Global Fashion Brands: Does Sustainability Make Business Sense?
Rohit Choraria1, Medha Jain2, Praguni Goel3
1CA. Rohit Choraria, Faculty, Christ University, Bangalore,India Medha Jain, B COM Professional (Finance), Christ University, Bangalore, India.
2Cima Affiliate Praguni Goel, BCom Professional, CHRIST (Deemed to be University), Bangalore, India.
Manuscript received on April 02, 2020. | Revised Manuscript received on April 21, 2020. | Manuscript published on May 30, 2020. | PP: 895-903 | Volume-9 Issue-1, May 2020. | Retrieval Number: A1476059120/2020©BEIESP | DOI: 10.35940/ijrte.A1476.059120
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Sustainable fashion has gained significant importance with growing awareness of the real cost of fashion in terms of its impact on people and the environment. Large fashion firms have responded with sustainability policies to address these real costs. This leads to an interesting interplay of sustainability and financial performance which may not be entirely in alignment with each other. The paper has empirically assessed the sensitivity of changes in financial metrics to changes in sustainability metrics using the Fashion Transparency Index. The statistical tool of correlation is used for this assessment. We find that brands who show above average sales growth and profit margins are three times more likely to meaningfully adopt sustainability, than others. In other words, global brands need to “do well” (in financial terms) to “do good” (in terms of sustainability).
Keywords: Sustainability, Fast Fashion, Sustainable Fashion, Fashion Transparency Index, Sustainable Development Goals.
Scope of the Article: Sustainable Structures