INSURANCE

Insurance is a form of risk management in which the insured transfers the cost of potential loss to another entity in exchange for monetary compensation known as premium.

Over the years, the concept of insurance has evolved and now covers a wide range of areas which include life, medical, accident, property, travel, business, pet, etc.

Insurance is a business that yields huge profits. It is based on the principles of risk transfer commonly known as 'pooling' and large numbers. The insurance company charges a premium from policy holders and pools the amount.

Honesty in insurance contracts is a must. If the information provided is proved to be wrong, or if facts are concealed, the insurance policy becomes null and void. A property or asset can only be ensured by a person who owns it. This is known as 'insurable interest'. Indemnity is another basic principle of insurance where in compensation is given only to the extent of the loss and within the monetary limit of the policy. 

CHILD LABOUR / CSR AND CHILD LABOUR

Any work done by children under the age of 18 years which exploits them physically, mentally or morally or blocks their access to education is generally understood as child labour.

Common reasons for child labour are:
- Poverty
- Family Expectations
- Less costly
- Lack of education facilities
- Lack of day care facilities
- Public opinion which does not take the problem of child labour seriously enough
- Weak enforcement of law
- Globalisation and the need for law labour costs.

The problem of Child labour exists all over the world. However, it is a serious problem in India. UNICEF estimates reveal that India has the highest number of labourers under the age of 14 years. The Indian Parliament has passed numerous Acts to put a check on Child labour. For example, The Child labour (Prohibition and Regulation) Act of 1986, The Juvenile Justice (Care and Protection) of children Act of 2000, the Right of Children to free and compulsory Education Act of 2009.

Policy against child labour is now a part of Corporate Social Responsibility.

For example,
- Jet Airways raises funds through its inflight collection programme for Save the Children
- CRY Citibank Card gives a percentage of what customers spend to CRY (NGO working with children) on behalf of the customers
- Shriram Social Welfare Trust (CSR) of Shriram group runs a destitute home called Ashram, for children from 2-14 years, runs primary and secondary schools for poor children and provides sponsorships in the forms of uniforms, text books, school fees etc. to poor children.

CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility (CSR) also known as Corporate Conscience or Corporate Citizenship refers to the social responsibility of corporate houses to contribute towards the nation, society and environment by involving themselves in social and charitable causes apart from paying taxes.

CSR aims to
- Treat employees with equality and justice
- Operate ethically and with integrity
- Respect human rights
- Protect and sustain the environment
- Show care and concern for the communities they operate in.

CSR activities enhance the corporate citizenship profile of an organisation. CSR has led to better dialogue between private and non governmental bodies and thus led to partnerships an contributions made to the development of communities where the company operates.

Thus through corporate social responsibility the focus of the company is not only profit oriented but ensures that the company serves the interest of society and thus gives back to the community.

Examples of CSR

COMPANY CSR ACTIVITY
- Mahindra and Mahindra Tech Mahindra Foundation
- Wipro Azim Premji Foundation
- Godrej AIDS Awareness Programme
- Tata steel Healthcare and Employability Programme
- Microsoft (International) Bill and Melinda Gates Foundation

The Universal Declaration of Human Rights (UDHR) emphasises CSR in the areas of human rights, labour, environment, consumer protection, fair competition, respect for national sovereignty and local communities. It is thus natural for CSR to emerge from ethical business practices.

COMPUTER ETHICS

Computer ethics imply the professional and social conduct of computing professionals. Computer and internet misuse and fraud have gained momentum an it is important to define a code of conduct to protect individuals and firms. This can be done by addressing security issues, strict control and monitoring of usage of data and devices. Unethical use of computers leads to using computers to embezzle funds, software thefts and theft of equipment and data.

Computer ethics involve protection of privacy and intellectual property rights for software.

Some computer moral guidelines are
- Do not use a computer to harm people
- Do not interfere with other peoples computer work / computer files
- Do not use a computer to steal / copy or use proprietary software that you have not paid for (without permission)
- Always use a computer in ways that ensure consideration and respect for fellow humans.

INTELLECTUAL PROPERTY RIGHTS AND PIRACY

INTELLECTUAL PROPERTY RIGHTS

Intellectual property rights are legal rights granted to persons in order to protect their intellectual creations such as literary and artistic works, industrial designs, inventions, etc. Such rights encourage innovation and give a sense of legal security to the innovator for a fixed period of time in the form of patents, copyright, design rights, trademark, etc.

a. Copyright – is a form of intellectual property, applicable to certain form of creative work. Copyright infringement leads to monetary loss for the creator. However, copyright infringement is a regular occurrence, especially in software, music, films, books, etc.

b. Patents - are monopoly rights granted by the government to an inventor for a new an ingenious invention which has industrial applicability. Only the inventor has the right to make, sell, use, import or offer to sell the invention for a period of 20 years from the date of filing for the patent, provided the annual patent renewal fees are paid.

c. Trademark (or brand name) – is the distinct design, slogan, sign, etc. of an organization or product which distinguishes it from other organizations or products. It serves as an identity, guarantees consistency in quality, creates an image and serves as an advertisement.

d. Design Rights - are intellectual property rights which protect the designs of objects that are not purely utilitarian.


PIRACY

The original meaning of the word 'piracy' is 'the act of attacking and stealing from ships at sea'. However, in the business context, piracy, also known as 'plagiarism' means 'unauthorized use or reproduction of another person's work'. Today piracy has become a business that is taking over other business. The most common area of piracy are books, music, films and software.

Illegal commercial photocopying, digitization and reproducing large tracts from a book without giving the author credit amounts to book piracy. Downloading movies, music from torrents is a form of online piracy.

Piracy amounts to theft of intellectual property rights. Piracy affects royalty earnings, results in loss for investors and even generates black money which creates a dent in the tax revenue of the government.

SURROGATE ADVERTISING

The word 'surrogate' means 'substitute'. Thus surrogate advertising means substitute advertising. Advertisers use surrogate advertising to mislead people especially while endorsing alcoholic drinks and cigarettes. In order to protect public health, the Government of India in 1995 and again in 2002, banned advertising of these products and therefore manufacturers use surrogate advertising to achieve their ends. Examples of surrogate advertising are Royal Stag CDs, Carlsberg glasses, Bagpiper Club soda, etc. 

Tobacco, Gutka and liquor companies sponsor awards, sports events and even teams. For example Red and White Bravery Awards, Manikchand Awards, Royal Challengers, etc. 

As the objections to surrogate advertising get louder and government pressure increases to curb advertising liquor, tobacco companies are now shifting their focus of advertising these products through promotions such as event sponsorships. 

BUSINESS ETHICS AND MEDIA / MEDIA ETHICS

Media plays an important role today in every aspect of life. Advertising plays a crucial role in marketing goods and services. However, companies engage in subtle forms of deception or make exaggerated claims about their products. Women's bodies, sex and nudity, skin color and complexion are widely used by companies to drive sales. Thus there is a need for ethical advertising.

Principles of Media Business Ethical Standards
- There should be no manipulation of news by concealing the truth or revealing half truths
- No offence to generally accepted norms of decency
- Truthfulness and honesty in claims and representation
- No indiscriminate use of advertising for products which are hazardous to society or individuals
- Comparative advertising should respect the principles of fair competition generally accepted in business 

- Strive to meet commitments and deadlines 

- Refrain from depiction of violence and use of abusive language 

-Avoid stereotypes in entertainment media and advertising that promote misconceptions about certain communities, countries, etc

- Avoid false and misleading statements or exaggerations whether visual or verbal 

- Avoid statements, suggestions or pictures offensive to public decency 

- The privacy of individuals should be respected. Details about personal life should not be published if free expression is a right, so is privacy. 

PERSONAL INTEGRITY AT THE WORK PLACE

Integrity means having the quality of being honest and having strong moral principles. This can be achieved through the following:

- Work when you are at work. Eating / munching snacks during work hours, surfing the internet, playing games on the computer are a display of lack of personal integrity at workplace.
- Avoid being negligent, follow company policies
- Respect your co-workers
- Speak clearly and courteously
- Cultivate team spirit
- Be cooperative especially in group communication/discussions
- Avoid using office space or office equipment / office stationary for personal use
- Submit exact bills for travel or meal reimbursement. Do not overcharge the organisation.
- Strive to meet commitments and deadlines
- Take responsibility for your work
- Admit your mistakes if any, apologize and rectify them
- Do not give up your individual professional ethics.

BUSINESS ETHICS IN AN ORGANISATION

The word'ethics' is derived from the Greek word 'ethos' which means 'character'. The term describes morals, values and principles that form the basis of character. For e..g. honesty, truthfulness, fair play, etc. Business ethics / corporate ethics examine ethical problems and principles in a business environment. It includes the conduct of both individual and organisation.

IMPORTANCE / ADVANTAGES OF BUSINESS ETHICS

- Enhances the product / service quality provided by an organisation.
- Enhances the image of an organisation
- Promotes customer loyalty
- Enhances the good will of an organisation
- Creates and establishes values in business dealings
- Ensures proper utilization of resources
- Increases productivity
- Works in ways that serve the best interests of society
- Ensures environment friendly policies
- Ensures transparency in the organisation
- Looks after the rights of employees.

The above can be brought about by honest leadership and an active management. This enables transparency, impartiality as well as opens communication channels. One example of such a company is the TATA Company which believes in giving back to society.