Exploring the ESG surge : a systematic review of ESG and CSR dynamics

Abstract

Corporate Social Responsibility (CSR) has been a focal point in academic research for years, examining its implications on corporate governance, stakeholder relationships, corporate motivation, and financial performance. While CSR traditionally aimed at ethical commercial success and stakeholder engagement, recent shifts, notably accelerated by the COVID-19 pandemic, have led to a waning interest in CSR in favor of Environmental, Social, and Governance (ESG) practices. This transition signals a broader reevaluation of corporate roles and priorities, underscored by the pandemic's disruptions. ESG, with its focus on sustainability and responsible business practices, emerges as a successor to CSR, as evidenced by increasing internet searches and corporate resource allocation towards ESG initiatives. Industry leaders, such as former Unilever CEO Paul Polman, advocate for ESG, asserting its centrality in modern responsible business practices. This article explores the evolving landscape of CSR and ESG, highlighting the conceptual relation between ESG and CSR in the transition towards purpose-oriented business models.