Section 11 of the SEBI Act lays down the functions of SEBI and expressly states that it "shall be the duty of the Board to protect the interests of investors in securities and to promote the development of, and to regulate the securities market, by such measures as it thinks fit". Further, Section 30 of the SEBI Act empowers SEBI to make regulations consistent with the Act. Significantly, while framing these regulations, SEBI consults its advisory committees consisting of domain experts, including market experts, leading market players, legal experts, technology experts, retired Judges of this Court or the High Courts, academicians, representatives of industry associations and investor associations. During the consultative process, SEBI also invites and duly considers comments from the public on their proposed regulations. SEBI follows similar consultative processes while reviewing and amending its regulations.
(Extracted, with edits and revision, from the judgement in Vishal Tiwari v. Union Of India, [2024] 1 S.C.R. 171)
Understanding Corporate Social Responsibility Definition
The question asks to identify the term that describes a process where an organization actively considers and improves its connections with stakeholders for the overall benefit of society. This commitment is shown through its business operations and strategies.
Corporate Social Responsibility Analysis of Options
Let's examine each option to see which best fits the definition:
- Annual general meeting: This is a formal meeting where a company's management discusses its performance and future plans with its shareholders. It's a reporting mechanism, not a continuous process of engaging with all stakeholders for the common good.
- Corporate social responsibility: This term perfectly matches the description. It refers to a company's commitment to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families, as well as of the local community and society at large. It involves building positive relationships with stakeholders and acting for the common good.
- Issuing Shelf prospectus: This is a financial term related to the process of offering securities to the public. It involves regulatory filings for future security issuances and doesn't directly relate to an organization's broader commitment to stakeholder relationships for societal benefit.
- Incorporation of a company: This is the legal procedure of forming a company. It marks the beginning of a company's existence but doesn't describe the ongoing ethical and strategic engagement with stakeholders for societal welfare.
Corporate Social Responsibility is the Correct Choice
Based on the analysis, the process described in the question – where an organization thinks about and evolves its relationships with stakeholders for the common good, demonstrating commitment through its business processes and strategies – is precisely what Corporate social responsibility (CSR) entails. It encompasses a company's ethical obligations and contributions towards society and the environment, going beyond mere legal compliance.
Similar Questions
- In which of the following cases, it was held by the Supreme Court that although a company is a separate legal entity distinct from that of its members, the corporate veil may be lifted and the corporate personality may be ignored?
- A director other than a managing director or a whole-time director or a nominee director who does not have any material or pecuniary relationship with the company/ directors other than the remuneration is called __________
- Which among the following is not a duty of a Director of the company?
- The extent to which a Corporation as a legal person can be held criminally liable for its acts and omissions and for those of the natural persons employed by it is called?
- Where is the origin of chess believed to be?
- Who was the first Indian to earn the title of chess Grandmaster?
- Who was the first official World Chess Champion?
- Which of the following computers successfully defeated Garry Kasparov, the reigning world chess champion, in a tournament match?
- Which of the following cities is the venue for hosting the 11th edition of Chess World Cup 2025?
- Where is Pahalgam situated in India?
Important Questions from GK Panorama
- In which of the following cases, it was held by the Supreme Court that although a company is a separate legal entity distinct from that of its members, the corporate veil may be lifted and the corporate personality may be ignored?
- A director other than a managing director or a whole-time director or a nominee director who does not have any material or pecuniary relationship with the company/ directors other than the remuneration is called __________
- Which among the following is not a duty of a Director of the company?
- The extent to which a Corporation as a legal person can be held criminally liable for its acts and omissions and for those of the natural persons employed by it is called?
- Where is the origin of chess believed to be?
