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CS Professional · CSR and Social Governance · Local Self Governance

Shreeram Textiles Ltd, a company with a manufacturing unit in a gram panchayat area of Maharashtra, wishes to spend its CSR funds on improving drinking water supply in nearby villages. Which feature of local self governance makes the gram panchayat a useful partner for identifying the actual needs of the community?

The gram panchayat is the tier of government closest to villagers, so it understands local needs such as drinking water. This makes it a useful partner for needs assessment. It does not approve CSR policies, is not the only eligible recipient, and does not frame Schedule VII.

  1. AIt is the tier closest to the people and so is aware of local needsCorrect
  2. BIt is a regulator that approves all CSR policies of companies
  3. CIt is the only body allowed to receive CSR funds from companies
  4. DIt frames the Schedule VII list of CSR activities

Explanation

Panchayats are the grassroots tier of self-government and know village-level needs such as water, sanitation and roads. They do not approve company CSR policies, are not the sole recipients of CSR funds, and Schedule VII is part of the Companies Act, 2013 framework, not framed by panchayats.

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