I am not an entrepreneur or a business leader instead a consumer. Frankly, I would rather spend more on organisation that is socially responsible. Undeniably, many will agree with this opinion. Hence, today, business is not all about making money. Evidently, this can be seen through normalisation of sustainability in business where Environmental, Social and Governance (ESG) and Corporate Social Responsibility (CSR) both becoming demanding practices in business. While the two terms relate to social responsibilities in business, ESG and CSR are definitely two difference things. What are the differences between ESG and CSR?
ESG stands for Environmental, Social and Governance is a set of practice that helps evaluates the sustainability and ethical impact of a company investment in a business. Whereas CSR refers to Corporate Social Responsibility, a business model that empowers companies in developing socially responsible programs to give positive impact on the community, business reputation and profits.
The importance of the implementation CSR is due to consumer increasing demands on social responsibilities while ESG becomes a need in a company as investors see it as a key to financial performance.
Importantly, the differences between ESG and CSR can be viewed through the focus of ESG and CSR practice in a company. ESG centered around measuring a company’s long-term sustainability performance through the three criteria presented in its acronym (Environmental, social and governance). CSR, on the other hand, pivoted on activities companies maintain to obtain greater global positive impact (towards stakeholders, staff, the public and the environment). In other words, ESG is all about quantifying existing accountability while CSR is about building accountability. Therefore, ESG is the quantitative side of social commitments while CSR is the qualitative side.
E-SPIN being active involved in assist enterprise and government agencies customer on the Environmental, Social and Governance (ESG), business continuity, disaster recovery (BCDR), and Governance, risk and compliance (GRC) and operation requirement, as being part of E-SPIN Availability Management solution. Feel free to contact E-SPIN for your specific operation or project requirement, so we can assist you on the exact requirement in the packaged solutions that you may require for your operation or project needs.
Other posts that may interest you:
1. Business world is changing: Integrating ESG in business
2. How ESG Initiative Creates Value in Business
