Skip to content

CS Professional · CSR and Social Governance · Local Self Governance

A municipal corporation in Gujarat has a ward-level plan for solid waste segregation but lacks funds for door-to-door collection vehicles. Bharat Engineering Ltd, a company covered by CSR provisions, offers to fund the vehicles through its board-approved CSR plan. What is the best way for the company to structure this involvement?

The company should set up a documented project with clear deliverables, utilisation tracking and monitoring, aligned to a Schedule VII activity such as sanitation. Handing cash to an individual lacks accountability, and nothing prohibits working with local bodies on approved CSR projects.

  1. AHand over cash to a councillor personally for use at discretion
  2. BTreat it as CSR only if the company's employees run the municipal service permanently
  3. CAgree a documented project with defined deliverables and monitoring, aligned to a Schedule VII activity such as sanitationCorrect
  4. DAvoid it, because local bodies cannot be associated with CSR projects

Explanation

CSR spending should be a defined project in an approved annual action plan, falling under a Schedule VII item such as sanitation, with clear deliverables, utilisation tracking and monitoring. Cash to an individual lacks accountability, and nothing bars cooperation with local bodies.

Did you get it right without looking?

One question tells you little. A timed set on Local Self Governance shows your real accuracy, how long you take and where you lose marks.

Practise Local Self GovernanceFree diagnostic mock

More Local Self Governance questions