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

Asha Foundation, a private philanthropic body, funds a village school and expects no financial return for itself; any surplus is reinvested into education. Ramesh, a founder of a separate venture, runs a water-purification unit selling at affordable prices to rural households, earns profit and reinvests part of it to widen access. Which statement correctly distinguishes the two?

Asha Foundation is philanthropic because it gives resources for public good without seeking returns, while Ramesh's venture is social entrepreneurship because it earns revenue through a market model and reinvests it to achieve social impact. The difference lies in the funding model, not in the social aim.

  1. ABoth are social entrepreneurs because both pursue social aims
  2. BAsha Foundation is a philanthropic entity relying on giving, while Ramesh's venture is social entrepreneurship using a market-based model to pursue social impactCorrect
  3. CRamesh's venture is philanthropy because it serves the poor, and Asha Foundation is social entrepreneurship
  4. DNeither can be said to contribute to social governance since both are non-corporate

Explanation

Philanthropy rests on voluntary giving of resources for public good without expecting returns, whereas social entrepreneurship applies enterprise methods, including revenue earning, to solve a social problem. Option A blurs this difference. Option C reverses the roles.

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