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

A registered partnership firm, Lotus Handicrafts, pledges that 10% of its annual profit will go to a village school it supports. A donor asks how the firm can show this commitment is real rather than a claim. Which mechanism most directly provides verifiable accountability?

A clause in the partnership deed or a written resolution, with the amount shown in audited accounts, gives verifiable accountability. It records the commitment formally and allows donors to check actual spending, unlike verbal assurances, advertising or general claims of generosity.

  1. AA verbal assurance by the managing partner
  2. BA clause in the partnership deed or a written resolution, with the amount shown in audited accountsCorrect
  3. CA newspaper advertisement about the pledge
  4. DA statement that partners are personally generous

Explanation

A written commitment in the deed or resolution, backed by entries in audited accounts, can be checked by anyone. Verbal assurances, advertisements and general claims of generosity cannot be verified against actual transactions.

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