of the fashion
industry.

8
6. Recommendations:

In my role as a mid-level manager at Shein, I believe there are several key actions we can
take to address our Corporate Social Responsibility (CSR) gaps and enhance the
company's social and environmental impact.

Elevating CSR within Leadership: Mid-level managers can champion Corporate Social
Responsibility (CSR) by integrating these considerations into strategic planning and
ensuring active participation from senior leadership in establishing and supporting CSR
objectives.

Transparency and Accountability: Shein can demonstrate its commitment to

improvement by openly acknowledging its CSR challenges and taking responsibility for
addressing them.

Improve Occupational Health and Safety (OH&S):

• Develop a comprehensive OH&S policy: Implement a clear policy prioritizing

worker safety and well-being, demonstrating the link between strong safety practices
and business success.
• Implement a hierarchy of controls: Analyze workplace hazards and prioritize
elimination, substitution, engineering controls, then administrative controls and
personal protective equipment (PPE) for remaining risks.
• Regular risk assessments and mitigation: Conduct ongoing assessments to identify
potential hazards and implement effective control measures to minimize risks.
• Safety communication and training: Ensure clear communication of safety
procedures and provide regular training for all workers, including temporary, part-
time, and subcontracted personnel.
• Accident reporting and investigation: Establish a system for recording,
investigating, and addressing all safety incidents and near misses to prevent future
occurrences.

Respect Worker Rights and Well-being:

• Equal protection for all workers: Guarantee equal health and safety measures for all
employees, regardless of employment status (full-time, part-time, temporary,
subcontracted) or gender.
• Eliminate Psychosocial Hazards: Identify and address workplace factors contributing
to stress and illness, fostering a healthier work environment.
• Empower Workers through Participation: Integrate worker participation in health
and safety decision-making processes, including incident investigations.

9
• Respect Workers' Right to Information: Provide workers with timely, accurate, and
complete information on health and safety risks and mitigation strategies.
• Consultation and Refusal Rights: Establish clear channels for workers to raise
concerns and participate in consultations on health and safety matters. Respect the
right to refuse work deemed unsafe without fear of reprisal.
• Access to Expertise and Reporting Mechanisms: Allow workers to seek external
advice from relevant organizations and report safety issues to appropriate authorities
without fear of retaliation.

Transparency & Traceability: Publish comprehensive reports on supply chain

practices, including environmental audits, labor standards compliance reports, and details
about worker safety measures. Implement a system to track the origin of materials and
finished products.

Consumer Education & Advocacy: Partner with environmental and sustainability

organizations to educate consumers about the true cost of fast fashion, the benefits of
sustainable choices, and the importance of ethical production. Promote Shein's
commitment to sustainability and ethical production through marketing campaigns.

REFERENCES:

1. Wybrow, C. (2024). Public Eye Exposé on Shein.

2. Testa, J. (2022). The People's Republic of Shein. International New York Times, NA-
NA.
3. Drexler, E. (2023). Fast Fashion: Cheap But at What Cost?.
4. Wybrow, C. (2024). Public Eye Exposé on Shein.
5. Debora. (2024, May 20). The environmental impact of SHEIN: Is fast fashion

sustainable? | Eco-Stylist. Eco-Stylist.

6. Donatello, Sara (2022) "SHEIN: How Immaterial Labor Fuels the Capitalist Fast
Fashion Industry," Comm-entary: Vol. 18: Iss. 1, Article 7.

10
7. Patricia Battle. (2024). Shein has allegedly failed to end 75-hour work weeks at

factories. theStreet.

11
 Hệ thống kiểm tra đạo văn, trùng lặp
KẾT QUẢ KIỂM TRA TRÙNG LẶP TÀI LIỆU

THÔNG TIN TÀI LIỆU

Tác giả Trần Mai Phương

Tên tài liệu 21050307 - Trần Mai Phương - 01092003

Các trang kiểm tra 11/11 Trang

Thời gian kiểm tra 26-06-2024, 03:17:27

Thời gian tạo báo cáo 26-06-2024, 03:24:19

KẾT QUẢ KIỂM TRA TRÙNG LẶP

Tỉ lệ trùng lặp 0%
Nguồn trùng lặp tiêu biểu []

(*) Kết quả trùng lặp phụ thuộc vào dữ liệu hệ thống tại thời điểm kiểm tra

12