Shoe Maker Faces Accusations Despite Claiming Strict Code of Conduct

  • Skechers supplier Dongguan Luzhou Shoes added to the UFLPA Entity List
  • Two other vendors also banned from importing goods into the US
  • Skechers claims no forced labor in its supply chain
  • DHS crackdown on firms using Xinjiang-based suppliers

Skechers has been accused of using forced labor from the Xinjiang Uyghur Autonomous Region despite its supplier code of conduct. Dongguan Luzhou Shoes, a Skechers supplier, was added to the Department of Homeland Security’s (DHS) list of companies banned from importing goods into the US. The company has faced allegations before but claims to maintain strict supplier standards. The UFLPA Entity List consolidates various lists aimed at preventing forced labor in supply chains. BMW Group and Shein have also faced similar accusations.

Factuality Level: 7
Factuality Justification: The article provides accurate information about Skechers’ response to allegations of forced labor in its supply chain and mentions related cases involving other companies. However, it could be more concise and avoid speculation or sensationalism.
Noise Level: 4
Noise Justification: The article provides relevant information about Skechers being linked to forced labor allegations and mentions other companies facing similar issues. However, it could benefit from more in-depth analysis of the broader implications and potential solutions for supply chain transparency and accountability.
Financial Relevance: Yes
Financial Markets Impacted: Skechers, BMW Group, ultra-fast fashion giant Shein
Financial Rating Justification: The article discusses allegations of forced labor practices in the supply chains of these companies which can impact their reputation and potentially affect their financial performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text. The article discusses allegations of forced labor practices in Skechers’ supply chain but does not describe an extreme event.

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