Corporate social responsibility (“CSR”) and environmental, social and governance (“ESG”) guidelines are becoming increasingly relevant for businesses of all sizes and sectors.
While some experts may view CSR and ESG as financially-driven concern, generally companies that implement these practices tend to perform better than those that do not.
Factors most frequently considered in companies’ corporate social responsibility and environmental, social and governance policies include:
- Reducing their environmental footprint through sustainable practices, such as recycling and reducing energy consumption.
- Supporting and promoting diversity, equity and inclusion within the company and in the communities where they operate.
- Investing in and partnering with organizations and initiatives that promote social and environmental causes.
- Implementing ethical and fair labor practices, including fair wages and safe working conditions.
- Ensuring compliance with local, national and international laws and regulations related to the environment and human rights.
- Being transparent about their CSR and ESG practices and performance, and inviting feedback from shareholders.
- Encouraging employee engagement in CSR and ESG initiatives by providing opportunities for volunteerism and community service.
