Is “conscious capitalism” in fashion an inspiring new model or just clever marketing?
It’s a question many in the industry are asking as brands claim to balance profit with purpose.
Fair Trade USA Founder Paul Rice doesn’t mince words on the debate: “Conscious capitalism is either total B.S. or incredibly inspiring – depending on how seriously companies take it,” he says.
Rice would know – he’s spent over two decades proving that businesses can make money and make a difference.
As the founder of Fair Trade USA, Rice helped turn a niche 1990s idea into a global movement that ties corporate success to social and environmental impact.
In the fashion industry, the tension is palpable. On one hand, sustainable fashion startups struggle with a cynical question: can they scale profitably without compromising their values?
On the other, consumers (especially younger ones) are demanding that brands back up their rhetoric with real action.
This post explores what “conscious capitalism” can look like for fashion – and how SME labels can align purpose with profit.
Drawing on Rice’s insights and examples ranging from e.l.f. Beauty to Pat agonia, we’ll see how ethical practices can drive business success or falter if not taken seriously.
Defining Conscious Capitalism in a Fashion Context
The term Conscious Capitalism was popularized by Whole Foods co-founder John Mackey and professor Raj Sisodia.
At its core, it’s a philosophy of doing business that serves all stakeholders – not just ‘shareholders’ – by integrating ethical, sustainable practices into a company’s DNA.
On top of this concept, Paul Rice’s work with Fair Trade USA offers a practical roadmap. He launched the Fair Trade Certified™ label in 1998 to ensure consumers could trust that products, from coffee to clothing, met standards for fair wages, safe conditions, and sustainability.
Under Rice’s leadership, Fair Trade USA helped demonstrate that improving livelihoods and protecting the planet can be good for business.
But how can this mindset and strategy be implemented through the fashion world lenses?
To understand why this question has become so urgent, we need to rewind a bit.
Over the past few decades, the fashion industry has gone from being celebrated for its creativity and cultural influence to being scrutinized as the third most polluting industries on the planet.
Reports of exploitative labor, water pollution, excessive waste, and unchecked emissions have forced a global reckoning.
This awareness catalyzed a wave of change. Guided by pressure from global organizations, watchdog NGOs, and evolving government regulations, fashion businesses (especially smaller brands) have begun experimenting with ways to reduce harm.
That’s why today, we’re seeing a surge of purpose-led fashion labels—brands built around circularity, traceability, fair labor, and low-impact production.
One of them is Isabella, founder of SATYA ÈN RO LONDON, who launched her brand in response to this industry shift:
Witnessing the adverse environmental impact caused by fast fashion and disposable accessories left me deeply concerned. I felt compelled to contribute to a more conscious and responsible approach to fashion.
Still, for many founders, the deeper challenge lies not just in starting with values, but in scaling with them.
In a world where profitability is tied to growth, and growth is often fueled by marketing spin, even the most well-intentioned brands can find themselves drifting in the tension between purpose and survival.
Amy Powney, winner of Vogue’s Best Young Designer award and creative director of Mother of Pearl, captured this struggle vividly. Her journey to build a truly sustainable brand—from farm to finished garment—is documented in the award-winning film Fashion Reimagined.
The documentary offers a behind-the-scenes look at what it really takes to embed sustainability at every level of a fashion supply chain.
It’s an inspiring story, but also a sobering reminder of the systemic friction conscious brands face.
It brings us back to the central question at the heart of conscious capitalism:
How do we uphold purpose in an economic system engineered for endless growth?
Can a fashion business remain profitable while staying genuinely committed to environmental and social integrity?
The answer isn’t simple, but it’s not impossible either. And more importantly, it’s evolving.
Today’s thought leaders, founders, and strategists are building new models that don’t treat ethics and earnings as opposites, but as allies.
Keep reading to explore how conscious capitalism can actually work in fashion through real-world examples, operational strategy, and authentic storytelling.
How It Can Be done in Fashion
For fashion brands, conscious capitalism means expanding and being open minded about the definition of success.
With that we mean success needs to stop being seen as profit versus principles, and start being acknowledged a profit+principles.
That needs to be reimagined, especially because traditional thinking said that sustainability eats into profits.
But many brands - across fashion and beuaty - have shown that traditional thinking can be reframed, proving that purpose and profit absolutely can go hand in hand.
Take e.l.f. Beauty. Under CEO Tarang Amin, the company has become one of the few mass-market players to meaningfully experiment with ethical production at scale.
Image from: www.elfcosmetics.com
According to Fair Trade USA, 85% of e.l.f.'s products are now made in Fair Trade Certified™ factories, and they managed this shift without raising prices for consumers.
Over the same period, e.l.f. reported 25 consecutive quarters of growth—a powerful case study in how sustainability and financial performance don’t have to live in separate worlds.
While many companies have a mission or vision, often those are just words on a wall. What separates e.l.f. Beauty is our actions — we act with purpose to further our positive impact. - Tarang P. Amin, Chief Executive Officer at e.l.f
It’s a noteworthy move, especially for a high-volume beauty brand. e.l.f. treated ethics not as an afterthought, but as a strategic lever — investing in sustainable supply chain efficiencies and leaning into consumer expectations for values-aligned brands.
But it’s important not to over-glorify the case. While e.l.f.'s sourcing practices earned praise from Fair Trade USA, the brand still has room to grow across the board.
On Good On You, a respected platform that rates fashion and beauty brands on their social and environmental impact, e.l.f. currently scores a “It’s a Start”—a medium rating that reflects progress but also highlights key gaps, especially in areas like supply chain traceability and environmental impact beyond sourcing.
Still, in a landscape where many haven’t started at all, a start matters.
Especially when it comes from a brand operating at mass scale, accessible price points, and global reach.
Contrast that with Patagonia, widely seen as the north star of values-driven business.
Image from: page.greenfutureproject.com
For decades, Patagonia has embedded sustainability and activism into its business model—from pioneering Fair Trade Certified apparel to launching repair programs and campaigns that actively discourage overconsumption.
It’s reported that over $31 million in Fair Trade premiums have been returned directly to workers, funding projects like childcare, healthcare, and housing in factory communities.
And while Patagonia has crossed the billion in revenue, its real power lies in how it connects transparency with action.
WHen buying Patagonia, consumers don’t just buy jackets—they buy into a mission. They see the supply chain. They read the labels. They feel part of something bigger.
Together, e.l.f. and Patagonia offer two very different but instructive roadmaps.
One shows what’s possible when a large, accessible brand begins integrating sustainability—even imperfectly. The other shows how deep-rooted values can become a core engine of growth, trust, and cultural impact.
For smaller, emerging fashion brands, the takeaway isn’t to mimic these giants, but rather to learn from their moves. To see where the cracks still exist. To map where purpose, profit, and transparency can intersect more effectively, more authentically, and more inclusively from day one.
In short, the message is: Purpose and profit can reinforce each other. When ethics are embedded in core strategy, brands can scale and sustain impact.
Authentic Storytelling as a Brand Superpower
“Storytelling is the superpower of every great brand,” says Rice.
In conscious fashion, transparency isn’t optional – it’s the foundation of consumer trust. Brands that openly share the who, where, and how of their products create deeper emotional connection.
Consumers, especially Gen Z, are savvy. [According to the American Marketing Association](https://www.ama.org/2025/03/27/5-key-insights-into-gen-z-shopping-habits-and-what-they-mean-for-gen-alpha/#:~:text=4.,Amazon is the clear favorite.), Gen Z still ranks price as their top priority (43%), but not far behind are quality (41%) and detailed product information (36%).
This generation wants to know what they’re buying, who made it, and why it’s worth their money.
But they’ll also call out greenwashing in a heartbeat. Authenticity, not perfection, wins loyalty.
In Who What Wear UK’s recent piece, “I’m a Gen Z Who Loves Shopping Small,” their 26-year-old social media editor writes:
Scrolling Instagram, TikTok and Pinterest became my go-to pastime, and with this increase in screen time came an obsession with the small businesses flooding my feeds. So, I dove straight into shopping small, and—almost five years on—I’ve never looked bac
Circling back to the AMA report: the path forwardfor rbands today, especially considering the new generations of consumers, isn’t flashy branding or surface-level messaging: “Prioritize authenticity over marketing gimmicks—trust is built over time, not through one-off campaigns.”
When we talk about conscious marketing, this is a core principle, so keep it front and center.
However, beyond storytelling, a sustainable capitalism mindset has to grapple with cost and value—in every sense of the word.
Keep reading.
Rethinking Cost and Value: Who Pays?
One of the most persistent tensions in sustainable fashion is this: how do you grow responsibly without passing unsustainable costs onto consumers or absorbing them entirely as a brand?
There’s no one-size-fits-all model, but we’re seeing a few emerging strategies worth noting:
Design with margins in mind:
Some brands are rethinking product development from the first sketch—choosing fewer SKUs, modular patterns, or local production to minimize waste and shipping. B
uilding margin into the design process, not just pricing, helps cover better inputs without ballooning price tags.
Layering value over volume:
Instead of chasing scale through mass sales, emerging brands like Pangaia or Mara Hoffman focus on higher-value offerings—whether through storytelling, multi-functional garments, or material innovation—to justify price and deepen customer buy-in.
Transparent pricing breakdowns:
A growing number of SMEs (like ASKET or Kotn) publicly share how each dollar is spent—from materials to labor to shipping. This doesn’t lower cost—but it reframes it.
When customers understand where their money goes, they’re often more willing to support a fairer system.
Community-supported pre-orders:
Some brands are shifting risk by involving customers earlier. Pre-order models (like those used by Paynter or Atelier & Repairs) reduce overproduction and upfront costs, allowing brands to produce only what’s needed—at a sustainable pace and price.
Co-creation with suppliers:
Instead of simply paying higher rates, some SMEs are working directly with mills or makers to improve yield, quality, or turnaround—sharing the efficiency gains.
This requires relationship-building, but it can offset costs while improving long-term resilience.
Aligned with strategies like this, it’s critical toalways have in mind: sustainability isn't a sunk cost, it’s an investment
Multiple studies show that responsible business practices offer tangible returns:
A McKinsey report emphasizes supply chain resilience through strategies like dual-sourcing, regionalization, and visibility, key steps to prevent disruption risk.
Studies find ethical sourcing builds reduced risk of supply chain disruptions while delivering other benefits like stronger brand value and employee morale.
First Insight found that 75% of Gen Z prioritize sustainability over brand name, and strongly influence older generations to value it too .
These may sunnd like scattered data points at first, but they prove something: sustainability isn’t a barrier to business growth for SME brands. In many cases, it’s a strategic driver
So yes, sustainable business requires investment, but it’s not a value loss. It’s a value shift.
For small brands, the opportunity lies in building business models that make this value visible, whether through product passports, direct storytelling, or community-led demand.
Conscious Capitalism in Fashion Is Possible—But It Needs Real Backing
Conscious capitalism might sound like a contradiction. In an industry shaped by speed, scale, and relentless growth, pairing profit with ethics can feel at best ironic—and at worst, hypocritical.
But for sustainable, values-led fashion brands that want to thrive long-term, it’s not just a nice idea. It’s a strategic necessity.
Throughout this piece, we’ve explored what conscious capitalism can look like when it’s taken seriously.
We’ve looked at how growth doesn’t have to come at the expense of people or planet - and how profitability can, in fact, be fueled by purpose, transparency, and trust.
From e.l.f. Beauty’s early-stage efforts to Patagonia’s deeper-rooted transformation, we’ve seen how different models can offer roadmaps for aligning values with business reality.
But none of it works without one critical layer: traceability.
If a brand’s ethics are the soul of conscious capitalism, its supply chain is the spine. And for smaller brands, that’s actually an advantage.
Starting from the ground up means there’s a rare opportunity to build transparency in from the start—to design supply chains that are ethical by default, not as a retrofit.
But building with integrity isn’t just about intent. In a world of globalized transactions, fragmented supplier networks, and rising regulatory pressure, conscious growth needs more than good ideas.
It needs infrastructure. It needs technology.
And that’s where solutions like World Collective is changing the game.
We’re not just imagining a better fashion system—we’re building it. Our digital ecosystem gives small and mid-sized brands the tools they need to source responsibly, scale ethically, and operate transparently.
From verified supplier networks to impact-tracking tools and seamless sampling, we back purpose with process.
Whether you’re mapping your supply chain for compliance, looking for low-impact materials, or building trust with your customers through digital transparency - our platform was made for you.
Because conscious capitalism isn’t just about theory. It’s about having the systems to support your values and the partners to grow with you.
So if you’re building a brand that wants to do business differently, we invite you to join our ecosystem. Let’s shape what the next era of fashion looks like—together.
Explore the World Collective Ecosystem and take your next step toward ethical, scalable growth.
