[Professional] About ESG & CSR

Before the term ESG came into being, companies focused on company status and profits in their management. However, nowadays, only the first two items are mentioned, which is not enough to evaluate their sustainable development and social responsibility. In order to better understand the status of companies, ESG and CSR have been derived.

In addition to the main meaning of the combination of ESG and CSR, each word also derives its important indicators. Here we will understand their meanings.

ESG   Environmental、Social、 Governance

ESG stands for environment, society and corporate governance, and is an indispensable and important indicator for companies in their sustainable development. It reflects a company's performance in environmental protection, social responsibility and corporate governance. Companies also use it to evaluate their influence in the business process and plan long-term development strategies based on this.

In 2005, the United Nations proposed the >>Principles for Responsible Investment<<

Environmental

Environmental issues are increasingly valued, and are no longer limited to production and sales. More and more companies are asking satellite manufacturers to take responsibility for the environment in order to achieve sustainable development. This includes greenhouse gas emissions, carbon emission reduction, climate change, environmental sustainability, carbon emissions, pollution treatment, etc.

Social

Mainly focuses on the company's performance in social responsibility, such as employee rights, human rights, supply chain management, community participation, etc.

Governance

This is naturally one of the most important aspects of sustainable management, and its contents include company management, executive compensation, auditing, internal control, shareholder rights, corporate ethics, information transparency, board diversity, corporate compliance and other issues.

CSR   Corporate Social Responsibility

CSR means that in addition to being financially responsible to shareholders, society and the environment, companies should also take responsibility for society and the environment as corporate citizens and bring positive impacts. In short, it is a management philosophy that companies integrate the "concept of sustainable development" into their operating policies.

The >>Global Compact<< was proposed by the United Nations in 1999

Environmental Responsibility

Environmental responsibility means that while operating, companies also focus on sustainable development and environmental protection. Companies can do their part to protect the environment by improving their operating models, regulating upstream and downstream manufacturers, and giving priority to renewable energy, etc., so as to minimize the negative impact of the company on the environment.

Ethical Responsibility

Ethical responsibility means that a company commits to operating in accordance with moral, ethical and human rights principles. In addition to complying with (or even exceeding) basic laws and regulations, it also establishes open and transparent standards of conduct and treats all stakeholders fairly.

Philanthropic Responsibility

Philanthropic responsibility refers to the spontaneous use of a company's own resources and influence to give back to society by making donations, mobilizing manpower, or donating materials, in order to improve and enhance the quality of the community.

Financial Responsibility

Financial responsibility means that companies incorporate "corporate social responsibility" into the core of financial decision-making, reallocate company resources, provide a financial basis for environmental, ethical, and charitable responsibilities, and invest actual financial resources in implementing corporate social responsibility.

Summarize

The emergence of ESG and CSR reflects the current emphasis on sustainable development and corporate responsibility in society. Through such scrutiny, we can understand our own economic benefits and the inseparable relationship with the entire society and the environment. Although ESG and CSR have not had a significant impact on companies in the short term, major companies in Europe and the United States have begun to include them in their assessments. Therefore, it is still necessary to consider ESG and CSR in long-term plans, so that the outside world can understand their own companies and gain external trust.