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
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Important Questions from GK Panorama
In October 2023, two individuals in India, Ramesh and Sameer, who identify as a samesex couple, sought to legally solemnize their marriage. Based on the Supreme Court's ruling, what is the current legal standing of their ability to marry?
After the Supreme Court's judgment in State of Tamil Nadu v. Governor of Tamil Nadu (2025), a State Governor holds a bill for eight months without taking any action—neither assenting nor returning it. The State Government believes that this delay is unconstitutional. Based on the precedent set by the judgment, what recourse is available to the State Government?
- 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?
