CS Professional · CSR and Social Governance · Social Governance

Gram Seva Trust, a registered public charitable trust in Odisha, runs a village health programme. Its trustees publish yearly accounts, consult villagers before changing services and allow beneficiaries to question decisions. Which description best captures this practice in the context of social governance?

The trust's practice is accountable, transparent and participatory management of an entity with social purposes. Publishing accounts, consulting villagers and allowing questions are core features of social governance, which is not about profit maximisation, listed-company duties or tax planning.

AAccountable, transparent and participatory management of an entity serving social purposesCorrect
BA method of maximising returns for trustees
CA statutory duty limited to listed companies
DA tax planning device for charitable income

Explanation

Social governance concerns how entities with social objectives are directed, with accountability, transparency and stakeholder participation. The trust's publishing of accounts, consultation and answerability reflect these features. Profit maximisation or listed-company duties are not what the facts show.

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