From the philosophy of corporate social responsibility to the market and political realities of ESG

Abstract

The theory of corporate social responsibility, ideologically formed in the USA in the second half of the twentieth century, significantly influenced both the practice of international business and the views of scientists in the field of economics and sociology. The moral obligation of corporations to participate in solving social problems, in charity, educational and cultural projects began to be perceived as something ordinary, as a kind of voluntary social tax. At the same time, representatives of a number of economic schools have long criticized this approach, believing, firstly, that the principal goal of big business is the growth of shareholders’ capital, and secondly, such a social obligation looks very amorphous, assuming only reputational costs for an entrepreneur in case of his evasion from the implementation of CSR programs. In our opinion, the situation is currently changing dramatically. This approach is being radically transformed under the influence of ESG ideas and practices, whose standards become structured and mandatory for companies in case of their access to premium markets.