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

Shree Ganesh Traders, a registered partnership firm in Pune, runs a women's skill-training centre as a social initiative. Partners Meera and Ravi want the firm's social spending to be credible to donors and the community. Which step best reflects good social governance for this non-corporate entity?

The best step is maintaining written books of account and sharing periodic reports on fund use. Good social governance in a partnership depends on documentation and voluntary disclosure, which build donor and community trust, whereas oral records, disclosure only on demand or unrecorded decisions undermine accountability.

  1. AKeeping all records oral so that partners remain flexible
  2. BMaintaining written books of account and sharing periodic reports on the initiative's use of fundsCorrect
  3. CDisclosing information only when a government officer asks
  4. DLeaving the use of funds to be decided by the senior-most partner without recording it

Explanation

Accountability and transparency rest on documented records and periodic disclosure of how funds were used. Oral arrangements, disclosure only on demand, or unrecorded unilateral decisions weaken credibility and stakeholder trust, so they do not reflect good governance.

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