Business Ethics and Corporate Governance in Lic of India

OVERVIEW INSURANCE- AN INTRODUCTION Meaning restitution may be render upd as a kindly invention to ensure valueion of economic value of spiritedness and other assets. Under the plan of indemnification, a huge descend of people associate themselves by sharing risks attached to individuals. The risks, which can be insured against, include fire, the perils of sea, death and accidents and burglary. Any risk contingent upon these, may be insured against at a pension commensurate with the risk involved. Thus, collective bearing of risk is restitution. Insurance = Collective Bearing of RisksInsurance is a contract whereby, in return for the payment of tout ensembleowance by the insured, the insurers pay the pecuniary losses suffered by the insured as a proceeds of the occurrence of unforeseen events. The term risk is used to describe the possibility of adverse results flowing from any occurrence or the accidental happenings, which produce a mo concludingary loss. Insuranc e is a pool in which a large number of people exposed to a similar risk make contributions to a common fund out of which the losses suffered by the piteous few, due to accidental events, atomic number 18 made good. The sharing of risk among large groups of people is the basis of amends.Related article Disadvantages of moral philosophy in BusinessThe losses of an individual ar distributed everywhere a group of individuals. Insurance is nothing but a system of spreading the risk of one onto the shoulders of many. While it becomes sanely impossible for a man to bear by himself 100% loss to his own property or recreate arising out of an unforeseen contingency, Insurance is a method or process which distributes the burden of the loss on a number of persons within the group formed for this get outicular purpose. Definitions Fundamental Definition In the words of D. S. Hansell, Insurance accumulates contributions of all parties participating in the scheme. Contractual Definition In the words of Justice Tindall, Insurance is a contract in which a sum of money is paid to the assured as consideration of insurers incurring the risk of paying a large sum upon a developn contingency. Working of Insurance Insurance Industry in India The origin of demeanor insurance in India can be traced put up to 1818 with the formation of the Oriental liveliness Insurance Company in Calcutta. It was conceived as a means to provide for English Widows. In those days a higher reward was charged for Indian lives than the non-Indian lives as Indian lives were considered riskier for coverage.The Bombay Mutual Life Insurance Society that started its trading in 1870 was the first beau monde to charge same subsidy for both Indian and non-Indian lives. In 1912, insurance regulation formally began with the passing of Life Insurance Companies operation and the Provident Fund Act. By 1938, there were 176 insurance companies in India. But a number of frauds during 1920s and 1930s t ainted the image of insurance industry in India. In 1938, the first comprehensive code regarding insurance was introduced with the passing of Insurance Act of 1938 that provided strict State Control over insurance business.Insurance sector in India grew at a hot pace after independence. In 1956, Government of India brought together 245 Indian and foreign insurers and provident societies infra one matterized monopoly corporation and formed Life Insurance stomach (LIC) by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore. Before 1956, insurance was private with minimal government intervention. In 1956, life insurance was nationalized and a monopoly was created. In 1972, general insurance was nationalized as well.But, unlike life insurance, a different structure was created for the industry. India had the nineteenth largest insurance market in the instauration in 2003. Strong economic growth in the last decade combined with a population of over a billion makes it one of the potentially largest markets in the early. Insurance in India has gone done with(predicate) two radical transformations. One holding company was formed with four subsidiaries. As a part of the general opening up of the economy after 1992, a Government appointed committee recommended that private companies should be allowed to operate.It took six courses to implement the recommendation. mysterious sector was allowed into insurance business in 2000. However, foreign ownership was restricted. No more than than 26% of any company can be foreign- owned. A moreover regulation free regime ended in 1912 with the introduction of regulation of life insurance. A comprehensive regulatory scheme came into place in 1938. This was disable through nationalization in what fits we examine 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 susta ined growth of the economy in the recent past, the Indian market is likely to grow substantially over the coterminous few decades. The rest of the chapter is organized as deciphers. First, we study the evolution of insurance business before nationalization. This is Copernican because the denationalized structure brought back to on a lower floortake important healthy rules from 1938. Next we psychoanalyse the nationalized era separately for life and property casualty business as they were not nationalized simultaneously.Much of post-independence narrative of insurance in India was the history of nationalized insurance. In the following section, we examine the impertinent legal structure introduced after the industry was denationalized in 2000. In the penultimate section, we examine the current state of play and retched future of the industry. Important Milestones in the Life insurance business in India * 1870 Bombay Mutual life assurance society is the first Indian owned li fe insurer. * 1912 The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 The Indian Insurance Companies Act enacted to enable the government to collect statistical information just nearly both life and non-life insurance businesses. * 1938 Earlier legislation con unanimousated and amended to by the Insurance Act with the objective of protecting the interests of the insuring habitual. * 1956 245 Indian and foreign insurers and provident societies taken 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 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 Standard Life insurance first private insurers to sell a policy. * 2001 Royal Sundaram Alliance first non life insurer to sell a policy. * 2002 Banks were all owed to sell insurance plans. As threesome Party Administrations (TPAs) enter the scene, insurers start setting non-life claims in the cashless mode. * 2004-05 The Government proposed for increasing 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 CORPORATION ACT, 1956 An act to provide for the nationalization of life insurance business in India by transferring all such business to a stack established for the purpose and to provide for the regulation and control of the business of the locoweed and for matters connected therewith or incidental thereto. BUSINESS ETHICS Ethics aremoral guidelineswhich governgood behavior. So behaving ethically isdoing what is morally advanced. Behaving ethically in business is wide regarded as good business practice. To provide you with a couple of quotes honest principles and standards in business * Define acceptable conduct in business * S hould tolerate how management make decisions An important distinction to remember is that behaving ethically is not quite the same thing as behaving law spaciousy * Ethicsare about what is right and what is wrong * Lawis about what is lawful and what is unlawful You give probably note the link between business ethics and merged social responsibility (CSR). The two concepts are closely linked * A socially responsible firm should be an ethical firm * An ethical firm should be socially responsibleHowever there is also a distinction between the two * CSR is about responsibility to all stakeholders and not just shareholders * Ethics is aboutmorally correct behavior How do businesses ensure that its directors, managers and employees act ethically? A common approach is to implement acode of practice. Ethical codes are increasingly popular particularly with larger businesses and cover areas such as * embodied social responsibility * Dealings with clients and supply chain * environmenta l policy & actions * Rules for face-to-face and corporate integrity NEED OR IMPORTANCE OF BUSINESS ETHICSThese 12 points below discuss the need, grandeur of business ethics 1. Stop business malpractices Some unscrupulous businessmen do business malpractices by indulging in unfair trade practices like black marketing, contrived high pricing, adulteration, cheating in weights and measures, change of duplicate and harmful products, hoarding etc. These malpractices are harmful to the consumers. Business ethics help to stop these business malpractices. 2. Improve customers confidence Business ethics are needed to improve the customers confidence about the quantity, quality, price, etc of the products.The customers take on more trust and confidence in the businessmen who follow ethical rules. 3. Survival of business Business ethics are mandatory for the excerption of the business. The businessmen who do not follow it leave alone live short term success, but they allow fail in the long run. This is because they can cheat a consumer however once. After that, the consumer will not spoil products from that businessman. He will also tell others not to buy from that businessman. So this will defame his image and provoke a negative publicity. This will result in the failure of the business. in that respectfore, if the businessmen do not follow ethical rules, he will fail in the market. 4. Safeguarding consumers rights The consumer has many 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 must to safeguard these rights of the consumers. 5. Protecting employees and shareholders Business ethics are required to protect the interest of employees, shareholders, competitors, dealers, suppliers, etc. It protects them from exploitation through unfair trade practices. . Develops good relations Business ethics are impor tant to develop good and friendly relations between business and society. This will result in a regular supply of good quality goods and assistants at low prices to the society. It will also result in net income 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, then they will be fully accepted and not criticized by the society. The society will always support those businessmen who follow this necessary code of conduct. 8.Smooth functioning If the business follows all the business ethics, then the employees, shareholders, consumers, dealers and suppliers will all be happy. So they will give full 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. o utright they are more organized and cannot be cheated easily. They take actions against those businessmen who indulge in bad business practices. They boycott poor quality, harmful, high priced and duplicate goods.Therefore, the save way to suffer in business is to be honest and fair. 10. Consumer joy 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 hence are highly needed. 11. Importance of labour Labour i. e. employees or achievementers play a very crucial place in the success of a business.Therefore, business must use business ethics while dealing the employees. The business must give them proper stipend and salaries and provide them with better working conditions. There must be good relations between employer and employees. The employees must also be given proper well-being facilities. 12. Healthy competition The business must use business ethics while dealing with the competitors. They must have 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. unified GOVERNANCE Good corporate judicature contributes to a companys competitiveness and reputation, Corporate governanceis the system by which companies are directed and controlled. It involves regulatory and market mechanisms, and the roles and consanguinitys between a companys management, its menu, its shareholdersand otherstakeholders, and the goals for which the corporation is governed. In contemporary business corporations, the main external stakeholder groups are shareholders, debt holders, tradecreditors, uppliers, customers and comm unities affected by the corporations activities. . Internal stakeholders are theboard of directors,executives, and other employees. Much of the contemporary interest in corporate governance 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 have furbish up on the way a company is controlled. An important theme of corporate governance is the nature and finis ofaccountabilityof people in thebusiness.IMPORTANCE OF CORPORATE GOVERNANCE The need, significance or importance of corporate governance is listed below 1. Changing Ownership Structure In recent historic period, the ownership structure of companies has changed a plow. Public financial 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 draw out th e companies to use corporate governance. That is, they put pressure on the management to become more efficient, transparent, responsible, etc.They also ask the management to make consumer-friendly policies, to protect all social groups and to protect the environment. So, the changing ownership structure has resulted in corporate governance. 2. Importance of sociable Responsibility Today, social responsibility is given a lot of importance. The Board 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. Growing Number of Scams In recent years, many scams, frauds and corrupt practices have taken place.Misuse 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 offices. In order to avoid these scams and financial irregularities, many companies have started corporate governance. 4. Indifference on 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 ill-treat 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 big companies are selling their goods in the global 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 impossible to enter, survive and succeed the global market. 6. Takeovers and Mergers Today, there are many takeovers and mergers in the business world.Corporate governance is required to protect the interest of all the p arties during takeovers and mergers. 7. SEBI SEBI has made corporate governance compulsory for certain companies. This is done to protect the interest of the investors and other stakeholders. PROFILE OF THE ORGANISATION LIFE INSURANCE CORPORATION 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 currently has 8 zonal Offices and 113 divisional offices located in different partsof India, around 3500 servicing offices including 2048 branches, 54 Customer Zones, 25 Metro Area Service Hubs and a number of Satellite Offices located in different citie s and towns ofIndia and has a network of 13,37,064 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 guideword 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 literal 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 State-owned Industry Financial services Founded 1 September 1956Headquarters Mumbai,India Key people D. K. Mehrotra, (Chairman) Products Lifeandinsurance, investment,mutual fund pith 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. licindi a. 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 view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost. Maximize mobilization of peoples savings by making insurance-linked savings adequately attractive. * Bear in mind, in the investment of funds, the principal(a) 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 best advantage of the investors as well as the community as a whole, retentiveness 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 various life insur ance needs of the community that would arise in the changing social and economic environment. * guide all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy. * Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate mark. 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 Director, Central 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 turn out sure Brand in the platinum category. Superbrands Asian Leadership Award LIC has been ranked Number One Trusted Service Brand in the EconomicTimes Brand candour Survey Rated as the Most Preferred Life Insurance Company of the year at the CNBC Dainik Bhaskar Group Bombay Chamber Of Commerce ABCI Star News- Customer centrical Brand Award PROBLEMS OF LIC OF INDIA The live 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 face problem of surrender of a large number of policies, as sunrise(prenominal) insurers will accost them by offer of innovative products at lower prices. The cor porate clients under group schemes and salarysavings 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 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 reduced. This will be a wrong 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 outdated in the array 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. Reaching the consumer expectations on par with foreign companies such as better yield and muchimproved quality ofservice particularly in thearea of settlement ofclaims, issue of newpolicies, transfer of the policies and revival of policies in the liberalized market is very difficult 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 flooded by a large number of products by fairly large number of insurers operating in the Indian market. Even with restrain 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 ignorant about the various products of the insurance. The insurers will have to facean acute problem of the redressal of the consumers, grievances for deficiency in products and services. Increasing awareness willbring 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. SWOT ANALYSIS OF LIC OF INDIA STRENGTHS * Indias top insurance company and best among Public sector company. * Provide better nucleotide than any other Public company. * Brand Imag e * Govt Guarantee * Claims settlement * Pan India presence * Large product portfolio WEAKNESSES * Average waiting time for the customer is 15 to 20 minutes. * No separate customer bursting charge unit * Lethargic Staff * 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. * Ensure that policies are diversified across several customer segments * Pension Market * Health Insurance * Large Real land portfolio THREATS * Growth of private players has led to shifting emphasis from public sector companies. * Internal discord * New players * Red-tapism COMPETITION INFORMATION Main Competitors of LIC * SBI Life Insurance Company * ICICI Prudential Life Insurance Company Birla Sun Life Insurance Company * HDFC Standard Life Insurance Company * Reliance Life Insurance Company COMPARISON 1. Policies and Premium 2. Claims P aid 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 study to search for a particular subject topic or area of investigation okay by the Collection, Compilation, Analysis or Interpretation of data. It is more systematic study or activity directed towards discovery and the development of organized body of knowledge. advantage of Research depends upon the scientific methods used. There are various methods for Collecting the data. But it is not advisable and even possible to used all the methods. Every tec 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 analyze the business ethics and corporate governance in Life Insurance Corporation of India. The data are basically segregated into two parts a) first-string Data b) Secondary Data. a) Primary Data -Primary Data is collected 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, project report etc. For my project report, Ihad used secondary data under which Iused annual reports which includesbalance sheets, PL a/c, and other general information. Limitation of the Project ReportFollowings 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 presidency like LIC of India in this limited timeperiod. ? 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 o bjectives 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 being covered 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 reliability of the organization. Scope of the Study So I am working on the project Business Ethics and Corporate Governance 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? Vision and Mission of LIC of India Mission Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources f or economic development. Vision A trans-nationally competitive financial conglomerate of significance to societies and superbia of India. Core Values of LIC of India * Caring and Courtesy * Initiative and Innovation * Integrity and Transparency * 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 keeping in view its interest and national priorities. * Provide them prompt, efficient and courteous service. * Act as trustees of their funds and invest the fund to their best advantage. * Conduct business with utmost economy and on efficacious business principles. Social advantages to LIC of India Providing organizational guidelines for business integrity in turbulent times. Helping employees deal with ethical issues they face daily on the job. Building solid company teamwork and productivity. Creating an ins urance policy to help ensure that company policies and procedures are legal. Avoiding criminal acts of omission which can lower potential fines. Reinforcing the values associated with quality management, strategical 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 behind 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-based policies and practices at all levels made us to blow good Corporate Governance. This has enabled us to enhance our Brand Equity, strengthen stake of sharehold ers and maintain a healthy environment within the organization.This has led to a perpetrate organizational focus on the customer service which in turn has contributed to a good growth in business. CORPORATE amicable RESPONSIBILITY Corporate Social Responsibility is the continuing 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 Security Claims under various Social Security Schemes 1, 02,950 claims amounting to Rs. 287. 4 crore paid under Social Security Schemes. a) Scholarships 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 studen ts 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 various State Governments respectively during 2010-2011.SOCIAL RESPONSIBILITIES It has been the constant endeavour of the Corporation to provide security to as many people as possible and to channelis e 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 generation and transmission of Power, * Housing Sector, * Water Supply and sewerage 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 Infrastructure and Social Sector amounts to Rs. 7,49,150 crore. III. LIC Golden Jubilee root word Under Corporate Social Responsibility, and to commemorate the Golden Jubilee of LIC in the year 2006, LIC Golden Jubilee 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. 01 1 LIC has provided a principal 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 formulated by name LIC Golden Jubilee Scholarship Scheme of the Trust to give scholarships at the rate of Rs. 10000/- per annum to meritorious 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 IndiasGDPin 2006. The Corporation, which started its busin ess with around 300 offices, 5. 7 meg policies and acorpusof 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 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 OF INDIA), 4-LIC (LIFE INSURANCE CORPORATION). From the year 2006, LIC is continuously winning the Readers Digest Trusted brand award 8. According to The Brand Trust Report 9 2011, LIC is the 8th most trusted 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 cov er 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 workforce to enable them to bobby pin 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 tha t 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 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 responsibility 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 se lf-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. 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 generation of employees. The longer it lasts, the mo re 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-term 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 importance of value based leadership in international business scenario.Corporate governance 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 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 self-satisfied and corrupt. The end result is a fall that will occur when gravity in the form of audited financial reports, criminal investigations and federal probes finally catches up, bankrupting the company overnight. double-tongued and unethical dealings can cause shareholders to flee out of fear, distrust and disgust. BIBLIOGRAPHY * http//www. usinessdictionary. com/article/618/why-is-corporate-governance-important/ * http//www. licindia. in/ * http//www. busin essreviewindia. 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