CSR vs. ESG: Understanding the Key Differences

1
CSR vs. ESG

• Understanding the Key Differences and Why Both
  Matter

2
Overview

• In our increasingly interconnected world,
  companies are expected to positively impact
  society and the environment. Two key frameworks
  that guide businesses in this endeavor are
  Corporate Social Responsibility (CSR) and
  Environmental, Social, and Governance (ESG).
  Although they share common goals, understanding
  the distinctions between CSR and ESG is essential
  for companies committed to making a meaningful
  difference.

3
What is CSR?

• Definition Corporate Social Responsibility (CSR)
  is a company's commitment to operate sustainably
  across economic, social, and environmental
  dimensions.
• Key CSR Activities
• Philanthropy Making donations to charities,
  sponsoring community events, and supporting
  social causes.
• Ethical Business Practices Ensuring fair labor
  practices, ethical sourcing, and transparent
  operations.
• Environmental Initiatives Reducing carbon
  footprints, managing waste, and conserving
  resources.

4
What is ESG?

• Definition Environmental, Social, and Governance
  (ESG) criteria provide a framework for investors
  to evaluate a company's sustainability and
  ethical impact.
• Key ESG Components
• Environmental.
• Governance Examining a cAssessing a company's
  environmental policies, practices, and impact,
  including carbon emissions, energy efficiency,
  and resource management.
• Social Evaluating how a company manages
  relationships with employees, suppliers,
  customers, and communities, including diversity
  and inclusion, labor practices, and community
  engagementompany's leadership, executive pay,
  audits, internal controls, and shareholder
  rights.

5
CSR ESG

• CSR initiatives are typically voluntary and
  driven by a company's values.
• CSR focuses on a company's overall impact on
  society and the environment through philanthropy
  and ethical practices.
• CSR activities are often qualitative and based on
  company values.
• CSR targets a broad range of stakeholders,
  including customers, employees, and communities.

• ESG criteria are often mandated by investors and
  regulatory bodies.
• ESG provides specific criteria for investors to
  evaluate a company's sustainability and
  governance.
• ESG criteria are quantifiable and data-driven,
  offering a standardized way to measure and
  compare c
• ESG primarily targets investors who use these
  criteria for informed investment decisions.
  ompanies.

6
Why Both Matter

• Enhances brand reputation, fosters customer
  loyalty, and improves employee engagement by
  demonstrating a company's commitment to being a
  responsible corporate citizen.

• Attracts socially responsible investors,
  mitigates risks, and ensures long-term
  sustainability with clear, standardized criteria
  for assessing a company's environmental and
  social impact.

7
Why Spherule Foundation

• Spherule Foundation is a non-profit organization
  dedicated to creating sustainable change across
  India. Their initiatives align with Corporate
  Social Responsibility (CSR) and Environmental,
  Social, and Governance (ESG) principles, focusing
  on areas such as education, women's empowerment,
  health, and environmental conservation.