What is the difference between corporate social responsibility and corporate governance tripartite programs?

What is the difference between corporate social responsibility and corporate governance tripartite programs?
What is the difference between corporate social responsibility and corporate governance tripartite programs?

Many companies have realized that following an effective strategy of triple sustainability governance ESG It supports its better financial performance and ensures long-term business success, and as a result, efforts to identify and manage environmental, social and institutional issues are more than ever before and are on the priority list of corporate executives, according to the Egyptian Insurance Federation in its weekly bulletin today.

The bulletin indicated that many companies already have social responsibility programs (CSR), which is quite different from tripartite sustainability governance programmes, CSR initiatives are voluntary and focus on improving the company’s relationships with external constituencies, for example, CSR managers may oversee philanthropy or partnerships with the community.

While the tripartite sustainability governance programs are implemented ESG Generally as a binding corporate strategy where officials are used to measure the availability of standards ESG The data available to calculate the degree of compliance with the company’s three-year sustainability governance standards, and also provides a rating ESG Investors and executives have tools for evaluating the performance of the tripartite sustainability governance and risk management facing the company, where a low risk rating indicates effective risk management, and a high risk rating indicates significant gaps in environmental, social and institutional governance risk management, and this is reflected in the company’s attractiveness to investors.

Environmental, Social and Corporate Governance (ESG) captured the world’s attention in the wake of the 2005 United Nations report “Who Cares.. Wins: Connecting Financial Markets to a Changing World”.

The report emphasized, according to the weekly bulletin of the Egyptian Insurance Federation today, that the inclusion of environmental, social and institutional governance considerations in capital markets would lead to better societal results, and at a later time, the United Nations developed principles of responsible investment (PRI)To be a benchmark for a sustainable global financial system.

The “Global Risks Report” 2022 issued by the World Economic Forum reviewed the understanding of the highest-ranked risks in terms of impact and probability and were the most prominent risks in the long term, as most economists expected that the movement of the global economic recovery will be uneven and unstable during the next three years.

The trend around ESG risk management has been increasing for years, and interest in it has increased since the outbreak of the pandemic Covid-19ESG issues have become a Source of concern to both investors, customers, stakeholders, employees, communities, and supervisory and oversight bodies more than ever before. The strong performance of ESG facilitates access to capital, expertise and job opportunities. Organizations now have a focus on integrating ESG management into their ERM framework Enterprise risk management.

The article is in Arabic

Tags: difference corporate social responsibility corporate governance tripartite programs

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