Business & Social Responsibility

*Though the fundamental purpose of business is to Produce and Distribute Goods & Services in such a manner that income exceeds costs; society expects that business is conducted in a socially responsible manner.
*Growth is a necessity for the economic well being of a society and organizations should balance between the Growth of the organisation and the benefits to the society.

INSURANCE AS A SOCIAL SECURITY TOOL

* The economic development of a country is dependant on two important factors:
1. Industrial development and
2. Economic Social and Political environment
* Social development is one of the key factors to the growth and development of the nation.
*Insurance Industry performs the following:
* Device various Plans to tap the investible savings of the growing earning population
* Investing the savings to boost economic development of the nation
* Investing in long term and infrastructure projects which assume importance in the Nation building process.
* Insurance Industry helps in
* Devising economically viable insurance plans for weaker sections of the population and providing “Security” through its “Socially Oriented Plans”
* Devising “Pension Plans” and “Equity Plans” to take care of the “Aging population”
Devising long term “Health plans” etc..
* Society provides the Organization
1.Men
2.Money
3. Material (Resources)
and Organizations in turn should function to deliver “Benefits to the Society”.

* The “Social Commitment” of the LIC of India is enshrined in its
Objectives
Mission statement
Policies
Life Insurance Corporation of India has enshrined its “Social Commitments” in all the above.

* The “Social Objective” of LIC spells out that
“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”.

Activities by LIC

* LIC’ invests its funds in Social Sector as prescribed under the law
* LIC offers life insurance protection under group policies to various groups, especially under the subsidized Social Security Group schemes.