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CS Professional · CSR and Social Governance · Social Governance

Which statement best distinguishes social governance from corporate governance?

Social governance concerns managing entities and processes aimed at social welfare outcomes, often including non-corporate bodies, with accountability to communities and beneficiaries. It is not limited to listed companies, does not exclude impact reporting and is not about shareholder wealth maximisation alone.

  1. ASocial governance focuses on managing entities and processes aimed at social welfare outcomes, often beyond companies, with community accountabilityCorrect
  2. BSocial governance applies only to companies listed on stock exchanges
  3. CSocial governance excludes any reporting of impact
  4. DSocial governance is concerned solely with maximising shareholder wealth

Explanation

Social governance covers societies, trusts and other bodies pursuing social purposes and stresses accountability to beneficiaries and communities. Limiting it to listed companies, ignoring impact reporting or focusing only on shareholder wealth is incorrect.

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