The origin of both, Corporate Social Responsibility (CSR) and Environmental, Social & Governance (ESG) norms, is the same i.e., adoption of policies and practices by corporations that are intended to have a positive influence on the world.
People generally get puzzled over the generalities of ESG and CSR and frequently use them interchangeably. While both these are closely related, however, each has its own specific goals and characteristics.
CSR was the precursor to ESG. Without CSR, there would be no ESG. CSR intend to make a business accountable, while ESG standards make such business’ efforts measurable.
CSR may be defined as a management philosophy for commercial firms which are generating profits by utilising the resources of the society and nature to give back to the society through philanthropy and humanitarian endeavour.
CSR ensures that a company's actions have a constructive impact on the environment, employees, consumers, communities, and the public sphere.
ESG is a concrete set of aspects which can be used by investors and consumers in understanding a company’s philanthropic, social, and internal governance practices.
ESG issues are important to businesses that prioritize sustainability, and to investors looking for socially responsible investment opportunities. ESG issues are now getting critical for compliance and risk managers as well as for potential investors, who not only need to see how a potential target company is doing financially, but are also assessing how a company is run, how it serves the society, how it impacts the environment and how all these factors cumulatively determine the target company’s overall performance.
The fallout of the COVID-19 pandemic has given businesses a chance to reassess nearly every aspect of their operations. Consequently, ESG compliance has intensified in the wake of the pandemic as governments are now committed to a ‘green’ recovery.
The Coronavirus pandemic has significantly reduced the travel and the industrial activity which had an encouraging and promising impact on the environment. The pandemic has also taught us to check in on the people around us, to care for the communities and to put a greater focus on employee well-being.
ESG is going to play a crucial role in managing the environment. From its inception, via design, building, occupation and disposal, ESG will need to be completely immersed into an organisation’s decision-making process. There is now a growing momentum, driven by asset managers, consumers, and employees alike, demanding transparent, purpose-led business practices that align with their own precedence.
The Chandragupt Institute of Management Patna (CIMP) in collaboration with National Bank for Agriculture and Rural Development (NABARD) & The Energy & Resources Institute (TERI) is hosting the 3rd International Conference on Corporate Social Responsibility, 2023, in this context. Academicians, researchers, working managers, policy makers in government and business, NGOs, industry experts, and everyone else involved from India and abroad will be able to share their perspectives, insights, and solutions at the conference, which will encourage research and interventions for a more active, accountable, and inclusive CSR ecosystem. The goal of the conference is to advance the existing "myopic vision" of CSR by providing business, governmental, and academic scholars with a bigger perspective that will hasten societal growth.