CS Professional · CSR and Social Governance · Social Governance
A district administration, a steel company and a federation of self-help groups jointly run a skill centre. After two years, the company claims full credit and reports only its own outputs, ignoring the contributions of others, and the federation is never consulted on reviews. Which social governance principle is most directly compromised?
Inclusive participation and shared accountability is compromised. The company ignores partners' contributions and excludes the self-help group federation from reviews, so decision-making and credit are not shared. Effective social governance needs all sectors to participate and answer to one another and to beneficiaries.
- AInclusive participation and shared accountability among partnersCorrect
- BLimited liability of the company
- CDoctrine of ultra vires
- DSeparation of the board from management
Explanation
Cross-sector collaboration requires that all partners take part in decisions, reviews and credit-sharing, and are answerable to one another and to beneficiaries. Excluding the federation and misreporting contributions undermines participation and shared accountability. The other options concern company law concepts unrelated to the facts.
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