Sweatshops to Sustainability, Will Fashion Ever Be Truly Ethical?

This article is part of our collaboration with International Policy Review at IE University. Photo Credits: Los Angeles Times.

Abstract

Fast fashion is currently an exceptionally profitable industry based on short lived trends that rely heavily on cheap and mass production. This business model allows for affordable fashion; however in the process, it fuels extreme labor exploitation, specifically in South Asia and Latin America, and more recently, even on certain digital platforms. Solving this issue is vital to reach SDG 8, which accounts for decent work and economic growth, and aims to promote better wages, more ethical labor practices, and create sustainable long economic growth. However, without immediate action, fast fashion’s current exploitative cycle has the potential to evolve dramatically, shifting from sweatshops to an unregulated gig economy which leads to workers having less rights. In the process, it’s important to find the balance between ensuring economic growth and protecting human dignity. This article will evaluate the future of the fashion industry in comparison to SDG 9. It will analyze the impact of fast fashion’s labor model on economic sustainability and worker rights in developing countries. Furthermore, the article will investigate the role of ethical consumerism and policy reform in solving these issues, especially as we transition to a more digitized global economy.

1. Introducing SDG 8

The United Nations Sustainable Development Goals are a set of global goals adopted in 2015 as a “universal call to action” to end poverty, protect the planet, and attempt to promise peace and prosperity for everyone by 2030. SDG Number Eight references decent work and economic growth, promoting “sustained, inclusive, and sustainable economic growth, full and productive employment and decent work for all.” Essentially, the goal aims to promote economic expansion whilst positively impacting the entire planet. Monetary profit/growth/expansion should be equally focused on/prioritized as the protection of labor rights. The creation of prosperous wealth should not interfere with the abolishment of modern slavery, child labor and exploitation of resources.

In increased detail, SDG 8 comprises twelve targets used as a guideline to ensure that the global goal is met. These goals include: target 8.1 which outlines the expectation of at least a seven percent gross domestic growth product pear year even in the least developed countries, target 8.2 which aims to achieve higher levels of economic productivity through diversification of materials and technological innovation, target 8.3 which promotes policies that support job creation, target 8.4 that attempts to increase global resource efficiency in consumption and production to decouple economic growth from environmental degradation, target 8.5 that wishes to achieve full employment and decent work with equal pay regardless of background, target 8.6 which promotes youth employment, target 8.7 that fights to end modern slavery, child labor, and human trafficking in all possible forms., target 8.8 which protects labour rights to promote safe working conditions, target 8.9 that promotes sustainable tourism, target 8.a that wishes to strengthen the capacity of domestic financial institutions, target 8.b which increases aid for trade especially within economically developing countries, and target 8.c which tries to operationalize a global strategy for youth employment. Together, these goals merge to support decent work and economic growth in a multitude of industries across the globe.

SDG 8 is therefore extremely relevant for the fashion industry, especially during an age transitioning primarily towards fast fashion modes of production that both violate environmental and labour protections, consequently breachingthe crux of SDG 8. Overtime attempted measures have been enforced to promote sustainable labor practices and reduce child labor use in the fashion industry. However, as of now, these measures are far from ensuring true decent work and economic growth, further raising the question whether it is even physically possible for the fashion industry to align itself with SDG 8 in the near future.

2. Fast Fashion As Unethical Labor Model, Especially in Developing Countries

Over the last couple decades, society has witnessed a major shift in the clothing industry which has prioritized business models that produce mass amounts of clothes at low prices. While the most notorious of these brands include SHEIN, Temu, and Forever 21, it isn’t only these “cheaper brands” that are the culprit of fast fashion. In fact, the companies that present their brand image as “higher quality” and thus pricing their clothes at even higher prices, such as Urban Outfitters, Victoria’s Secret, and Mango, source their clothing from the same fast fashion factories. This phenomenon can be disparaging for consumers who have to search harder for ethical fashion, it is a standard that should be fixed in compliance with SDG 8 through the industry itself, no longer making fast fashion the norm of the commercial fast fashion industry.

2.1 Environmental Impacts

Despite the endless negative impacts of this business model, one of the most significant of these issues lies in the sustainability and environmental degradation contributed to by the industry. The UN Environment Programme has estimated that the fast fashion industry is the second biggest consumer of water in the world, taking up 10% of all global carbon emissions worldwide. Beyond the creation and production of the clothing, 85% of the textiles produced by the industry are simply dumped each year, releasing microfibres into the ocean that act as pollutants to the wildlife. And the problem isn’t looking to be slowing down. According to the UN Framework Convention on Climate Change, estimates are steadily growing from textile production, so much so that emissions from textile manufacturing are projected to increase by 60% by 2030.

As companies continue to cycle clothes at unfathomable rates, the environmental implications of the growing business only continue to escalate, furthering environmental degradation. Zara, Forever 21, and H&M only require two to eight weeks to produce and sell a clothing item, while SHEIN – taking the lead, only requires ten days for a clothing item to go through the entire supply chain. Consumers faced with the opportunity to buy a significant amount of clothing at extremely low prices tend to overbuy clothes, leading these clothes to go to waste, furthering the cycle of production. A single pair of jeans requires 2,000 gallons of water to produce, sparking a vicious cycle of consumers buying more and more clothing items being created, catapulting the current water waste. Clothes made in fast fashion factories also tend to use garments that contain microplastics and synthetic fibres, including polyester, nylon, and acrylic. the International Union for Conservation of Nature estimated that 35% of microplastics found in the ocean are traced back to the fast fashion industry, aggravating environmental degradation. The impacts of fast fashion production on the environment are endless, and if steps/measures are not implemented to course correct this behavior, the fast fashion industry will only continue to mistreat and deteriorate the environment.

2.2 Labor Exploitation in Developing Countries

Not only does the fast fashion industry play a significant role in damaging the natural environment, but the dark truth of its human labor practices continue to make the industry inhumane. On a larger scale, the industry is estimated to hire about 75 million factory workers across the world. Yet, out of this robust industrial force, less than 2% of these workers come close to earning a living wage. As companies feel pressure to release clothes at a faster rate, they have shifted their supply chain model to punitive practices that do not support worker health. This is a top down issue, as the fashion system currently faces extremely transactional power dynamics, in which brands demand copious amounts of clothes to sell at giant profit margins, and suppliers simply comply with these demands. The methods used to coerce suppliers are harsh, further creating a sense of resentment from suppliers. As this hostility grows, suppliers subject their employees to exploitative working conditions, demonstrating the complex power dynamic in the creation of the fashion industry.

Poor working conditions have become standardized in fast fashion, outsourcing labor into developing countries within Latin America and South Asia to exploit the workers for measly wages. Laborers in these environments often have very little voice or authority to speak out, making it simple for such corporations to hide the truth of their labor practices.

Unfortunately, the poor labor conditions used in such factories has led to disasters that have threatened factory workers’ lives. One of the most deadly of these incidents was the Rana Plaza disaster. In Bangladesh, a garment factory had discovered structural cracks, forcing the immediate closure of the factories on the lower floors. However, factory owners on the higher floors forced their workers to return to work the next day. On April 24 in 2013, the building collapsed, which killed over a thousand workers and injured many more. Ultimately, little justice was obtained for the workers who endured trauma from the horrible conditions of factories in Bangladesh.

Survivors have since come out and testified about their experience, Moushumi Begum being one of them. She recounts feeling forced to come to work regardless of the dangerous warning signs when she was suddenly buried under heavy rubble. Throughout the day, some garment workers had expressed concern about the structural integrity of the building, but their claims were ignored, and instead were threatened to lose a month’s worth of wages if they chose not to return to work. Some managers even went as far as to close an internal gate, essentially trapping the workers inside, therefore leaving them no choice but to ignore the warning sides. The workers who survived the incident faced complex/grave complications after the accident, many having their limbs amputated without proper medical care. As a result, over half of the survivors from the Rana Plaza Disaster are still unemployed, due to health problems, such as breathing difficulties and vision impairment.

As news spread across the world of the tragedy, many were enlightened for the first time about the disparaging truth behind the fashion industry. However, while some humanitarian organizations tried to provide aid and help survivors, there was nothing done about the core issue of fast fashion factories themselves. Inhabitable labor conditions continued throughout Bangladesh within the garment industry, and since 2013, the problem has only worsened, with more garment factory disasters, and expectations of greater production.

In fact, during the COVID-19 pandemic, issues regarding wage theft came to light, as brands began canceling almost $40 billion worth of orders, which caused factories to close. Due to the loss of profit incurred by the firms, many workers were not paid and wages were estimated to have dropped about 11%. The action also primarily targeted young women, who make up the majority of garment workers. As factories remain unregulated, multiple garment workers are constantly facing verbal, physical abuse and sexual harassment. Without any larger form of federal accountability and justice for these young women, there is no incentive from larger corporations to end these practices, leaving factories in power relatively unchecked. Even protests and movements to fight for increased rights and wages have largely failed, leading to imprisonment of protestors and very little policy change.

Perhaps SDG 8 could be a potential answer to help regulate corporation labor practices, but as of now, it appears that fast fashion corporations are moving in the opposite direction from the sustainable development goal.

3. How Are Sustainable Brands Changing Labor Practices?

An uproar has commenced in recent years exposing the truth behind the fast fashion industry. Some brands have attempted to adapt or change their exploitative practices, especially as more sustainable brands are brought towards the surface.

3.1 The Rise of Sustainable Brands

In recent years, there’s been a rise of clothing brands that advocate for ethical practices. Clothes from these brands are priced higher and are oftentimes used as marketing gimmicks, but they may be a step into the right direction for the fast fashion industry. Such brands attempt to solve two of the biggest issues that stem from fast fashion, one being environmental sustainability and the other being unethical labor practices. Sustainable brands source from eco-friendly materials, such as organic cotton, and implement practices that reduce waste and carbon emissions. Their practices include zero-waste pattern cutting, which limits garment waste by utilizing renewable energy to power factories and decrease carbon emissions. Furthermore, sustainable brands must prioritize transparency with their supply chains, guaranteeing that their workers are paid a living wage and establishing accountability models to recognize unfair labor practices. Brands can obtain certifications with programs such as the Global Organic Textile Standard which strive to ensure that workers are paid a decent wage, treated with dignity, and have safe working conditions. In theory, these changes should allow for more innovative and long lasting fashion for consumers.

Some examples of such brands that promise sustainability include the Girlfriend Collective that uses all recyclable packaging and fully eco friendly materials to create their clothes; Reformation which is a certified Climate Neutral brand that also aims to reach climate sustainability, and Patagonia that operates solely in Fair Trade Certified factories and sources most fabrics from sustainable materials. The CEO of Patagonia even donated 98% of Patagonia’s stock to a nonprofit organization? that fights climate change.

While the efforts of these companies are vital in propelling the movement, they are still currently outpaced by the quick churning fast fashion industry, but time will tell whether or not sustainable countries will be able to gather the limelight and customers into the future.

3.2 The Threat of Greenwashing & Role of Ethical Consumerism

Many sustainable companies are genuine in their motivations– not only prioritizing the potential monetary gains of green advertising. However, there still exists a subset of corporations that are utilizing increased customer awareness against fast fashion for deceptive advertising and monetary gain. This process is known as “greenwashing”, and is a practice where brands attempt to portray themselves to be/as more? more sustainable than they truly are.

Oftentimes, companies participating in greenwashing tactics highlight minor initiatives for selective promotion, claiming eco-friendly materials without any true certifications involved. One such example of this is Zara’s “Join Life” collection, which advertised itself to be environmentally conscious in its creation. However, in reality, this collection represents a very small portion of the company’s full product range – the rest of the products sold by the company are large contributors to fast fashion,which limit the positive impact of the collection. Instead, it appears to be a sneaky way to gain customers who may be initially distraught by Zara’s ties to fast fashion, attracting conscious customers who care about the environment to pay higher prices for clothes that are not necessarily more sustainable.

Thus, we cannot solely? rely on consumers to make the shift in the fast fashion industry. Although over consumption is a relevant problem contributing to the degradation of the environment, it is largely the work of corporate giants in the realm of fast fashion that wield most power of change. Unfortunately, customers are very easily misled by companies pretending to be more environmentally friendly than reality, diminishing their potential influence on the movement. This is not to negate that customers should not care about fast fashion and continue to buy unsustainable clothes, but to place greater importance on changing the behaviors of corporations when attempting to reach SDG 8.

4. Looking Into the Future, Fast Fashion Digital Factories

As technology continues to advance, the problem of sustainability within the fashion industry is likely to continue to evolve. Specifically, in an increasingly digitized world and economy, the fast fashion industry is also harnessing the power of technology to quicken supply chains and churn out complemented clothing lines even faster.

While this is a production method that exponentially increases profit margins and production, the use of generative AI leads to artists having their work unlawfully stolen, without any financial compensation, leading to copyright violations. For example, Alan Giana, a Connecticut based local artist, filed a lawsuit against Shein, because the machine learning algorithms used by the company to create print designs was stealing copyrighted work from hard working artists. This practice is becoming increasingly widespread across the world, and Shein has been served with numerous, similar lawsuits after stealing designs from smaller artists. Regardless, these companies continue to utilize a large majority of their budget focused on AI enhancement, which could only pave the way for more designs being stolen from artists without adequate compensation. Essentially, the rise of generative AI has intensified the mass array of issues associated with fast-fashion corporations, highlighting how the industry is quickly adapting to modern development.

Further, beyond stealing from artists, fast fashion corporations have also employed minimum wage laborers from the global South to perform “crowdwork.” In this line of work, workers perform menial and repetitive tasks, such as differentiating objects created by AI intelligence models or labeling images to assist language models like ChatGPT. These new jobs have been compared to the likes of “digital sweatshops”, where companies outsource digital work through platforms such as Remotasks. These companies pay workers alarmingly low wages, and have even at times withheld payments from employees with no accountability. The Business and Human Rights Resource Center interviewed 36 current and former crowdwork workers, of which 24 had payments delayed, reduced, and cancelled after completing tasks. The workers earn less than the Philippines minimum wage of 1,621 euros per year through crowdworking, and it serves as a repetitive example of the exploitation of workers in the Global South framed through the lens of technology and AI.

5. Conclusion

In closing, after an examination of fast fashion’s exploitative labour practices, the potential of sustainable alternatives, and the horizon of digital sweatshops in an increasingly digital world– clearly ethical fashion is vital and possible, but only by bridging the disparate gap between the expectations of SDG 8 and our current reality. Specifically, improvements have been made from the Rana Plaza tragedy to the newly implemented policies of sustainable fashion brands, demonstrating that efforts by firms can lead to meaningful progress. However, it is still important to note that large challenges still remain: greenwashing that can mislead customers, power imbalances between firms and workers in the fast fashion industry, and new forms of exploitation in a digital gig economy.

Yet, even though these challenges may seem intimidating, they also reveal a potential set of opportunities. It reveals the chance to strengthen governmental regulatory practices to hold fast fashion firms more accountable and the possibility of harnessing technological innovation to improve current labour practices instead of solely prioritizing speed and profit. Policymakers should attempt to engrave SDG 8 goals into concrete trade agreements, auditing corporations to enforce accountability. Further, the global community should continue to publicize the ongoing issues within the fast fashion industry, pressuring corporations through informed advocacy.

With 2030 being only a mere five years away, the time for small adjustments and change has passed; now is the time to act. It is imperative for governments to tightly regulate labour protections and exercise due diligence within the fashion industry, it is vital that brands publicize and follow recommendations on wages and environmental impact from the government, and obligatory that customers utilize their personal purchasing power to make sustainable choices. If coordinated action is achieved, the fashion industry can evolve from a cycle of exploitation to one that perpetuates sustainability and dignity, achieving what SDG 8 promises to society.

6. Bibliography

Actionaid. 2023. “A Third of People Affected by Rana Plaza Collapse in Bangladesh Still ‘Traumatised’ and Struggling with Physical and Mental Health a Decade On, New Research by ActionAid Shows.” ActionAid International. April 24, 2023. https://actionaid.org/news/2023/third-people-affected-rana-plaza-collapse-bangladesh-still-traumatised-and-struggling.

Astha Rajvanshi. 2024. “How AI Could Transform Fast Fashion for the Better—and Worse.” TIME. Time. September 20, 2024. https://time.com/7022660/shein-ai-fast-fashion/.

“Bangladesh: Garment Workers Must Receive Rights-Based Compensation | Amnistia Internacional | Venezuela.” 2024. Amnistia.org. 2024. https://www.amnistia.org/en/news/2024/05/26385/bangladesh-garment-workers-must-receive-rights-based-compensation.

Bateman, Tom. 2021. “Garment Workers Faced Forced Labour as COVID Hit Fashion Business.” Euronews. June 23, 2021. https://www.euronews.com/next/2021/06/23/abuse-threats-and-no-bathroom-breaks-here-s-what-it-was-like-to-work-at-a-clothing-factory.

Begum, Thaslima. 2023. “‘A Nightmare I Couldn’t Wake up From’: Half of Rana Plaza Survivors Unable to Work 10 Years after Disaster.” The Guardian, April 28, 2023, sec. Global development. https://www.theguardian.com/global-development/2023/apr/28/a-nightmare-i-couldnt-wake-up-from-half-of-rana-plaza-survivors-unable-to-work-10-years-after-disaster.

Business. 2023. “Philippines: Scale AI Creating ‘Race to the Bottom’ as Outsourced Workers Face ‘Digital Sweatshop’ Conditions Incl. Low Wages & Withheld Payments – Business & Human Rights Resource Centre.” Business & Human Rights Resource Centre. 2023. https://www.business-humanrights.org/my/%E1%80%9E%E1%80%90%E1%80%84/philippines-scale-ai-creating-race-to-the-bottom-as-outsourced-workers-face-poor-conditions-in-digital-sweatshops-incl-low-wages-withheld-payments/.

Clean Clothes Campaign. 2013. “Rana Plaza.” Clean Clothes Campaign. 2013. https://cleanclothes.org/campaigns/past/rana-plaza.

Daly, Emma. 2015. “Witness: Rana Plaza Factory Collapse Still Plagues Survivors.” Human Rights Watch. April 22, 2015. https://www.hrw.org/news/2015/04/22/witness-rana-plaza-factory-collapse-still-plagues-survivors.

“DocumentCloud.” n.d. Www.documentcloud.org. https://www.documentcloud.org/documents/24538163-shein-class-action.

“FASHION INDUSTRY CHARTER for CLIMATE ACTION: PROGRESS REPORT 2023.” 2024. Climate Change and Law Collection, November. https://doi.org/10.1163/9789004322714_cclc_2023-0169-0824.

Fashion, in. 2023. “UCRF – Concerned Researchers in Fashion.” UCRF – Concerned Researchers in Fashion. April 11, 2023. https://concernedresearchers.org/blog/supplier-inclusion-is-key-to-climate-action.

“Girlfriend Collective — Ethically Made Activewear.” 2024. Girlfriend Collective. 2024. https://girlfriend.com/pages/regirlfriend2?utm_source=Impact&utm_medium=Affiliate&utm_campaign=CNN%20Digital&irgwc=1&irclickid=VGUxqkXArxyKWmT3HIXHx0YfUks3r%3A29ATp7UA0.

Gomes, Natasha. 2024. “How Ethical Fashion Brands Are Transforming the Industry: A Look at Sustainability and Style.” 42 Signals. April 24, 2024. https://www.42signals.com/blog/how-ethical-fashion-brands-are-transforming-the-industry-a-look-at-sustainability-and-style/.

Greggs, Jen. 2021. “Zara Join Life Review.” Medium. February 15, 2021. https://jen-h-greggs.medium.com/zara-join-life-review-e3ab0663d39a.

Igini, Martina. 2022. “Are Microplastics Harmful and Can We Avoid Them? | Earth.org.” Earth.org. April 21, 2022. https://earth.org/are-microplastics-harmful.

King, Deborah. 2024. “The Hidden Costs of Fashion: How Increased Demand and Production Exploit Marginalized Communities in Developing Countries – Global Measure.” Global Measure. October 14, 2024. https://globalmeasure.org/hidden-cost/.

Linden, Annie Radner. “An Analysis of the Fast Fashion Industry.” (2016).

Maiti, Rashmila. 2025. “The Environmental Impact of Fast Fashion, Explained.” Earth.org. Earth.org. January 20, 2025. https://earth.org/fast-fashions-detrimental-effect-on-the-environment/.

McFall-Johnsen, Morgan. 2019. “How Fast Fashion Hurts the Planet through Pollution and Waste.” Business Insider. Business Insider. October 21, 2019. https://www.businessinsider.com/fast-fashion-environmental-impact-pollution-emissions-waste-water-2019-10.

“News.” 2024. Scw.cloud. 2024. https://s3.nl-ams.scw.cloud/sustainablefashion/ecofiber/news/how-sustainable-fashion-supports-fair-labor-practices.html.

Oldfield, Elizabeth. 2022. “Corporations vs. Consumers: Who Is Really to Blame for Climate Change?” Global Social Challenges. The University of Manchester. July 7, 2022. https://sites.manchester.ac.uk/global-social-challenges/2022/07/07/corporations-vs-consumers-who-is-really-to-blame-for-climate-change/.

Patagonia. 2025. “Our Footprint.” Patagonia. 2025. https://www.patagonia.com/our-footprint/.

Singh, Shantanu. 2024. “Greenwashing in the Fashion Industry.” Carbon Trail. June 27, 2024. https://carbontrail.net/blog/greenwashing-in-the-fashion-industry/.

“Sites-Reformation-Us-Site.” 2024. Skimresources.com. 2024. https://go.skimresources.com/?id=87732X1565017&isjs=1&jv=15.7.1&sref=https%3A%2F%2Fedition.cnn.com%2Fcnn-underscored%2Ffashion%2Fmost-sustainable-clothing-brands&url=https%3A%2F%2Fwww.thereformation.com%2Fpages%2Fsustainable-practices&xs=1&xtz=-60&xuuid=41a2eae862b309fd9f0e01e57013cb77&.

Snowden, Heather. 2022. “Does Buying Less Hurt Garment Workers? — Remake.” Remake. August 1, 2022. https://remake.world/stories/does-buying-less-hurt-garment-workers/.

Strijbos, Bram. 2016. “Global Fashion Industry Statistics – International Apparel.” FashionUnited. April 20, 2016. https://fashionunited.com/news/global-fashion-industry-statistics/2016042011023.

Strumpf, Dan. 2022. “China’s Fast-Fashion Giant Shein Faces Dozens of Lawsuits Alleging Design Theft.” Wall Street Journal, July 3, 2022, sec. Business. https://www.wsj.com/articles/chinas-fast-fashion-giant-shein-faces-dozens-of-lawsuits-alleging-design-theft-11656840601.

Tracy, Kai Burkhardt, Jillian. 2024. “15 Sustainable Clothing Brands to Help You Feel Better about Your Closet | CNN Underscored.” CNN Underscored, April 15, 2024. https://edition.cnn.com/cnn-underscored/fashion/most-sustainable-clothing-brands.

Trafecante, Kate. 2022. “Patagonia’s Founder Transfers Ownership into Two Entities to Help Fight the Climate Crisis | CNN Business.” CNN. September 14, 2022. https://www.cnn.com/2022/09/14/business/patagonia-ownership/index.html.

UNDP. 2025. “Sustainable Development Goals.” United Nations Development Programme. United Nations. 2025. https://www.undp.org/sustainable-development-goals.

United Nations. 2024. “Goal 8: Decent Work and Economic Growth.” The Global Goals. 2024. https://www.globalgoals.org/goals/8-decent-work-and-economic-growth/.