Z, a fresh Company Secretary was giving interviews for jobs in one company. He was asked to read a few lines on NGOs and Non-corporate entities. After that, he was given a few questions to solve: Humans are social beings

CS Professional · CSR and Social Governance · PYQS · June 2025
Z, a fresh Company Secretary was giving interviews for jobs in one company. He was asked to read a few lines on NGOs and Non-corporate entities. After that, he was given a few questions to solve: Humans are social beings; they can't be isolated from society. Every human being is to perform his/her social responsibility which further empowers the employees to leverage the corporate resources at their disposal to do good. Even the corporates need to be socially responsible which bolsters a company's image and build its brand. Social responsibility programs can boost employee's morale in the workplace and lead to greater productivity, which has an impact on how profitable the company can be. Businesses that implement social responsibility initiatives can increase customer retention and loyalty. Further, the needs of every class of society can't be met by the government. Every segment of society can be reached by an NGO (Non-Governmental Organization). International development, humanitarian relief and charity are all heavily impacted by non-governmental organizations or NGOs. Despite having budgets ranging from millions to billions of dollars every year, NGOs are by definition non-profit. Because of this, non-governmental organizations (NGOs) depend on various sources of funding from government support to private donations and membership fees. An NGO's mission is to focus on all subjects related to advocacy, social issues, environmental issues and human rights. Non-governmental organizations work to advance and improve the social and political situation of society at large. They aim to improve and advance the social and political situation of society at large. The activities of non-governmental organizations (NGOs) contribute heavily to social change for the betterment of society. It has been seen that these organizations are present in many parts of the world and supporting humanity and other noble causes. The person involved in the NGO should be highly educated, committed, motivated and passionate about the organization's objectives and activities. The importance of NGOs is very high in today's world. Non-corporate entities, which are primarily formed to provide benefits or services to their members, are subject to less stringent regulations than companies. Non-corporate entities can take the shape of civic organizations, societies, trusts, clubs, welfare associations, and more. The members of the Council of Non-Corporate Entities or the Governing Body are typically selected from among the members of the entities or, in certain situations, are government-appointed nominees. By making the proper decisions at its meeting, the Governing Body/Council oversees the operations of non-corporate entities. Effective decision-making is necessary for any entity to accomplish its goals, and non-corporate entities are no exception. Legal principles and procedures pertaining to non-corporate entities are established in their bylaws or in the laws that apply to them explicitly. The Model Code for Meetings of Non-corporate Entities issued by ICSI offers fundamental governance procedures for calling and running meetings of the Governing Council/Management Committee of such organizations in addition to the relevant legal requirements. It also attempts to standardize the widely used disparate practices. The goal of this model code is not to replace or amend any current laws that apply to non-corporate entities. It aims to support improved governance in calling and running these entities' meetings by adding to existing laws. Answer the following questions: Name the set of guidelines and practices that organizations can use to manage and address social issues. Also provide its components. How do small non-corporate entities contribute to employment generation in India, which acts as a key social issue ?

Answer & Explanation:

There are many internationally recognised guidelines on CSR and ESG which companies may adopt to manage and address social issues. It has been largely opined that to properly execute corporate social responsibility (CSR), organisations need to adhere to several international norms and regulations. Human rights, labour practices, environmental sustainability, fair business practices, consumer issues, and community involvement are all highlighted in the extensive guidelines on social responsibility provided by ISO 26000. Ten fundamental principles that address labour, human rights, the environment, and anti-corruption are aligned with business strategy by the United Nations Global Compact. Aiming to prevent harm and promote sustainable development, the OECD Guidelines for Multinational Enterprises offer guidelines for ethical corporate behaviour. Organisations can report on their social, environmental, and economic consequences using a commonly used framework provided by the Global Reporting Initiative (GRI) A social governance framework developed by an organisation considering the above can act as guideline and indicate the practices that the organization can use to manage and address social issues. A social governance framework typically includes the following components: Social risk assessment: Companies can identify and prioritize social issues that are relevant to their operations and stakeholders, and assess the potential impact of these issues on their business. Stakeholder engagement: Companies can engage with stakeholders to understand their concerns and perspectives on social issues, and incorporate this feedback into their decision-making processes. Policy development: Companies can develop policies and standards that outline their commitments to addressing social issues, and establish clear expectations for their employees and suppliers. Implementation and monitoring: Companies can implement their social governance policies and standards, and monitor their performance to ensure that they are meeting their commitments and achieving their goals. Reporting and transparency: Companies can report on their social governance performance, including their progress towards achieving their goals and any challenges or opportunities that they have identified. Non-Corporate Entities are a significant source of employment in the Indian economy, ranking second to agriculture. These enterprises have the potential to generate a large number of job opportunities with minimal capital investment compared to larger companies. This makes them one of India's key contributors to employment generation. The labour-intensive nature of many small businesses allows them to provide employment opportunities to many people, especially in local communities. They create jobs across various sectors, including manufacturing, services, and trade, contributing to the country's overall economic growth. The role of small Non-Corporate Entities in employment generation is vital, as it helps to address the issue of unemployment, particularly in a country with a large workforce like India. Small business owners' entrepreneurial spirit and innovation contribute to creating new jobs and supporting the livelihoods of individuals and families. As the second largest employment generator in the Indian economy, small businesses are crucial in driving economic growth, promoting entrepreneurship, and creating opportunities for people to earn a livelihood. Small businesses' continued support and promotion can contribute to more inclusive and sustainable economic development in India.

Topics: Social Governance

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