The call for greater corporate accountability in addressing modern slavery and human rights abuses within global supply chains is intensifying. Recent events, including a UK parliamentary inquiry into fashion giant SHEIN, have spotlighted the issue of forced labor, particularly in regions like Xinjiang, China, where allegations of widespread human rights violations against Uyghur Muslims and other Turkic minorities have drawn international condemnation.
In January, SHEIN’s response to the UK Parliament’s Business and Trade Committee raised significant concerns. During the inquiry, Yinan Zhu, the company’s EMEA General Counsel, was unable to provide satisfactory answers regarding whether SHEIN’s products contain cotton sourced from Xinjiang, where reports suggest forced labor practices. This region has become a focal point for global human rights groups, alleging abuses including torture and forced labor.
Liam Byrne, Chair of the committee, criticized SHEIN’s lack of transparency, describing the company’s failure to address “basic questions” as bordering on contempt for the committee. The inquiry further revealed SHEIN’s reluctance to clarify how it defines appropriate working conditions, particularly after accusations surfaced that workers in its supply chain were being subjected to extreme labor conditions, such as 18-hour shifts with only one day off a month.
In response to these allegations, SHEIN reiterated its commitment to upholding human rights, emphasizing its adherence to global regulations, including the UK’s Modern Slavery Act. The company told Global Insight: “SHEIN takes supply chain risks extremely seriously and strictly prohibits forced labor globally. We comply with all applicable laws and regulations, including the Modern Slavery Act and the Proceeds of Crime Act in the UK.”
This growing scrutiny reflects the wider international shift toward holding businesses accountable for human rights abuses in their supply chains. In June, the UK Court of Appeal made a pivotal ruling that dismantled legal barriers previously hindering investigations into businesses allegedly profiting from forced labor, particularly in China. Meanwhile, the European Union introduced legislation requiring companies with over 1,000 employees to assess and address human rights and environmental impacts across their supply chains. Similarly, the U.S. implemented the Uyghur Forced Labor Prevention Act in 2021, prohibiting imports from Xinjiang.
However, human rights organizations argue that more must be done to curb the use of forced labor. Baroness Helena Kennedy KC, Director of the IBA’s Human Rights Institute, highlighted ongoing discussions within the UK Joint Committee on Human Rights to potentially revise the Modern Slavery Act to increase corporate accountability. The law, enacted in 2015, mandates that businesses with annual turnovers exceeding £36 million disclose efforts to combat modern slavery. Critics, however, argue that the act has failed to ensure meaningful enforcement, with many companies merely engaging in superficial compliance.
“Currently, there’s a sense that companies treat the Modern Slavery Act as a mere box-ticking exercise,” said Kennedy, calling for stronger measures to make businesses more vigilant about their responsibilities.
The issue of sanctions is also central to the discussion. Anwar Darkazally, managing partner at Field Intelligence and officer of the IBA’s Business and Human Rights Committee, noted that companies are increasingly wary of falling afoul of sanctions, particularly those related to the Uyghur Forced Labor Prevention Act. “Sanctions are a significant concern for global businesses, especially when they risk being barred from entering the U.S. market or losing access to banking services,” Darkazally said.
To mitigate such risks, companies are increasingly turning to law firms and corporate investigation firms that specialize in supply chain due diligence. Open-source and human-source research methods, including consulting native speakers and accessing Chinese-language websites and databases, are becoming crucial tools for identifying links to forced labor.
While the UN, a tribunal in London, and the U.S. government have all concluded that crimes against humanity are being committed in Xinjiang, Baroness Kennedy and the IBA’s Human Rights Institute have gone further, asserting that these actions may amount to genocide.
Kennedy advocates for stronger trade policies, including the imposition of import bans on commodities, such as cotton, sourced from Xinjiang, to stem the flow of forced labor-tainted goods into the UK and beyond.
In January, UK Chancellor Rachel Reeves visited Beijing to bolster trade relations, securing £600 million worth of agreements for the UK economy. Despite this, she raised the issue of human rights, including the use of forced labor in Xinjiang, during her discussions with Chinese officials, reiterating that China’s sanctions against UK parliamentarians were unacceptable.
Kennedy emphasized that trade talks with China should be framed within the broader context of labor rights and fair compensation. “We need to engage China in meaningful dialogue about employment practices, promoting fairness and decent working conditions for all,” she concluded.
The ongoing pressure from human rights groups, legal experts, and lawmakers signals a growing demand for businesses to reassess their supply chains and ensure they are free from the stain of modern slavery.
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