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Chapter Introduction to Ethics

Ethics in Latin Language is called Ethicus and in Greek, it is called Ethicos. In fact, this word has originated from ethos meaning character or manners. Ethics is thus said to be the source of morals; a treatise on this; moral principles; recogni ed rules of conduct. !he character of a man is e"pressed in terms of his conduct #ref$ %iagram &'
Decided Charter of a Man Person by Conduct Series of of a Actions Considered as Wrong, Moral or Immoral #no$n as Moral %udgment Moral Standards Re&uirements

eads to

!a"en together

Good or Bad, Right or

By $hich $e can 'udge again

Meaning of (thics

Ethics thus can be considered as the source of character of a person e"pressed as right or wrong conduct or action.

Introduction to Business Ethics:Ethics is a social science that deals with what is good and right, and with moral duties and obligations. Ethics is a science of moralit( that guides and helps to achie)e ob*ecti)es through legal and moral means. +usiness ethics regulates the acti)ities of business firms towards societ( and other on social, legal and moral )alues.

Code of Conduct for Business Practices:In order to adopt fair business practices, trade associations, chambers of commerce, ,ouncil for -air +usiness .ractices, and others ha)e framed code of conduct for businessmen. !he code of conduct is to be followed b( the members of the association. !he code of conduct states what is to be done and what should not be done b( businessmen. / code of conduct is framed b( ,ouncil for -air +usiness .ractices #,-+.' for its members. !he following are the highlights of code of conduct of ,-+.$ &. !o charge fair and reasonable prices. 0. !o ensure accurac( in weights and measures. 1. !o ensure that intermediaries do not manipulate the prices.

2. !o fulfill social responsibilit( towards )arious sections of the public such as emplo(ees, customers, shareholders, go)ernment, suppliers, competitors, dealings, and the general public. 3. !o pa( attention to consumer rights. 4. !o pro)ide product warrant( in clear terms 5. 6ot to engage in hoarding and profiteering. 7. 6ot to adulterate the goods. 8. 6ot to trade in sub9 standard products, and also smuggled products. &:.6ot to undertake misleading and decepti)e ad)ertisements.

!he members of the ,-+. are e"pected to follow the code of conduct. !he code is framed in the interest of business communit( and in the interest of the societ(. /doption of the code of conduct would enhance the image of the business firms in the societ(. /n award has been instituted b( ,-+. to encourage members to adopt fair business practices. !he award is gi)en to the organi ation, which adopts high le)el of ethical practices.

Chapter Insurance professional ethics / first wa( of de)eloping the field of insurance ethics is to look at the challenges facing core professions in)ol)ed in insurance such as actuaries, law(ers and marketers. 6icos ;cordis from ;t <ohns =ni)ersit( in >anhattan presented the first paper, on the ethics of risk modeling. /s ;cordis e"plained, ?risk modeling refers to the use of @uantitati)e techni@ues to simulate hundreds of possible outcomes resulting from a managerial decision under a )ariet( of interlocking

assumptions. !hese hundreds of outcomes are then summari ed in a probabilit( distribution graph that shows the financial conse@uences of the managerial decision. /ccording to ;cordis, a risk modeling culture has e)ol)ed where the apparent e"actness of pure mathematics is preferred to the imprecision of human beha)ior. /s a result of this culture, such risk models tend to underestimate risk and present a )eneer of certaint( that is not alwa(s *ustified. !his o)er9 confidence about risk modeling had profound conse@uences in contributing to the recent financial crisis. In response to such problems, ethical codes for responsible risk modeling ha)e been proposed. / critical e)aluation of the risk modeling process, howe)er, suggests that in practice, ethical principles are fluid and )ague and depend on particular conte"ts. !hus, moral guides that pro)ide e"plicit instructions for responsible beha)iour are of limited practical )alue. Instead, ;cordis is arguing in a pioneering article, /ristotles classical )irtue of prudence pro)ides a framework for critical e)aluation of current risk modeling practices, and a focus for the de)elopment of alternati)es to the current practices that make models underestimate risk. ;cordis took the concept of prudence out of the academic world of ethics and applied it, through e"amples and anal(sis, to identif( fi)e characteristics of prudent risk modeling. / prudent risk modeler, he argued, recogni es that people beha)e according to the particular wa(s in which economic incenti)es affect them, which means that identical assets, in terms of cash flow, ma( in fact ha)e different )aluesAdepending on who holds them. / prudent risk modeler recogni es that all e"isting measures do a poor *ob in capturing interactions among risks, a critical component of risk models. / prudent risk modeler uses risk metrics that resonate with the wa( people think and feel about risk. / prudent risk modeler allows the @uestions posed b( management to determine the scope of the model so that the model becomes a

tool for helping managers understand uncertaint(. -inall(, a prudent risk modeler makes clear the conse@uences of decisions when the results of the model de)iate from realit(. !hus ;cordis offers an important set of ethical guidelines for risk modeling in an uncertain era. In addition to actuaries, law(ers represent a second ke( profession in the insurance world. ,hristian Lahnstein, an insurance law(er with an interdisciplinar( mindset #head of the %epartment of Bisk, Liabilit( and Insurance at >unich Be and host of the seminar', ga)e the academics insights from the point of )iew of a professional with a global )iew concerning the comple" @uestions that arise due to the interactions in the intricate chicken and egg relationship between liabilit( insurance and tort law. -or e"ample, as /merican insurance scholars !om +aker and ;ean Griffiths ha)e pointed out, the e"istence of directors and officers liabilit( insurance in the =nited ;tates dri)es and thoroughl( shapes shareholder litigation in that countr(. Cithout liabilit( insurance, tort law in that area would be something completel( different. Lahnstein encouraged liabilit( insurers to rethink and be more aware of their own role and responsibilit( in acti)el( shaping tort law. -or e"ample, Lahnstein argued that insurance could likewise pla( a role in the de)elopment of tort law in emerging markets like Bussia, ,hina, India and +ra il and that this was a benefit and should be encouraged. The ethical core of insurance relationships Last but not least one could de)elop an understanding of insurance ethics starting out from )arious t(pical ends )alues, such as securit( or sustainable de)elopment, or means )alues such as solidarit(, or fair distribution of rights and duties, or trust. !he task could be to isolate and then to elaborate indispensable

basic )alues or principles 9 as the foundation or ke( to successful insurance technologies and insurance relationships. !wo of the seminar papers could be placed within such a framework in progress. !wo sociologists from the =ni)ersit( of Delsinki, !uro9Eimmo Lehtonen and <(ri Liukko, dealt with a different set of ethical challenges for insurers$ the challenges of defining what constitutes e@ualit( and discrimination in the insurance conte"t. !he( argued that insurance can be thought of as producing what sociologists call ?solidarit( among e)er(one in risk pool, so that those in the pool become a communit( of people sharing risk. Chat makes insurance special is the particular wa( in which it links solidarit( and discrimination. Fn the one hand, pri)ate insurance especiall( is based on ine@ualit( as it discriminates between insured b( classif(ing them into different risk groups. !his results in different prices on the basis of such risk factors as age, gender, health and disabilit(. In some cases the practice of discrimination can lead to the total e"clusion of some people from insurance co)erage. /t the same time, insurance has a built9in connection to solidarit($ when taking out an insurance polic(, one participates in the risk pool within which each member is responsible for others risks. !he combination of technical efficienc( and group solidarit( made insurance a successful tool for go)ernment in welfare societies during the 0:th centur(. -rom the point of )iew of business ethics, howe)er, it is interesting that the connection between insurance and solidarit( is not limited to social welfare and social insurance, but is e)ident in relation to pri)ate insurance as well. /t the same time howe)er, it is important to understand that insurance creates )er( particular kinds of solidarit(. !he main @uestions the -innish sociologists asked then were$ Chat does solidarit( mean in different insurance situationsG Dow are the limits of solidarit( defined and *ustifiedG

Chapter Ethics in Insurance !he foundation of insurance contract is based on integrit( ( trust and e"pectation that the Insurer will pa( the amount which was promised to be paid and in the manner understood b( the insured. ;ometime the settlement of claim is dela(ed or the procedures to be completed at the time of settlement are far too cumber some than the e"pectation of the customer, or he >a( get a lesser amount than e"pected b( him. !he customer not onl( grudges but e)en the( lodge complains with authorities like the Fmbudsman. In this conte"t man( a time, Insures are confirmed and branded as unethical. Dowe)er, the core reason for this mostl( lies in the fault distribution of product itself. !he greatest factor that attributes to this state is unethical practices resorted to b( agents H distributor s in selling the insurance products. !he first and foremost thing leading to ultimate dissatisfaction is lack of understanding of .olic( terns b( the customers. In most cases, the customer is con)inced to purchase a .roduct which he does not understand or enter into a contract that he or she has not read nor would understand if he were read. !he policies are written in complicated legal language. F)er a period of time, due to )arious amendments, polic( statements ha)e become comple" in nature and are found to be difficult to understand b( most of the customers. E)en the agent of a compan( cannot be presumed to ha)e understood all the terms of the policies. /gents normall( sell those.olicies which the( better understand. /nother reason ma( be the commission associated to a polic(. !he policies attaching more commission will be sold more enthusiasticall( than the others. !he structure of the insurance industr( ( is such that, most of the agents are paid

incenti)es on attainment of minimum target of sales. In their an"iet( to fulfill targets, agents sometimes do not pro)ide clarit( to customers as regards the polic( terms. /t the time of selling the polic(, it ma( happen that the agent had not misinformed the ,ustomer, but at the same time did not e"plain the clear implications of the terms of the .olic( either. In this case neither the compan( nor the agent con)e(ed an(thing wrong, but it led to a sale which is not in accordance with the understandabilit( of the customer conse@uentl( leading to problems in the future. !he pressure to achie)e sales targets on agents and other distributions, man( a times, Besults in unethical practices at the grass root le)el. !he e"isting gap between customers E"pectations and insurabilit( of risk can be filled b( ethical practices of sales personnel. >easures to o)ercome unethical practices$ Imparting training of ethics to the agents. /ligning the organi ational culture to ethical beha)iour. >aking the polic( phraseolog( simple and understandable. ,reating health( competition among peers. Da)ing a proper commission structure for the intermediaries. ,lear communication of compan( s ob*ecti)es to customers and implication of its .roducts. Initiate for funding the research acti)ities focusing on customers.

Establishing ethics for insurance professionals

!he /merican Institute for ,hartered .ropert( and ,asualt( =nderwriters #/I,.,=', the /merican ,ollege and the ;ociet( of -inancial ;er)ice .rofessionals founded Ethics /wareness >onth in &88:. Chile it is impossible for all insurance professionals to reach consensus on e)er( aspect of their ethical ideolog(, those professional organi ations ha)e recogni ed the merit in pro)iding a platform for continued ethics awareness and discussion. Chen discussing professional ethics, it is necessar( to e"amine the core beliefs and underl(ing precepts that comprise our particular )alue s(stem. Chat forms the basis for (our )aluesIis it religion, philosoph(, famil(, tradition, societ(, mentor, etc.G -or the good of the societ(, we should not un@uestioningl( embrace *ust an( )alue s(stem. I propose we consider at least three uni)ersal precepts that e"ist in nearl( e)er( ci)ili ed societ( and in most e)er( religion$ honest(, respect for other persons and respect for others propert(. !hose ought to be the @ualif(ing parameters for an( belief s(stem chosen b( an insurance professional. Core beliefs

!he first tenet of the triad is honest(. Cithout honest(, there is no chance of a successful business relationship. Chile dishonest( is destructi)e in ones personal life, it usuall( is fatal in business. .eople are inclined to be more forgi)ing in personal relationships than the( are in business relationships. Fne dishonest act can tarnish an entire career. Could (ou bu( an(thing from someone (ou knew to be dishonestG

!he second tenet of the triad is respect for other persons, meaning respect for a persons ph(sical and emotional well9being. %isrespect could manifest itself b( such actions as rudeness, harassment, slander, discrimination, abuse, assault and murder. ;ome transgressions of this tenet, as well as the other two, are so nefarious that there are laws against such beha)ior. Chile there ma( be no law against rudeness, would (ou continue to do business with someone who was rude to (ouG !he third tenet of the triad is respect for a persons propert(. %isrespect could manifest itself b( such actions as neglect, carelessness, )andalism, theft and destruction. .ropert( and casualt( insurance producers are in the e"press business of preser)ing the assets of clients. %isrespect for a persons propert( is the antithesis of the noble mission of an insurance professional. Could (ou knowingl( conduct business with people who cheat their customers out of mone( or propert(G Accountability Fnce (ou ha)e identified the basis for (our )alues, ask what authorit( that basis holds o)er (our life. Dow can someone be moral or ethical without accountabilit(G I could ne)er trust a person who does onl( what is right in his own e(es. Ff course, e)er(one is ultimatel( accountable to our *ustice s(stem, but that is negati)e accountabilit(, occurring after the deeds ha)e been done. !o whom (ou ha)e )oluntaril( made (ourself accountableG !hat is the real @uestion. -ind (our own accountabilit( upon which to build (our ethics. %o (ou li)e to make (our famil( proud b( following their e"ampleG /re (our core )alues deri)ed from (our religious faithG Da)e (ou embraced the code of ethics offered b( professional organi ations, such as, the .rofessional Insurance /gents or the

,hartered .ropert( and ,asualt( =nderwritersG !he important thing is that (ou know where (oure ethical foundation lies and to whom (ou ha)e made (ourself accountable. Integrity .eople do not alwa(s beha)e in a wa( that is consistent with their moral code. In other words, people do not act according to their beliefs at all times. Ce all are h(pocrites, to some degree. !here is something about our nature that gets in the wa( of moral perfection. F)ercoming the tendenc( to de)iate from our moral code re@uires discipline of will. =nfortunatel(, discipline is unpleasant, and people are naturall( a)erse to it. !hat is where accountabilit( is of great assistance. -or e"ample, accountabilit( benefits the maturing of children. Initiall(, a child fears his parents punishment, so he or she submits to the will of the parent. ;oon, a child learns that acceptable beha)ior has its rewards and beha)es appropriatel( to recei)e the pri e. Later, the child finds pleasure in meeting the parents e"pectations and beha)es in wa( that will accomplish that goal. !hen, when a child goes to school and e"periences the relational friction with peers, he or she disco)ers the merit of conforming to societal norms. / child matures as he or she reali es the benefit of beha)ing in certain wa(s. -inall(, those )alues are internali ed and, hopefull(, become who the person is. Chen (ou act consistentl( with our beliefs, no matter what the circumstances, then (ou ha)e integrit(. ;omeone with integrit( is the same whether the( are in the light of public e"posure or in the darkness of solitude.

Leadership Ce cannot speak of accountabilit( at work without considering the moral compass communicated b( managers of the compan(. +usiness ethics are imparted b( both official polic( and practical e"ample, but the( are, undoubtedl(, more caught than taught. In (our insurance agenc(, (ou could read the moral direction b( the wa( management treats such matters as the proper licensing of emplo(ees, fair treatment of competitors, full disclosure to insurers and faithful control o)er other peoples mone(. !he two areas where producers are most )ulnerable are in their stewardship of mone( and handling of information. =sing a scale of one to &:, where one means an(thing goes and &: means abo)e reproach, where does (our agenc( fallG !hink for a moment about the impact a manager has on subordinates. If the manager has moral clarit( and a disciplined will, the worker will be go)erned b( the managers integrit(. If the manager has moral clarit( but an undisciplined will, the worker will be go)erned b( the managers h(pocris(. If the manager has moral confusion but has a disciplined will, the worker will be go)erned b( the managers t(rann(. If the manager has moral confusion and has an undisciplined will, the worker will be go)erned b( the managers anarch(. Professional Fn one end of the spectrum are people who work solel( for monetar( gain #called mercenaries' and on the other end are people who work to pursue a )ocation #called professionals'. Denr( %a)id !horeau proposed this aspiration$ /im

abo)e moralit(. +e not simpl( good; be good for something. !hat simple statement goes a long wa( toward defining a professional. !o be an insurance professional means ha)ing a passion about coming alongside people to help when the( are e"periencing some of the worst moments of their li)es. /s we all ha)e recentl( seen in the Gulf ;tates, this industr( has heroes who go far be(ond their *ob e"pectations and gi)e selflessl( to those in distress. ,loser to home, I am pri)ileged to obser)e more than &:: )olunteers ser)ing their Glenmont .rofessional Insurance /gent associations as officers, directors and committee members. ;ome of them toil numerous hours each week to help the industr( achie)e its full potential. / mercenar( who sells insurance is going to consider the bu(er a customer; someone who purchases a product or ser)ices. / professional, on the other hand, )iews the bu(er as a client. ,lient is deri)ed from a Latin word meaning lean, which portra(s someone leaning upon another for support. / client, then, is someone under the care and protection of a professional. Jou can choose to be a mercenar( or a professional. Jou dont need higher education or a promotion to make that choice.

A caveat Cithout a doubt, if (ou assure (our client that (ou will protect them against all or specified risks of loss, (ou ha)e e"panded the ordinar( legal dut( of a producer and made (ourself )ulnerable to lawsuits. =nless (ou intend to incur greater liabilit( in e"change for competiti)e differentiation, (ou should maintain a

working ethic to treat all polic(holders as clients, without actuall( communicating such promise to the client. Bemember, becoming the person (ou want to be is a process that takes time and discipline. ;ometimes, we need a nudge in the right direction, but the ke( to growth is accountabilit(.

Chapter National Insurance Co pany Li ited 6I, is the oldest Insurance ,ompan( in India. ;ince incorporation in the (ear &8:4, 6I, Das had been carr(ing on general insurance business under pri)ate management until &850, when its ser)ices were dedicated to the nation b( the General Insurance 6ationali ation /ct. 6I, started functioning as a subsidiar( of the General ,orporation of India #GI,' taking in its fold 00 foreign and && Indian Insurance ,ompanies which were amalgamated with it. ;ince then, 6I, ha)e been in the ser)ice of the nation carr(ing on general insurance business guided b( our mission and )alues. National Insurance Co pany Li ited was incorporated in &8:4 with its registered office in !ol"ata. ,onse@uent to passing of the General Insurance +usiness 6ationalisation /ct in &850, 0& -oreign and && Indian ,ompanies were amalgamated with it and 6ational became a subsidiar( of General Insurance ,orporation of India #GI,' which is full( owned b( the Go)ernment of India. /fter the notification of the General Insurance +usiness #6ationalisation' /mendment /ct, on 5 /ugust 0::0, 6ational has been de9 linked from its holding compan( GI, and the presentl( operating as a

Go)ernment of India undertaking. Business and #perations 6ational transacts general insurance business of -ire, >arine and >iscellaneous insurance. !he ,ompan( offers protection against a wide range of risks to its customers. !he ,ompan( is pri)ileged to cater its ser)ices to almost e)er( sector or industr( in the Indian Econom( )i . +anking, !elecom, /)iation, ;hipping, Information !echnolog(, .ower, Fil K Energ(, /gronom(, .lantations, -oreign !rade, Dealthcare, !ea, /utomobile, Education, En)ironment, ;pace Besearch etc. +efittingl(, the product ranges, of more than 0:: policies offered b( 6I, cater to the di)erse insurance re@uirements of its $% re@uirements are full( taken care of. &inancial 6ational Insurance is the second largest non9life insurer in India ha)ing a large market presence in 6orthern and Eastern India. ,ompan( witnessed another (ear of high business growth in the fiscal 0:&:9&&. %uring the (ear under re)iew Global Gross %irect .remium of the ,ompan( was 4023.&5 ,r as against 2423.85 ,r in the pre)ious (ear, thereb( recording an o)erall increase of 12.20L of premium income. !he net premium income of the ,ompan( was 3178.5& ,r in 0:&:9&& as against 1855.43 ,r in 0::89&: with a retention ratio of 74.1:L current (ear against pre)ious (earMs ratio of 73.40L. !otal in)estment in India stands at 7174.44 ,r as on 1&st >arch 0:&& as against 4143.2: ,r as on 1&st >arch 0:&:. illion polic(holders. Inno)ati)e and customi ed policies ensure that e)en speciali ed insurance

!he ,ompan( earned a 6et .rofit +efore !a" of 53.2: ,r in 0:&:9&&. !he accretion in total funds in 0:&:9&& has been &3:4.12crore as against 21&.15 ,r in the pre)ious (ear. !he total assets of the ,ompan( amounted to &8143.00 ,r as against &7:::.25 ,r in 0::89&:.

Ethical Policy and Practices Effecti)e communication channels, best DB .ractices coupled with an ob*ecti)e and transparent approach in all emplo(ee related matters ha)e pla(ed a ke( role impro)ing the emplo(ee morale leading to a high producti)it(. In recognition of the principle of emplo(ee as an internal customer, the compan( had also launched an internal grie)ance redressal forum titled as 6ational Insurance ,ompan( Emplo(ees Grie)ance Bedressal -orum #6I,EGB-' to pro)ide for a ;tructured ;(stem for redressal of emplo(ees grie)ance within a definite time frame. !he said s(stem enables an aggrie)ed emplo(ee to approach the highest authorit( in the compan( to seek redressal of his grie)ance. /s a part of ,orporate ;ocial Besponsibilit( 6ational Insurance collaborated with 6GFs, Frphanages, ;pecial ;chools, Botar( ,lubs, !iger ,onser)ation .ro*ects, Dealth ,are .romotion and ;porting acti)ities b( wa( of sponsorship of such e)ents. +rand 6I, also made inroads into the ps(che of (oung K educated generation through sponsorship of seminars and workshops conducted in eminent educational K professional institutions. +rand 6I, also made its presence felt in the minds of the (oung and educated through sponsorship of seminars and workshops conducted in eminent educational institutions such as ;(mbiosis, ,>/, +engal Engineering ,ollege and other professional colleges. In conclusion, it ma( be said that the ,ompanies well9structured publicit( acti)ities in 0:&:9&&

has contributed to making 6I, a )isible and )ibrant brand.

'I( PILLA)' #& ET*ICAL C*A)ACTE)' !he si"pillars of character are ethical )alues to guide our choices. !he standards of conduct that arise out of those )alues constitute the ground rules of ethics, and therefore of ethical decision9making. !here is nothing sacrosanct about the number si". Ce might reasonabl( ha)e eight or &:, or more. +ut most uni)ersal )irtues fold easil( into these si". !he number is not unwield( and the ;i" .illars of ,haracter can pro)ide a common le"icon. Ch( is a common le"icon necessar(G ;o that people can see what unites our di)erse and fractured societ(. ;o we can communicate more easil( about core )alues. ;o we can understand ethical decisions better, our own and those of others. !he ;i" .illars act as a multi9le)el filter through which to process decisions. ;o, being trustworth( is not enough A we must also be caring. /dhering to the letter of the law is not enough A we must accept responsibilit( for our action or inaction. !he .illars can help us detect situations where we focus so hard on upholding one moral principle that we sacrifice another A where, intent on holding others accountable, we ignore the dut( to be compassionate; where, intent on getting a *ob done, we ignore how. In short, the ;i" .illars can dramaticall( impro)e the ethical @ualit( of our

decisions, and thus our character and li)es. $+ T),'T-#)T*INE'' Chen others trust us, the( gi)e us greater leewa( because the( feel we dont need monitoring to assure that well meet our obligations. !he( belie)e in us and hold us in higher esteem. !hats satisf(ing. /t the same time, we must constantl( li)e up to the e"pectations of others and refrain from e)en small lies or self9ser)ing beha)ior that can @uickl( destro( our relationships. ;impl( refraining from deception is not enough. !rustworthiness is the most complicated of the si" core ethical )alues and concerns a )ariet( of @ualities like honest(, integrit(, reliabilit( and lo(alt(. *onesty !here is no more fundamental ethical )alue than honest(. Ce associate honest( with people of honor, and we admire and rel( on those who are honest. +ut honest( is a broader concept than man( ma( reali e. It in)ol)es both communications and conduct. Donest( in communications is e"pressing the truth as best we know it and not con)e(ing it in a wa( likel( to mislead or decei)e. !here are three dimensions$ Truthfulness+!ruthfulness is presenting the facts to the best of our knowledge. Intent is the crucial distinction between truthfulness and truth itself. +eing wrong is not the same thing as l(ing, although honest mistakes can still damage trust insofar as the( ma( show slopp( *udgment. 'incerity+;incerit( is genuineness, being without tricker( or duplicit(. It precludes all acts, including half9truths, out9of9conte"t statements, and e)en silence, that are intended to create beliefs or lea)e impressions that are untrue or


Candor+In relationships in)ol)ing legitimate e"pectations of trust, honest( ma( also re@uire candor, forthrightness and frankness, imposing the obligation to )olunteer information that another person needs to know. Donest( in conduct is pla(ing b( the rules, without stealing, cheating, fraud, subterfuge and other tricker(. ,heating is a particularl( foul form of dishonest( because one not onl( seeks to decei)e but to take ad)antage of those who are not cheating. Its a two9fer$ a )iolation of both trust and fairness. 6ot all lies are unethical, e)en though all lies are dishonest. DuhG !hats right; honest( is not an in)iolate principle. Fccasionall(, dishonest( is ethicall( *ustifiable, as when the police lie in underco)er operations or when one lies to criminals or terrorists to sa)e li)es. +ut dont kid (ourself$ occasions for ethicall( sanctioned l(ing are rare and re@uire ser)ing a )er( high purpose indeed, such as sa)ing a life A not hitting a management9pleasing sales target or winning a game or a)oiding a confrontation. Integrity !he word integrit( comes from the same Latin root as Ninteger,N or whole number. Like a whole number, a person of integrit( is undi)ided and complete. !his means that the ethical person acts according to her beliefs, not according to e"pedienc(. ;he is also consistent. !here is no difference in the wa( she makes decisions from situation to situation; her principles dont )ar( at work or at home, in public or alone.

+ecause she must know who she is and what she )alues, the person of integrit( takes time for self9reflection, so that the e)ents, crises and seeming necessities of the da( do not determine the course of her moral life. ;he sta(s in control. ;he ma( be courteous, e)en charming, but she is ne)er duplicitous. ;he ne)er demeans herself with obse@uious beha)ior toward those she thinks might do her some good. ;he is trusted because (ou know who she is$ what (ou see is what (ou get. .eople without integrit( are called Nh(pocritesN or Ntwo9faced.N )eliability .Pro ise-!eeping/ Chen we make promises or other commitments that create a legitimate basis for another person to rel( upon us, we undertake special moral duties. Ce accept the responsibilit( of making all reasonable efforts to fulfill our commitments. +ecause promise9keeping is such an important aspect of trustworthiness, it is important to$ Avoid bad-faith e0cuses+ Interpret (our promises fairl( and honestl(. %ont tr( to rationali e noncompliance. Avoid un1ise co it ents+ +efore making a promise consider carefull( whether (ou are willing and likel( to keep it. !hink about unknown or future e)ents that could make it difficult, undesirable or impossible. ;ometimes, all we can promise is to do our best. Avoid unclear co it ents. +e sure that, when (ou make a promise, the other person understands what (ou are committing to do. Loyalty ;ome relationships A husband9wife, emplo(er9emplo(ee, citi en9countr( A

create an e"pectation of allegiance, fidelit( and de)otion. Lo(alt( is a responsibilit( to promote the interests of certain people, organi ations or affiliations. !his dut( goes be(ond the normal obligation we all share to care for others.

Li itations to loyalty. Lo(alt( is a trick( thing. -riends, emplo(ers, co9workers and others ma( demand that we rank their interests abo)e ethical considerations. +ut no one has the right to ask another to sacrifice ethical principles in the name of a special relationship. Indeed, one forfeits a claim of lo(alt( when he or she asks so high a price for maintaining the relationship. Prioriti2ing loyalties+;o man( indi)iduals and groups make lo(alt( claims on us that we must rank our lo(alt( obligations in some rational fashion. -or e"ample, its perfectl( reasonable, and ethical, to look out for the interests of our children, parents and spouses e)en if we ha)e to subordinate our obligations to other children, neighbors or co9workers in doing so. 'afeguarding confidential infor ation.Lo(alt( re@uires us to keep some information confidential. Chen keeping a secret breaks the law or threatens others, howe)er, we ma( ha)e a responsibilit( to Nblow the whistle.N Avoiding conflicting interests.Emplo(ees and public ser)ants ha)e a dut( to make all professional decisions on merit, unimpeded b( conflicting personal interests. !he( owe ultimate lo(alt( to the public. 3+ )E'PECT .eople are not things, and e)er(one has a right to be treated with dignit(. Ce certainl( ha)e no ethical dut( to hold all people in high esteem, but we should treat e)er(one with respect, regardless of who the( are and what the( ha)e done.

Ce ha)e a responsibilit( to be the best we can be in all situations, e)en when dealing with unpleasant people. !he Golden Bule A do unto others as (ou would ha)e them do unto (ou A nicel( illustrates the .illar of respect. Bespect prohibits )iolence, humiliation, manipulation and e"ploitation. It reflects notions such as ci)ilit(, courtes(, decenc(, dignit(, autonom(, tolerance and acceptance. Civility4 Courtesy and 5ecency / respectful person is an attenti)e listener; although his patience with the boorish need not be endless #respect works both wa(s'. 6e)ertheless, the respectful person treats others with consideration, and doesnt resort to intimidation, coercion or )iolence e"cept in e"traordinar( and limited situations to defend others, teach discipline, maintain order or achie)e social *ustice. .unishment is used in moderation and onl( to ad)ance important social goals and purposes. 5ignity and Autono y .eople need to make informed decisions about their own li)es. %ont withhold the information the( need to do so. /llow all indi)iduals, including maturing children, to ha)e a sa( in the decisions that affect them. Tolerance and Acceptance /ccept indi)idual differences and beliefs without pre*udice. <udge others onl( on their character, abilities and conduct. 6+ )E'P#N'IBILIT7 Life is full of choices. +eing responsible means being in charge of our choices and, thus, our li)es. It means being accountable for what we do and who we are. It also means recogni ing that our actions matter and we are morall( on the hook for the conse@uences. Fur capacit( to reason and our freedom to choose make us

morall( autonomous and, therefore, answerable for whether we honor or degrade the ethical principles that gi)e life meaning and purpose. Ethical people show responsibilit( b( being accountable, pursuing e"cellence and e"ercising self9restraint. !he( e"hibit the abilit( to respond to e"pectations.

Accountability /n accountable person is not a )ictim and doesnt shift blame or claim credit for the work of others. De considers the likel( conse@uences of his beha)ior and associations. De recogni es the common complicit( in the triumph of e)il when nothing is done to stop it. De leads b( e"ample. Pursuit of E0cellence !he pursuit of e"cellence has an ethical dimension when others rel( upon our knowledge, abilit( or willingness to perform tasks safel( and effecti)el(. 5iligence+It is hardl( unethical to make mistakes or to be less than Ne"cellent,N but there is a moral obligation to do ones best, to be diligent, reliable, careful, prepared and informed. Perseverance+Besponsible people finish what the( start, o)ercoming rather than surrendering to obstacles. !he( a)oid e"cuses such as, N!hats *ust the wa( I am,N or NIts not m( *ob,N or NIt was legal.N Continuous I prove ent+Besponsible people alwa(s look for wa(s to do their work better. 'elf-)estraint Besponsible people e"ercise self9control, restraining passions and appetites #such

as lust, hatred, glutton(, greed and fear' for the sake of longer9term )ision and better *udgment. !he( dela( gratification if necessar( and ne)er feel its necessar( to Nwin at an( cost.N !he( reali e the( are as the( choose to be, e)er( da(.

%+ &AI)NE'' Chat is fairnessG >ost would agree it in)ol)es issues of e@ualit(, impartialit(, proportionalit(, openness and due process. >ost would agree that it is unfair to handle similar matters inconsistentl(. >ost would agree that it is unfair to impose punishment that is not commensurate with the offense. !he basic concept seems simple, e)en intuiti)e, (et appl(ing it in dail( life can be surprisingl( difficult. -airness is another trick( concept, probabl( more sub*ect to legitimate debate and interpretation than an( other ethical )alue. %isagreeing parties tend to maintain that there is onl( one fair position #their own, naturall('. +ut essentiall( fairness implies adherence to a balanced standard of *ustice without rele)ance to ones own feelings or inclinations. Process .rocess is crucial in settling disputes, both to reach the fairest results and to minimi e complaints. / fair person scrupulousl( emplo(s open and impartial processes for gathering and e)aluating information necessar( to make decisions. -air people do not wait for the truth to come to them; the( seek out rele)ant information and conflicting perspecti)es before making important *udgments. I partiality %ecisions should be made without fa)oritism or pre*udice. E8uity

/n indi)idual, compan( or societ( should correct mistakes, promptl( and )oluntaril(. It is improper to take ad)antage of the weakness or ignorance of others.

9+ CA)IN: If (ou e"isted alone in the uni)erse, there would be no need for ethics and (our heart could be a cold, hard stone. ,aring is the heart of ethics, and ethical decision9making. It is scarcel( possible to be trul( ethical and (et unconcerned with the welfare of others. !hat is because ethics is ultimatel( about good relations with other people. It is easier to lo)e Nhumanit(N than to lo)e people. .eople who consider themsel)es ethical and (et lack a caring attitude toward indi)iduals tend to treat others as instruments of their will. !he( rarel( feel an obligation to be honest, lo(al, fair or respectful e"cept insofar as it is prudent for them to do so, a disposition which itself hints at duplicit( and a lack of integrit(. / person who reall( cares feels an emotional response to both the pain and pleasure of others. Ff course, sometimes we must hurt those we trul( care for, and some decisions, while @uite ethical, do cause pain. +ut one should consciousl( cause no more harm than is reasonabl( necessar( to perform ones duties. !he highest form of caring is the honest e"pression of bene)olence, or altruism. !his is not to be confused with strategic charit(. Gifts to charities to ad)ance personal interests are a fraud. !hat is, the( arent gifts at all. !he(re in)estments

or ta" write9offs. ;+ CITI<EN'*IP ,iti enship includes ci)ic )irtues and duties that prescribe how we ought to beha)e as part of a communit(. !he good citi en knows the laws and obe(s them, (es, but thats not all. ;he )olunteers and sta(s informed on the issues of the da(, the better to e"ecute her duties and pri)ileges as a member of a self9go)erning democratic societ(. ;he does more than her NfairN share to make societ( work, now and for future generations. ;uch a commitment to the public sphere can ha)e man( e"pressions, such as conser)ing resources, rec(cling, using public transportation and cleaning up litter. !he good citi en gi)es more than she takes.

Chapter IN',)ANCE - The indication of refor s

IB%/ 9 central to the insurance reform process 9 is an autonomous, regulator( authorit( endea)oring to protect the interests of polic( holders; and regulate, promote K ensure orderl( growth of the insurance industr(. !he IB%/ has been empowered to carr( out se)eral functions, including$

O .romoting and regulating professional organi ations connected with insurance K reinsurance O Impro)ing the efficienc( while conducting the insurance business O Establishing a code of conduct for pla(ers in insurance

O %etermining the specification of accounts, and the manner in which funds are in)ested O La(ing down prudential norms for in)estment for both life and general insurance companies

Chapter T*E 'I( 'TEP IN',)ANCE PLANNIN: P)#CE''

Insurance .lanning is the process of pro)iding ad)ice and assistance to clients to determine whether and how clients can meet their financial needs and lifes goal through proper management of financial resources.

P Establishing and defining the client = planner relationship: !he -inancial ad)isor should clearl( e"plain or document the ser)ices to be pro)ided and define the responsibilities. !he ad)isor should e"plain full( how he will be paid and b( whom. !he ad)isor should also disclose an( restrictions on his abilit( to gi)e unbiased ad)ice and disclose an( conflicts of interests. !he ad)isor should agree on how long the professional Belationship should last and how decisions will be made.

> :athering client data4 including goals: !he -inancial ad)isor should ask for information about the financial situation. !he planner should mutuall( define the personal and financial goals, understand the time frame for results and discuss, if rele)ant, how one feels about risk. !he -inancial .lanner should gather all the necessar( documents before gi)ing the ad)ice.

P Analy2ing and evaluating the financial status: !he -inancial ad)isor should anal( e the information to assess the current situation and determine what one

must do to meet the goals, depending on what ser)ices ha)e been asked. -or this one could include anal( ing the assets, liabilities and cash flow, current insurance co)erage, in)estments or ta" strategies.

P 5eveloping and presenting &inancial Planning reco alternatives: !he -inancial .lanner should offer

endations and?or -inancial .lanning

recommendations that address the goals, based on the information pro)ided. !he planner should go o)er the recommendations with the client to help and understand them so that one makes informed decisions. !he planner should also listen to the clients concerns and re)ise the recommendations as appropriate.

P I ple enting the &inancial Planning reco

endations: !he planner and

the client should agree on how the recommendations will be carried out. !he planner ma( carr( out the recommendations or ser)e as (our ?coach, coordinating the whole process along with professionals such as solicitors or stockbrokers.

P @onitoring the &inancial Planning reco

endations: !he planner should

agree on who will monitor the progress towards the clients goals. If the planner is in charge of the process, heHshe should report personall( to re)iew the situation and ad*ust the recommendations, if needed.

Chapter Ethics in insurance today .present scenario/:

/ccording to insurance stakeholders, the issue of compliance with ethics and best practices should go)ern market strategies and operations. ;takeholders ha)e warned that the sectorMs efforts at achie)ing a more robust financial capacit( would be rubbished if steps are not taken to address unethical practices and the pre)alence of fake institutions in the industr(. Insurance operators need to de)ote more of their energies and resources to ensuring the emergence of a new order in terms of pla(ersM attitude to the issue of ethics. Insurance, being a business that is based on trust, could onl( win the admiration and patronage of the bu(ing public when there is a widel( acknowledged effort b( operators to operate b( the rules laid down b( trade bodies and the regulator( authorities. Fne would agree that the le)el of capital companies ha)e had to raise within the last few (ears is @uite challenging. !hat is wh( there must be a collecti)e resol)e b( underwriters, brokers, loss ad*usters, and agents to ensure that the additional funds in*ected into the sector are safeguarded and used optimall( through strict adherence to ethics of the profession. Fperators are usuall( e"pected to displa(

more commitment to ethical standards in all the operations. !here should not be an( room for unprofessional and unethical practices in the dispensation. Generall(, the fear of losing business, rate cutting and offer of illegal inducements has compromised insurance operatorsM compliance to the industr(Ms ethics. Industr( watchers sa( e"perience of non compliance with ethics in the insurance industr( is a reflection of the situation in the larger societ(, adding that professionalism, honour, ser)ice and social responsibilit(, should be the ke( attributes of the sector.

Chapter Insurance and Ethics

Insurance, b( definition raises ethical @uestions. Insurance might be )iewed as mans attempt to control and influence an en)ironment that we all know is in Gods hands. >ans attempt to insure an(thing is, at best, limited. Insurance is nothing more than a pooling of mone( to pro)ide limited reassurance for a limited set of assets or circumstances.

>an( people look to insurance to pro)ide them with a complete sense of securit( and assurance. Chen the( bu( insurance some people think, Fh, now I dont ha)e to worr(, e)er(thing will be taken care of. =nfortunatel(, o)er the (ears, the insurance industr( has often nurtured this paternalistic and incorrect notion.

+ecause the( do not control the world, insurance is onl( a partial or stopgap measure to deal with the uncertainties that the world presents. Insurance does not pro)ide the kind of uni)ersal co)erage and assurance that man( people look for.

>an( ethical concerns with insurance e"ist because of this gap between consumer e"pectations and genuine insurable risk.

-or e"ample, people are often disappointed, angr( or disillusioned to find that the insurance the( ha)e been pa(ing for does not co)er a particular situation. !his can lea)e consumers feeling that insurance is a poor economic )alue or a rip9 off. In this business managers fre@uentl( hear statements like, I)e paid thousands of rupees of premiums, and this small claim isnt co)ered or +ecause I forgot two pa(ments, m( co)erage was cancelled. 6ow m( claim wont be paid after pa(ing premiums for man( (ears, or I didnt understand what I bought, I thought e)er(thing was co)ered. 6ot meeting a customers e"pectations can feel frustrating and dissatisf(ing to them. +ecause of this difference between what people e"pect and what insurance pro)ides, insurance is one of the most highl( regulated industries in our countr(. /lthough it is national in scope, it is one of the few industries of its kind that is primaril( regulated at the state le)el with 3: different sets of laws and regulations go)erning insurance.

Distoricall(, insurance has pla(ed an important role in the de)elopment of world economies. =nfortunatel(, there are times when the industr( has not been a good corporate citi en. In some cases, the insurance industr( has a histor( of discrimination, usurious prices, and dishonest business practices. Is insurance a good business after allG %oes it raise so man( ethical @uestions that we should *ust a)oid or eliminate itG

Fnce looked at carefull(, insurance is a wonderful and much needed product. Insurance, at its core, is a pooling of communit( risks. It is a formali ed wa( for people to come together and help each other. -or e"ample, when we pa( life insurance premiums, we are putting our mone( together, not *ust to help oursel)es but to help other families. Chen someone else dies, his famil( benefits because a pa(ment can be made from this pool of premiums and the in)estment income that arises from it. Chen we die, our claim is paid to our famil(, from the same pool. .eople, in more informal wa(s, ha)e done this for centuries. Chen someone dies, those remaining help the famil(. !his ma( appear )er( basic, but insurance is much more powerful than *ust sur)i)or benefits. Insurance allows us to take risks and therefore full( li)e our li)es. Insurance is re@uired in most industries and professions. !his gi)es us some assurance of the @ualit( of goods and ser)ices that we use. ,ommercial insurance for industries and professions has underwriting standards that re@uire certain practices, safeguards, licensing, and so on. In this wa(, insurance pro)ides a form of safet( net for consumers both in terms of the product or ser)ice deli)ered and remuneration if there is malfeasance.

Qer( few of us would ha)e surger(, ride in an airplane, get on an ele)ator, eat in a Bestaurant, and dri)e cars, if there was no insurance in place. E)en more compelling, in man( cases, without insurance we would not enter into these businesses. Cithout insurance one mistake could bankrupt the business and shatter customer confidence. Insurance not onl( pro)ides protection to the consumer, but also frees us to conduct business.

Insurance, *ust like mone(, is not an e)il unto itself. It is a channel that can be used in )er( good and helpful wa(s. Fnce we accept the proposition that insurance actuall( is a good business, the ethical concerns do not end. In fact, in man( wa(s, the( *ust begin. E)er( da( in running an insurance business, ethical considerations arise.

/ few of the @uestions insurance corporatists confront dail( are$

&. Chat is a fair price to chargeG ;hould we charge as much as we can, as little as we can, or something in9betweenG

0. Chat is the proper le)el of customer ser)iceG <ust enough to get b(, more than the customer has bargained for, or something in9betweenG

1. Chat kinds of policies and procedures should go)ern the running of the compan(G ;hould we follow the letter of the law, the spirit of the law, or bothG

2. Chich laws are we talking about, mans laws, Gods laws, or bothG Chen can and should we make e"ceptions to our policies and proceduresG

3. Dow should we contract with other companiesG ;hould we get as much as possible, gi)e as much as possible, or something in9betweenG

4. Chat should our benefits and compensation be for the people working within the compan(G ;hould we pa( them as little as possible, as much as possible, or ;omething in9betweenG 5. Chat should be done when someone is not doing the *obG ;hould we help them, get rid of them, or keep them no matter whatG Dow can we best address these ethical dilemmasG

!here are no hard and fast answers to an( of these @uestions. +ased upon the situation, an( of the answers ma( be right. It is possible to face the changing @uestions, and the changing answers, e)er( da( depending upon the indi)idualistic )iews and ethical followings.

Chapter Institute for Insurance Ethics !he mission of the Institute for Insurance Ethics is to de)elop programs that will educate members of the insurance and financial ser)ices industr(, as well as the consuming public about the nature of ethics, social responsibilit(, and the application of high ethical standards. / primar( purpose of the Institute will be to

consider the role of ethics as an alternati)e to additional regulation of the insurance and financial ser)ices industr(. =nlike man( other businesses, insurance is based on mutual trust between insurance producers and insurance clients. !rust, in turn, is based on the highest ethical standards.

Vision of the Future

!he Institute for Insurance Ethics will be a highl( )isible ad)ocate for ethics and ethical beha)ior in the life insurance and financial ser)ices industr(. It will be a strong, clear )oice for ethical conduct and social responsibilit( within the insurance industr(. !he leadership shown b( the institute will create e)er9 growing awareness of ethical issues among insurance and financial ser)ices professionals. !hrough its growing leadership and influence, insurance professionals will gain more and more formal training in ethics and in dealing with ethical situations that the( confront. !hrough that training and awareness, consumers will continue to gain trust and confidence in insurance professionals and in the insurance industr(.

C#5E #& ET*IC'

;elling Life Insurance is like selling intangible product. ;o, the marketing staff needs to obser)e a set of norms in his H her professional conduct, which make him H her worth( of trust and faith. !he ,ode of Ethics for the life insurance, marketing staff &. !o perform his H her duties in high esteem. 0. !o gi)e utmost priorit( to the clientMs interest. 1. 6ot to disclose clientMs confidential and personal information 2. !o ensure prompt and sincere ser)ice to the client and his or her famil(. 3. !o use appropriate methods in con)incing clients to protect their interest. 4. !o make truthful and accurate presentations. 5. !o impro)e his H her knowledge of life insurance through constant stud(. 7. !o set a plan and work accordingl(. 8. !o maintain fair relations with colleagues. &:. !o strictl( follow the concerned laws and regulations. &&. !o obtain proposals onl( on the li)es of persons who fits in the ph(sical, moral and financial standard defined b( the ,ompan(. &0. !o be lo(al to the Frgani ation. insurable

!he IB%/ has formulated a ,ode of ,onduct for the marketing staff which comprises two broad group heads )i . N%oMsN and N%onMtsN. !he( are listed herewith$

5oAs &. Identification of marketing staff and the insurance agenc( 9 certificate of License to be shown to the prospect on demand. 0. >atch the needs of his H her client with )arious products a)ailable with his insurer. 1. Cork out the premium to be charged so that his H her prospect is able to weigh the economic or financial implication of the proposal on his H her resources. 2. +ring to the notice of his H her client the implication of )arious @uestions in the proposal form and other documents and ad)ise the client to disclose all the material information. 3. %isclose to the insurer all rele)ant information. 4. Inform the prospect about acceptance or re*ection of the proposal b( the insurer. 5. Fbtain all documents from the prospect for the completion of the case.

7. /ssist the polic( holder in matters of$

,laim settlement, Effecting nominationHassignment, Be)i)al, change of address, E"ercise of )arious options.

5onAts - No @ar"eter shall

&. ;olicit or procure insurance business without holding a proper authori ation 0. Induce the prospect to omit to disclose the material information in the proposal form 1. Induce the prospect to submit wrong information in the proposal form or in the documents submitted to the insurer for acceptance of the proposal 2. +eha)e in discourteous manner. 3. Interfere with an( proposal introduced b( an( other insurance marketers. 4. Fffer different terms and conditions other than offered b( the insurer. 5. .art with or share his incenti)e with .rospect or with an( other person. 7. Becei)e a share of the polic( proceeds from the beneficiar(. 8. ,ompel an( person to terminate an insurance contract with an( insurer order to effect a new proposal within three (ears from date of such termination. in

&:. /ppl( for fresh license to act as an insurance marketer if his H her earlier license H authori ation ha)e been terminated with in fi)e (ears from the date of termination. &&. Bemain or become a director of an( insurer carr(ing on insurance business in India.

Chapter Ethics in insurance: Building relationships through trust

!he momentum of the pri)ate insurance sector lea)es no doubt in ones mind that it is amongst the foremost growth sectors of our countr(. / market share of 04.&7 per cent in fi)e (ears is testimon( to this. +ut e)en while one braces himself to a)ail of the numbers within hisHher sight, the( need to reali e that the Nlong9termN will belong to that compan( which rigidl( benchmarks ethics for itself and for the industr(. In a business, where the customer entrusts the compan( with his H her financial sa)ings, ethics has a direct relation to sales. !he greater the trust, the more the sales.

!here are man( wa(s to build trust through ethics, the most fundamental being the wa( the product is designed. It should offer complete clarit( and transparenc( and the literature supporting the product should not o)er9promise the benefits or understate the risks. -or eg$ /t +irla ;un Life, the use of the sales illustration, the inclusion of the polic( proposal form, and the free look period the( offer ha)e ser)ed to win their customersM trust. +( gi)ing customers the option to track in)estments online and b( publishing the performance of the funds against benchmark indices, specificall( prepared for +irla ;un Life b( ,BI;IL, the( pro)e that the( are an open and reliable organi ation. Ethics is an attitude that needs to touch e)er( aspect of the customer relationship. It entails ha)ing great re)erence for the customerMs needs, being open to suggestions and insights that might enhance his H her comfort le)els, building in riders and fle"ibilit( options that address these needs, pro)iding assistance and clarit( in documentation and upgrades, and settling claims on time. Ethics means being full( accountable, not *ust to the compan( and to its customers, but to the industr( the( ser)e. !he inspiration for ethics thus comes from the highest source A from a need to impact the industr(. Fn the flip side, a lack of ethics can ha)e serious conse@uences. Litigation and costs of settlement, business losses, a reduction in ratings, and increased scrutin( are not half as damaging as the loss to image and reputation. ItMs a fact that good ethics makes good business sense. Ff course, the mandate for good ethics alwa(s stems from the top. Chich e"plains, wh( at +irla ;un Life, the( ha)e introduced a s(stem of checks and balances that guards against concealment and wh( the(

follow norms of compliance and adhere to IB%/ regulations so scrupulousl( that their books and processes are open to audit at all times. Chile top management can la( down a code of ethics and re@uest adherence, its implementation depends on the indi)idual. /s /lbert Einstein said, NEthics is an e"clusi)e human concern without an( superhuman authorit( to back it.. Ethics is that discipline, that momentum that challenges a compan( to rise abo)e themsel)es and raise the bar each time the( interact. It is the means b( which the( measure themsel)es, the strength b( which the( progress, and the light b( which the( shall be remembered. It is the wa( ahead 9 for each indi)idual and for his industr(.