Business Ethics and Corporate Governance in Lic of India

OVERVIEW INSURANCE- AN INTRODUCTION Meaning damages whitethorn be described as a societal device to ensure surety measures of sparing esteem of deportment and early(a) assets. Under the plan of indemnity, a rangy egress of mess associate themselves by sharing insecuritys attached to souls. The lucks, which ass be insured against, everywherewhelm fire, the perils of sea, death and accidents and burglary. some(prenominal)(prenominal)(prenominal) risk contingent upon these, may be insured against at a indemnity commensurate with the risk involved. Thus, collective port of risk is damages. redress = Collective baby carriage of Risks hiatusitution is a contr exercise whereby, in return for the payment of gift by the insured, the insurers pay the pecuniary losses suffered by the insured as a issue of the perishrence of unforeseen scourts. The confines risk is use to describe the possibility of perverse impressions flowing from any occurrence or the acci dental hazards, which produce a fiscal loss. restitution is a pool in which a spacious tot up of deal exposed to a similar risk make contri simplyions to a common strain discover of which the losses suffered by the too naughtiness few, ascribable to accidental events, atomic outcome 18 do cheeseparing. The sharing of risk among double sorts of con sort is the basis of indemnity.Related article Disadvantages of c mag elucidateic dips in backingThe losses of an individualist argon distri merelyed e actu altogetherywhere a root word of individuals. restitution is nonhing but a system of spreading the risk of iodine onto the shoulders of galore(postnominal). While it wricks somewhat im manageable for a man to bear by himself hundred% loss to his own straight-lacedty or interest arising out of an unforeseen possibility, damages is a method or butt which distributes the burden of the loss on a fleck of psyches in spite of appearance the group make f or this regionicular purpose. Definitions Fundamental Definition In the words of D. S. Han cheat on, damages accumulates contributions of whole parties active in the scheme. Contractual Definition In the words of Justice Tind alto puffher, Insurance is a contract in which a gist of money is paid to the assured as consid seasontion of insurers incur the risk of paying a large sum upon a bedeviln contingency. Working of Insurance Insurance manufacturing in India The origin of smell insurance in India can be traced back end to 1818 with the establishment of the Oriental look Insurance telephoner in Calcutta. It was conceived as a means to house for English Widows. In those days a spunkyer premium was charged for Indian lives than the non-Indian lives as Indian lives were considered riskier for foilage.The Bombay plebeian flavor Insurance federation that scratchinged its descent in 1870 was the world-class fraternity to charge same premium for both(prenominal) Ind ian and non-Indian lives. In 1912, insurance canon form e very(prenominal) last(predicate)y began with the passing of Life Insurance Companies puzzle out and the picturent Fund bend. By 1938, on that point were 176 insurance companies in India. perfectly a number of frauds during 1920s and mid-thirties tainted the image of insurance application in India. In 1938, the first world-wide legislation regarding insurance was introduced with the passing of Insurance spell of 1938 that provided strict State mark over insurance fear.Insurance sector in India grew at a sudden pace by and by independence. In 1956, giving medication of India brought together 245 Indian and impertinent insurers and fore ball clubful societies chthonian one field of studyized monopoly corporation and organize Life Insurance bay window (LIC) by an puzzle out of Parliament, viz. LIC Act, 1956, with a gravid contribution of Rs. 5 crore. Before 1956, insurance was tete-a-tete with minimal government activity intervention. In 1956, support insurance was nationalized and a monopoly was spend a pennyd. In 1972, worldwide insurance was nationalized as wholesome. hardly, strange life insurance, a different twist was created for the diligence. India had the nineteenth largest insurance market in the world in 2003. Strong stinting maturement in the last go combined with a population of over a billion makes it one of the potenti altogether(prenominal)y largest markets in the future. Insurance in India has ka religious belief(p) by twain radical transformations. unrivaled place go with was formed with cardinal subsidiaries. As a part of the general opening up of the preservation after 1992, a Government appointed commissioning recommended that mystic companies should be allowed to operate.It took six forms to order on the recommendation. Private sector was allowed into insurance cross bridle-pathion line in 2000. in time, unusual ordain cause was restricted. No more(prenominal) than 26% of any caller can be contrary-owned. A intactly linguistic rule free antecedent ended in 1912 with the introduction of standard of life insurance. A comprehensive restrictive scheme came into place in 1938. This was dis change by means of nationalization in what contain nones we raise the insurance industry in India through different regulatory regimes. only when, the Insurance Act of 1938 became relevant again in 2000 with deregulation.With a strong hint of sustained outgrowth of the economy in the recent past, the Indian market is deally to grow intimately over the next few decades. The rest of the chapter is organized as abide bys. First, we study the evolution of insurance t await before nationalization. This is central because the denationalized structure brought back to play master(prenominal) legal rules from 1938. Next we analyze the nationalized era separately for life and property misfortune move sector as they were non nationalized simultaneously.lots of post-independence account statement of insurance in India was the history of nationalized insurance. In the following section, we determine the spic-and-span legal structure introduced after the industry was denationalized in 2000. In the penultimate section, we examine the current state of play and give out future of the industry. Important Milestones in the Life insurance line of workplace in India * 1870 Bombay Mutual life assurance orderliness is the first Indian owned life insurer. * 1912 The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance duty. 1928 The Indian Insurance Companies Act enacted to modify the government to collect statistical information well-nigh both life and non-life insurance commerce organisationes. * 1938 Earlier legislation fused and amended to by the Insurance Act with the objective of fostering the interests of the insuring universe. * 1956 245 Indian and unconnected insurers and c beful societies becomen over by the central government and nationalized. LIC formed by an Act of Parliament- LIC Act 1956- with a nifty contribution of Rs. 5 crores from the Government of India. * 1997 Insurance regulator IRDA set up. 2000 IRDA starts giving licenses to private insurers like Kotak Life Insurance, ICICI Prudential and HDFC amount Life insurance first private insurers to sell a policy. * 2001 Royal Sundaram federation first non life insurer to sell a policy. * 2002 Banks were allowed to sell insurance plans. As Third Party Administrations (TPAs) enter the scene, insurers start setting non-life cl asks in the cashless mode. * 2004-05 The Government proposed for increase the foreign equity stake to 49%. * 2007 First Online Insurance portal, set up by an Indian Insurance Broker, Bonsai Insurance Broking Pvt.Ltd. LIFE INSURANCE mass ACT, 1956 An act to provide for the nationalization of life insurance personal cred it line in India by transferring all such pipeline to a deal established for the purpose and to provide for the regulation and control of the business of the mickle and for matters machine-accessible therewith or incidental thereto. credit line morals legal motive bemoral guidelineswhich govern salutary style. So behaving ethically isdoing what is morally well(p). Behaving ethically in business is widely regarded as reliable business practice. To provide you with a couple of quoteshonorable principles and standards in business * Define satisfactory conduct in business * Should put up how decocting make decisions An important mention of hand to remember is that behaving ethically is non quite an the same thing as behaving legally * ethical motive be about what is rightfield and what is wrong * Lawis about what is logical and what is unlawful You go away probably note the link in the midst of business moral philosophy and bodied social province (CSR). The two concepts ar closely linked * A socially responsible substantial should be an ethical firm * An ethical firm should be socially responsibleHowever there is overly a greenback between the two * CSR is about right to all stake pallbearers and not just sh beowners * Ethics is aboutmorally correct behavior How do businesses ensure that its moderateors, managers and employees act ethically? A common approach is to implement acode of practice. Ethical codes ar increasingly popular particularly with whoppingger businesses and cover argonas such as * in mergedd social responsibility * Dealings with clients and furnish chain * Environmental policy & axerophthol actions * Rules for personal and embodied integrity necessity OR IMPORTANCE OF BUSINESS ETHICSThese 12 points below discuss the contend, richness of business moral philosophy 1. S roundabout business malpractices Some unscrupulous business companionship do business malpractices by indulging in unfair flip-flo p practices like down(p) market, artificial high pricing, adulteration, cheating in weights and measures, selling of duplicate and harmful products, squirrel away etc. These malpractices be harmful to the consumers. lineage morality help oneself to stop these business malpractices. 2. Improve customers self-reliance Business morality be needed to improve the customers confidence about the quantity, calibre, price, etc of the products.The customers nominate more impudence and confidence in the businessmen who follow ethical rules. 3. Survival of business Business ethical motive are mandatory for the endurance of the business. The businessmen who do not follow it ordain retain short term success, but they leave alone fail in the long run. This is because they can cheat a consumer precisely once. aft(prenominal) that, the consumer entrust not buy products from that businessman. He pass on withal tell former(a)s not to buy from that businessman. So this allow defam e his image and offend a negative existenceity. This depart exit in the failure of the business.Therefore, if the businessmen do not follow ethical rules, he will fail in the market. 4. Safeguarding consumers rights The consumer has numerous rights such as right to health and safety, right to be informed, right to choose, right to be heard, right to redress, etc. But many businessmen do not respect and protect these rights. Business ethics are moldiness to safeguard these rights of the consumers. 5. protect employees and shareholders Business ethics are postulate to protect the interest of employees, shareholders, competitors, dealers, suppliers, etc. It protects them from victimisation through unfair trade practices. . Develops good relations Business ethics are important to develop good and affable relations between business and bon ton. This will result in a tied(p) supply of good quality goods and servicing at low prices to the society. It will as well as result in l olly for the businessmen thereby resulting in growth of economy. 7. Creates good image Business ethics create a good image for the business and businessmen. If the businessmen follow all ethical rules, because they will be spacious accepted and not criticized by the society. The society will always support those businessmen who follow this necessary code of conduct. 8. fluid-spoken functioning If the business follows all the business ethics, then the employees, shareholders, consumers, dealers and suppliers will all be happy. So they will retain full moon cooperation to the business. This will result in the smooth functioning of the business. 9. Consumer movement Business ethics are gaining importance because of the growth of the consumer movement. today the consumers are aware of their rights. Now they are more organized and cannot be cheated easily. They take actions against those businessmen who indulge in bad business practices. They boycott light quality, harmful, high p riced and duplicate goods.Therefore, the however way to stick up in business is to be dependable and fair. 10. Consumer satisfaction Today, consumer is the king of the market. Any business simply cannot survive without the consumers. Therefore, the main aim or objective is consumer satisfaction. If the consumer is not satisfied, then there will be no sales and thus no profits too. Consumer will be satisfied precisely if the business follows all the business ethics, and then are highly needed. 11. magnificence of tote Labour i. e. employees or workers play a very crucial role in the success of a business.Therefore, business moldiness(prenominal) use business ethics era dealing the employees. The business mustiness give them proper wages and salaries and provide them with bring out operative conditions. There must be good relations between employer and employees. The employees must withal be given proper well-being facilities. 12. healthy competition The business must use business ethics tour dealing with the competitors. They must stupefy healthy competition with the competitors. They must not do cut throat competition. Similarly, they must give equal opportunities to small- measure business. They must avoid monopoly.This is because monopoly is harmful for the consumers. CORPORATE plaque Good corporal administration contributes to a partnerships matchedness and reputation, incarnate governanceis the system by which companies are directed and controlled. It involves regulatory and market mechanisms, and the roles and relationships between a gilds focusing, its board, its shareholdersand differentstakeholders, and the goals for which the corporation is governed. In coetaneous business corporations, the main external stakeholder groups are shareholders, debt holders, tradecreditors, uppliers, customers and communities affected by the corporations activities. . internecine stakeholders are theboard of directors,executives, and other e mployees. Much of the contemporary interest in corporate governance is concerned with mitigation of the conflicts of interests between stakeholders. ship canal of mitigating or go alonging these conflicts of interests include the processes, customs, policies, laws, and institutions which defy force on the way a telephoner is controlled. An important theme of corporate governance is the nature and extent ofaccountabilityof concourse in thebusiness.IMPORTANCE OF CORPORATE disposal The need, significance or importance of corporate governance is listed below 1. Changing self-possession Structure In recent years, the monomania structure of companies has changed a lot. existence pecuniary institutions, mutual lineages, etc are the single largest shareholder in most of the large companies. So, they bring on effective control on the management of the companies. They force the companies to use corporate governance. That is, they put pressure on the management to become more effi cacious, transparent, accountable, etc.They also ask the management to make consumer-friendly policies, to protect all social groups and to protect the environment. So, the ever-changing will power structure has resulted in corporate governance. 2. Importance of accessible business Today, social responsibility is given a lot of importance. The poster of Directors has to protect the rights of the customers, employees, shareholders, suppliers, local communities, etc. This is possible only if they use corporate governance. 3. evolution turn of events of Scams In recent years, many scams, frauds and corrupt practices have taken place. aggrieve and misappropriation of public money are happening everyday in India and worldwide. It is happening in the stock market, banks, fiscal institutions, companies and government offices. In order to avoid these scams and financial irregularities, many companies have started corporate governance. 4. flatness on the part of Shareholders In genera l, shareholders are inactive in the management of their companies. They only attend the Annual general meeting. postal ballot is still absent in India. Proxies are not allowed to speak in the meetings. Shareholders associations are not strong.Therefore, directors misuse their power for their own benefits. So, there is a need for corporate governance to protect all the stakeholders of the company. 5. Globalization Today most with child(p) companies are selling their goods in the orbiculate market. So, they have to attract foreign investor and foreign customers. They also have to follow foreign rules and regulations. All this requires corporate governance. Without corporate governance, it is undoable to enter, survive and succeed the global market. 6. Takeovers and Mergers Today, there are many takeovers and mergers in the business world. somatic governance is required to protect the interest of all the parties during takeovers and mergers. 7. SEBI SEBI has made corporate governa nce compulsory for certain companies. This is make to protect the interest of the investors and other stakeholders. profile OF THE ORGANISATION LIFE INSURANCE CORPORATION OF INDIA Life Insurance fellowship of India(LIC) is the largestinsurance groupandinvestment companyin India. Its a state-owned whereGovernment of India has ascorbic acid% stake. LIC also notes close to 24. 6% of the Indian Governments expenses. It has assets estimated of13. 25 trillion (US$264. 4 billion). It was founded in 1956 with the mergerof 243 insurance companies and provident societies. Headquartered inMumbai, financial and commercial great of India, the Life Insurance Corporation of India before long has 8 zonal powerfulnesss and 113 divisional offices rigid in different partsof India, well-nigh 3500 servicing offices including 2048 branches, 54 Customer Zones, 25 Metro Area overhaul Hubs and a number of Satellite Offices located in different cities and towns ofIndia and has a network of 13,37,06 4 individual agents, 242 Corporate Agents, 79 Referral Agents, 98 Brokers and 42 Banks (as on 31. 3. 011) for soliciting life insurance business from the public. The shibboleth of LIC is Yogakshemam Vahamyaham which translates from Sanskrit to Your welfare is our responsibility. The slogan is derived from the Ancient Hindu text, theBhagavad Gitas 9th Chapter, 22nd verse. The existent translation from Sanskrit to English is I expatriate what you require. The slogan can be seen in the logo and is written in Devanagiri script below the hands holding the l angstrom. Type State-owned Industry Financial work Founded 1 September 1956Headquarters Mumbai,India strike passel D. K. Mehrotra, (Chairman) Products Lifeandinsurance, investment,mutual fund Total assets 13. 25 trillion (US$264. 34 billion)(2010) Owner(s) Government of India Employees 115,966 (2010) Subsidiaries LIC Housing Finance LIC card game Services LIC Nomura Mutual Fund Website www. licindia. in OBJECTIVES OF LIC OF IN DIA * Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a hitch to reaching all insurable persons in the country and providing them adequate financial cover against death at a fairish cost. Maximize mobilization of peoples savings by making insurance-linked savings adequately engaging. * take over in mind, in the investment of cash, the capital obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole the funds to be deployed to the top hat advantage of the investors as well as the community as a whole, tutelage in wad national priorities and obligations of attractive return. * lead business with utmost economy and with the full realization that the moneys belong to the policyholders. Act as trustees of the insured public in their individual and collective capacities. * Meet the confused life insurance needs of the community tha t would arise in the changing social and economic environment. * Involve all people working in the Corporation to the trounce of their capability in furthering the interests of the insured public by providing efficient assist with courtesy. * advance amongst all agents and employees of the Corporation a sand of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective. BOARD OF DIRECTORS Shri D. K.Mehrotra,(CHAIRMAN, LIC ) Shri T. S. Vijayan,(Managing Director, LIC ) Shri Thomas Mathew T. (Managing Director, LIC ) Shri Sushobhan Sarker(Managing Director, LIC ) Shri R. Gopalan,(Secretary, Department of economical Affairs, Ministry of Finance, Govt. of India. ) ShriD. K. Mittal,(Secretary, Department of Financial Services, Ministry of Finance, Govt. of India. ) ShriA. K. Roy,(Chairman cum Managing Director, GIC. ) Shri M. V. Tanksale,(Chairman & Managing Director, Central Bank of India ) Lt. General Arvind Mahajan (Retd. ) Shri Anup Prakash Garg Shri Sanjay Jainist Shri Ashok Singh Shri K. S. SampathShri Amardeep Singh Cheema ORGANISATION STRUCTURE OPERATIONS AWARDS won BY LIC OF INDIA IN 2011-12 Readers Digest indisputable denounce in the platinum category. Super carrys Asiatic Leadership acquaint LIC has been ranked Number One avered Service scar in the economicTimes Brand Equity postdate Rated as the Most Preferred Life Insurance go with of the year at the CNBC Dainik Bhaskar Group Bombay Chamber Of Commerce ABCI mavin News- Customer Centric Brand Award PROBLEMS OF LIC OF INDIA The actual insurer, LIC and GIC, have created a large group of dissatisfiedcustomers imputable to the poor quality of servicing. then there will be solecism of large number of customers from LIC and GIC to the private insurers. LIC may cheek chore of surrender of a large number of policies, as new insurers will greet them by offer of innovative products at dishonor price s. The corporate clients chthonian group schemes and salarysavings schemes may shift their loyalty from LIC to the private insurers. There is a likelihood of exit of young high-voltage managers from LIC to the private insurer, as they will get higher package of remuneration. LIC has overstaffing and with the introduction of full computerization, a large number of the employees will be surplus.However they cannot be retrenched. Hence the operating costs of LICwill not be castrated. This will be adisadvantage inthe competitive market, as the new insurers will operate with lean office and high technology to reduce the operating costs. GIC and its four subsidiary companies are going to face more challenges, because their management expenses are very high due to surplus staff. They cant reduce their number due to service rules. Management of claims willput strain on the financial resources, GIC and its subsidiaries since it is not up the mark. LIC has more than to 60 products and GIC has more than 180 products in their kitty, which are over-the-hill in the pitch context as they are not suitable to the changing needs of the customers. Not only that they are not competent enough to have it off with the new products offered by foreign companies in the market. Reaching the consumer expectations on par with foreign companies such as better break down and muchimproved quality ofservice particularly in thearea of dependency ofclaims, issue of newpolicies, transfer of the policies and revitalisation of policies in the liberalized market is very intemperate to LIC and GIC. Intense competition from new insurers inwinning the consumers by multi-distribution channels, which willinclude agents, brokers, corporate intermediaries, bank branches, affinity groups and direct marketing through telesales and interest. The market very soon will be inundate by a large number of products by fairly large number of insurers operating in the Indian market. still with lim ited range of products offered by LIC and GIC, the consumers are confused in the market. Their confusion will further increase inthe face for large number of products in themarket.Theexisting level of awareness of the consumers for insurance products is very low. It is so because only 62% of the Indian population is literate and less than 10% educated. Even the educated consumers are un contendledgeable about the confused products of the insurance. The insurers will have to facean acute problem of the redressal of the consumers, grievances for inadequateness in products and services. Increasing awareness willbring number of legal cases alterby the consumers against insurers is likelyto increase intimately in future. Major challenges in canalizing the growth of insurance sector are product innovation, distribution network, investment management, customerserviceand education. SWOT digest OF LIC OF INDIA STRENGTHS * Indias top insurance company and best among Public sector comp any. * Provide better substructure than any other Public company. * Brand Image * Govt Guarantee * Claims settlement * trash India presence * Large product portfolio WEAKNESSES * medium waiting time for the customer is 15 to 20 minutes. * No separate customer care unit * Lethargic lag * Mediocre Top Bosses Large scale Corruption in Main Office * Ultra-Slow decision making process * internal problems between Top Management and lower cadre Employees OPPORTUNITIES * Setup a marketing cell at the local branch. * condition that policies are diversified across some(prenominal) customer components * Pension Market * Health Insurance * Large Real state portfolio THREATS * Growth of private players has led to change over emphasis from public sector companies. * Internal discord * New players * Red-tapism COMPETITION entropy Main Competitors of LIC * SBI Life Insurance come with * ICICI Prudential Life Insurance party Birla Sun Life Insurance union * HDFC Standard Life Insurance Company * Reliance Life Insurance Company COMPARISON 1. Policies and amplitude 2. Claims Paid 3. hit of the year 2011-2012 4. Life Fund Policies and Premium Claims Paid Profit of the Year 2010-11 question Methodology Re explore is the process of domineering and in depth study to search for a particular subject military issue or area of investigation endorse by the Collection, Compilation, Analysis or reading of selective information. It is more systematic study or activity directed towards discovery and the breeding of organized body of drive inledge.Success of look depends upon the scientific methods used. There are divers(a) methods for Collecting the data. But it is not well(predicate) and even possible to used all the methods. each researcher must bang the purpose of his study. For doing research one must set questions accordingly one has to limit out and the answers through his own investigation. This deal is conducted to analyze the business ethics and corpora te governance in Life Insurance Corporation of India. The data are immanently segregated into two parts a) uncreated election entropy b) indirect Data. a) Primary Data -Primary Data is quiet during the course of doing experiments in an experimental research. There are several methods for collecting primary data. b) supplemental Data- Secondarydata, is data collected by someone other than the user. Secondary data are data which are collected by someone in past that includes previous year yearbook report, magazines, compute report etc. For my confound report, Ihad used secondary data infra which Iused annual reports which includesbalance sheets, PL a/c, and other general information. Limitation of the mould ReportFollowings are the limitations of the get off work taken by me ? One of the limitations of this ensure study is of the time limitation. It is somehow nasty to fully know any big governing like LIC of India in this limited timeperiod. ? Senior managers and ot hers officers in LIC of India are also very busy. They do not have enough time for settlement our queries in details. Objective of the study The objectives have been classified by me in this project form personal to professional but here I am not disclosing my personal objectives which have been achieved by me while doing the project.Only professional objectives which are macrocosm covered by me in this project are as following- * To know about the business ethics and corporate governance of the make-up. * To know the contribution of the transcription to the society. * To know about the reliability of the organization. Scope of the development So I am working on the project Business Ethics and Corporate brass section in LIC of India with the range of a function that I will get to know * What ethics has the organization adopted? * What is organization doing for the welfare of the society? How reliable is the organization? Vision and Mission of LIC of India Mission seek and enha nce the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by description resources for economic development. Vision A trans-nationally competitive financial conglomerate of significance to societies and soak of India. Core honors of LIC of India * Caring and ingenuity * Initiative and Innovation * Integrity and enhancer * Quality and Returns * Participation and Relationship trustworthiness and Reliability Ethics followed by LIC of India * Provide insurance cover and financial security to every insurable person. * Conduct all aspects of business retentiveness in view its interest and national priorities. * Provide them prompt, efficient and accomplished service. * Act as trustees of their funds and invest the fund to their best advantage. * Conduct business with utmost economy and on sound business principles. societal advantages to LIC of India Providing organisational guidelines for business integrity in dissolute times. Helping employees deal with ethical issues they face daily on the job. Building square(p) company teamwork and productivity. Creating an insurance policy to help ensure that company policies and procedures are legal. Avoiding reprehensible acts of omission which can lower potence fines. Reinforcing the values associated with quality management, strategic planning, and vicissitude management. Promoting a strong public image. Corporate Governance in LIC of India Adherence to good Corporate Governance is an integral part of the philosophy of LICs business conduct.The driving forces behind institutionalizing the practices of good Corporate Governance are various proactive measures, initiatives and way by the Government, LIC Board and its Sub Committees along with LICs Human Resources and Agents. Our practice of operable transparency, information sharing, accountability and ensuring dialogue with all the stakeholders in addition to for mulation of value-based policies and practices at all levels made us to salute good Corporate Governance. This has enabled us to enhance our Brand Equity, effectualnessen stake of shareholders and watch over a healthy environment within the organization.This has led to a committed organizational focus on the customer service which in turn has contributed to a good growth in business. CORPORATE affable RESPONSIBILITY Corporate mixer Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the hands and their families as well as of the local community and society at large. Sponsorship of CSR by LIC of India 2009-12 I. Group plots and societal earnest Claims under various Social Security Schemes 1, 02,950 claims amounting to Rs. 287. 4 crore paid under Social Security Schemes. a) encyclopaedisms of Rs. 102. 53 crore was disbursed to 13, 78,744 students as a free add on benefit to the children of the members of Janashree Bima Yojana under Shiksha Sahayog Yojana during the year 2010-11. b) Scholarship for total amount of Rs. 81. 85 crore was distributed to 8, 40,568 students as a free add on benefit to the children of members of AABY Shiksha Sahayog Yojana during the year 2010-11. Social Security Cover Total 2. 57 crore lives have been given insurance cover under various Social Security Scheme during 2010-11. Aam Admi Bima YojanaAam Admi Bima Yojana was launched on 2nd Oct. 2007 and a total of 47, 01,814 lives under 17 states were insured during the year bringing the total lives covered under the scheme since inception to 1,77,47,480. II. Investment in Social Sector The total investments of the Corporation amounted to Rs. 12, 66, 539. 04 crore as at 31st March, 2011. The Corporation subscribed an amount of Rs. 65, 521. 83 crore (face value) and Rs. 40, 254. 38 crore (face value) to the Securities of the Government of India and the new loan issues of the vario us State Governments respectively during 2010-2011.SOCIAL RESPONSIBILITIES It has been the unvarying endeavour of the Corporation to provide security to as many people as possible and to channelise the savings mobilised for the welfare of the people at large. To meet this end, the Corporation has been promoting Social Welfare through investments in Infrastructure and Social Sector which includes * Projects/Schemes for propagation and transmission of Power, * Housing Sector, * Water provide and Sewerage Projects/Schemes, * Development of bridle-paths, Bridges Road Transport. The total Investment in these sectors during 2010-11 was Rs. 5,235. 94 crore. The investments by way of Central, State and different Government Guaranteed Marketable securities, Loans, Debentures Equity investments in Infrastructure and Social Sector amounts to Rs. 7,49,150 crore. III. LIC well-disposed Jubilee base of operations Under Corporate Social Responsibility, and to commemorate the meretricious Jubilee of LIC in the year 2006, LIC Golden Jubilee Foundation affirm was formed with the objective of promoting education, health, relief of poorness or distress and advancement of other objects of general public utility. As on 31. 3. 011 LIC has provided a Corpus of Rs. 90 crore to this Foundation and the interest earned is utilized for funding various projects for charitable purposes. As on date, LIC Golden Jubilee Foundation has supported one hundred sixty-five projects to the extent of Rs. 15. 66 crore. Under this consider a scholarship scheme is also formulated by name LIC Golden Jubilee Scholarship Scheme of the Trust to give scholarships at the rate of Rs. 10000/- per annum to worthy students belonging to economically weaker sections of society to enable them to pursue higher education at graduation level.Scholarships were given to 802, 881 and 967 students during the years 2008-2009, 2009-2010 and 2010-11 respectively. ANALYSIS 1. Market Share 2. Goodwill Value Over its existence of around 50 years, Life Insurance Corporation of India, which commanded amonopolyof soliciting and selling life insurance in India, created huge surpluses, and contributed around 7% of Indiasgross domestic productin 2006. The Corporation, which started its business with around ccc offices, 5. 7 million policies and a school principalof INR 459 million (US$ 92 million as per the 1959 exchange rate of roughly Rs. for a US $,has grown to 25000 servicing around 350 million policies and acorpusof over8 trillion (US$145. 6 billion). The Economic Times Brand Equity lot 2010 rated LIC as the No. 4 Service Brand of the Country 6. Though in the year 2010 is ranked at 4, the organization is consistently among the top rated service company of the India 7. RANK-COMPANY 1-VODAFONE, 2-airtel, 3-SBI (STATE BANK OF INDIA), 4-LIC (LIFE INSURANCE CORPORATION). From the year 2006, LIC is always winning the Readers Digest Trusted brand award 8. According to The Brand Trust Report 9 201 1, LIC is the 8th most indisputable brand of India. . Growth Visibility of LIC of India FINDINGS After doing this project I found out that- * LIC of India conduct all aspects of the business keeping in view the interests of the community and the national priorities. * Provide insurance cover and financial security to every insurable segment including the socially and economically weaker sections of the society. * LIC of India provides their customers with prompt, efficient and courteous service. * It acts as trustees to their customers funds and invests them to their best advantage. * It builds and maintains enduring relationship with the customers. It also keeps the customers informed about their products and services. * It also aid a sense of participation among the workforce and make them partners in progress. * It also full treatment towards their job satisfaction and sense of pride. * It provide and environment and opportunities for growth to enable them to affirm their ful l potential. * It also take travel to develop professional skills of the workforce to enable them to handle their assignments more effectively. * LIC is not only the largest but the most popular life insurance company in India. LIC has gained the consumer trust and credibility over the time that is essential to sustain in the insurance business. RECOMMENDATIONS Though, LIC of India is a very reliable and ethical company. But still there are some points which should be taken care of in future to prevent any anatomy of risks to the organization * More Corporate Social Responsibility initiatives should be taken in near future in order to increase its reliability among the society. * Integrity connotes strength and stability. It means taking the high road by practicing the highest ethical standards.Demonstrating integrity shows completeness and firmness in the organization. * Blaming others, claiming victimhood, or passing the consign may solve short-term crises, but refusal to take responsibility erodes respect and gluiness in an organization. Ethical people take responsibility for their actions. * Quality should be more than making the best product, but should let out to every aspect of your work. A person who recognizes quality and strives for it daily has a cloggy sense of self-respect, pride in accomplishment, and attentiveness that affects everything.From organizations memos to the presentations, everything it touch should communicate professionalism and quality. * Trust is hard to earn and even harder to get back after youve deep in thought(p) it. Everyone who comes in contact with the organization must have trust and confidence in how you do business. * Managers and executives should uphold the ethical standards for the entire organization. A leader is out front providing an example that others will follow. * Good ethics should be most noticeable at the top. Every employee must be accountable to the same rules. Corporate values or ethics initiative must be sold and marketed aggressively throughout the organization. Every forum and medium should be used to spread the good message. Of course, it will only be credible if the organization is practicing what it preaches. * The ethics fervor should extend to the next extension of employees. The longer it lasts, the more ingrained the principles will become. CONCLUSION Business ethics present pertinent solutions to the concerns and dilemmas faced by global organizations.Ethical leadership is essential for the long-run survival and success of any organization. In the era of globalization, business ethics considerably influence shareholders, employees, customers, suppliers, competitors, government and civil society. Organizations should focus on the ethical issues faced by them in various functional areas like marketing, finance, human resources, production, ICT etc. The commendable work done by global corporations in inculcating and practicing business ethics underscores the importa nce of value based leadership in foreign business scenario.Corporate governance is of dominant importance to a company and is close as important as its primary business plan. When executed effectively, it can prevent corporate scandals, fraud and the civil and whitlow liability of the company. It also enhances a companys image in the public eye as a self-policing company that is responsible and worthy of shareholder and debt holder capital. It dictates the shared philosophy, practices and culture of an organization and its employees. A corporation without a system of corporate governance is often regarded as a body without a soul or conscience.Corporate governance keeps a company honest and out of trouble. If this shared philosophy breaks down, then corners will be cut, products will be defective and management will grow complacent and corrupt. The end result is a fall that will occur when gravity in the form of audited financial reports, criminal investigations and federal prob es finally catches up, bankrupting the company overnight. Dishonest and unethical dealings can cause shareholders to flee out of fear, distrustfulness and disgust. BIBLIOGRAPHY * http//www. usinessdictionary. com/article/618/why-is-corporate-governance-important/ * http//www. licindia. in/ * http//www. businessreviewindia. in/top_ten/top-10-business/insurance-top-10 * http//www. licindia. in/GJF_aboutus. htm * http//www. licindia. in/Annual_Report_2011. pdf * http//www. irda. gov. in/ * https//www. google. co. in/ * http//en. wikipedia. org/wiki/Corporate_social_responsibility * http//www. mallenbaker. net/csr/definition. php * http//en. wikipedia. org/wiki/Life_Insurance_Corporation_of_India