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CS Professional · CSR and Social Governance · Social Governance

Gram Sabha members in a village in Madhya Pradesh meet regularly to decide how a local water scheme should be run, and the panchayat reports its spending to them. Which feature of social governance does this arrangement best illustrate?

The arrangement illustrates citizen participation and accountability of local institutions. Social governance concerns how institutions serving society are run through inclusive decision-making, transparency and answerability to stakeholders, which the Gram Sabha and panchayat reporting reflect, unlike promoter control or purely profit-driven or top-down models.

  1. AParticipation of citizens and accountability of local institutions to themCorrect
  2. BExclusive control of decisions by a single promoter group
  3. CMaximisation of shareholder returns through dividends
  4. DDelegation of all decisions to a government regulator with no local input

Explanation

Social governance stresses participation, transparency and accountability in running institutions that serve society. Here villagers take part in decisions and the panchayat answers to them. The other options describe promoter control, profit focus or pure top-down regulation, which are not the point of the example.

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