CSR vs ESG: What They Are & How They Impact Sustainability

Written by Stowe Gregory

Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) are two vital components in ensuring your business meets the growing demands for sustainability and social responsibility. However, with shared targets, the two frameworks often overlap and leave you unsure of how to move forward.

But while they focus on extremely similar areas, they both have different roles. In the simplest terms, CSR focuses on accountability and actionable steps. Whereas ESG measures a company’s impact. 

69% of Americans say businesses are doing too little to help reduce the effects of global climate change. Aligning your business with modern environmental values will help brand sentiment and avoid backlash. 

In this guide, we’ll compare the concepts of CSR vs ESG in further detail and leave you with a clear understanding to start planning for a business that has a more positive impact on the world.

CSR vs ESG

What is Corporate Social Responsibility?

Corporate social responsibility (CSR) is a self-regulating business model that helps businesses positively impact society, its stakeholders, and the public. 

The model encourages companies to actively monitor how their business affects environmental, social, and economic areas and take steps to improve its impact.

Unlike ESG (which focuses on measuring an impact), CSR is more about providing actionable steps and plans to make a positive impact. 

Love it or not, Apple’s environmental page is a great example of how far corporate social responsibility can reach when it’s interlaced throughout a business.

The History of CSR

CSR’s roots are found in the 18th century when faith-based organizations refused to invest in industries related to the slave trade, war, or liquor and tobacco production. 

But it wasn’t until the 1970s that it really began to gain traction across the US - thanks to the concept of the ‘social contract’ between businesses and society. The concept effectively states that a business only functions because of public consent and should therefore serve the needs of society. 

By the 2000s, CSR had spread enough to become an essential strategy for many companies, and as of 2025 you’ll be hard-pressed to see it absent in any business.

The difference today is that stakeholders demand transparency. 

Customers, employees, and activists expect data to support CSR claims. Without evidence, the accusation of greenwashing can quickly arise - this is where ESG becomes so important.

The Key Areas of CSR

Environmental 

CSR’s sustainability focus can allow companies to use eco-friendly practices that reduce their environmental footprint. For example, by using renewable energy, reducing material waste, reducing its carbon footprint, or working with partners that pose less of a threat to the environment. 

Social Responsibility 

Companies employing CSR practices with a focus on social responsibility focus on areas such as fair labor practices, safe working conditions, employee well-being, diversity, and addressing societal issues. This will also typically involve engaging with stakeholders, such as employees, customers, and the local community. 

Economic 

CSR can also promote a focus on maintaining financial stability, alongside ethical and transparent accounting and regulatory compliance. It promotes scenarios where financial decisions help to positively impact the environment, people, and society. 

Ethical 

Ethical responsibilities often overlap with social and environmental concerns, focusing on a transparent and honest business practice that ensures fair treatment and care beyond legal compliance. 

What is Environmental, Social, and Governance?

‘Environmental, social, and governance’ (ESG) is a term used to define how a business measures its environmental and social impact. It’s usually used in an investing context, but you’ll find it applied in all areas - from customers and suppliers to employees and advertisements. 

While CSR is considered closer to a ‘philosophy’ or set of ‘values’, ESG is more of a quantifiable concept. It requires data and metrics for investors and partners to make decisions. As a result, it’s often referred to as ‘sustainable investing’.

The History of ESG

ESG’s roots were found alongside CSR, as investors started aligning their portfolios with personal and social values. But it was by the 1990s that ESG really took off, with the Global Reporting Initiative (GRI) and the UN Global Compact’s arrival. Its inclusion in a 2004 UN report and the Paris Agreements of the 2010s boosted its popularity. 

Today, ESG is a critical part of any corporate strategy and investment decision-making. It is widely used and has gained further importance with the rise of new sustainable regulations and concerns in the wake of the climate crisis. 

How is ESG Measured?

To measure ESG, investors analyze a wide range of criteria from three core areas:

1. Environmental

Investors evaluate policies in climate, energy, waste, natural resource conservation, pollution, and animal treatment. They may be indirect and/or direct, such as compliance with environmental regulations, materials used, greenhouse gas emissions, and the partners they work with. 

2. Social 

The relationship between a business and its stakeholders is evaluated both internally and externally - for example, does the business donate or support its local community? Or, what are the working standards like for employees?

3. Governance 

Governance evaluation is all about how transparent and accurate a company’s accounting, leadership, and data are. For example, do they have conflicts of interest in their board members and senior positions? Do they use political contributions or engage in illegal practices?

What Metrics Are Used?

The metrics used to measure ESG will vary, as they’re typically set by analysts looking to study specific issues in their sectors. 

For example, an analyst may track the investments made by a business in partners that support the environment, their published sustainability reports, diversity statistics, and data on working with questionable workplace practices. 

Environmentally speaking, metrics are likely to include greenhouse gas emissions, energy usage, water usage, waste management, and biodiversity impact. 

Globally, many companies have also signed up to agreements that see them follow sustainability and ethical practices. Such as the United Nations Global Compact (more than 24,000 businesses) and the Global Reporting Initiative (with 78% of the world's largest 250 companies). 

How You Can Implement CSR in Your Business

Regardless of your business size, your CSR monitoring and initiatives can be generally implemented within the structure of your business’ culture, values, and practices. 

1. Define the concept of your CSR

Before your business can make any progress, you’ll need to define what your CSR approach should be. This requires speaking to all your stakeholders to understand their concerns - including employees, customers, unions, local communities, and environmental groups. 

2. Create a CSR plan

Once you’ve researched opinions, you can begin to craft a CSR with actionable steps to address these. The decisions here can be extremely diverse. For example, sustainability could be as easy as replacing plastic waste with compostable alternatives, or as extreme as switching to solar energy. 

Your plan will also need to include trackable goals, such as employee engagement rates, brand sentiment online, and customer retention. 

3. Research reliable partners

Research into CSR initiatives will also be necessary, such as finding partners to help you reduce plastic waste or finding ways that your local community would benefit from your business’ support.

Finding solid suppliers and partners that fit your goals will help you maintain a consistent and budget-predictable plan. Of course, your partners should also fit within your CSR (and ESG) requirements. 

4. Review existing initiatives  

It’s also wise to review any existing initiatives that may fall into a CSR plan and expand with additional backing. For example, your employees may already be running fundraisers, employee reward initiatives, recycling, or eliminating single-use plastics. 

If these programs didn’t take off, then analyze how they were implemented to identify what may have set them up to fail, such as not having a consistent supply of alternatives to plastic use. 

5. Propose your CSR plan

Once a CSR plan has been crafted, it will need internal approval to get the budget and resources to help make it a reality. 

Doing so will require a proposal that displays the benefits for the business long term, such as with examples of businesses that have profited from a strong CSR plan. 

6. Launch your CSR campaign.

Once your CSR campaign has been approved, you can begin to communicate it to your stakeholders including: 

• Employees

• Shareholders or investors

• Customers

• Partners and local communities

• Media outlets

• Fans and followers 

Discover Ways To Improve Your Environmental Impact With Plastic Detox

Navigating the overlap between CSR and ESG can be confusing, but making real progress doesn’t have to be. At Plastic Detox, we believe that actionable steps (just like those found in strong CSR strategies) are what lead to lasting impact, especially when it comes to reducing plastic waste.

Whether you're refining your CSR approach or simply searching for plastic-free, eco-friendly products for your workplace, we’re here to help. You can order free samples, take advantage of bulk discounts, and explore custom solutions designed with your business goals in mind.

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