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

A cooperative of women artisans in Jaipur reinvests its surplus into skill training for members and runs on democratic member control. A student calls it an example of non-corporate social governance. What is the strongest justification?

The cooperative is a member-driven collective outside the company form that reinvests surplus in training and community welfare under democratic control. This is why it exemplifies non-corporate social governance. It is not a regulator, a promoter-dividend vehicle, or compulsorily listed on a Social Stock Exchange.

  1. AIt is a collective, member-driven body outside the company form that advances social and economic welfare of its communityCorrect
  2. BIt is controlled by a few promoters who take the surplus as dividends
  3. CIt is a regulator of artisans' markets
  4. DIt must be listed on a Social Stock Exchange

Explanation

A cooperative is a member-based collective that is not a company and pursues community welfare, reinvesting surplus rather than distributing it as profit. Listing on a Social Stock Exchange is not a requirement and it is not a regulator.

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