CSR vs. ESG: Understanding the Key Differences 
                     CSR vs. ESG
Understanding the Key Differences 
and Why Both Matter
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.
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.
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.
CSR                                       ESG
• CSR initiatives are typically voluntary and driven by a • ESG criteria are often mandated by investors and 
company's values. regulatory bodies.
• CSR focuses on a company's overall impact on • ESG provides specific criteria for investors to evaluate a 
society and the environment through philanthropy company's sustainability and governance.
and ethical practices. • ESG criteria are quantifiable and data-driven, offering a 
• CSR activities are often qualitative and based on standardized way to measure and compare c
. • ESG primarily targets investors who use these criteria for company values
informed investment decisions. ompanies.
• CSR targets a broad range of stakeholders, including 
customers, employees, and communities.
Why Both Matter
•
• Attracts socially responsible investors, mitigates Enhances brand reputation, fosters customer 
risks, and ensures long-term sustainability with 
loyalty, and improves employee engagement by 
clear, standardized criteria for assessing a 
demonstrating a company's commitment to being company's environmental and social impact.
a responsible corporate citizen.
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.