Redefining Corporate Social Responsibility: The ESG Paradigm

Abstract

This study explores the transition from Corporate Social Responsibility (CSR) to Environmental, Social, and Governance (ESG) as a fundamental shift in how businesses conceptualize and operationalize their commitment to responsible and sustainable practices. The study explores the structures and underlying theories of CSR and ESG, addressing the criticisms and challenges associated with both frameworks. It discusses the emergence of ESG ratings and scoring as a paradigm shift in investment and corporate governance, highlighting its potential benefits and criticisms. Furthermore, the study includes a comparative analysis of CSR practices in the Philippines within the broader context of Asian countries and Hungary. This examines the regulatory environment, focus areas, cultural factors, and government and NGO involvement in CSR initiatives, showcasing how these factors influence CSR practices in diverse regions. The study concludes by the transformative nature of the shift from CSR to ESG, which encompasses a redefinition of corporate responsibility for the 21st century. The growing importance of ESG in the Philippines, driven by regulatory requirements and a rapidly evolving trend. Lastly, it identifies areas for future research. This research provides valuable insights into the evolution of sustainable business practices and the challenges and opportunities associated with this transition.