Question

The relationship between ESG and CSR is:

a. They are exactly the same things - a different term for the same activities
b. ESG is a way to measure activities and CSR is related to more general activities
c. ESG relates to finances whereas CRS relates to environmental sustainability
d. ESG is older and CSR is more modern

Answer 1

ESG is a quantitative framework for evaluating company performance on environmental, social, and governance criteria, affecting investment decisions. CSR is a broader commitment to ethical conduct and includes a company's environmental, social, and economic impact.

Step-by-step explanation:

The relationship between Environmental, Social, and Governance (ESG) and Corporate Social Responsibility (CSR) is not that they are the same thing. Instead, ESG is a framework that allows investors and stakeholders to evaluate a company's performance in three specific areas: environmental stewardship, social responsibility, and corporate governance, potentially affecting investment decisions. These criteria can be quantitatively measured and reported. On the other hand, CSR refers to a company's broader commitment to conduct its business in an ethical manner, taking into account its environmental, social, and economic impact. CSR is more of an ethos or philosophy that guides a company's operations and includes voluntary activities that may not necessarily be captured within ESG metrics.