Leadership in the age of transparency
A theme essay on
Leadership in the Age of Transparency in context of Nepal.
Prepared by Group B
Nabin Thapa,
Anju Sharma
Dhirendra Chand
Shekhar Ojha
Saajana Poudel
Pratima Regmi
Trishna Upadhyaya
Introduction
Companies have long prospered by ignoring what economists call “externalities.” Now they must learn to embrace them.
In economics, an externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit. It is a consequence of an economic activity that is experienced by unrelated third parties. An externality can be either positive or negative. Pollution emitted by a factory that spoils the surrounding environment and affects the health of nearby residents is an example of a negative externality. An example of a positive externality is the effect of a well-educated labor force on the productivity of a company.
The business environment is never stable. It experiences changes that are constant and the companies need to be dynamic in order to adapt itself to the changing environment. The business leaders now have more social responsibilities on their shoulders than they had only 20 years ago. With the rapid growth in technology, the activities of any business are becoming more and more transparent and hence it is no longer possible for businesses to ignore externalities. As the impacts of business on the environment, on society, and on individuals became too substantial to ignore in many realms, and cheaper and easier ways to measure those impacts were devised, the rules of doing business shifted. Considerations that hadn’t previously complicated the plans of corporate leaders have now started getting factored in.
In this essay and the presentation following, we will be looking at how there has been a change in the managers approach towards the externalities caused by their business activities over the past 20 years. We will discuss briefly at the possible factors behind such changing perception of business
Leadership in the Age of Transparency in context of Nepal.
Prepared by Group B
Nabin Thapa,
Anju Sharma
Dhirendra Chand
Shekhar Ojha
Saajana Poudel
Pratima Regmi
Trishna Upadhyaya
Introduction
Companies have long prospered by ignoring what economists call “externalities.” Now they must learn to embrace them.
In economics, an externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit. It is a consequence of an economic activity that is experienced by unrelated third parties. An externality can be either positive or negative. Pollution emitted by a factory that spoils the surrounding environment and affects the health of nearby residents is an example of a negative externality. An example of a positive externality is the effect of a well-educated labor force on the productivity of a company.
The business environment is never stable. It experiences changes that are constant and the companies need to be dynamic in order to adapt itself to the changing environment. The business leaders now have more social responsibilities on their shoulders than they had only 20 years ago. With the rapid growth in technology, the activities of any business are becoming more and more transparent and hence it is no longer possible for businesses to ignore externalities. As the impacts of business on the environment, on society, and on individuals became too substantial to ignore in many realms, and cheaper and easier ways to measure those impacts were devised, the rules of doing business shifted. Considerations that hadn’t previously complicated the plans of corporate leaders have now started getting factored in.
In this essay and the presentation following, we will be looking at how there has been a change in the managers approach towards the externalities caused by their business activities over the past 20 years. We will discuss briefly at the possible factors behind such changing perception of business
References: Buchanan, J. and Stubblebine, W. (1962). Externality. 1st ed. Wiley. Butzbacherstr, C. (2006). Corporate Social Responsibility in Nepal: A Chance for Peace and Prosperity?. Chapagain, B. (2010). Corporate Social Responsibility Evidence From Nepalese Financial Service and Manufacturing Sectors. Kathmandu. Meyer, C. and Kirby, J. (2010). Leadership in the Age of Transparency. Harvard Business Review, 88(4), pp.38--46. Upadhyay-Dhungel, K. and Dhungel, A. (2012). Corporate Social Responsibility Reporting Practices in the Banking Sector of Nepal. Graafland, J. and van de Ven, B. (2006). Strategic and moral motivation for corporate social responsibcility.Journal of Corporate Citizenship, 2006(22), pp.111--123.