Boohoo Under Scrutiny as Investigation Reveals Ongoing Ethical Concerns
Fast-fashion giant Boohoo faces renewed scrutiny as a BBC Panorama investigation exposes ongoing issues surrounding its promise to produce clothes fairly and ethically. Boohoo had previously pledged to overhaul its practices in 2020, launching its "Agenda for Change" program in response to reports of poor working conditions and low wages in the Leicester factories producing its clothing.
Undercover
An undercover reporter revealed that employees were under relentless pressure to reduce prices, with one tactic involving lying to suppliers about the availability of cheaper alternatives. The investigation also unveiled that price cuts were being demanded for orders that were already ready for delivery, ultimately affecting suppliers' profitability.
Boohoo's Thurmaston Lane plant in Leicester, promoted as a beacon of ethical manufacturing excellence, was also found to outsource "hundreds" of orders to factories in Morocco and Leicester, casting doubt on the company's commitment to local production.
Lawsuit
The fast-fashion retailer is also facing a £100 million lawsuit from sovereign wealth funds, local councils, and other investors following allegations of modern slavery in its Leicester workshops. The lawsuit comes after an independent review found that Boohoo's senior management had known about the poor working conditions and pay for months, attributing the issue to weak corporate governance.
Despite these challenges, Boohoo insists it has not "shied away from dealing with the problems of the past" and has made various improvements to strengthen ethical and compliance obligations for suppliers. The company claims that they remain committed to delivering on the commitments it has made.
