CS Professional · CSR and Social Governance · Social Governance
Vidarbha Textiles Ltd. wants to improve rural sanitation near its plant. The state government has a sanitation mission with funds and statutory authority but weak last-mile delivery, while a local NGO has community trust but little money. Which arrangement best reflects a multi-stakeholder approach to social governance?
A tripartite partnership is best. The government supplies policy, sanction and authority, the company supplies funds and management capability, and the NGO supplies community access and trust. Social governance relies on each sector's strength, so excluding any partner weakens delivery and accountability.
- AThe company alone builds toilets and bypasses the government and the NGO
- BThe government hands the entire mission to the NGO and withdraws
- CA tripartite partnership in which the government provides policy and sanction, the company provides funds and management skills, and the NGO handles community mobilisationCorrect
- DThe NGO files a complaint against the company for not funding the mission
Explanation
Social governance works best when each sector contributes its strength: the state gives legitimacy and policy, corporates give resources and efficiency, civil society gives reach and trust. Options that exclude a partner or withdraw the state lose this complementarity.
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