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Asha Foundation, a society, wants to move from informal practices to sound social governance. Its secretary proposes: (1) written bylaws defining roles, (2) periodic meetings with minutes, (3) annual disclosure of audited accounts to members and donors, and (4) allowing the founder's family to vote on their own remuneration. Which proposal is inconsistent with good social governance?

Proposal 4 is inconsistent, because family members voting on their own remuneration creates an unmanaged conflict of interest. Written bylaws, minuted meetings and audited disclosures all enhance accountability and transparency, so they are consistent with good social governance.

  1. AProposal 4, because decisions on own remuneration create an unmanaged conflict of interestCorrect
  2. BProposal 1, because bylaws reduce accountability
  3. CProposal 2, because minutes weaken transparency
  4. DProposal 3, because disclosure harms donor trust

Explanation

Bylaws, minuted meetings and audited disclosure strengthen accountability and transparency. Letting interested persons decide their own pay is a conflict of interest, which good governance requires interested persons to stay out of. The other options wrongly condemn sound practices.

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