Business Ethics and Corporate Governance in Lic of India

OVERVIEW INSURANCE- AN INTRODUCTION Meaning: Insurance may be described as a social device to ensure protection of economic value of life and other assets. Under the plan of insurance, a large number 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 premium commensurate with the risk involved. Thus, collective bearing of risk is insurance. Insurance = Collective Bearing of Risks| Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. The term â€Å"risk† is used to describe the possibility of adverse results flowing from any occurrence or the accidental happenings, which produce a monetary loss. Insurance 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 unfortunate few, due to accidental events, are made good. The sharing of risk among large groups of people is the basis of insurance. Related article: Disadvantages of Ethics in Business The losses of an individual are distributed over a group of individuals. Insurance is nothing but a system of spreading the risk of one onto the shoulders of many. While it becomes somewhat impossible for a man to bear by himself 100% loss to his own property or interest 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 particular purpose. Definitions: Fundamental Definition In the words of D. S. Hansell, â€Å"Insurance accumulates contributions of all parties participating in the scheme. Contractual Definition In the words of Justice Tindall, â€Å"Insurance is a contract in which a sum of money is paid to the assured as consideration of insurer’s incurring the risk of paying a large sum upon a given contingency†. Working of Insurance Insurance Industry in India : The origin of life insurance in India can be traced back to 1818 with the establishm ent of the Oriental Life Insurance Company in Calcutta. It was conceived as a means to provide for English Widows. In those days a higher premium 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 business in 1870 was the first company to charge same premium for both Indian and non-Indian lives. In 1912, insurance regulation formally began with the passing of Life Insurance Companies Act and the Provident Fund Act. By 1938, there were 176 insurance companies in India. But a number of frauds during 1920s and 1930s tainted the image of insurance industry in India. In 1938, the first comprehensive legislation 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 faster pace after independence. In 1956, Government of India brought together 245 Indian and foreign insurers and provident societies under one nationalized monopoly corporation and formed Life Insurance Corporation (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 world 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 future. Insurance in India has gone through 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 years to implement the recommendation. Private sector was allowed into insurance business in 2000. However, foreign ownership was restricted. No more than 26% of any company can be foreign-owned. A totally 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 disabled through nationalization in what follows; 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 sustained growth of the economy in the recent past, the Indian market is likely to grow substantially over the next few decades. The rest of the chapter is organized as follows. First, we study the evolution of insurance business before nationalization. This is important because the denationalized structure brought back to play important legal rules from 1938. Next we analyze the nationalized era separately for life and property casualty business as they were not nationalized simultaneously. Much of post-independence history of insurance in India was the history of nationalized insurance. In the following section, we examine the new legal structure introduced after the industry was denationalized in 2000. In the penultimate section, we examine the current state of play and projected future of the industry. Important Milestones in the Life insurance business in India: * 1870: Bombay Mutual life assurance society is the first Indian owned life 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 about both life and non-life insurance businesses. * 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. * 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 allowed to sell insurance plans. As Third 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 Corporation established for the purpose and to provide for the regulation and control of the business of the Corporation and for matters connected therewith or incidental thereto. BUSINESS ETHICS Ethics are  moral guidelines  which govern  good behavior. So behaving ethically is  doing what is morally right. Behaving ethically in business is widely regarded as good business practice. To provide you with a couple of quotes: Ethical principles and standards in business: * Define acceptable conduct in business * Should underpin how management make decisions An important distinction to remember is that behaving ethically is not quite the same thing as behaving lawfully: * Ethics  are about what is right and what is wrong * Law  is about what is lawful and what is unlawful You will probably note the link between business ethics and corporate social responsibility (CSR). The two concepts are closely linked: * A socially responsible firm should be an ethical firm * An ethical firm should be socially responsible However there is also a distinction between the two: * CSR is about responsibility to all stakeholders and not just shareholders * Ethics is about  morally correct behavior How do businesses ensure that its directors, managers and employees act ethically? A common approach is to implement a  code of practice. Ethical codes are increasingly popular – particularly with larger businesses and cover areas such as: * Corporate social responsibility * Dealings with customers and supply chain * Environmental policy & actions * Rules for personal and corporate integrity NEED OR IMPORTANCE OF BUSINESS ETHICS These 12 points below discuss the need, importance of business ethics: 1. Stop business malpractices: Some unscrupulous businessmen do business malpractices by indulging in unfair trade practices like black marketing, artificial high pricing, adulteration, cheating in weights and measures, selling 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 have more trust and confidence in the businessmen who follow ethical rules. 3. Survival of business: Business ethics are mandatory for the survival of the business. The businessmen who do not follow it will have short term success, but they will fail in the long run. This is because they can cheat a consumer only once. After that, the consumer will not buy 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. Therefore, 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 important to develop good and friendly relations between business and society. This will result in a regular supply of good quality goods and services at low prices to the society. It will also result in profits 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. Now 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 only way to survive in business is to be honest and fair. 10. Consumer satisfaction: 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 workers play a very crucial role in the success of a business. Therefore, business must use business ethics while dealing the employees. The business must give them proper wages 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 welfare 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. CORPORATE GOVERNANCE Good corporate governance contributes to a company’s competitiveness and reputation, Corporate governance  is â€Å"the system by which companies are directed and controlled†. It involves regulatory and market mechanisms, and the roles and relationships between a company’s management, its board, its shareholders  and other  stakeholders, and the goals for which the corporation is governed. In contemporary business corporations, the main external stakeholder groups are shareholders, debt holders, trade  creditors, uppliers, customers and communities affected by the corporation's activities. . Internal stakeholders are the  board 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 incl ude the processes, customs, policies, laws, and institutions which have impact on the way a company is controlled. An important theme of corporate governance is the nature and extent of  accountability  of people in the  business. IMPORTANCE OF CORPORATE GOVERNANCE The need, significance or importance of corporate governance is listed below: 1. Changing Ownership Structure: In recent years, the ownership structure of companies has changed a lot. 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 force the companies to use corporate governance. That is, they put pressure on the management to become more efficient, transparent, accountable, 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 Social 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 misuse 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 parties 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 largest  insurance group  and  investment company  in India. It’s a state-owned where  Government of India has 100% stake. LIC also funds close to 24. 6% of the Indian Government's expenses. It has assets estimated of  13. 25 trillion (US$264. 4 billion). It was founded in 1956 with the merger  of 243 insurance companies and provident societies. Headquartered in  Mumbai, financial and commercial capital of India, the Life Insurance Corporation of India currently has 8 zonal Offices and 113 divisional offices located in different parts  of India, around 3500 servicing offices including 204 8 branches, 54 Customer Zones, 25 Metro Area Service Hubs and a number of Satellite Offices located in different cities and towns of  India 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 slogan of LIC is â€Å"Yogakshemam Vahamyaham† which translates from Sanskrit to â€Å"Your welfare is our responsibility†. The slogan is derived from the Ancient Hindu text, the  Bhagavad Gita's 9th Chapter, 22nd verse. The literal translation from Sanskrit to English is â€Å"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 1956| Headquarters| Mumbai,  India| Key people| D. K. Mehrotra, (Chairman)| Products| Life  and  insurance, investment,  mutual fund| Total 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. licindia. 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 people's savings by making insurance-linked savings adequately attractive. * Bear in mind, in the investment of funds, the primary 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 a s well as the community as a whole, keeping 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 insurance needs of the community that would arise in the changing social and economic environment. * Involve 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 Objective. 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. ) Shri  D. K. Mittal,  (Secretary, Department of Financial Services, Ministry of Finance, Govt. of India. ) Shri  A. 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. Sampath Shri Amardeep Singh Cheema ORGANISATION STRUCTURE OPERATIONS AWARDS WON BY LIC OF INDIA IN 2011-12 | Readers Digest â€Å"Trusted Brand† in the platinum category. | | Superbrands| | Asian Leadership Award| | LIC has been ranked :† Number One Trusted Service Brand† in the EconomicTimes Brand Equity Survey| | Rated as the â€Å"Most Preferred Life Insurance Company of the year† at the CNBC| | Dainik Bhaskar Group| | Bombay Chamber Of Commerce| | ABCI| | Star News- Customer Centric Brand Award| PROBLEMS OF LIC OF INDIA – The existing insurer, LIC and GIC, have created a large group of dissatisfied  customers 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 new insurers will woo them by offer of innovative products at lower prices. – The corporate clients under group schemes and salary  savings 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 LIC  will not be reduced. This will be a  disadvantage in  the 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 can't reduce their number due to service rules. – Management of claims will  put 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 present 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 much  improved quality of  service particularly in the  area of settlement of  claims, issue of new  policies, transfer of the policies and revival of policies in the liberalized market is very difficult to LIC and GIC. Intense competition from new insurers in  winning the consumers by multi-distribution channels, which will  include 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 limited range of products offered by LIC and GIC, the consumers are confused in the market. Their confusion will further increase in  the face for large number of products in the  market. The  existing 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 face  an acute problem of the redressal of the consumers, grievances for deficiency in products and services. – Increasing awareness will  bring number of legal cases filled  by the consumers against insurers is likely  to increase substantially in future. Major challenges in canalizing the growth of insurance sector are product innovation, distribution network, investment management, customer  service  and education. SWOT ANALYSIS OF LIC OF INDIA STRENGTHS: * India’s top insurance company and best among Public sector company. * Provide better infrastructure than any other Public company. * Brand Image * Govt Guarantee * Claims settlement * Pan India presence * La rge product portfolio WEAKNESSES: * Average waiting time for the customer is 15 to 20 minutes. * No separate customer care 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 Estate 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 Paid 3. Profit of the year 2011-2012 4. Life Fund Policies and Premium Cla ims Paid Profit of the Year 2010-11 Research Methodology Research is the process of systematic and in depth study to search for a particular subject topic or area of investigation backed 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. Success 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 researcher 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) Primary 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:- Secondary  data, 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, I  had used secondary data under which I  used annual reports which includes  balance sheets, P;L a/c, and other general information. Limitation of the Project Report Followings 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 organization like LIC of India in this limited time  period. ? 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 objectives 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 â€Å"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 for economic development. † Vision â€Å"A trans-nationally competitive financial conglomerate of significance to societies and Pride of India. † Core Values of LIC of Ind ia * 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 sound 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 insurance policy – to help ensure that company policies and procedures are legal. †¢ Avoiding criminal â€Å"acts of omission† which can lower potential fines. †¢ Reinforcing the values associated with quality management, strategic 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 LIC’s 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 LIC’s 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 imbibe good Corporate Governance. This has enabled us to enhance our Brand Equity, strengthen stake of shareholders and maintain a healthy environment within the organization. This has led to a committed organizational focus on the customer service which in turn has contributed to a good growth in business. CORPORATE SOCIAL 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 students as a free add on benefit to the children of members of AABY Shiks ha 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 Yojana Aam 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 channelise 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 Foundation Under ‘Corporate Social Responsibility’, and to commemorate the Golden Jubilee of LIC in the year 2006, ‘LIC Golden Jubilee Foundationâ€⠄¢ 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. 011 LIC has provided a Corpus 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 a  monopoly  of soliciting and selling life insurance in India, created huge surpluses, and contributed around 7% of India's  GDP  in 2006. The Corporation, which started its business with around 300 offices, 5. 7 million policies and a  corpus  of 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 a  corpus  of over  8 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 (STAT E 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 cover 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 customer’s 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 th em 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 handle 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 that 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 self-respect, pride in accomplishment, and attentiveness that affects everything. From organization’s memos to the presentations, everything it touch should communicate professionalism and quality. * Trust is hard to earn and even harder to get back after you've 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 â€Å"sold† and â€Å"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 more ingrained the principles will become. CO NCLUSION 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 company’s 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 complacent 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. Dishonest 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. businessreviewindia. 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 * h ttp://en. wikipedia. org/wiki/Life_Insurance_Corporation_of_India

Accounting Project Essay

Foundations of Accounting I Accounting Project Written by: Karen Pitsch Special thanks to Donna Larner Randiddle Co. is a merchandising business. Their account balances as of November 30, 2012 (unless otherwise indicated), are as follows: 110Cash$ 74,370 112Accounts Receivable 6,178 113Allowance for Doubtful Accounts 650 115Merchandise Inventory 2,346 116Prepaid Insurance 5,750 117Store Supplies 2,850 123Store Equipment 100,800 124Accumulated Depreciation-Store Equipment 31,060 210Accounts Payable 3,286 211Salaries Payable 0 218Interest Payable 0 220Note Payable (Due 2017) 30,000 ($6,000 to be paid in 2013) 310Randiddle, Capital (January 1, 2012) 46,288 311Randiddle, Withdrawals 60,000 312Income Summary 0 410Sales 296,130 411Sales Returns and Allowances 10,020 412Sales Discounts 7,200 510Cost of Goods Sold 30,250 520Sales Salaries Expense 34,400 521Advertising Expense 18,000 522Depreciation Expense 0 523Store Supplies Expense 0 529Miscellaneous Selling Expense 2,800 530Office Salaries Expense 25,500 531Rent Expense 24,200 532Insurance Expense 0 533Bad Debt Expense 0 539Miscellaneous Administrative Expense 1,650 550 Interest Expense 1,100 See more: Analysis of Starbucks coffee company employees essay Randiddle Co. uses the perpetual inventory system and the First-in, First-out costing method. Transportation-in and purchase discounts should be added to the Inventory Control Sheet, but since this will complicate the computation of the First-in, First-out costing method, please ignore this step in the process. They also use the Allowance Method for bad debt. The Accounts Receivable and Accounts Payable Subsidiary Ledgers along with the Inventory Control Sheet should be updated as each transaction affects them (daily). Randiddle Co. sells three types of microwave ovens. The sale prices of each are: 900 watt microwave: $199 1000 watt microwave: $299 1200 watt microwave: $499 During December, the last month of the accounting year, the following transactions were completed: Dec. 1. Issued check number 2632 for the December rent, $2,200. 2. Sold two 1200 watt microwaves for cash. 4. Purchased four 1000 watt microwaves on account from Matt Co., terms 2/10, n/30, FOB shipping point, $596. 5. Issued check number 2633 to pay the transportation charges on purchase of December 4, $89. (NOTE: Debit Merchandise Inventory. Do not include shipping and purchase discounts to the Inventory Control sheet for this project.) 6. Sold six 1000 watt microwaves and four 1200 watt microwaves on account to Briana Co., invoice 891, terms 2/10, n/30, FOB shipping point. 8. Issued check number 2634 for refund of cash on sales made for cash, $150. (Customer was going to return goods until an allowance was arranged.) 10. Purchased store supplies on account from Prince Co., terms n/30, $310. 10. Issued check to Matt Co. number 2635 for the full amount due, less discount allowed. (Round discount to nearest dollar.) 11. Paid Prince Co. full amount due, check number 2636. 12. Issued credit memo for one 1000 watt microwave returned on sale of December 6. (NOTE: Assume the returned microwave was from the 11/30 inventory) 13. Issued check number 2637 for advertising expense for last half of December, $3,000. 14. Received cash from Briana Co. for the full amount due (less return of December 12 and discount; round to nearest dollar). 19. Issued check number 2638 to buy five 900 watt microwaves, $495. 19. Issued check number 2639 for $596 to Joseph Co. on account. 20. Sold seven 900 watt microwaves on account to Cameron Co., invoice number 892, terms 1/10, n/30, FOB shipping point. 20. To expedite sale on Dec. 20, issued check number 2640 for shipping charges on sale to Cameron on December 20, $120 (NOTE: Cameron Co. will be reimbursing us for this shipping cost). 21. Received $1,396 cash from McKenzie Co. on account, no discount. 21. Purchased three 1200 watt microwaves on account from Elisha Co., terms 1/10, n/30, FOB shipping point, $747, shipping $78 (NOTE: Debit Merchandise Inventory $825, but only put $747 in the Inventory Control Sheet). 24. Received notification that Marie Co. has been granted bankruptcy with no amount of recovery. We are to write-off her amount due. (Note: See page 365 for entry required.) 26. Issued a debit memo for return of $249 because of damage to one 1200 watt microwave purchased on December 21, receiving credit from the seller. 27. Issued check number 2641 for sales salaries of $2,050 and office  salaries of $1,400. 28. Purchased store equipment on account from Joseph Co., terms n/30, FOB destination, $1,200. 29. Issued check number 2642 for store supplies, $70. 29. Purchased seven 1000 watt microwave from Prince Co, terms 1/10, n/30, FOB shipping point, for $1,113 on account, shipping $107. 30. Sold eight 1000 watt microwaves on account to Briana Co., invoice number 893, terms 2/10, n/30, FOB shipping point. 30. Received cash from sale of December 20, less discount, plus transportation paid on December 20. (Round calculations to the nearest dollar.) 31. Issued check number 2643 for purchase of December 21, less return of December 25 and discount. (Round discount to the nearest dollar.) 31. Issued a debit memo for $200 of the purchase returned from December 28. Instructions: 1. Enter the balances of each of the accounts in the appropriate balance column of the General Ledger (B-S and I-S Ledger). Write Balance in the item section, and place a (x) in the Post Reference column. 2. Journalize the transactions in a sales journal, purchases journal, cash receipts journal, cash payments journal, or general journal as illustrated in chapter 7. Also post to the Accounts Receivable and Accounts Payable Subsidiary ledgers and Inventory Control Sheet as needed. 3. Total each column on the special journals and prove the journals. 4. Post the totals of the account named columns and individually post the â€Å"Other Accounts† columns as well to the General Ledger. 5. Prepare the Schedule of Accounts Receivable and the Schedule of Accounts Payable (their total amount must equal the amount in their controlling general ledger account). 6. Prepare the unadjusted trial balance on the worksheet. 7. Complete the worksheet for the year ended December 31, 2012, using the following adjustment data: a. Merchandise inventory on December 31 $1,090 b. Insurance expired during the year 2,250 c. Store supplies on hand on December 31 850 d. Depreciation for the current year needs to be calculated. The business uses the Straight-line method, the store equipment has a useful life of 10 years with no salvage value. (NOTE: the purchase and return will not be included as the dates of the transactions were after the 15th of the month). e. Accrued salaries on December 31: Sales salaries$1,075 Office salaries 540 $1,615 f. The note payable terms are at 8%, payment is not being made until Jan. 3, 2013. Interest must be recognized for one month. g. Calculate the Bad Debt adjustment amount; net realizable value of Accounts Receivable is determined to be $6,313. 8. Prepare a multiple-step income statement, a statement of owner’s equity, and a classified balance sheet in good form. (Recommend review of â€Å"Current Liabilities† on page 149.) 9. Journalize and post the adjusting entries. 10. Journalize and post the closing entries. Indicate closed accounts by inserting a zero in both balance columns opposite the closing entry. 11. Prepare a post-closing trial balance.

Can you use CAD, CAE, CAM, CIM, and FMS to manufacture better parts more easily? Essay

CAD, CAE, CAM, CIM, and FMS can be used to manufacture better parts easily in a small-sized production unit. The Use of Computer Integrated machining, CIM, means a completely automated production system, integrated using CAD/CAM software. The Flexible Manufacturing Systems, FMS, can also be integrated with the CIM systems. This means the production of newer products can be very fast. In addition smaller test production runs could be made for custom-made products efficiently. Also the system being almost entirely in software, means the manufacturer can react faster to a change in the environment. These technologies represent a new production approach which will allow the factories to deliver a high variety of products at a low cost and with short production cycle (Masood & Khan 2004) If your final product requires several unique subunits that are all produced with different machinery and in differing lengths of time, what facility layout will you choose and why? In the case where the final product requires several unique subunits that are all produced with different machinery and in differing lengths of time, the facility layout that would best work would be the Manufacturing cell. Here manufacturing facility is divided into production cells, where each cell produces a part family. While the method is not usually used because of the actual small percentage of time spent in actual machining leading to more states of machine being idle, it is perfect for this situation, primarily because of the varied length time. This leads to reduction in set-up times, material handling, tooling and in-process inventory (Henry). The other methods primarily rely on grouping similar processes and applying time-sharing to the machinery, which is not possible in this case due to the different machinery needed for manufacturing. These methods would not reduce any appreciable amount of time in his case. Look up on the Internet `franchising`. Based on your readings, from an operational perspective, why is purchasing a franchise such as Wendy`s or Jiffy Lube an attractive alternative for starting a business? Franchising win hands down when compared with small business. Most of the experts maintain that franchise operations have lower risk of failure, as companies like Wendy’s or Jiffy Lube have proven track records of success. In addition franchisee is give exhaustive training and has continuous support from the parent company. Also the cost input for setting up the business is comparatively lower than starting a business form scratch. Finally there is a huge scope of expansion by developing multiple franchises (FCA 2007) What things could you learn about a company’s culture by observing the layout and design of its production facility? Discuss both goods and services operations. Layout and design of production facility is a very critical task of the production management. Observing a company’s layout and production facility design can tell a lot of things about the company. First of all, it tell about the amount of capital the company has. The quality or the machinery, the newness of the machinery etc. tell about the financial capabilities of the company. In addition the design of the layout tells about the planning and organizational capacity. It reflects things like the factory efficiency, material flow, transparency, quality and costs (MAS 2005) References Masood T, Khan I, â€Å"Productivity Improvement through Computer Integrated Manufacturing in Post WTO Scenario†, 2004, â€Å"http://www. szabist. edu. pk/NCET2004/Docs/ZSession%20II%20Paper%20No%202%20(P%20171-177). pdf â€Å"Advantages of the Franchising System†, FCA, 2007, http://www. franchise. org. au/content/? id=185 â€Å"Manufacturing Management: Factory Layout and Flow†, MAS, 17th October 2005, http://www. mas. dti. gov. uk/pluto-resources/1130407489261. pdf Henry C, â€Å"Facility Design and Layout†, http://www. csupomona. edu/~hco/POM/05FaciltyDesignLayout. ppt#15

Reading strategy Term Paper Example | Topics and Well Written Essays - 1000 words

Reading strategy - Term Paper Example A learner needs to survey the book or the article before reading it. A learner need to carry a quick over view of the article in an attempt to get the general overview and idea the author intends to communicate (Van Blerkom, 2009). This will help the reader to have some knowledge on all what the article or the book is all about even before embarking on serious reading of the article. Second step applied in this system of reading is the formulation of a question. A learner needs to formulate a key question he or she will be addressing before he engages herself in reading the article or section. For example, a heading like â€Å"sensory adaptation† can be changed to a question like â€Å"what is sensory adaptation†. Formulating questions force a reader to think about what they are reading about (Allen, 2008). It makes a reader to try to predict what the author main point will be. This gives the reader an ample time during the entire reading process as he or she is in a position to easily note down the key point from the article or the book she is reading. The learner after formulating the question, then he or she need to carefully go through the content of the article. This will help him, or her to get the crucial information that will help her in answering the question he or she had formulated in the second stage (Van Blerkom, 2009). As the learner tries to read the article in search of answers to the questions he had formulated before, he or she become actively involved in the text material. After going through the article, the learners need to recite the answer to the question they had formulated at the early stage. The learners need to record the answers using their different words. The learner should not necessarily look at the text they are reading as they recite the answers. If the learner finds it difficult to recall part or all the answers, then they need to glance over the section they were reading again (Allen,

Fast cat Term Paper Example | Topics and Well Written Essays - 500 words

Fast cat - Term Paper Example It, therefore, provides an analysis and values of the status and objectives laid down in the FastCat strategy. The analysis done in the research was job-based in order to clearly identify and determine the differential work positions and roles in the FastCat organization. After analysis of the different roles in the organization, we chose to use a structure that meets the objectives of the organization. A flexible strategy is also favored by the organization. The flexibility of employees means that workplace relationship is solid and subsequently, customer service is also improved. This will improve the company’s competitiveness in the market as well as improving the company’s profits. Flexible strategy also allows employees to air in their contributions towards achieving a better, user-friendly and a focused workplace, an objective of the executive committee. A business plan set to guide through the realization of an organization’s objectives is a very important tool. Through some considerations, we decided to drop the traditional hierarchical strategy that puts in middle managers between the executive and the rest of the staff. Gathering the qualitative and quantitative tools in managerial duties, we identified the strengths and the weaknesses of each internal strategy that could easily work with the organization and the staff without any workplace conflicts. These considerations are the key reasons why we chose the flat internal structure strategy in the organization. The flat structure so chosen was predominant since it seems the easiest and the readiest structure that can uphold and spearhead the realization and enforcement of the objectives set by the organization. Keeping in mind the organization’s innovativeness and flexibility, this structure is without doubt the best structure for the research. Since this structure lacks levels in the middle between the middle

A consideration of the biblical theme, Kingdom of God, showing the Essay

A consideration of the biblical theme, Kingdom of God, showing the development of meaning in the Old and New Testaments - Essay Example The ‘Kingdom of God’ is a fundamental theme which runs from Genesis to Revelation. In its earliest expression there are strong similarities to the views of ‘kingship’ and ‘kingdom’ which were current among nations during the period of the OT, but from the outset it was clear that this was understood in terms of a universal and eternal divine authority. This overriding principle becomes increasingly dominant in the Biblical perspective until it comes to reality in the life and work of Jesus Christ. The actual phrase ‘kingdom of God’ does not occur in the OT. But from the outset the idea of God as absolute monarch and his kingly rule are pervasive in Scripture.†(Cf.New Dictionary of Theology). The concept of â€Å"Kingdom† is not current in the democratic mindset of our modern world. Ladd points out that in western idiom a kingdom is primarily seen as a realm over which a king exercises his authority. He quotes a modern dictionary definition: â€Å"A state or monarchy the head of which is a king, Dominion, realm†, and adds that while a secondary meaning of â€Å"kingdom,† relates to the people belonging to a given realm. He does not see either of these definitions as being accurate, as they tend to â€Å"lead astray from a correct understanding of the Biblical truth.† Much better, he says, is an ‘archaic’ definition in Webster’s dictionary, ‘The rank, quality, state or attributes of a king; royal authority, dominion, monarchy; kingship.† (Ibid). Greek and Hebrew scholars that the primary meaning of the Hebrew word â€Å"malkuth† in the Old Testament and the Greek word â€Å"basilieia† in the New Testament is of the rank, authority, and sovereignty exercised by a king. As Ladd says, â€Å"When the word refers to God’s Kingdom, it always refers to His reign, His rule, His sovereignty, and not to any realm in which it is exercised. (20) Kittel underlines this; â€Å"†¦ the expression denotes the fact that God is king, i.e. it describes His kingly being or kingship.† Edersheim adds that the rule of heaven and the kingship of God was the â€Å"very substance of the Old Testament; the object of the calling and mission of Israel; the meaning of all its ordinances whether civil or religious; the underlying idea of all its institutions.† The Old Testament, he says, could not be understood without this.† (265) It was common that the rule of a king would be established by the terms of a co venant, in which two parties are bound together in a solemn, unbreakable oath. There are a series of covenants in the Bible, the terms of which were always determined by God. The earliest books of the Old Testament outline these covenants, showing the development of the nation that was to be the primary realm of his sovereignty on earth. God chose a series of patriarchs to found this nation; giving specific promises, and calling for their trust and obedience. For several centuries these people, the descendants of Abraham, Isaac and Jacob, lived in and are eventually become enslaved in Egypt. After 430 years, â€Å"God commissioned Moses, with Aaron as his mouthpiece , to lead out the Hebrew slaves, tribal descendants of Abraham, Isaac and Jacob, from Egypt, to become a nation in Palestine, the land of promise (Exodus 3:4)† (New Bible Dictionary). At Mount Sinai, god established a covenant with the Israelites, grounding His requirements (the laws which were to function as the constitution for a theocratic kingdom in which God would be the sole ruler) on what He had already done for them, and giving promises of great blessings which would accrue if they were obedient to the terms of the covenant. Closely coupled to the idea of God’s absolute sovereignty is the fact of his holiness. â€Å"God is the king of His covenant people, Israel. In a particular sense, not true of any other nation. †¦

Arguments for Post-Washington Consensus Consensus by Joseph Stiglitz Essay

Arguments for Post-Washington Consensus Consensus by Joseph Stiglitz - Essay Example s as of 1989.† (2).Such policies often include-fiscal discipline; a reorientation of public expenditure priorities toward fields offering both high economic returns and targeting evener income distribution,.e.g. primary health care, primary education, and infrastructure ;tax reform (to lower marginal rates and broaden the tax base);Interest rate liberalization ;a competitive exchange rate ;trade liberalization ;liberalization of inflows of foreign direct investment ;privatization ;deregulation (to abolish barriers to entry and exit) and secure property rights. This privatization agenda in pursuit of globalization has come under criticism as (1) says,† Some of the most vociferous of todays critics of what they call the Washington Consensus, most prominently Joe Stiglitz... do not object so much to the agenda laid out above as to the neoliberalism that they interpret the term as implying. I of course never intended my term to imply policies like capital account liberalizati on...monetarism, supply-side economics, or a minimal state (getting the state out of welfare provision and income redistribution), which I think of as the quintessentially neoliberal ideas†. In development literature it is examined and accepted that The Washington consensus emerged out of a kind of counter reaction in development economics (3) to what has been termed as rather operationally successful neoliberal revolution against Keynesianism prescriptions of the 1970s.The Washington Consensus, materialized in large and specially built Structural Adjustment Programmes (SAPs) suggested for a substantial portion of the developing countries in the ensuing years of 1980s and 1990s.It was the outcomes of these SAPs that were not along expected lines and which resulted in external criticism of The Washington Consensus itself. Joseph Stiglitz a World Bank Economist was the most prominent insider to offer criticism of the neoliberalism inherent in The Washington Consensus and the bod y of