The newspaper detailed a number of allegations against Green involving employees, including an instance he allegedly groped a female executive and another where he reportedly referred to a black employee as "throwing spears in the jungle". Both these employees were forced to sign gagging orders - non-disclosure agreements - that forced them to sign their silence over in return for pay-offs.
His lawyers had said in court that he is a "passionate businessman who can at times be over-exuberant and hot-headed".
Sir Philip Green, the Duke of Edinburgh, Jeremy Corbyn and Chris Grayling make headlines on Sunday.
Green's lawyers deny that his conduct "amounted to any type of crime, or anything that would amount to gross misconduct, or a serious risk to health and safety".More news: Georginio Wijnaldum reveals extent of his illness before Liverpool victory
Green obtained an injunction to stop the newspaper publishing the allegations, but dropped his legal action on Friday because his name has already become public.
He has threatened to sue any ex-employees who flout the agreements.
Lawyers representing the Topshop owner said the decision was prompted by Lord Hain's identification of Sir Philip in the House of Lords in October previous year, a day after the Telegraph ran a front-page story saying it was prevented from naming a "mystery businessman".
Sir Philip also faces a £3m bill as a result of his failed legal battle to prevent the Daily Telegraph printing the claims against him.More news: Aaron Ramsey transfer: Juventus announce four-year contract with Arsenal midfielder
Sir Philip has categorically denied the allegations, insisting he never meant to cause offence.
He is alleged to have given two separate female members of staff hundreds of thousands of pounds each too.
The report also claimed another male was left without one month's pay shortly after Sir Philip smashed his phone.
The court injunction was first sought after Sir Philip and an executive at his Arcadia firm were contacted by a Telegraph journalist in July previous year. And that led to our investigation into Sir Philip Green and Arcadia.More news: Russia Plans to Disconnect From the Internet
"We maintain there is a clear public interest in telling people whether a prospective employer has been accused of sexual misconduct and racial abuse".