Environment and Social Governance

While not directly public service, careers in Environmental & Social Governance (ESG) often appeal to mission-driven students. Anything a corporation does to enhance the relationship between a corporation and the community can be considered an ESG initiative. This can be a variety of “responsible actions” that benefit both the company and community—employee engagement, financial donations, volunteering, and environmentally conscious practices. ESG programs and departments have begun to play an increasingly larger role in for-profit businesses.  

This work was originally called Corporate Social Responsibility (CSR), where companies were doing good in their communities because it was the “right thing to do”. Evidence of the positive impact a company can have was mostly anecdotal at that time. In the early 2000s, companies received increasing pressure to provide quantifiable evidence of this positive impact – the hard numbers and material effects of a company’s activities on the ecosystem, people, and on the business itself. This shift in focus also brought about a change in terminology, with more companies using the term environmental and social governance (ESG).

Now, the terms ESG, CSR, and sustainability are often used interchangeably by companies. ESG is the most mainstream, with some companies producing external reports viewable by the public for accountability, called “ESG reporting.” 

You may also hear terms like social purpose business or socially responsible business. These are for-profit businesses that aim to have a direct impact on the social need while also generating a profit. Social enterprises or social entrepreneurship are similar—new business ventures that aim for a “double bottom line” promote social change and still turn a profit.