ESG (Environmental, Social, Governance) focuses on measurable sustainability factors and is often driven by regulations, while CSR (Corporate Social Responsibility) is voluntary and centers on philanthropy and community development. ESG helps manage risks and attract investors, while CSR boosts brand reputation and loyalty.
Many companies are integrating both frameworks, using ESG for risk management and CSR for social impact. This approach improves financial performance and public perception.
Legally, ESG and CSR are increasingly important, with regulations requiring ESG disclosures and liabilities for non-compliance. Aligning with both ensures long-term success and positive societal contributions.
