THINX, a “period-proof” underwear company for women, was once a darling of the startup scene. Touting itself as a socially conscious and feminist brand, THINX received a slew of awards for its innovative products and female-first mission.

But in the past few weeks, its glowing reputation has been overshadowed by allegations of abusive behavior and sexual harassment by Miki Agrawal, its founder and former CEO. While it’s easy to get caught up in the titillating details of ex-employees’ allegations — workplace nudity, inappropriate touching — the real story is not about how a single individual screwed up. The real story is about the pitfalls of “benevolent” capitalism.

Agrawal, though widely known as a feminist, is also a serious believer in the power of capitalism. She describes herself as a “social entrepreneur” who believes that “conscious businesses will change the world.” In interviews, she touts THINX’s mission of empowering women and the company’s partnerships in developing countries. Much of her thinking seems to come from Conscious Capitalism, a book cowritten by Whole Foods cofounder John Mackey. Last year, Agrawal even joined Conscious Capitalism Inc.’s board of directors.