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CS Professional · CSR and Social Governance · Contribution of Non-Corporate Entities in Social Governance

A Central Public Sector Enterprise, with a mandate to meet national social objectives, builds a hospital in a remote tribal block that earns no profit. A shareholder objects that the enterprise should only maximise returns. Which response is most consistent with the role of public sector enterprises in social governance?

Public sector enterprises are expected to balance commercial performance with social objectives like regional development and access to essential services. A loss-making hospital in a tribal block fits that mandate, so the claim that they must pursue profit alone, leaving social goals to NGOs, is incorrect.

  1. APublic sector enterprises are expected to balance commercial performance with social objectives such as regional development and access to servicesCorrect
  2. BPublic sector enterprises must pursue profit only, and social objectives belong exclusively to NGOs
  3. CPublic sector enterprises may never undertake non-commercial projects
  4. DPublic sector enterprises are exempt from any accountability to the government

Explanation

Public sector enterprises are instruments of State policy and are expected to serve social goals such as balanced regional development and service access along with commercial viability. The shareholder's profit-only view ignores this. Options C and D are incorrect since they deny social purpose and accountability.

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