CSR or ESG?

CSR and ESG are buzzwords that many of you will have heard in business. But what do they mean, and is there a difference?

CSR stands for Corporate Social Responsibility. ESG stands for Environmental, Social. and Governance. They’re quite similar in that they both reflect an organisation’s desire to have a more positive impact on the world around them, but there are some key differences.

Let’s dive in.

Voluntary v necessary

The simplest way to differentiate between CSR and ESG is by remembering that, generally speaking, one is voluntary, while the other is a requirement.

CSR

CSR is the voluntary one of the pair. A company or an organisation doesn’t NEED to have a CSR programme or strategy. CSR is typically active in businesses that have a genuine desire to create a positive impact on a community, a group of people, a good cause or the environment. It’s not required by law, so a business that has a CSR strategy is one that actually cares about its impact.  

CSR strategies are Neighbourgood’s bread and butter. While they don’t all look the same, CSR strategies generally feature these pillars.

Focus

CSR programmes typically have a focus. This varies per organisation, but the focus of most CSR campaigns will have an element of philanthropy. This usually takes shape in the form of volunteering with community organisations or donating money or products to these organisations.

Simply put, CSR programmes usually have the focus of having a positive impact on people.

Approach

A good CSR strategy has a clear approach – typically with the aim of benefitting a group of people or a community. Approaches for CSR programmes usually feature people-focused programmes that tie back to an organisation’s goals.

For example, a good idea for a food company is to work on a CSR campaign that tackles food security. A logistics company could assist with the transportation of charitable goods. A sportswear manufacturer would create a campaign to help get people active, and so on and so forth.

Let’s talk ESG

Where CSR is often employee-driven and managed, ESG is a more business-focused, structured and defined programme of activities. ESG is used to evaluate a company's sustainability and community impact through a specific set of measurable criteria.

This criteria is:

• Environmental: How an organisation manages environmental impact, including carbon footprint, waste management and energy use.

• Social: How an organisation conducts itself with employees, suppliers, stakeholders, customers and the community.

• Governance: The organisation’s leadership team, how much its c-suite gets paid, financial audits, shareholder rights, tax payments and more.

Regulation

In today’s business world, ESG is now seen as a requirement by many organisations. It can be part of an investment or funding strategy, where organisations are expected to meet certain criteria in order to get finance or win new contracts. It’s very data-driven and designed to make organisations more accountable and transparent.

CSR, on the other hand, is voluntary and will be dictated by an organisation’s vision, values and business priorities. CSR is more about the quality of how an organisation thinks and acts, whereas ESG is almost entirely quantitative.

Reporting

Typically, ESG is more measurable than CSR. Lots of businesses who have great CSR programmes often don’t measure their success; instead focusing on how they feel and look.

That’s where we come in.

Neighbourgood believes that CSR is just as measurable as ESG. We’re passionate about putting programmes in place that have a demonstrable impact on organisations and communities, but in order to understand this impact, it has to be measured.

We track everything – every pound donated, every hour volunteered, every beneficiary impacted – so that the organisations we work with can understand the power of the good they’re doing.

The beauty of tracking and reporting is that your CSR can then feed into your ESG strategy, ensuring the good work being done in the community is having an impact locally, and at boardroom level.

Organisations that understand the impact their CSR programmes are having will enjoy better ESG and compliance results. And if ESG and CSR are working hand in hand, then everyone benefits.

To summarise…

CSR is a voluntary activity that focused on the ethics of an organisation to make a positive contribution to the community through things like donations and volunteering.

ESG is a requirement that uses data, social, environmental and governance rules and regulations to prove a business is well-run to attract investment and new contracts.

CSR is a desire to do good, while ESG assesses an organisation’s risks and opportunities.

A good CSR strategy will have a positive impact on ESG.

Looking to boost your ESG scores and rating? Start with CSR!

Why Volunteering Makes Sense For Businesses

In the fast-paced, ever-evolving business world, the bottom line is no longer the only barometer for success.

Corporate Social Responsibility (CSR) is now a core pillar of modern business strategy, and employee volunteering is a big part of that. By promoting employee volunteering, businesses are not just enriching communities, but also reaping a host of benefits.

In our latest blog, Alex explores how cultivating a culture of giving back can positively affect your business and team.

Volunteering: The Secret Sauce for Employee Engagement

Volunteering is a surefire way to boost employee engagement and morale. By giving your team opportunities to contribute to causes they are passionate about, you are showing them that you value more than just money. Employees take pride in working for a company that promotes social good, which enhances their sense of purpose and satisfaction at work. This leads to happier employees, lower turnover rates, and a more productive workforce.

Teamwork Makes the Dream Work

Volunteering initiatives bring together employees from various departments, fostering collaboration and teamwork. When employees step out of their everyday roles to contribute to a shared cause, it helps them build relationships, strengthen bonds, and improve communication. This positive interaction filters back into the workplace, enhancing team dynamics.

Leadership and Skills Development

Volunteering provides employees with a chance to grow into leadership roles, take on new challenges, and acquire new skills beyond their job roles. Whether it's organising events, leading teams, or brainstorming solutions, volunteering helps employees broaden their skillset. This helps hone key skills like leadership, project management, communication, and adaptability, all of which can propel their professional growth.

A Company Culture That Gives Back

A company culture that promotes giving back creates a sense of unity and shared purpose among employees. When employees see that their company is committed to making a positive impact, they feel a stronger connection to its mission and values. This nurtures a workplace culture of empathy, responsibility, and pride, which in turn makes for a more positive and motivating work environment.

Boost Your Employer Brand and Reputation

Companies that actively support local communities and promote employee volunteering often enjoy a better brand reputation. Today's customers and potential hires actively look for businesses that prioritise social responsibility. By showcasing your company's CSR initiatives, including employee volunteering, you can position your business as a leader in corporate responsibility. This not only attracts top talent but also boosts customer loyalty.

Volunteering: Making a Real Difference

While the internal benefits of employee volunteering are significant, the external impact is equally important. Employees who volunteer offer their valuable time and skills to local communities, charities, and non-profits. This not only provides immediate help to those in need but also fosters long-lasting partnerships and positive change, aligning your company with meaningful causes.

Volunteering: The Key to Personal Fulfilment

Studies show that acts of kindness and giving back can boost individual well-being. Volunteering helps employees feel more connected to their community, increases their sense of accomplishment, and can even alleviate stress. When employees feel good about their contributions, it leads to a more energised and positive attitude, both at work and in their personal lives.

Making Volunteering a Business Asset

Employee volunteering is more than just a kind gesture; it's a strategic asset that benefits businesses, employees, and the community. By weaving volunteering opportunities into your company's CSR initiatives, you not only make a positive societal impact but also foster a more engaged, skilled, and cohesive team. It's a win-win situation.

Encouraging your employees to give back isn't just the right thing to do, it's also a smart business move. After all, a thriving team leads to a thriving business.

If you’d like to learn more about developing team volunteering activities, give us a shout at hello@neighbourgood.net.

Welcome to the Neighbourgood, Prosper!

Welcome to the Neighbourgood, Prosper!

Leading charity consortium appoints Neighbourgood for employability programme push

One of Northern Ireland’s leading charity consortiums has appointed CSR consultancy Neighbourgood to help boost its employability programmes.

Funded by the UK Government’s prosperity fund, Prosper an NI charity consortium supporting People, Diversity, Opportunities, Employment and Success provides tailored support for people who want to gain new skills, qualifications and employment.

The consortium, comprised of five well-established organisations - AEL, Appleby Trust, CAN, Stepping Stones NI and Triangle Housing Association (lead partner) - has been making significant strides in delivering a range of services for economically inactive people, including those with disabilities, neurodiversity, mental health issues, and individuals returning to employment after extended leave.

The partnership with Neighbourgood will run throughout 2024 and 2025, supporting Prosper as it continues its vital work under the UK Shared Prosperity Fund (UKSPF) tenure and beyond. This collaboration aims to help harness public support on addressing economic inactivity issues, engage businesses keen to explore non-traditional recruitment, and elevate the Prosper brand.

The charity’s campaigns will be led by Neighbourgood director Alex Symington and the agency’s team will report to all five members of the consortium, which is chaired by Margaret Haddock, MBE.

Alex said: “We’re so excited to be working with the Prosper team. The consortium does important work in communities across Northern Ireland to remove barriers to employment and we’re over the moon to be supporting them to meet their goals. The Neighbourgood team has a wealth of experience of creating campaigns that help people get access to employment and we’re looking forward to working with the Prosper team over the coming weeks and months on many important programmes.”

Margaret Haddock, MBE, Chair of Prosper, added: “The Neighbourgood team has both the passion and experience to help take Prosper to the next level and we are all excited to be working with them. Neighbourgood’s work in the CSR space, combined with the team’s experience working on employability programmes, made the company the natural choice for this partnership.”

Neighbourgood is The Clearbox Group’s dedicated community engagement agency that supports organisations with the strategic development of CSR campaigns.

Neighbourgood’s offerings include helping businesses connect with their local community and employees, vetting the financial and reputational impact of potential charity partnerships and measuring the impact of new and existing CSR programmes. Neighbourgood is working with large and small organisations across the UK and Ireland.

Since 2015, Clearbox has worked with the community engagement teams of national brands, helping to manage relationships between the brands and local charities, schools and voluntary organisations. The team has provided these brands with support for partnership sourcing and vetting, impact tracking, project management and communications.