Ethical fashion refers to clothing that has been made with fair practices throughout the production process. This can apply to the design, production, retailing and purchasing of the clothes. It most often focuses on the working conditions of people that produce the clothing and means that they have not been exploited (that is, that they have been paid fairly for their labor that is undertaken in reasonable working conditions).
However it can also apply to the sourcing of materials to ensure that ‘fair trade’ practices have been applied (once again most often focusing on the fact that producers are not exploited and have been remunerated at a reasonable rate). It can encompass environmental concerns such that the environment is not unduly harmed by the sourcing of products used in fashion (synthetics, for example are made from petroleum by-products). Finally it can also include issues of animal welfare such that animals are not harmed as part of the production process.