Leadership and Social Responsibility

           

       This Seminar held at 3^rd march, 10:30 Am in the Welhams College by Anil Chitrakar. Participation were BBA,BBS,BS.c.(IT) students and teachers of welhams college. He is a professional man, social worker or social service and entrepreneur of the organization. Leadership means,” activity of influencing people to strive willing for mutual objective.”

       According to Dr. Anil Chitrakar Leadership means,” I don’t know but, I will found out.” It means anyone is not perfect in this world but, we can found out. If we search it. We have many mountain but we are unable to protect it .so, there is no leadership and social responsibility because leadership define how to used and protect it. According to him actually leadership means,” if something is crisis, It gives a birth two words, one is fear and another is opportunities. If we take a negatively fear we will miss the leadership but if we take a positively opportunities there will be leadership or opportunities’ leadership.” Leadership must be carrying the social responsibility and he/she must be good Quality to develop the society and country. Acc. to him we have a many natural resources but we are unable to use it. Like a, we have a many rivers in a country but until we have produced the small- Hydroelectricity in a 2500 villages and big Hydroelectricity produced in some districts. Actually our rivers are able to produce more than it and much big Hydroelectricity. We can also establish the Bio-Gas instead of taking a slander Gas. Until we have established the 240000 Bio-Gas in the Nepal but acc. to sources we can establish more than it.

       Lacking of expert person, Modern technology, equipment, Geographical reason, human force and political party etc. we are unable to use our natural resources .so, foreign countries are interested into the Nepal and they are trying to take or using it. Having a more unemployment and uneducated, many people or youth (young) are going into the foreign country for their livelihood. If it’s a going on continue our country will be poverty, here will be a lack of young human force and finally old or child people will be there. So, we need to make a good plan and policy to utilize the natural resources in a proper way. Acc. to him leadership must be independent and he/she must be chosen the right path or way for lead or co-ordinate to the society or country. If we think differently for utilize the resources in a proper way and create an opportunity then we will become a leadership and also we are able to carry social responsibility.

The case study of Enron

The America’s one of the biggest scandal that had been held by Enron corporation, an energy trader company.  Enron was formed in july 1985 when the texas based Houston Natural  Gas was merged with Inter north Nebraska Natural Gas company.

In 1990 Enron is the one of the profitable company ever known. It is the suppliers for all most all of the country in the world. After  Enron launched the Enron Online system , an internet based system the daily business reached on worth $2.5 billion. The shares of the company went on increasing up to $84.87 in the end of 2000. Enron is the top ranked company in America for six years.

But the scandal is recognize that how it began the top company for six years . The reason are the partners ship with fastow , the Arthur Anderson  LLP, Not  showing financial statement .And this the biggest scandal in the history of the america. And with the collapse of the Enron 4500 employees lost their jobs.

.Arthur Anderson (1885-1947)

    Arthur Anderson , an Orphaned at the age of 16 used to work as mail boy and once hired by controller of Allis Chambers in Chicago. In 1913 he formed a firm in partnership with Clarence Delany as Anderson Delany and Co. And in 1918 he dropped partnership with Clarence. He  renamed his company Arthur Anderson &co. And in 1917 he was Graduate from the Kellogg school.

Arthur Anderson LLP

      Arthur Anderson LLP’s full form is Arthur Anderson Limited Liability Partnership, based in Chicago was the used to be one of the “Big Five” accounting firms. It provide auditing, tax and consulting  services. It was founded in 1913, This  firm voluntarily surrendered it’s CPA( Certificate of Public Accountants ) after being found guilty of criminal charges on the handlings of the Auditing of Enron corporation, an energy based in Texas which had filled for bankruptcy. This firm was convicted of obstruction of justice for shredding document. The responsible individual for the Enron scandal are Nancy Temple( Anderson  legal Dept.) and David Duncan( Lead Partner for the Enron account).

Sarbanes Oxley Act : The act of 2002

Pub.L.107-204, 116 stat 745. Enacted July 30  2002

      ( Public Company Accounting Reform and Investor Protection Act), and (Corporate  and Auditing Accountability  and Responsibility Act ) are commonly  known as Sarbanes-Oxley Act, Sarbox or SOX. It is named after U.S senetor Paul Sarbanes and U.S Representative Micheal G. Oxley.

This law contains 11 titles and it covers issues as auditor independence,coperate governance, internal control assessment and enhanced financial disclosure. The main reason for the invention of Sarbanes Oxley Act is the collapse of the biggest coperation of the America , Enron.

The Downward Sloping of Nepalese Currency

           In current situation the value of the US dollar is increasing with the exchange rate of Rs 83.91 in December. The exchange rate of the dollar, a month ago was Rs 82.7819. So that Nepali currency lost over seven % against the US dollar. The increasing rate of US dollar does the fall on the value of the NPR. The NPR and the INR are directly and solely related since these two currencies are pegged. The investors are using dollar rather than euro as the safer currency.

            The Upward of US dollar in india lower the price of the INR value, so that has directly affects on the Nepalese economy. The increase in US dollar effects to our exports will benefit but on the other hands the imports of the Nepal will more expensive. So that the exports like ( Pasmina , Handicraft, Galaicha, etc) will get beneficial but the Imports like(cars, bike, petroleum, etc) will be more expensive. In the context of Nepal there is more imports than exports that’s why the economy have depreciative trade. And the increase of the US dollar rate makes the Nepalese economy in more loss.

            This also effects on the market too even the cheap Chinese goods will be more expensive than its previous price. The many of manufacturers imports raw materials that also make the high price of the goods that goes on the market. During the fiscal year, Nepal’s Imports from India stood at Rs 261 billion and at Rs 133.27 billion from third countries.

            The INR peg is still at the golden NPR 160 and the 2/3 of the Nepal’s imports from india is also being trade in INR. This import includes the petroleum from India and India imports approx 75% of its own petroleum requirement. So that the increased price will be transferred to Nepal while importing.

The US dollar also affects on the trade on gold too. Trading of gold is done in US Dollar when the US dollar goes up it means that buying dollar has become more expensive so gold goes down when the US dollar goes up and vice versa.

            There is the only beneficial part of the increased of US dollar, that the increase value of the remittance caused only the appreciation.

            Nepal is a third world country, the increase in US dollar depreciate the economy in loss. The exchange rate is increasing day by day so that the economy is going down and down. The NPR has been less valued currency. Country should focus to make valued it.