CSR: Is what's Good for Society also Good for Business?

The objective of this study was to determine whether a company engaged in Corporate Social Responsibility (CSR) activities would experience a financial reward or penalty for the strategy. It is imperative that corporations act as partners in the attempt to improve conditions of society and the environment in which we all live. Two competing corporations were selected; one, which has employed green strategies whereas the other appears less, committed. The two firms were analyzed and compared and contrasted to assess the financial implications. It was discovered that green oriented company has a growing return on equity and also return on assets ratio. Abercrombie & Fitch also has a great market value, and also stock price potential. On the other hand, even though the company increases their profit margin from 2009 to 2011, Abercrombie & Fitch experiences a poor profit margin in comparison to their rival, American Eagle Outfitters. Overall, throughout the study it becomes apparent that Abercrombie & Fitch not only show a strong presence currently in the market and clothing industry, but also a strong and promising future as a result of their new social responsibility strategy.