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CS Professional · CSR and Social Governance · Impact of CSR

Sunrise Textiles Ltd, Tiruppur, funds a drinking water project in villages near its plant, and local residents report fewer water-borne illnesses. In CSR terms, which group is the primary beneficiary whose wellbeing is being improved?

The local community around the plant is the primary beneficiary. A drinking water project improves health and living conditions for nearby residents, which is the core social impact CSR aims for, rather than serving auditors, trustees or promoters.

  1. AThe local community around the plantCorrect
  2. BThe company's statutory auditors
  3. CThe company's debenture trustees
  4. DThe company's promoters as shareholders

Explanation

CSR spending on drinking water is aimed at improving conditions for the community in which the company operates. Auditors, trustees and promoters may be stakeholders, but the project benefits the local community directly through better health.

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