CS Professional · CSR and Social Governance · Social Governance

Vikas Foundation, a trust, spends donor money on projects but never discloses outcomes, and trustees choose vendors who are their relatives. A donor complains. Which pair of social governance principles is most clearly breached?

Transparency and avoidance of conflict of interest are breached. The foundation hides outcomes from donors and trustees award contracts to relatives, which undermines accountability and fair dealing. Profit, dividend, capital or auditor rotation issues do not arise from these facts.

ATransparency and avoidance of conflict of interestCorrect
BProfit maximisation and market share growth
CShare capital maintenance and dividend policy
DRotation of auditors and board diversity

Explanation

Non-disclosure of outcomes breaches transparency and accountability to donors, while appointing relatives as vendors is a conflict of interest. The other pairs relate to company finance or board matters not raised by the facts.

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