Environmental, Social and Governance (ESG): A step ahead of the CSR

Abstract

Purpose/objective: The purpose of this research paper is to evaluate how far ESG reporting initiatives of public and private sector companies ahead over the corporate social responsibility (CSR) initiatives for sustainable business and betterment of society.

Theoretical framework: The study is based on Environmental, Social and Governance (ESG): A step ahead over CSR initiatives’ a comparative analysis between public and private sector companies operating in Odisha region. Researcher analysed to what extent ESG makes assessment of CSR practices of corporate sectors through integrating Environmental, social and governance factors keeping in the mind of interest of investors and stakeholders.

Design/Methodology/Approach: The study is empirical in nature companies three years of data (2020-21 to 2022-23) covering 10 companies whose commercial operation in Odisha region. Researcher adopted purposive sampling method for selecting companies on the basis of availability of sustainability report. Researcher used contempt analysis and descriptive tools for analysis and interpretation of observations.

Findings: The end result of this research paper reveals that both public and private sector CSR initiatives have found variation and also not following ESG reporting initiatives according to Global Reporting Initiatives (GRI) ESG has no significance without CSR practices by corporate sectors.

Research, Practical and Social Implications: ESG is a financial analysis tool to make assessment of three metrics: Environmental, Social and Governance factors of companies sustainability. Meanwhile till now ESG reporting is not mandatory & transparency in part of financial reporting. ESG approach helps to companies in achieving objective of sustainability, creation of long-term benefits and achieves investors’ perceptions towards investment decision criterion.

Originality/Value: The present research paper Environmental, Social and Governance (ESG): A step ahead over CSR have a universal or global significance for achievement of investors and well being of all stakeholders. Adequate integration is needed between CSR and ESG approaches with the aim of accumulation of Natural, Human and Economic capital for sustainability of society.