Last weekend, in the bustling aisles of a popular New York retail store, a young man named Sam stood at the checkout counter, clutching a stylish shirt. He looked the cashier in the eyes and asked, “Can you tell me where and how this was made?” That simple question sparked a conversation among staff and shoppers, revealing a shared concern about the origins and production processes behind their purchases.
Sam’s curiosity is part of a broader shift. In recent years, the conversation around ethical manufacturing has moved from niche circles into mainstream boardrooms. Consumers across the United States, Canada and the European Union are increasingly curious about how their clothes, gadgets and everyday products are made. They are not only looking for quality and competitive pricing but also for assurance that the people who make these goods are treated fairly and that production does not harm the environment.
This blog explores what ethical manufacturing means today, why it matters for businesses and consumers, the regulations shaping the industry, and how companies can start down a more responsible path.
What Is Ethical Manufacturing?
At its heart, ethical manufacturing is about producing goods in ways that respect people and the planet. It extends beyond ticking regulatory boxes or meeting minimum legal requirements.
Ethical manufacturing means paying workers more than the minimum wage, keeping working hours reasonable, and making sure factories are safe. It also involves using methods that protect the environment by reducing harmful chemicals, saving resources, and cutting waste. This approach values everyone involved: factory workers, nearby communities, customers, and the environment. When companies choose sustainable materials, for example, they can improve worker well-being, make better products, and reduce waste, creating benefits for everyone.
When Jermyn Street Design – a British uniform manufacturer – describes its ethical manufacturing, it emphasises a holistic approach: environmental care, worker welfare, and social responsibility, with long‑term thinking built into the business model.
A truly ethical manufacturer must ensure that its own workplace reflects these values: fair wages, safe conditions, equal opportunities and continuous training. The ethos should be present in every step, from choosing recycled fibers and organic cottons to designing, cutting, and sewing garments.
Why Does Ethical Manufacturing Matter?
There are strong moral reasons to support ethical manufacturing, but practical benefits matter too. Fast-fashion supply chains employ about 60 million factory workers worldwide, yet less than 2% earn a living wage. Most are women, with almost 75% of garment workers being female, and many face verbal abuse, wage theft, unsafe conditions, and harassment. Take Maria, a factory worker who works over 10 hours a day but still struggles to provide for her children. Her experience reminds us that real people are behind these numbers.
In Bangladesh, where garment manufacturing accounts for 16% of GDP, 91% of workers struggle to afford enough food, and 25% face some form of abuse. Protests in late 2023 forced the government to raise the minimum wage by 56%, yet the new rate remains far below the estimated living wage. Ethical manufacturing seeks to break this cycle of exploitation and poverty.
The environmental impact is just as serious. The fashion industry creates over 92 million tons of textile waste each year. Many items are made, shipped, and then thrown away without ever being sold, and leftover materials often end up in landfills. Think about how much of your own closet might add to this problem. Ethical manufacturing tackles these issues by cutting waste at every step. Making durable products, choosing long-lasting materials, recycling scraps, and using less packaging all help reduce the industry’s impact. By connecting these actions to our own shopping habits, we can take responsibility and make more sustainable choices.
Reducing Waste and Environmental Impact
The environmental cost of irresponsible production can be staggering, but ethical practices offer concrete ways to reduce harm:
- Smart design and circularity: Making clothes and products that last, can be repaired, and are easy to recycle, helps cut down on waste. Jermyn Street Design, for example, looks at every new collection with sustainability in mind, asking questions like how much water a fibre uses and whether it can be recycled.
- Efficient resource use: Sustainable manufacturing means using fewer raw materials and less energy. Renewable power sources like solar or wind, recycling wastewater, and investing in energy-efficient equipment lower a factory’s environmental footprint.
- Waste reduction and recycling: Recycling leftover materials, finding new uses for scraps, and reducing packaging all help keep manufacturing waste out of landfills.
By integrating these practices, manufacturers can reduce their ecological impact while delivering products that last longer and bring more value to consumers.
Looking After People
An ethical business must put people first, from the workers who make products to the customers who use them. Unfortunately, the reality in many global supply chains is bleak.
The Rana Plaza factory collapse in Bangladesh in 2013, which killed over 1,134 people, highlighted the deadly cost of neglect. Some managers reportedly threatened to withhold wages if workers didn’t return to unsafe buildings. Though such tragedies generated outrage, exploitation persists: a study during the pandemic found that wages in garment factories dropped by an average of 11%.
In light of these events, it is crucial to ask: What safeguards should readers now expect from brands to ensure worker safety and well-being? By turning these lessons into calls for proactive standards, we can keep the focus on solutions and drive positive change within the industry.
Ethical manufacturing turns this model on its head by ensuring fair wages, safety and respect at every stage. The Green Cabinet Source defines ethical manufacturing as providing workers with fair pay, safe conditions, and benefits such as healthcare and maternity leave. It also involves compliance frameworks such as SMETA (Sedex Members Ethical Trade Audit) and BSCI (Business Social Compliance Initiative) to ensure regular audits.
Fair wages are more than a moral obligation; they contribute to economic stability and worker satisfaction. IKEA’s responsible wage practice, for instance, considers local cost of living and family needs, leading to wage increases for more than 600,000 workers in its supply chain. H&M reports that 84 % of its supplier factories in Bangladesh have democratically elected worker representation, promoting collective bargaining and workers’ voices. These examples show that paying fair wages and empowering employees can be done at scale, even within complex global supply chains.
The Business Case for Ethical Manufacturing
Some business leaders worry that ethical manufacturing costs too much or is hard to do. But the evidence shows otherwise. More people are willing to pay extra for products made responsibly.
A 2024 PwC survey found that shoppers are willing to spend about 10% more on sustainable goods. Over half of UK customers want companies to support sustainability, transparency, and fair employment. Paying a little more can be seen as an investment in a better world. Each extra dollar helps provide fair wages, safe workplaces, and supports eco-friendly practices. When we see this premium as a way to make a difference, our purchases become a direct means of supporting social and environmental progress.
Millennials and Gen Z consumers are particularly vocal: 73% of millennials are willing to spend more on sustainable brands, and the figure is even higher among Gen Z. These demographics dominate the consumer base in North America and Europe, meaning ethical manufacturing is not only a moral imperative but also a market expectation.
Investing in ethical practices can also lower costs and mitigate risk. Research cited by The Future of Commerce notes that sustainable sourcing can reduce supply‑chain costs by 9% to 16%. Ethical supply chains reduce disruptions caused by labour disputes, environmental fines or reputational crises.
They enhance brand loyalty and attract top talent: a 2024 survey found that 73 % of organisations view ethical and sustainable practices as essential to long‑term resilience and differentiation. Moreover, employees who believe in their employer’s values are more engaged and productive.
Bangladesh: A Beacon of Sustainable Fashion
Bangladesh’s ready‑made garment industry has become a global showcase for sustainable and ethical apparel. The country hosts 229 eco‑friendly garment factories, including 91 LEED Platinum‑certified facilities, and accounts for 61 % of the world’s top eco‑friendly factories. These factories harness solar energy, harvest rainwater, and use energy‑efficient machinery, cutting greenhouse‑gas emissions by up to 40 % compared to conventional mills. Water consumption in the apparel sector has dropped 30 % since 2020, thanks to recycling initiatives, a critical shift in a country where millions face water scarcity.
Sustainable fashion in Bangladesh isn’t only about carbon footprints; it’s also about people and culture. The handloom sector employs 1.5 million weavers, and initiatives like (re)Made in Bangladesh train artisans to upcycle factory waste, leading to a 200% surge in demand for handloom sarees among urban youth. Lotus silk production has created 500 new jobs for rural women, who earn 300 % more than the national average for textile workers, turning a traditional craft into a tool for gender equity.
The economic results are equally compelling. With the global ethical fashion market projected to reach $9.81 billion by 2025, Bangladesh’s sustainable apparel exports grew by 22% in 2024, with the EU and US accounting for 70% of orders. Could this impressive growth be linked to the country’s commitment to ethical milestones? Workers in LEED-certified factories earn 15–20% more than the industry standard, demonstrating that environmental stewardship goes hand in hand with fair wages. These achievements highlight how Bangladesh blends cultural heritage, economic innovation, and ethical manufacturing to inspire conscious consumers worldwide.
Regulations and Certifications Shaping Ethical Manufacturing
The legal landscape is catching up with consumer expectations. In June 2019, the Association for Supply Chain Management (ASCM) released a set of standards to help businesses assess the ethical, ecological and economic aspects of their supply chains. Companies meeting these standards can apply for the ASCM Enterprise Certification, demonstrating excellence in transparency and sustainability. In June 2024, the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) went even further, requiring companies operating in the EU to monitor and mitigate human‑rights and environmental violations in their supply chains. This directive makes ethics enforceable, transforming voluntary initiatives into legal obligations.
ISO 20400, an international guidance document on sustainable procurement, provides a framework for aligning purchasing with environmental, social, and governance (ESG) goals. Some manufacturers, such as LONGi, have earned ISO 20400 certification, demonstrating a deeper commitment to ethical sourcing. B Corp certification also sets a high bar: it recognises businesses that meet verified standards of social and environmental performance and requires continuous improvement. Companies like Jermyn Street Design obtained B Corp status in 2025, signalling that ethical and sustainable practices are not just marketing slogans but central to their business models.
Key Certifications and Frameworks
Below is a snapshot of leading frameworks that help companies demonstrate ethical manufacturing practices. These certifications are recognised in North America and Europe, making them particularly relevant for brands serving US, Canadian and EU consumers.
| Certification/Framework | Primary Focus | Notable Point |
|---|---|---|
| ASCM Enterprise Certification | Assesses ethical, ecological and economic aspects of supply chains | Helps companies demonstrate supply‑chain excellence and transparency |
| ISO 20400 | Sustainable procurement guidance | Aligns purchasing with ESG goals; adopted by global manufacturers |
| CSDDD (EU) | Legal requirement for due diligence | Mandates monitoring of human‑rights and environmental impacts across supply chains |
| B Corp Certification | Comprehensive social and environmental performance | Requires ongoing auditing and improvement; emphasises transparency |
| SMETA/BSCI | Ethical trade audit frameworks | Provide regular audits to ensure fair labour practices and safe working conditions |
| Sedex | Supply‑chain transparency and risk assessment | Allows companies to monitor ethical performance and share data with partners |
How to Become an Ethical Manufacturer
- Assess Your Supply Chain: Think of your supply chain as a story, with each material showing part of your brand’s journey. Where do your materials come from? Who makes your products? How are workers treated? What happens to your waste? The JSD framework recommends working with vendors who share your values and choosing recycled, organic, or closed-loop materials.
- Pay Living Wages and Respect Working Hours: Ethical manufacturing means paying workers enough to meet their basic needs and ensuring fair working hours. Make sure your suppliers do the same. You might use wage frameworks like IKEA’s, which take into account the cost of living and family needs.
- Protect Health and Safety: Provide regular safety training, supply protective gear, and conduct frequent inspections. Set up emergency procedures and ensure compliance with local and international standards.
- Ensure Freedom of Association: Encourage workers to form or join trade unions. Collective bargaining empowers employees to address wages, working hours and grievances. H&M’s example shows that having democratically elected worker representation in supplier factories strengthens worker voice and improves conditions.
- Build Sustainable and Transparent Supply Chains: Regularly audit your suppliers, use sustainable materials, and work with partners that follow fair trade practices. Use traceability tools—like blockchain or IoT sensors—to track products from source to shelf and ensure transparency.
- Invest in Community Engagement and Development: Ethical labor practices extend beyond factory gates. Patagonia, for instance, donates 1% of sales to environmental causes and supports communities where its suppliers operate. Unilever has helped over 2.5 million smallholder farmers improve their agricultural methods. Such investments build goodwill and contribute to regional development.
- Seek Certification and Continuous Improvement: Pursue recognized standards like B Corp, ASCM or ISO 20400 to validate your commitments. Regularly review policies, improve processes and engage with workers and stakeholders. Ethical manufacturing is a journey rather than a destination; continuous learning and adaptation are key.
The Ripple Effect: Beyond the Factory
Choosing ethical manufacturing creates positive effects that reach far beyond the factory. It helps communities, supports local economies, and protects natural resources. When you buy from ethical manufacturers, you’re not just a customer—you’re helping build a fairer, more sustainable world. Each purchase is a vote for ethical practices, starting a cycle of positive change that goes beyond a single transaction.
It sends a powerful message to staff and customers: that a brand is committed to fairness, sustainability, and responsibility. Transparency fosters trust; clients increasingly want to know where materials come from, who stitched the garments, and what impact their orders have. By supporting ethical manufacturing, you align yourself with values that inspire meaningful connections and drive transformative impact.
There is also a global dimension. Scholars at Earth Day note that only 1 % of brands disclose how many of their garment workers earn a living wage. By committing to ethical manufacturing, companies can help shift that statistic and push for systemic change. When business owners choose to prioritise people and the planet, they set an example that encourages competitors and partners to follow suit.
Ready to Rethink Your Approach?
Ethical manufacturing is no longer optional; it’s both a responsibility and an opportunity. Consumers in North America and Europe want transparency, fairness, and sustainability in what they buy. Governments are implementing stricter rules, and investors are closely watching ESG performance. The data shows that ethical manufacturing can lower costs, strengthen businesses, and build brand loyalty. Workers gain dignity and security when they are paid fairly and treated with respect, and the environment benefits from less waste and a smaller carbon footprint.
Embracing ethical manufacturing is about more than compliance; it’s about reimagining business as a force for good. By choosing to source responsibly, invest in communities, pay living wages and reduce environmental impact, companies can create products that not only perform but also inspire. Ethical manufacturing transforms factories into agents of positive change, proving that doing the right thing is not only possible but profitable.
Looking to support brands that embody these values? Catfish, a Bangladeshi clothing brand and garments manufacturer, champions sustainable fashion and ethical production. Through its involvement in Bangladesh’s eco‑friendly garment movement, Catfish highlights LEED-certified factories that ensure fair wages for workers. Explore Catfish’s range of authentic garments and support a brand that invests in artisans, preserves cultural heritage and embraces environmental stewardship. Visit catfishlifestyle.com to discover ethically crafted clothing from Bangladesh and help drive change.
