The New Capitalism brings together business values and practices to make a product, make some money, and change the world. The business values that are being built into these new companies from the beginning include fair labor practices, environmental stewardship, a supply chain with a conscience and transparency, and a social justice heart. They are also using new capital funding options such as crowdfunding to build sustainability into the bones of the enterprise.
Several successful textiles industry startups are using the new models to build companies that address, first and foremost, the issues of unfair labor practices and supply chain fixing. The textile industry is the source for some of our most shameful practices, including sweatshops that use child and forced labor and keep workers living in poverty, practices to fix prices of raw materials so farmers and shepherds continue to live in poverty without access to markets, and use of hazardous materials, such as heavy metal dyes for silk and other natural fibers that bring disease and environmental degradation to communities of craftsmen.
The new models are building environmental stewardship and fair labor practices into their companies through company values that address these areas, and many are structuring a business model with both profit and non-profit arms. Everlane is a clothing company that uses what they describe as radical transparency to give consumers a look into their supply chain and factories. They recently took their Black Friday profits and turned them over, providing worker-focused benefits. A couple of shipping container hydroponic gardens will be moving across the ocean to live outside the cafeteria of the factory in Ho Chi Mihn City, where many of their clothes are made, to supply the workers with fresh leafy greens. Continue reading