ESG principles and social responsibility

Abstract

In the face of escalating global challenges such as climate change, social inequality, and governance failures, corporations are increasingly adopting Environmental, Social, and Governance (ESG) principles and emphasizing Corporate Social Responsibility (CSR). This paper critically examines the integration of ESG principles into CSR strategies within the contemporary corporate landscape. We address challenges such as inconsistent reporting standards, data quality and availability, integration of ESG into investment decisions, conflicts between short-term financial results and long-term ESG goals, and regulatory variations across countries. Our findings underscore the need for harmonized ESG reporting standards and regulatory frameworks, the importance of comprehensive stakeholder engagement, and the necessity of viewing sustainability as a long-term strategic objective. The paper provides an in-depth understanding of how corporations can navigate these challenges, thereby aligning their operations with global sustainability goals and enhancing their societal impact. This analysis will benefit corporate leaders, policy-makers, investors, and scholars interested in the evolving intersections of ESG principles and CSR.