Differences Between CSR and ESG

Corporate Social Responsibility (CSR) is a voluntary approach where companies strive to operate ethically, contributing to society and reducing their environmental footprint. CSR typically includes initiatives such as employee well-being, sustainability practices, and charitable work, which reflect a company’s values. In contrast, Environmental, Social, and Governance (ESG) is a formal framework used to measure a company’s long-term performance across environmental, social, and governance criteria. ESG is data-driven and often scrutinized by investors to assess risks and opportunities related to sustainability and ethical management.     

Main Differences:

CSR focuses on company-driven actions and values, often with short- to medium-term projects.
ESG is more formal and systematic, with measurable data points, evaluated by external stakeholders, particularly investors, focusing on long-term sustainability.