‘Challenges and difficulties’ remain for Boohoo in fight against unethical supply chain measures
“Challenges and difficulties” remain at Boohoo, according to Sir Brian Leveson’s final report after the fast fashion firm’s supply chain scandal.
The retailer launched a review programme after reports of neglect and underpayment of warehouse workers in Leicester during the Covid lockdown in 2020.
Leveson was brought on board to oversee Boohoo’s Agenda For Change programme in late 2020 after a probe by Alison Levitt QC found serious ethical breaches in the supply chain.
In the report published on Tuesday, Leveson acknowledged the firm has made “substantial changes” to its corporate governance and become more transparent about its suppliers.
However, Leveson said some areas were still a “work in progress” and pointed to “complexity” and “challenges” in overseeing suppliers who operate overseas.
“It is at least plausible to consider that on-the-ground audit might well generate a snap-shot of compliance which is not always maintained,” he noted.
However, following the 2020 scandal, Boohoo has pledged to improve its supply chain and work on responsible purchasing practices, sustainability, and ethical compliance.
In his conclusion, Leveson said he would “not pretend” the conclusion of the Agenda For Change programme “represents the completion of each aspect of each recommendation made in the review.”
While many goals had been completed, others were in progress “but still require continued effort to bring to fruition.”
He added: “Furthermore, even if all the recommendations had been completed (or when they are), it cannot be said that it would represent the end of the process.
“The retailer must be prepared to demonstrate that “it has exercised due diligence to ensure that legal and ethical standards have been maintained by all both in the business itself or, just as important, in its supply chain.”
Boohoo’s suppliers will now require independent approval on their sourcing and ethical compliance.
Boohoo opened its first owned factory in Leicester earlier this year, in a step to move on from the scandal of two years ago.
The fast fashion retailer said its new 32,000 sq ft factory in Thurmaston Lane, Leicester, was “proof of its commitment to the city of Leicester and ethical British manufacturing.”
The new site has created 180 local jobs and has the capacity to make 25,000 garments per week.