CORPORATE SOCIAL RESPONSIBILITY:

Corporate bodies established in India are now accountable for social development along with their economic targets. They cannot shy away from this responsibility; the Indian Companies Act mandates companies with an annual turnover of a thousand hundred crore or net worth of five hundred crore or a net profit of five crores or more during a financial year shall have to constitute CSR committee and shall have to contribute a minimum of 2% of their turnover towards activities mentioned in the schedule. For adopting a sustainable business approach, profit is not the only criterion; creating social impact is also essential. It’s considered the giving back policy for the plant and society.

CSR is the tool that companies adopt to create better brand reach, talent acquisition, sustainable growth, etc., with the following initiatives they are:

1. Ensuring to protect the environment.
2. Following fair trade policies
3. Adapting new labor policies
4. Committing to the welfare of the society
5. Contribution towards welfare schemes of the government

ENVIRONMENT, SOCIAL AND CORPORATE GOVERNANCE:

For sustainable development of business, an integrated Environment, social and corporate practice for a net zero transition approach is essential. The business responsibility and sustainability report are a framework in the SEBI that mandates the market regulators for ESG disclosure. It is used to rate the listed companies according to their ESG standards. The framework is also used by investors to assess the performance of prospective companies. Since it mitigates the risk of mis-selling.

An organization may aim to achieve the following with the ESG mechanism:

1. ESG Increases data orientation and compliance activities.
2. Evaluating risks and opportunities in the market.
3. Optimization of investments and assets

INSTANCE:

Apple INC has expressed its interest in moving towards sustainable development, with an aim to become a carbon-neutral organization by 2030. Apple offers recycling programs in the operating countries and the company has successfully diverted 501 million pounds of electric waste according to the latest ESG report zero waste initiative directed to the supplier has increased by 51%. The organization has been diligently involved in CSR activities since the early 2000s as a giving-back policy initiative to society and the environment, creating a better workspace environment for its employees. As a result, the company has achieved customer, stakeholder, and employee satisfaction and retention.

CONCLUSION:

Therefore, CSR is an internal framework of any organization intending to create sustainable business and ESG is an assessment tool to measure the company’s performance. These approaches are incorporated simultaneously because CSR helps in creating internal and external impact and ESG demonstrates the engagement of the business.