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CS Professional · CSR and Social Governance · Social Governance

Aarogya Setu Healthcare Pvt Ltd, a for-profit company, provides low-cost dialysis to low-income patients. Its revenue comes from patients who pay, and 80 percent of its beneficiaries are from underserved groups. It wants to be recognised as a social enterprise for SSE purposes. Which statement best applies the SSE position to this company?

The company can qualify as a for-profit social enterprise if it establishes primary social intent, for example by showing that most of its revenue, spending or customers relate to eligible activities and underserved groups. Legal form alone neither bars nor guarantees eligibility.

  1. AIt can qualify as a for-profit social enterprise only if it establishes primary social intent, for example by showing that a majority of its revenue, expenditure or customer base relates to eligible activities and target groupsCorrect
  2. BIt cannot qualify because only trusts and societies can be social enterprises
  3. CIt qualifies automatically since all healthcare firms are social enterprises
  4. DIt qualifies only if it converts to a Section 8 company and stops charging patients

Explanation

For-profit social enterprises are eligible if they establish primary social intent through thresholds such as a majority of activity, revenue or customers relating to eligible social objectives and underserved groups. Corporate form alone neither excludes nor automatically qualifies a firm, and charging fees is not barred.

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