I'm always on the look-out for products that should be carried by hip & zen. [I'm not actually sure this is helpful, given Karen probably already has a very full plate sourcing wonderful hip & zen items for the sote, but I do it anyway!]
Thanks to ecofbaulous, I've found a new one: Mat & Nat. Mat & Nat is a cruelty-free handbag designer (who unfortunately uses Flash in their web design, so I can't point you to their About page or Philosophy page where they talk about that.)
They are as devoted to design and style as they are to being cruelty-free and the environment, and their prices are fairly reasonable, especially the sale items.
I'm going a little crazy filling my shopping cart right now, so I have to go, but check them on out.
As a final note, I choose cruelty-free over all other criteria personally, so PVC-based bags and shoes make it into my wardrobe all the time, but if you are a stickler on both counts, than their Japanese Paper collection should make feel both eco-friendly and cruelty-free and highly fashionable!
What do you think Karen? Pretty hip & zen, no?