Is There a Relationship Between CSR and Financial Performance in the Fashion Industry? : A quantitative report on fashion corporations with headquarters in the European Union and the United States of America

Abstract: This thesis sets out to examine whether there is a relationship between financial performance and CSR in fashion companies. Furthermore, there are significant regional differences in different markets; for instance, the European Union aims to counter the negative impact of fast fashion as part of a grander plan to become climate neutral by 2050. Therefore, a regional comparison is of particular interest as environmental regulations are increasing. Since the USA and the EU are home to the largest and most valuable brands to date, these regions will be examined in this thesis. This relationship is measured by using ESG scores as a proxy for CSR. The results stipulate that the relationship between financial performance and CSR activities is weak. Nevertheless, regional context is found to be a significant moderator variable in this relationship. The results indicate that CSR practices are more important in terms of financial performance in the EU.