The shift lever affects the transmission only. The dial affects the entire car. From the user manual:
Shift lever SPORT (S)
The SPORT shift mode alters the transmission’s automatic
shift schedule for sportier driving. Upshift speeds
are increased to make full use of available engine power.
To switch between DRIVE and SPORT shift mode, tap the
shift lever rearward. SPORT shift mode is only accessiblefrom DRIVE.
– Dry weather, on-road calibration. Performance
based tuning that provides a rear wheel drive feel but
with improved handling and acceleration over a two wheel
drive vehicle. The customer has the option of
going to partial ESC. The active suspension system
will be in Firm mode and the transmission will be in
SPORT shift mode then and a green flag will light up
in the instrument cluster. The transmission will provide
a more aggressive shifting pattern (Refer to
“Paddle Shift Mode” in “Starting And Operating” for
further information). This feature will reset to AUTO
on an ignition cycle.