Low-cost fast-fashion retailer Shein has announced the establishment of its new non-profit organization, the Shein Foundation. The foundation aims to foster more inclusive and sustainable communities while consolidating the company’s existing philanthropic initiatives.
Previously, Shein supported social and environmental causes such as gender equality and textile waste reduction through programs like Shein Cares and the Extended Producer Responsibility (EPR) Fund. The creation of the foundation is expected to enhance transparency and accountability, allowing Shein to undertake more efficient and sustainable charitable activities.
Focus on Three Key Areas
The Shein Foundation will focus its efforts on the following three areas:
- Improving Lives in Communities
The foundation seeks to create inclusive and accessible societies, with a particular focus on women, young people, and underserved communities. It aims to support initiatives that reshape societal frameworks and empower these groups. - Protecting Biodiversity
In response to climate change and habitat loss, Shein will work to protect, restore, and promote the sustainable use of terrestrial and marine ecosystems. - Advancing Sustainable Change
By redefining the fashion industry’s value chain, the foundation aims to support research, innovation, and the expansion of sustainable solutions across the sector.
Donald Tang, Executive Chairman of SHEIN, stated:
“Empowering and giving back to the communities we reach has always been core to our operating philosophy. Establishing the SHEIN Foundation, and thereby consolidating our charitable efforts under a formal philanthropic structure, brings greater accountability and transparency to our donations. This also strengthens our ability to direct our charitable giving in a more impactful and sustained manner to better support causes and organizations that align with our values.”
€5 Million Contribution to Pilot Project in Kenya
To commemorate its launch, the Shein Foundation has pledged €5 million (approximately $5.3 million) to the Africa Collect Textiles (ACT) Foundation, a charitable arm of Africa Collect Textiles. The funds will support a pilot program focused on recycling used textiles and reducing waste in Kenya.
The funding will be allocated to:
- Establishing accessible drop-off points for used clothing donations.
- Creating new jobs for collectors, sorters, and artisans who will upcycle textile waste into new products, with an emphasis on hiring women and youth from underserved communities.
- Building recycling infrastructure capable of processing larger volumes of textile waste.
- Promoting community engagement through workshops, lectures, and neighborhood collection drives.
Elmar Stroomer, Director of the ACT Foundation, expressed optimism about the project:
“This project will contribute immensely to our mission to reduce textile waste and close the loop on a more circular fashion ecosystem. Through this project, we are not only protecting our planet but also creating jobs that will transform lives and provide opportunities to those in need. This journey will inspire hope for a more sustainable and equitable future for all.”
Ethical Challenges and Labor Issues
On the other hand, criticism of Shein’s labor practices remains persistent. A report published last year by the Swiss organization Public Eye highlighted severe working conditions in Shein’s supplier factories in Guangzhou, China. The investigation revealed that some workers were subjected to grueling schedules, working over 12 hours a day, six to seven days a week, with only one day off per month. Additionally, wages tied to production output have created financial instability for many workers, further underscoring the harsh realities of their working environment.
While Shein asserts that it is actively working to improve labor conditions, the company faces mounting pressure to substantiate these claims with concrete actions, particularly as it prepares for an IPO in London by April.
The establishment of the Shein Foundation could represent a critical step toward addressing these challenges. Whether this move will help the company resolve these issues and rebuild trust remains to be seen, as all eyes are on Shein’s next steps.