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Question

What plays a fundamental role in implementing corporate social responsibility ?

The correct answer is

Social Audit

Corporate social responsibility (CSR) means the obligation of companies to contribute to social welfare and sustainable development; in India it is mandated by Section 135 of the Companies Act, 2013.

A social audit is a systematic review of the social impact of an organisation's activities, carried out with the participation of stakeholders, and it plays a fundamental role in checking whether CSR funds and projects actually benefit the community.

The Income Tax Department deals with tax collection, the Public Accounts Committee examines government expenditure in Parliament, and the Central Bureau of Investigation probes crimes and corruption, so none of these is the basic instrument for implementing CSR.

Social auditing thus brings transparency and accountability to corporate welfare activity.

Hence, Social Audit.

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