International Edexcel Business A Level: Multinational Companies and Ethics in Business Quiz

Employees were paid low wages and worked long hours with limited time off.

90%

Shein was sending most customer returns to landfill as it was cheaper.

Consumers continued to shop with Shein, prioritizing low prices over ethical concerns.

Consumers are torn between the desire for low prices and the demand for more ethical fashion options.

Shein is prioritizing low prices over ethical practices to maintain its competitive advantage.

Consumers are more concerned about finding the lowest prices than supporting ethical fashion brands.

Implementing ways to reduce their carbon footprint.

The fashion industry as a whole will struggle to find a balance between low prices and ethical practices that satisfies consumers.

A multinational company (MNC) is a corporation that has its facilities and other assets in at least one country other than its home country. Shein, as a Chinese company, can be considered a multinational company because it operates factories and has a global customer base outside of China, making it a company with international reach and operations.

The text mentions that Shein's factories have been accused of poor wages and working conditions, with employees working 18-hour shifts for seven days a week and only being allowed one day off per month. Employees also had to pay heavy fines for mistakes in production. These issues relate to the concept of corporate social responsibility, which requires companies to consider the social and environmental impacts of their operations and to treat their workers fairly and ethically.

The text suggests that there is a potential conflict between Shein's low prices and its ethical practices. While 90% of global consumers now look for more sustainable and ethical options, and 75% of UK adults said they changed their purchasing habits to be more sustainable, the text also notes that Shein reported its busiest day for the website shortly after the documentary about its ethical practices was shown. This suggests that many consumers may prioritize low prices over ethical considerations when making purchasing decisions.

The text states that Shein is accused of sending most customer returns to landfill, as it is cheaper than properly processing them. This practice is problematic from a sustainability and environmental responsibility perspective, as it contributes to waste and the depletion of natural resources. Proper processing and recycling of returns would be a more environmentally responsible approach.

The text suggests that Shein's ethical practices, or lack thereof, could have significant long-term implications for the company's reputation and consumer trust. While Shein reported a busy day on its website shortly after the documentary about its ethical practices was released, the growing consumer demand for more sustainable and ethical options in the fashion industry could eventually erode Shein's customer base if the company does not address the concerns raised about its factories and operations.