First off, what exactly is ethically produced fashion.
According to Ethical Fashion Forum “ethical fashion represents an approach to the design, sourcing and manufacture of clothing which maximizes benefits to people and communities while minimizing impact on the environment.
“If you describe something as ethical, you mean that it is morally right or morally acceptable.” Collins English Dictionary
For the EFF, the meaning of ethical goes beyond doing no harm, representing an approach which strives to take an active role in poverty reduction, sustainable livelihood creation, minimizing and counteracting environmental concerns.”
Ethically produced fashion matters to consumers.  In the US more and more people are becoming more socially conscious.  As a human beings, we are constantly bombarded with news of :  climate change, poverty, war, worldwide inequalities, shrinking natural resources and other challenges.  More people than ever before have woken up to the fact that we absolutely need to do something.   One of the ways people are doing something is by buying ethically made product.
In fact the consumer is so motivated to buy this way, “They will even spend 10 to 15 percent more on ethically produced clothing,” according to Marshal Cohen, retail analyst at NPD Group.
Social media is huge right now, and  consumers like to post about the brands they prefer.  Those that admire socially responsible businesses will discuss your brand and recommend it to others.  In fact this is a very newsworthy subject that can prompt writers to publish articles about your brand.
I speak to emerging designers all the time who are interested in making ethically produced fashion and have a strategy to do so.  One thing I make clear is that the product itself still needs to be right as well as ethically produced.  You cannot have one without the other.
Does Making Ethical Fashion Impact Your Sales?  I say the jury is in and that it absolutely can impact your sales in a positive way.