September, Friday 20, 2024

Boohoo fails to fulfill commitment to ethical transformation in fast fashion industry


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The BBC Panorama investigation has found that fast-fashion company Boohoo has failed to fulfill its promises of producing clothes fairly and ethically. An undercover reporter at Boohoo's headquarters witnessed staff pressuring suppliers to reduce prices, even after agreements had been reached. This comes after Boohoo vowed to improve its practices in 2020. However, the company insists that it has made positive changes within its business and has addressed past issues. Boohoo is a leading retailer known for providing customers with the latest styles at affordable prices. The company launched its "Agenda for Change" program three years ago in response to reports of poor working conditions and low wages at a Leicester factory producing Boohoo clothing. Boohoo hired a senior barrister to review its supply chain, and the allegations were confirmed to be true. Despite the introduction of "Agenda for Change," the BBC investigation revealed that Boohoo constantly undermined its promised fair pricing and realistic timescales for suppliers. The undercover reporter, who worked as an admin assistant for ten weeks at Boohoo's Manchester head office, witnessed the consistent disregard for these commitments. Boohoo's focus on reducing costs was evident at all levels of the company, even to the extent that Executive Chairman Mahmud Kamani had to approve all new orders before they could be confirmed. Suppliers were also faced with demands for price cuts on already agreed-upon orders, resulting in financial losses for some. Boohoo defended these actions, stating that it needed to absorb cost inflation and pass on savings to customers. The company claimed that most of its suppliers have profitable partnerships with Boohoo. Additionally, Boohoo pledged to set realistic delivery timescales, but the reporter observed that the company imposed shorter lead times, putting immense pressure on suppliers. For every week an order was delayed, Boohoo enforced a 5% price cut, which further strained the suppliers. An industry expert estimated that Boohoo paid manufacturers less than the cost of production, indicating unrealistic pricing practices. Boohoo argued that its suppliers make a profit and that it ensures they pay at least the minimum wage globally. Furthermore, the investigation uncovered discrepancies regarding Boohoo's Thurmaston Lane factory in Leicester. While it was promoted as a UK manufacturing center showcasing ethical practices, most garments were produced by factories in Morocco and Leicester. Boohoo defended this by stating that Thurmaston Lane only accounted for 1% of its production. Secret filming at one of Boohoo's suppliers revealed workers being pressured to work late at MM Leicester Clothing Ltd in order to complete Boohoo orders. Boohoo stated that it conducts regular audits and unannounced checks at all of its factories, including MM Leicester Clothing Ltd. The company claimed to have made significant changes based on the recommendations from a 2020 review and vowed to continue fulfilling its commitments. The undercover reporter was ultimately fired from Boohoo after being accused of costly mistakes.