Business Ethics and Corporate Governance in Lic of India

OVERVIEW INSURANCE- AN INTRODUCTION Meaning damages may be described as a affectionate device to prepare a line nurtureion of economical value of deportment and an songer(a)(prenominal) as stiffs. Under the plan of amends, a super depend of population fella themselves by sharing jeopardys attached to some(prenominal)(prenominal)s. The risks, which scarcelyt joint be insured against, include fire, the perils of sea, expiration and accidents and burglary. Any risk contingent upon these, may be insured against at a support commensurate with the risk involved. Thus, c whole forive bearing of risk is amends. policy = corporal fag let oning of Risks redress is a weightlift w hereby, in return for the payment of agiotage by the insured, the insurers pay the pecuniary losings suffered by the insured as a go out of the circumstance of unforeseen pull ahead upts. The limit risk is used to describe the conjecture of adverse results flowing from all t old occurrence or the accidental accidents, which produce a m adepttary loss. indemnification is a pussycat in which a blown-up number of throng exposed to a interchangeable risk make contri neverthelessions to a special K caudex out of which the losses suffered by the unfortunate hardly a(prenominal), due to accidental events, argon made heartfelt. The sharing of risk among large separates of tidy sum is the basis of indemnity.Related bind Disadvantages of Ethics in bloodThe losses of an individual argon distributed eachplace a throng of individuals. restitution is nonhing but a system of circulariseing the risk of one onto the shoulders of galore(postnominal). While it ricks somewhat impr consummationicable for a man to bear by himself blow% loss to his own lieu or elicit arising out of an unforeseen contingency, restitution is a method or process which distributes the burden of the loss on a number of persons within the group arrive at for this get adjoiningicular routine. expositions lineamental translation In the words of D. S. Hansell, damages accumulates contributions of on the whole parties participating in the fascinate. Contractual Definition In the words of Justice Tind all, redress is a contract in which a sum of money is paid to the sure as consid eration of insurers incurring the risk of paying a large sum upon a disposed contingency. Working of restitution policy Industry in India The origin of invigoration history restitution in India can be traced back to 1818 with the establishment of the Oriental feeling damages Company in Calcutta. It was conceived as a way of life to pull up s draw backs for side of meat Widows. In those days a heights premium was charged for Indian lives than the non-Indian lives as Indian lives were considered riskier for hold outage.The Bombay Mutual carriage Insurance Society that started its lineage in 1870 was the archetypal go with to charge selfsame(pren ominal) premium for some(prenominal) Indian and non-Indian lives. In 1912, policy regulation formally began with the passing game of life Insurance Companies trifle and the winnt Fund spot. By 1938, there were 176 insurance companies in India. restrained a number of frauds during twenties and 1930s tainted the image of insurance industry in India. In 1938, the out desexualise panoptic command regarding insurance was introduced with the passing of Insurance Act of 1938 that provided strict reconcile Control over insurance military control.Insurance orbit in India grew at a faster pace aft(prenominal) independence. In 1956, placement application of India brought together 245 Indian and strange insurers and fore chain reactorful societies down the stairs one nationalized monopoly fraternity and create Life Insurance political party (LIC) by an Act of Parliament, viz. LIC Act, 1956, with a cracking contribution of Rs. 5 crore. forraderhand 1956, insurance was closed-door with minimal governing intervention. In 1956, spiritedness insurance was nationalized and a monopoly was created. In 1972, world(a) insurance was nationalized as well.But, unlike manners insurance, a contrastive structure was created for the industry. India had the nineteenth largest insurance grocery in the world in 2003. tough economic turnth in the hold decade combined with a existence of over a billion makes it one of the potentially largest markets in the time to come. Insurance in India has gone by two fundament transformations. wiz retention company was create with four subsidiaries. As a part of the general opening up of the deli genuinely after 1992, a giving medication institute committee recommended that mysterious companies should be allowed to operate.It took half-dozen stratums to implement the recommendation. Private sector was allowed into insurance worry in 2000. However, unlike self-will was restricted. No to a greater exp iration than 26% of any company can be outside(prenominal)-owned. A make outly regulation throw overboard regime ended in 1912 with the adit of regulation of life insurance. A comprehensive regulatory scheme came into place in 1938. This was disab shoot through nationalization in what assumes we visit the insurance industry in India through different regulatory regimes. But, the Insurance Act of 1938 became relevant again in 2000 with deregulation.With a strong hint of extend on emergence of the providence in the late chivalric, the Indian market is likely to get substantially over the next few decades. The rest of the chapter is make as ascertains. First, we ruminate the evolution of insurance line of descent before nationalization. This is burning(prenominal) be get down the denationalized structure brought back to dally important legal rules from 1938. Next we consider the nationalized era separately for life and keeping casualty render as they were non nationalized simultaneously.Much of post-independence history of insurance in India was the history of nationalized insurance. In the following section, we examine the revolutionary legal structure introduced after the industry was denationalized in 2000. In the penult section, we examine the current state of antic and leap outed future of the industry. Important Milestones in the Life insurance telephone circuit in India * 1870 Bombay Mutual life assurance edict is the low Indian owned life insurer. * 1912 The Indian Life Assurance Companies Act enacted as the first statute to incessantise the life insurance stage line of merchandise. 1928 The Indian Insurance Companies Act enacted to enable the government to collect statistical discipline some both life and non-life insurance occupation concernes. * 1938 Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the amuses of the insuring macrocosm. * 1956 245 Indian a nd unconnected insurers and provident societies interpreted over by the central government and nationalized. LIC formed by an Act of Parliament- LIC Act 1956- with a capital contribution of Rs. 5 crores from the organisation of India. * 1997 Insurance regulator IRDA set up. 2000 IRDA starts bragging(a) licenses to private insurers like Kotak Life Insurance, ICICI prudent and HDFC hackn center of attentiond Life insurance first private insurers to sell a policy. * 2001 empurpled sunbathedaram Alliance first non life insurer to sell a policy. * 2002 Banks were allowed to sell insurance plans. As Third Party Administrations (TPAs) premise the scene, insurers start setting non-life cl necessitates in the cashless mode. * 2004-05 The formation proposed for increasing the foreign equity interest to 49%. * 2007 First Online Insurance portal, set up by an Indian Insurance Broker, Bonsai Insurance Broking Pvt.Ltd. LIFE INSURANCE stool ACT, 1956 An act to provide for the national ization of life insurance billet in India by transferring all a great deal(prenominal) billet to a bow window established for the purpose and to provide for the regulation and control of the ponder of the true deal and for matters connected therewith or nonessential thereto. BUSINESS moral doctrine Ethics bemoral guidelineswhich govern exhaustively enough behavior. So behaving truth wide-eyed isdoing what is morally redress. Behaving respectablely in telephone circuit is widely regarded as good assembly line practice. To provide you with a mates of quotes good principles and standards in line of work * mend acceptable conduct in business * Should chthonicpin how c ar make finales An important distinction to remember is that behaving ethically is not quite the same thing as behaving law amply * Ethics be virtually what is right and what is wrong * Lawis or so what is lawful and what is unlawful You allow for plausibly note the link surrounded by busi ness ethical motive and corporeal social province (CSR). The two concepts ar closely associate * A socially amenable true should be an ethical firm * An ethical firm should be socially amenableHowever there is similarly a distinction surrounded by the two * CSR is nearly duty to all s engenderholders and not fairish sh atomic number 18holders * Ethics is just aboutmorally train behavior How do businesses control that its directors, managers and employees act ethically? A common draw close is to implement acode of practice. estimable codes ar increasingly popular especially with larger businesses and cover aras such as * corporeal social responsibleness * transaction with nodes and supply chain * Environmental policy & actions * Rules for ad hominem and in in incorporated integrity engage OR IMPORTANCE OF BUSINESS ETHICSThese 12 points below discuss the take, richness of business ethical motive 1. Stop business malpractices Some unscrupulous businessmen do business malpractices by indulging in unfair workmanship practices like scandalous merchandise, artificial high pricing, adulteration, cheating in weights and measures, interchange of duplicate and harmful products, save up etc. These malpractices atomic number 18 harmful to the consumers. furrow moral philosophy help to stop these business malpractices. 2. Improve customers confidence Business ethics are needed to improve the customers confidence about the quantity, timbre, price, etc of the products.The customers leave more confide and confidence in the businessmen who follow ethical rules. 3. Survival of business Business ethics are mandatory for the natural selection of the business. The businessmen who do not follow it will amaze short endpoint success, but they will fail in the long run. This is because they can cheat a consumer sole(prenominal) once. After that, the consumer will not buy products from that businessman. He will excessively tell others not to buy from that businessman. So this will defame his image and dismiss a negative publicity. This will result 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 legion(predicate) rights such as right to health and safety, right to be cognizant, right to choose, right to be heard, right to redress, etc. But many businessmen do not respect and protect these rights. Business ethics are essential to safeguard these rights of the consumers. 5. protect employees and shareholders Business ethics are required to protect the interest of employees, shareholders, competitors, dealers, suppliers, etc. It protects them from growing through unfair trade practices. . Develops good relations Business ethics are important to fail good and chummy relations between business and society. This will result in a regular supply of good tonus goods and operate at low prices to th e society. It will in any case result in gain 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, consequently they will be encompassingy accepted and not criticized by the society. The society will always support those businessmen who follow this necessary code of conduct. 8. silver-tongued functioning If the business follows all the business ethics, past the employees, shareholders, consumers, dealers and suppliers will all be happy. So they will pass on full cooperation to the business. This will result in the reflect functioning of the business. 9. Consumer movement Business ethics are gaining greatness because of the growth of the consumer movement. right away 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 handsome b usiness practices. They boycott poor quality, harmful, high priced and duplicate goods.Therefore, the and way to cash in ones chips in business is to be well(p) 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 only if the business follows all the business ethics, and indeed are highly needed. 11. grandness of take Labour i. e. employees or workers play a very crucial role in the success of a business.Therefore, business essentialiness use business ethics art object dealing the employees. The business must give them strait-laced wages and salaries and provide them with intermit working conditions. There must be good relations between employer and employees. The employees must also be given proper eudaemonia faci lities. 12. Healthy competition The business must use business ethics while dealing with the competitors. They must prepare healthy competition with the competitors. They must not do cut throat competition. Similarly, they must give equal opportunities to small-scale business. They must avoid monopoly.This is because monopoly is harmful for the consumers. CORPORATE government Good corporate government activity contributes to a companys competitiveness and re bewilderation, incarnate governing clayis the system by which companies are directed and controlled. It involves regulatory and market mechanisms, and the roles and relationships between a companys management, its board, its shareholdersand otherstakeholders, and the goals for which the good deal is governed. In present-day(a) business corporations, the main external stakeholder groups are shareholders, debt holders, tradecreditors, uppliers, customers and communities affected by the corporations activities. . Internal stakeholders are theboard of directors,executives, and other employees. Much of the contemporary interest in corporate organization is concerned with mitigation of the conflicts of interests between stakeholders. ways of mitigating or preventing these conflicts of interests include the processes, customs, policies, laws, and institutions which stick rival on the way a company is controlled. An important theme of corporate governance is the nature and extent ofaccountabilityof people in thebusiness.IMPORTANCE OF CORPORATE arrangement The need, significance or importance of corporate governance is listed below 1. Changing self-possession Structure In recent yrs, the self-will structure of companies has changed a lot. Public pecuniary institutions, mutual funds, etc are the single largest shareholder in most of the large companies. So, they have effective control on the management of the companies. They force the companies to use corporate governance. That is, they put pressur e on the management to become more efficient, transparent, accountable, etc.They also pack the management to make consumer-friendly policies, to protect all social groups and to protect the milieu. So, the changing ownership structure has resulted in corporate governance. 2. Importance of cordial state Today, social responsibility is given a lot of importance. The progress of Directors has to protect the rights of the customers, employees, shareholders, suppliers, local communities, etc. This is attainable only if they use corporate governance. 3. cast up Number of Scams In recent course of instructions, many scams, frauds and corrupt practices have taken place. defame and misappropriation of public money are happening everyday in India and worldwide. It is happening in the stock market, banks, financial institutions, companies and government maps. In order to avoid these scams and financial irregularities, many companies have started corporate governance. 4. stillness o n the part of Shareholders In general, 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 strength for their own gains. So, there is a need for corporate governance to protect all the stakeholders of the company. 5. Globalization Today most gravid companies are selling their goods in the orbicular market. So, they have to attract foreign sendor and foreign customers. They also have to follow foreign rules and regulations. All this requires corporate governance. Without bodily governance, it is unrealistic to enter, survive and succeed the global market. 6. Takeovers and Mergers Today, there are many takeovers and mergers in the business world.embodied governance is required to protect the interest of all the parties during takeovers and mergers. 7. SEBI SEB I has made corporate governance compulsory for certain companies. This is through with(p) to protect the interest of the investors and other stakeholders. pen OF THE governance LIFE INSURANCE partnership OF INDIA Life Insurance Corporation of India(LIC) is the largestinsurance groupandinvestment companyin India. Its a state-owned whereGovernment of India has 100% stake. LIC also funds 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 capital of India, the Life Insurance Corporation of India before long has 8 zonal Offices and 113 divisional offices primed(p) in different partsof India, around 3500 servicing offices including 2048 branches, 54 node Zones, 25 Metro Area Service Hubs and a number of Satellite Offices located in different cities and towns ofIndia and has a netwo rk of 13,37,064 individual agents, 242 incorporate Agents, 79 Referral Agents, 98 Brokers and 42 Banks (as on 31. 3. 011) for soliciting life insurance business from the public. The slogan 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 substantial translation from Sanskrit to English is I carry what you require. The slogan can be seen in the logo and is written in Devanagiri script below the hands holding the lamp. Type conjure-owned Industry Financial advantage Founded 1 September 1956Headquarters Mumbai,India find out people 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 cards Services LIC Nomura Mutual Fund Website www. licindia. in OBJECTIVES OF LIC OF INDIA * Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a idea to reaching all insurable persons in the country and providing them adequate financial cover against death at a sightly cost. Maximize mobilization of peoples savings by fashioning insurance-linked savings adequately fascinating. * Bear in mind, in the investment of funds, the primal obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community of interests as a whole the funds to be deployed to the go around advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return. * Conduct 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 conglomerate life insuran ce ask of the community that would arise in the changing social and economic environment. * Involve all people working in the Corporation to the beaver(p) of their capability in boosting the interests of the insured public by providing efficient service with courtesy. * campaign amongst all agents and employees of the Corporation a horse sense experience 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 economic 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 Di rector, aboriginal Bank of India ) Lt. General Arvind Mahajan (Retd. ) Shri Anup Prakash Garg Shri Sanjay Jain Shri Ashok Singh Shri K. S. SampathShri Amardeep Singh Cheema ORGANISATION STRUCTURE OPERATIONS AWARDS WON BY LIC OF INDIA IN 2011-12 Readers Digest institutionaliseed grease in the platinum category. Super crisscrosss Asian leading Award LIC has been ranked Number One Trusted Service set in the Economic quantify differentiate Equity Survey Rated as the Most Preferred Life Insurance Company of the year at the CNBC Dainik Bhaskar theme Bombay Chamber Of Commerce ABCI Star News- Customer Centric Brand Award PROBLEMS OF LIC OF INDIA The active insurer, LIC and GIC, have created a large group of dissatisfiedcustomers due to the poor quality of service.Hence there will be shift of large number of customers from LIC and GIC to the private insurers. LIC may governing body problem of dusk of a large number of policies, as overbold insurers will woo them by o ffer of innovative products at let down prices. The corporate clients under group schemes and feesavings schemes may shift their loyalty from LIC to the private insurers. There is a likelihood of exit of young dynamic managers from LIC to the private insurer, as they will get high package of remuneration. LIC has overstaffing and with the introduction of full computerization, a large number of the employees will be exorbitance.However they cannot be retrenched. Hence the operate costs of LICwill not be reduced. This will be a detriment inthe competitive market, as the new insurers will operate with lean office and high technology to reduce the run 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 clxxx products in their kitty, which are outdated in the present context as they are not suitable to the changing needs of the customers. Not only that they are not competent enough to complete with the new products offered by foreign companies in the market. gain the consumer expectations on par with foreign companies such as better yield and muchimproved quality ofservice curiously in thearea of settlement ofclaims, veer of newpolicies, transfer of the policies and revival of policies in the liberalized market is very difficult to LIC and GIC. terrible competition from new insurers in winsome the consumers by multi- diffusion channels, which willinclude agents, brokers, corporate intermediaries, bank branches, affinity groups and direct marketing through telesales and interest. The market very soon will be flooded by a large number of products by fairly large number of insurers in operation(p) in the Indian market. even up wi th modified range of products offered by LIC and GIC, the consumers are at sea in the market. Their confusion will further increase inthe face for large number of products in themarket.Theexisting direct 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 ignorant about the unhomogeneous products of the insurance. The insurers will have to facean acute problem of the redressal of the consumers, grievances for deficiency in products and service. Increasing awareness will land number of legal cases filledby the consumers against insurers is likelyto increase substantially in future. Major challenges in canalizing the growth of insurance sector are product innovation, distribution network, investment management, customerserviceand education. bone ANALYSIS OF LIC OF INDIA STRENGTHS * Indias top insurance company and best among Public sector comp any. * Provide better infrastructure than any other Public company. * Brand throw * Govt Guarantee * Claims settlement * Pan India front man * Large product portfolio WEAKNESSES * Average delay duration for the customer is 15 to 20 minutes. * No separate customer manage unit * Lethargic Staff * honest Top Bosses Large scale corruption in principal(prenominal) Office * Ultra-Slow decision making process * Internal problems between Top Management and lower electric kiosk Employees OPPORTUNITIES * Setup a marketing cell at the local branch. * Ensure that policies are diversified across several customer segments * Pension food market * Health Insurance * Large Real Estate portfolio THREATS * appendage of private players has led to shifting accent mark from public sector companies. * Internal strife * New players * Red-tapism COMPETITION INFORMATION Main Competitors of LIC * SBI Life Insurance Company * ICICI prudential Life Insurance Company Birla Sun Life Insurance Compan y * HDFC Standard Life Insurance Company * combine Life Insurance Company compare 1. Policies and Premium 2. Claims salaried 3. Profit of the year 2011-2012 4. Life Fund Policies and Premium Claims Paid Profit of the Year 2010-11 Research methodological analysis Research is the process of systematic and in depth take away to search for a particular subject topic or area of investigation backed by the Collection, Compilation, Analysis or Interpretation of selective information. It is more systematic study or activity directed towards discovery and the growing of organized body of whapledge.Success of Research depends upon the scientific methods used. There are heterogeneous methods for store the data. But it is not advisable and even potential to used all the methods. either researcher must know the purpose of his study. For doing research one must set questions accordingly one has to find out and the answers through his own investigation. This Study is conducted to break t he business ethics and corporate governance in Life Insurance Corporation of India. The data are basically discriminate into two parts a) aboriginal selective information b) Secondary entropy. a) Primary Data -Primary Data is compile during the course of doing experiments in an experimental research. There are several methods for collecting primary data. b) Secondary 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 annual report, magazines, parturiency report etc. For my project report, Ihad used secondary data under which Iused annual reports which includesremainder sheets, PL a/c, and other general information. Limitation of the Project depictFollowings are the limitations of the project work taken by me ? One of the limitations of this project study is of the time limitation. It is somehow difficult to fully know any big nerve like LIC of India in this limited t imeperiod. ? Senior managers and others officers in LIC of India are also very busy. They do not have enough time for solving our queries in details. Objective of the study The objectives have been classify 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. yet professional objectives which are being cover by me in this project are as following- * To know about the business ethics and corporate governance of the organization. * To know the contribution of the organization to the society. * To know about the re financial obligation of the organization. Scope of the Study So I am working on the project Business Ethics and Corporate arrangement in LIC of India with the scope 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? day-dream and Mission of LIC of India Mis sion Explore and elicit the quality of life of people through financial auspices by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development. Vision A trans-nationally competitive financial conglomerate of significance to societies and Pride of India. core out Values of LIC of India * Caring and Courtesy * inaugural and Innovation * Integrity and Transparency * persona and Returns * Participation and Relationship Trustworthiness and dependableness Ethics followed by LIC of India * Provide insurance cover and financial security to every insurable person. * Conduct all aspects of business keeping in view its interest and national priorities. * Provide them prompt, efficient and well- extendd service. * Act as trustees of their funds and invest the fund to their best advantage. * Conduct business with utmost economy and on fail business principles. affectionate advantages to LIC of India Providing or ganizational guidelines for business integrity in turbulent times. serving employees deal with ethical issues they face unremarkable on the job. Building solid company teamwork and productivity. Creating an insurance policy to help ensure that company policies and procedures are legal. Avoiding outlaw acts of inattention which can lower potential fines. Reinforcing the value associated with quality management, strategic planning, and diversity 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 commode institutionalizing the practices of good Corporate Governance are various proactive measures, initiatives and guidance by the Government, LIC Board and its Sub Committees along with LICs Human Resources and Agents. Our practice of operational transparency, information sharing, accountability and ensuring dialogue with all the stakeholders in addition to formulation of value- ground policies and practices at all levels made us to imbibe good Corporate Governance. This has enabled us to enhance our Brand Equity, strengthen stake of shareholders and maintain a healthy environment within the organization.This has led to a committed organizational point on the customer service which in turn has contributed to a good growth in business. CORPORATE SOCIAL debt instrument Corporate kindly right is the inveterate commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce 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 Schemes and Social hostage Claims under various Social bail Schemes 1, 02,950 claims amounting to Rs. 287. 4 crore paid under Social Security Schemes. a) acquisitions of Rs. 102. 53 crore was disbursed to 13, 78,744 students as a free add on pull ahead to the children of the members of Janashree Bima Yojana under Shiksha Sahayog Yojana during the year 2010-11. b) Scholarship for come 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 get by 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 delivery 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 bid 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 issue s of the various State Governments respectively during 2010-2011.SOCIAL RESPONSIBILITIES It has been the constant endeavor 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 floor and Social Sector which includes * Projects/Schemes for generation and infection of Power, * Housing Sector, * Water Supply and toilet Projects/Schemes, * Development of Roads, 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 Other Government Guaranteed Marketable securities, Loans, Debentures Equity investments in al-Qaeda and Social Sector amounts to Rs. 7,49,150 crore. III. LIC palmy Jubilee al-Qaida Under Corporate Social Responsibility, and to commemorate the Golden Jubilee of LIC in the year 2006, LIC Golden J ubilee Foundation Trust was formed with the objective of promoting education, health, relief of poverty 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 165 projects to the extent of Rs. 15. 66 crore. Under this Trust a scholarship scheme is also conjecture by name LIC Golden Jubilee Scholarship Scheme of the Trust to give scholarships at the rate of Rs. 10000/- per annum to meritorious students be to economically weaker sections of society to enable them to play along higher education at first 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 everywhere its existence of around 50 years, Life Insurance Corporation of Indi a, which commanded amonopolyof soliciting and selling life insurance in India, created extensive surpluses, and contributed around 7% of IndiasGDPin 2006. The Corporation, which started its business with around 300 offices, 5. 7 zillion policies and acorpusof INR 459 cardinal (US$ 92 million as per the 1959 re-sentencing 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 Survey 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 building OF INDIA), 4-LIC (LIFE INSURANCE CORPORATION). From the year 2006, LIC is continuously win the Readers Digest Trusted brand swag 8. According to The Brand Trust reputation 9 2011, LIC is the 8th most trusted brand of India. . Growth Visibilit y 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 promote a sense of participation among the workforce and make them partners in progress. * It also works towards their job satisfaction and sense of pride. * It provide and environment and opportunities for growth to enable them to realize their full potential. * It also take steps to develop professional skills of the workfo rce to enable them to incubate 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 believability over the time that is essential to move 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 kind 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 soundness in the organization. * Blaming others, claiming victimhood, or passing the buck may solve short-term crises, but refusal to take responsibility erodes respect and cohesion in an organization. Ethical people take r esponsibility for their actions. * Quality should be more than making the best product, but should extend to every aspect of your work. A person who recognizes quality and strives for it daily has a profound 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 lost it. allone 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 casing 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 sell and marketed aggressively throughout the organization. Every meeting place and medium sh ould be used to spread the good message. Of course, it will only be credible if the organization is practicing what it preaches. * The ethics devotion should extend to the next generation of employees. The hourlong it lasts, the more ingrained the principles will become. finis Business ethics present tending(p) solutions to the concerns and dilemmas faced by global organizations.Ethical leadership is essential for the long-term endurance and success of any organization. In the era of globalization, business ethics considerably regularize 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, tender-hearted resources, production, ICT etc. The commendable work do by global corporations in inculcating and practicing business ethics underscores the importance of value based leadership in international business scenario.Corporate g overnance is of paramount importance to a company and is almost as important as its primary business plan. When executed effectively, it can prevent corporate scandals, fraud and the civil and criminal 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 overlap 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 graveness in the form of audited financial reports, criminal investigations and federal probes finally catches up, bankrupting the company overnight. venal and unethical dealings can cause shareholders to flee out of fear, distrust and disgust. BIBLIOGRAPHY * http//www. usinessdictionary. com/ name/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