What are the differences between ESG and CSR?

ESG (Environmental, Social and Governance) and CSR (Corporate Social Responsibility) are two concepts that have been frequently mentioned in recent years, both of which are related to corporate social responsibility. In practice, there are some connections and differences between ESG and CSR.

CSR, also known as corporate social responsibility, refers to a self-restraint behavior taken by enterprises in order to fulfill their social responsibilities. In the process of production, sales and service, enterprises take into account the interests of society, the environment, consumers, employees and other interested parties in the balance of interests. Therefore, the goal of CSR is to continuously improve the social image and reputation of the company by focusing on social and environmental sustainability, while also increasing the wealth and economic efficiency of the company. 

ESG, on the other hand, is more focused on assessing the risks and opportunities of an enterprise's investment value. The initiative focuses on corporate performance in environmental, social and governance areas. In other words, the purpose of ESG strategy is to determine whether a business can achieve sustainable profitability and to inform shareholders or investors about the long-term operational risks of the business. It reflects the likelihood of a company's long-term success and aims to ensure that companies seek opportunities for global cooperation.

CSR and ESG are important to enterprises and there are many similarities between them. First, they all aim to achieve sustainable development and enhance the social image and reputation of the company. Second, both can help companies play a better role in risk management and help investors and employees identify and predict long-term operational risks.

While ESG and CSR have connections and commonalities, there are also differences. ESG reflects the likelihood of long-term success and aims to ensure that enterprises seek opportunities for global cooperation. CSR, on the other hand, focuses on a sense of social responsibility that a company must assume and emphasizes the promotion of values such as justice, ethics and transparency.

In summary, both ESG and CSR are committed to enhancing corporate social responsibility and sustainable development in the true sense of the word. Through comparative analysis, we can see that ESG puts more emphasis on investment risk and opportunity assessment and governance, while CSR puts more emphasis on enterprises' social responsibilities to internal and external stakeholders and the environment.