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BUSINESS ETHICS AND CORPORATE GOVERNANCE
Submitted To: Prof. Rupa
Submitted By : Jaya Mamtani Roll No. – 19 T.Y.B.B.I.
Without prejudice to the generality of the provisions contained in sub-section (1). the Authority shall have the duty to regulate. settlement of insurance claims. undertaking inspections of. a) Issue to the applicant a certificate of registration. There should also be a provision of reward and punishment for any other behaviour than that is prescribed. Subject to the provision of this Act and other law for the time being in force. 1. i) Control and regulation of the rates.Q. Code of conduct are the guidelines for professional conduct. terms and conditions that may be offered by insurers in respect of general insurance business not so controlled . advantages. The code helps in achieving organisational goals in socially acceptable manner. In case of any dilemma. renew. f) Promoting and regulating professional organisations connected with the insurance and re-insurance business. c) Specifying requisite qualifications. h) Calling for information from. b) Protection of the interests of the policy holders in matters concerning assigning of policy. What is code of conduct ? Explain briefly the code of ethics which is laid down by IRDA. code of conduct and practical training for intermediary or insurance intermediaries and agents. modify. withdraw. It also states what the insurance company stands for and is committed to which values.1. promote and ensure orderly growth of the insurance business and re-insurance business. Ans : To guide the action of the employees within an insurance company there is a need of a uniform policy and standard. nomination by policy holders. the powers and functions of the Authority shall include. insurance intermediaries and other organisations connected with the insurance business. intermediaries. 2. 1999 lays down the duties. it prescribes solution and thus helps the employees perform their routine activities. powers and functions of IRDA. Section 14 of IRDA Act. suspend or cancel such registration. e) Promoting efficiency in the conduct of insurance business. g) Levying fees and other charges for carrying out the purpose of this act. conducting enquires and investigations including audit of the insurers. d) Specifying the code of conduct for surveyors and loss assessors. surrender value of policy and other terms and conditions of contracts of insurance.
m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries. n) Supervising the functioning of the Tariff Adivsory Committee. k) Regulating investment of funds by insurance companies. o) Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organisations referred to in clause (f). . q) Exercising such other powers as may be prescribed. p) Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector. 1938 (4 of 1938) j) Specifying the form and manner in which books of accounts shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries. l) Regulating maintenance of margin of solvency.and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act.
. ii. Job Switching : When an employee changes job. usingadvertisement to confuse the customer withexaggerated claims and colourful copy. Advertisement : Marking false claims. iii. he must protect the information of his previous employer.2. etc. Giving Information Which is Confidential ( Insider Information ) : An employee has confidential information about financial status. iv. Price Fixing : Collaborating with other companies and fixing prices which are on higher side so that customer does not have any choice. Similarly a huge amount of money is invested in training of employee and he leaves the organisation which has trained him and takes his expertise with him. v. Similarly in industrial goods giving bribe to get the order. ii. etc. buy two get one free offers. Pricing : Differential pricing for different class of customers similarly low price identified as low quality. are used to lure the customer in purchasing the products. Customer Service : Appointing female executives to get new business and then sending recovery agents for outsourcing dues is unfair business practice. free trial. What are the unethical business practices ? Ans : 1] With respect to Customers : i. future projects. 2] Unethical business practices of employees : i.Q. Product Promotion : Using sales promotional techniques like demo pack. Special pricing factoring discount are all forms of unfair business practices.
What are the values required for a professional organisation ? Ans : Values are needed to become a good. right or wrong. Values are enduring and permanent. They are the “true north principle”. honest. b. c. Occupational Crimes : They are wrong actions of employees like: a. Investors buy or sell shares of the company based on this sensitive information. Q.which he should not disclose to anyone. Industrial Espionage : This is spying for either personal or companies benefit. The first task thus is to develop a realistic vision for the business. transporting and selling products that are prohibited by law e. Vision Mission Code of conduct 1) Vision : Whenever an organisation is set up there should be a very clear vision of how it is going to contribute to the immediate community without harming the physical environment. iv. False claims made by sales executive. In order to develop a strong professional organisation one needs values which are spelt for an organisation through the following: i. . ii. Using office telephone or PC for personal use. Values whether moral or non-moral are called normative as they are judgemental in nature. Define values.3. iii.g. Values are internal compass which guide our actions. Theft or pilferage. creative person. hard working. desirable or worthwhile. Value system is the way one organizes and ranks priorities and makes decisions based on these values. Damaging the property of the company. iii. Manufacturing. d. liquors and drugs selling. e. which would present a picture of the business in 3-5 years time in terms of its physical appearance. Values are our beliefs about what is good or bad.
etc. 3) Code of Conduct : These are the Do’s and Dont’s or the work culture in an organisation.size and activies. customers. the Board of Directors. “To be preferred provider of comprehensive and world class investment and banking solutions to the Financial Institution Group clients. Suppliers and Distributors and the Customers and the Shareholders. processes. Example. The code of conduct defines the rights and duties of all the stakeholders starting from the CEO or Managing Director. safety and appropriate pricing of the product. professionals.TATA Group. Employees. The code of conduct is necessary for the following: a) For Inspiration and Guidance : The code expresses a collective commitment of the organisation for the stakeholders to maintain it.” Thus the focus of ICICI Bank would be to cater to the needs of the Domestic Financial Institutions and retail customers. the Managers. It Disciplines and Discourages Unethical Business Practices : The code serves as a basis for investigating any unethical action on part of the company officials. Education and Mutual Understanding : The code serves as a benchmark for developing a shared understanding by employees. regulatory bodies like IRDA and SEBI. 2) Mission Statement : The nature of the business is often expressed in terms of its mission. For example: The mission statement of ICICI Bank. Example ISO 9000. Creates a Good Public Image : The code presents a positive image of a committed professional and the brand image in the minds of the customers and general public. 2000. The mission statement indicates the purpose of a business. Quality Standards : They are set to give us specifications regarding the quality. Also define the company’s markets. b) c) d) e) . location. staffing.