The three terminologies are constantly used incorrectly and so we have created the above graph to help you see clearly the difference yet the interlink between CSR, Sustainability and ESG.
Sustainability - The Canvas
Think of sustainability as the big picture. It's all about finding that sweet spot where we can take care of our planet, treat people fairly, and still keep the economy humming along. It's like trying to bake the perfect cake – you need just the right mix of ingredients to make it work.
CSR - The Thread
Now, CSR (Corporate Social Responsibility) is where companies step up to the plate. It's their way of saying, "Hey, we're not just here to make money. We care about our community too!" So think about cleaning a beach, volunteering at local schools, making sure their products are ethically sourced and supporting local charaties, these are the types of activities that would fall under CSR. It's about building trust and showing that they're good corporate citizens. In other words, its the non financial impactful activities that would result in building a company's brand image.
ESG - The Embroidery
ESG (Environmental, Social, and Governance) is where things get a bit more nitty-gritty. It's like a report card for companies, measuring how well they're doing on environmental issues, social responsibility, and good governance. Investors love this stuff because it helps them figure out which companies are less risky and more likely to succeed in the long run. So, while they're all related, each concept plays a unique role in making businesses more responsible and our world a little bit better.
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