Corporate Social Responsibility (CSR) is the idea that businesses should operate according to principles and policies that make a positive impact on society and on the environment.
“a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis” (EU Commission COM(2011)681)
⇒ CSR commitments serve as keystones for corporate culture and give stakeholders insights into your company’s values. It offers a set of values on which to build a more cohesive society and on which to base the transition to a sustainable economic system.
<aside> 💡 Though it is about accountability, the qualitative nature of CSR makes it difficult to pin down: it provides a starting point for the next step of measurable, data driven change.
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How to incorporate CSREnvironmental and Social Governance (ESG) factors evaluate sustainability practices within a company.
⇒ Focuses on quantitative results that help investors make informed decisions about risks and ethics of your company.
⇒ Helps customers decide which businesses to support
<aside> 💡 ESG makes CSR efforts measurable and accountable ⇒ ESG metrics have quantitative performance indicators aligned to particular ESG criteria
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How to incorporate ESG⇒ Studies now find clear empirical links between a firm’s commitment to environmental and social governance and financial performance. Rather than represent a burden for your company, ESG investments can actually enhance stakeholder trust, brand reputation and employee satisfaction, leading to better business.