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CS Professional · CSR and Social Governance · Financial and Non-financial Reporting of Different Non-Corporate Entities

Gram Vikas Trust received a foreign contribution and also local donations for a water project. It plans its annual report. Which approach to non-financial disclosure is most consistent with good social governance practice?

The trust should report beneficiary results project by project and link them to the funds received for each project. This gives traceability and accountability to every donor class. Merging figures, reporting only foreign-funded work or skipping disclosure because it is not a company fails good governance.

  1. AReport beneficiary results separately for each funded project and tie them to the funds received for that projectCorrect
  2. BMerge all projects into one total beneficiary figure to avoid showing weak projects
  3. CSkip non-financial disclosure because the trust is not a company
  4. DReport results only for the foreign-funded project, since only that attracts scrutiny

Explanation

Project-wise results linked to the funds for that project give donors and regulators traceability. Merging hides weak performance. Non-company status does not remove the governance expectation of accountability, and selective reporting for one funding source is incomplete.

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