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Navigating the CSR Shift to ESG: Best Practices for Companies

 

Authors:

S Deepika

Assistant Professor

Department of Commerce,

Annai College of Arts and Science,

Kumbakonam, Tamil Nadu, India

E-mail: deepikaannai2023@gmail.com

Contact No:9043014145

J.Antony Nancy

Ph.D Research Scholar (Full Time)

Alagappa Institute of Management

Alagappa University

Karaikudi-630 004

E-mail: nancyjphd@gmail.com

Contact No:9677377481

 

Abstract: Environmental, social, and governance (ESG) policies have replaced corporate social responsibility (CSR), signaling a dramatic change in how businesses view sustainability and the impact they have on society. Traditionally centered on charitable giving and voluntary work, corporate social responsibility (CSR) sometimes lacks quantifiable results and long-term strategic alignment. ESG, on the other hand, is a thorough, data-driven approach that focuses on risk management and long-term wealth creation while addressing environmental stewardship, social equality, and corporate governance. In order to remain competitive and resilient in a business environment that is changing quickly, organizations are increasingly implementing ESG principles as stakeholders, such as investors, regulators, and consumers, want greater accountability. Companies must incorporate sustainability into their fundamental business strategy, establish specific objectives and quantifiable measures, and promote transparency and stakeholder participation in order to transition from CSR to ESG. Integrating ESG into corporate strategy, using technology to make data-driven decisions, putting in place robust governance frameworks, and adjusting to changing rules are all examples of best practices for managing this shift. Furthermore, encouraging an ESG-aware culture within the company guarantees that workers share the ideals and objectives of the business. By adopting ESG, businesses may reduce risks, foster innovation, increase trust, and produce long-term benefits for society and stakeholders.

Keywords: ESG (Environmental, Social, and Governance), Sustainability, Corporate Strategy, Stakeholder Engagement

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