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Ethics

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INSURANCE: AN INTRODUCTION Insurance may be described as a social device to reduce or eliminate risks of loss to life and properly. It is a provision which a prudent man makes against inevitable contingencies, loss or misfortune.

Once Frank H. Knight said "Risk is uncertainty and uncertainty is one of the fundamental facts of life." Insurance is the modern method by which men make the uncertain certain and the unequal; equal. It is the means by which success is almost guaranteed. Through its operation- the strong contribute to the support of the weak and weak secure, not by favor sent by right duly purchased and paid for, the support of the strong (Calvin Coolidge.)

Under the plan of insurance, a large number of people associate themselves by sharing risks attached to individuals. As in private life, in business also there are dangers and risks of different kinds. The aim of all types of insurance is to make provision against such dangers. The risks which can be insured against include fire, the perils of sea (marine insurance), death (life insurance) 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 risks is insurance.

Definition

Insurance in its basic form is defined as “ A contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event."
In simple terms it is a contract between the person who buys Insurance and an Insurance company who sold the Policy. By entering into contract the Insurance Company agrees to pay the Policy holder or his family members a predetermined sum of money in case of any unfortunate event for a predetermined fixed sum payable which is in normal term called Insurance Premiums.

TYPES OF INSURANCE

Life insurance

Life insurance is an insurance coverage that pays out a certain amount of money to the insured pr their specified beneficiaries upon a certain event such as death of the individual who is insured. This protection is also offered in a family tactful plan, a Shariah – based approach to protecting you and your family. The coverage period for a life insurance is usually more than a year. So this requires a periodic premium payment, either monthly, quarterly or annually. The risks that are covered by life insurance are:
• Premature death
• Income during retirement
• Illness
The main products of life insurance include:
1. Whole life
2. Endowment
3. Term
4. Investment-linked
5. Life annuity plan
6. Medical and health

General insurance

General insurance is basically an insurance policy that protects u against looses and damages other than those covered by life insurance. For more comprehensive coverage, it is vital for you to know about the risks covered to ensure that you and your family are protected from unforeseen losses.

The coverage period for most general insurance policies and plans is usually one year, whereby premiums are normally paid on a one-time basis.

The risks that are covered by general insurance are:

• Property loss, for example, stolen car or burnt house

• Liability arising from damage caused by yourself to a third party

• Accidental death or injury

The main products of general insurance include:
• Motor insurance
• Fire insurance
• Personal accident insurance
• Medical and health insurance
• Travel insurance

INTRODUCTION-ECGC

The Export Credit Guarantee Corporation of India Limited (ECGC in short) is a company wholly owned by the Government of India. It provides export credit insurance support to Indian exporters and is controlled by the Ministry of Commerce. Government of India had initially set up Export Risks Insurance Corporation (ERIC) in July 1957. It was transformed into Export Credit and Guarantee Corporation Limited (ECGC) in 1964 and to Export Credit Guarantee of India in 1983. The goal of ECGC still remains to strengthen the export of India. As there is still risk involved in export, to overcome such risk the ECGC helps financially. The risk factor can be in case of the insolvency, war time, economic difficulties between two countries where the export is to be done.

HISTORY OF ECGC:

Export Credit Guarantee Corporation of India Limited was established in the year 1957 by the Government of India to strengthen the export.

Promotions drive by covering the risk of exporting on credit. It functions under the administrative control of the Ministry of Commerce & Industry, Department of Commerce, and Government of India. It is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking, and insurance and exporting community.

ECGC is the fifth largest credit insurer of the world in terms of coverage of national exports. The present paid-up capital of the company is Rs.900 crores and authorized capital Rs.1000 crores.

ACTIVTIES OF ECGC:

The following are the activities of ECGC:

* Provides a range of credit risk insurance covers to exporters against loss in export of goods and services.

* Offers guarantees to banks and financial institutions to enable exporters to obtain better facilities from them.

* Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan.

* Promote export with remove of barriers between exports between two countries.

OBJECTIVE OF ECGC:

The following are the objective of ECGC:
Promote exports: The main objective of ECGC is to promote the export. It helps to provide guidance time to time.

Provide protection in case of insolvency: Proper financial help is given by ECGC, so that insolvency and problem related to recovering of bad debts is possible.

Encourage timely and large lending: In proper time the lending money is possible with huge amount if required. Also credit assist is to done.

HELP OF ECGC TO EXPORTERS:
The following are the way how ECGC helps the exporters.

Offers insurance protection: It offers insurance protection. Mainly this protection is based on payment of risk.

Guidance in export related activities: Proper guidance related to export is given, so that the export trade can be carry smoothly.

Provide information: It helps to Makes available information on different countries with its own credit ratings.

Export finance: Proper financially help is provided by ECGC. It takes help from banks and other financial institution.

Assist exporter from recovery of bad debt: It helps exporter to recover from bad debts. The various policy led by it make certain facility to overcome bad debts.

Credit worthiness:
It helps to provides information on credit worthiness of overseas buyers. This information helps to know the financial power of the country to which the exports is taken place. Their ranking of credit worthiness decides their exports power in their country.

NEED FOR EXPORT CREDIT INSURANCE:

Payments for exports are open to risks even at the best of times. The risk saves assumed large proportions today due to the far-reaching political and economic changes that are sweeping the world. An outbreak of war or civil war may block or delay payment for goods exported. A coup or an insurrection may also bring about the same result. Economic difficulties or balance of payment problems may lead a country to impose restrictions on either import of certain goods or on transfer of payments for goods imported.
In addition, the exporters have to face commercial risks of insolvency or protracted default of buyers. Export credit insurance is designed to protect exporters from the consequences of the payment risks, both political and commercial, and to enable them to expand their overseas business without fear of loss.

POLICIES AND PRODUCT OF ECGC
Credit Insurance Policies

1) SCR OR STANDARD POLICY:

Shipments (Comprehensive Risks) Policy, commonly known as the Standard Policy, is the one ideally suited to cover risks in respect of goods exported on short-term credit, i.e. credit not exceeding 180 days. This policy covers both commercial and political risks from the date of shipment.
It is issued to exporters whose anticipated export turnover for the next 12 months is more than Rs.50 lacs. The appropriate policy for exporters with an anticipated turnover of Rs.50 lacs or less is the Small Exporter's Policy, described separately. The following are the commercial and political risk:
What are the risks covered under the Standard Policy?

Under the Standard Policy, ECGC covers, from the date of shipment, the following risks: | a. Commercial Risks | | | | Insolvency of the buyer. | | Failure of the buyer to make the payment due within a specified period, normally four months from the due date. | | Buyer's failure to accept the goods, subject to certain conditions. | b. Political Risks | | | | Imposition of restriction by the Government of the buyer's country or any Government action, which may block or delay the transfer of payment made by the buyer. | | War, civil war, revolution or civil disturbances in the buyer's country. New import restrictions or cancellation of a valid import license in the buyer's country. | | Interruption or diversion of voyage outside India resulting in payment of additional freight or insurance charges which can not be recovered from the buyer. | | Any other cause of loss occurring outside India not normally insured by general insurers, and beyond the control of both the exporter and the buyer. | 2) Small Exporters Policy | | The Small Exporter's Policy is basically the Standard Policy, incorporating certain improvements in terms of cover, in order to encourage small exporters to obtain and operate the policy. It is issued to exporters whose anticipated export turnover for the period of one year does not exceed Rs.50 lacs. | |
In what respects is the Small Exporter's Policy different from the Standard Policy? | Period of Policy: Small Exporter's Policy is issued for a period of 12 months, as against 24 months in the case of Standard Policy. | | Minimum premium: Premium payable will be determined on the basis of projected exports on an annual basis subject to a minimum premium of Rs. 2000/- for the policy period. | | No claim bonus in the premium rate is granted every year at the rate of 5% (as against once in two years for Standard Policy at the rate of 10%). | | Declaration of shipments: Shipments need to be declared quarterly (instead of monthly as in the case of Standard Policy). | | Declaration of overdue payments: Small exporters are required to submit monthly declarations of all payments remaining overdue by more than 60 days from the due date, as against 30 days in the case of exporters holding the Standard Policy. | | Percentage of cover: For shipments covered under the Small Exporter's Policy ECGC will pay claims to the extent of 95% where the loss is due to commercial risks and 100% if the loss is caused by any of the political risks (Under the Standard Policy, the extent of cover is 90% for both commercial and political risks). | | Waiting period for claims: The normal waiting period of 4 months under the Standard Policy has been halved in the case of claims arising under the Small Exporter's Policy. | | Change in terms of payment of extension in credit period: In order to enable small exporters to deal with their buyers in a flexible manner, the following facilities are allowed: | | | A small exporter may, without prior approval of ECGC convert a D/P bill into DA bill, provided that he has already obtained suitable credit limit on the buyer on D/A terms. | | Where the value of this bill is not more than Rs.3 lacs, conversion of D/P bill into D/A bill is permitted even if credit limit on the buyer has been obtained on D/P terms only, but only one claim can be considered during the policy period on account of losses arising from such conversions. | | A small exporter may, without the prior approval of ECGC extend the due date of payment of a D/A bill provided that a credit limit on the buyer on D/A terms is in force at the time of such extension. | | | Resale of unaccepted goods: If, upon non-acceptance of goods by a buyer, the exporter sells the goods to an alternate buyer without obtaining prior approval of ECGC even when the loss exceeds 25% of the gross invoice value, ECGC may consider payment of claims upto an amount considered reasonable, provided that ECGC is satisfied that the exporter did his best under the circumstances to minimize the loss.
In all other respects, the Small Exporter's Policy has the same features as the Standard Policy. | | | 3) Specific Shipment Policy - Short Term(SSP-ST) | | Specific Shipment Policies - Short Term (SSP-ST) provide cover to Indian exporters against commercial and political risks involved in export of goods on short-term credit not exceeding 180 days. Exporters can take cover under these policies for either a shipment or a few shipments to a buyer under a contract. These policies can be availed of by (i) exporters who do not hold SCR Policy and (ii) by exporters having SCR Policy, | | in respect of shipments permitted to be excluded from the preview of the SCR Policy.

What are the different types of SSP (ST)?

Different types of SSP (ST)

| Specific Shipments (commercial and political risks) Policy - short-term. | | Specific Shipments (political risks) Policy - short-term. | | Specific Shipments (insolvency & default of L/C opening bank and political risks) Policy - short-term. |

4) Export (Specific Buyers) Policy | | Buyerwise Policies - Short Term (BP-ST) provide cover to Indian exporters against commercial and political risks involved in export of goods on short-term credit to a particular buyer. All shipments to the buyer in respect of whom the policy is issued will have to be covered (with a provision to permit exclusion of shipments under LC). These policies can be availed of by | | (i) exporters who do not hold SCR Policy and

(ii) by exporters having SCR Policy,

In case all the shipments to the buyer in question have been permitted to be excluded from the purview of the SCR Policy.

What are the different types of BP (ST)?

| Buyerwise (commercial and political risks) Policy - short-term | | Buyerwise (political risks) Policy - short-term. | | Buyerwise (insolvency & default of L/C opening bank and political risks) Policy - short-term. |

5) Export Turnover Policy | | Turnover policy is a variation of the standard policy for the benefit of large exporters who contribute not less than Rs. 10 lacs per annum towards premium. Therefore all the exporters who will pay a premium of Rs. 10 lacs in a year are entitled to avail of it. | | In what respects is the turnover policy different from a standard policy? The turnover policy envisages projection of the export turnover of the exporter for a year and the initial determination of the premium payable on that basis, subject to adjustment at the end of the year based on actuals. The policy provides additional discount in premium with an added incentive for increasing the exports beyond the projected turnover and also offers simplified procedure for premium remittance and filing of shipment information. It also provides for higher discretionary credit limits on overseas buyers, based on the total premium paid by the exporter under the policy. The turnover policy is issued with a validity period of one year. In most of the other respects the provisions relating to standard policy will apply to turnover policy.

6) Buyer Exposure Policies | | Presently, in the policies offered to exporters premium is charged on the export turnover, though the Corporation’s exposure on each buyer is controlled through a system of approval of credit limits on the buyer for covering commercial risks. While this suits the small and medium exporters, many large exporters having large number of shipments have been complaining about the volume of returns to be filed under | | the policy necessitating the deployment of their resources for this purpose and also resulting in possible unintentional omissions or commissions in such reporting, which have an impact on the settlement of claims. There has been a demand for simplification of the procedures as well as for rationalization of the premium structure. Considering the requirements of such exporters, the Corporation has decided to introduce policies on which premium would be charged on the basis of the expected level of exposure. Two types of exposure policies – one for covering the risks on a specified buyer and another for covering the risks on all buyers- are offered.

Two types of Exposure policies are offered, viz,

| Exposure (Single Buyer) Policy – for covering the risks on a specified buyer and | | | | | | Exposure (Multi Buyer) Policy – for covering the risks on all buyers. | What does an Exposure (Single Buyer) Policy cover? An exporter can choose to obtain exposure based cover on a selected buyer. The cover would be against commercial and political risks attached to the buyer for both non-LC and LC transactions. A separate Buyer Exposure Policy will be issued for each buyer covering all the exports to be made to the buyer during a period of twelve months. If the exporter has opted for commercial and political risks cover, failure of the LC opening bank in respect of exports against LC will also be covered, for the banks with World Rank (WR) up to 25,000 as per latest Banker’s almanac. For covering any bank with ranking beyond that level, the exporter has to obtain specific approval from the branch, which issued the policy prior to making the shipment. For covering the political risks only, in respect of LC transactions or shipments to associates, Buyer Exposure policy with endorsement restricting the cover to political risks only with significantly less premium is offered. This policy can be availed by exporters holding Standard Policy in respect of any of their buyers. Shipments to the buyers covered under Buyer Exposure Policies would be excluded from the purview of the Standard Policy. Risks covered would be same as covered under the existing Buyerwise Policy.

7) Consignment Exports Policy
(Stockholding Agent and Global Entity) | | Economic liberalization and gradual removal of international barriers for trade and commerce are opening up various new avenues of export opportunities to Indian exporters of quality goods. One of the methods being increasingly adopted by Indian exporters is consignment exports where the goods are shipped and held in stock overseas ready for sale to overseas ready for sale to overseas buyers, | | as and when orders are received. To protect the Indian Exporters from possible losses when selling goods to ultimate buyers, it was decided to introduce Consignment Policy Cover.

There are two policies available for covering consignment export viz; | | | | Consignment Exports (Stock-holding Agent) | | Consignment Exports (Global Entity Policy) | | | Under what circumstances, Consignment Exports (Stock Holding Agent) Policy cover can be availed of? | A consignment Exports (Stock-holding Agent) Policy will be appropriate for each exporter – stock holding agent combination provided the following criteria are satisfied. | | | | Merchandise are shipped to an overseas entity in pursuance of an agency agreement; | | The overseas agent would be an independent and separate legal entity with no associate/sister concern relationship with the exporter; | | The agent’s responsibilities could be any or all of the following, viz., receiving the shipment, holding the goods in stock, identifying ultimate buyers and selling the goods to them in accordance with the directions, if any, of his principal (exporter); and | | The sales being made by the agent would be at the risk and on behalf of the exporter (whether or not such sales are in the agent’s own name or otherwise) in consideration of a commission or some similar reward or compensation on sales completed. |

8) Service Policy | | Where Indian companies conclude contracts with foreign principals for providing them with technical or professional services, payments due under the contracts are open to risks similar to those under supply contracts. In order to give a measure of protection to such exporters of services, ECGC has introduced the Services Policy. | |
What are the different types of Services Policy and what protection do they offer? | | Specific Services Contract (Comprehensive Risks) Policy; | | Specific Services Contract (Political Risks) Policy; | | Whole-turnover Services (Comprehensive Risks) Policy; and | | Whole-turnover Services (Political Risks) Policy | | | Specific Services Policy, as its name indicates, is issued to cover a single specified contract. It is issued to provide cover for contracts, which are large in value and extend over a relatively long period. Whole-turnover services policies are appropriate for exporters who provide services to a set of principals on a repetitive basis and where the period of each contract is relatively short. Such policies are issued to cover all services contracts that may be concluded by the exporter over a period of 24 months ahead. The Corporation would expect that the terms of payment for the services are in line with customary practices in international trade in these lines. Contracts should normally provide for an adequate advance payment and the balance should be payable periodically based on the progress of work. The payments should be backed by satisfactory security in the form of Letters of Credit or bank guarantees. Services policies are designed to cover contracts under which only services are to be rendered. Contracts under which the value of services to be rendered forms only a small part of a contract involving supply of machinery or equipment will be covered under an appropriate specific policy for supply contracts.

9) Software Project Policy | | | The Services Policies of the Corporation which have been in existence for some time were offered to provide protection of exporters of services including software and related services. However it was found that the general services policy does not meet with the exact requirements of software exporters. It was therefore decided to | | introduce a new credit insurance cover to meet the needs of the software exporters, namely, software projects policy, where the payments will be received in foreign exchange. The general services policies will continue to be offered for the export of services other than software and related services.

What are the software services exports that will be eligible for cover under the Software Project Policy?

The following software services will be eligible for cover under the Software Projects Policy: | Software project services, either on one time/turnkey basis or progressive/milestone basis, involving | | | | Development of software off-shore (i.e. at the exporters location in India) to be delivered and implemented in the buyer’s (client) location; or | | Development of software on-site of the client and supply and implementation; or | | Both off-shore and on-site development. |

10) IT-enabled Services (Specific Customer) Policy | | IT-enabled Services (Specific Customer) Policy is issued to cover the following commercial and political risks involved in rendering IT-enabled services to a particular customer:

Commercial risks : | |

| Insolvency of the customer. | | Failure of the customer to make the payment due within a specified period, normally four months from the due date. | | Buyer's failure to accept the services rendered (subject to certain conditions). | | Bank risks : | | Bankruptcy of L/c opening bank. | | Failure of L/c opening bank to make the payment due within a specified period, normally within four months from the due date (Non-payment due to discrepancies in the document will not be covered). | | Political risks : | | Imposition of restrictions by the Government of the customer’s country or any Government action which may block or delay the transfer of payment made by the customer; | | War, civil war, revolution or civil disturbances in the customer’s country; | | New import restrictions or cancellation of a valid import license by authorities in the customer’s country; | | Cancellation by the Govt. of India a legally valid and binding contract between the exporter and the customer. | | What types of ITES contracts that will be eligible for cover? | | ITES policy will provide cover in respect of contracts for rendering service during a defined period with billing on the basis of service rendered during a period say, a week, a month or a quarter, where the payments due for the services rendered will be received in foreign exchange. | 11) Construction Works Policy | | Construction Works Policy is designed to provide cover to an Indian contractor who executes a civil construction job abroad.

The distinguishing features of a construction contract are that (a) the contractor keeps raising bills periodically throughout the contract period for the value of work done between one billing period and | | | another; (b) to be eligible for payment, the bills have to be certified by a consultant or supervisor engaged by the employer for the purpose and
(c) that, unlike bills of exchange raised by suppliers of goods, The bills raised by the contractor do not represent conclusive evidence of debt but are subject to payment in terms of the contract which may provide, among other things, for penalties or adjustments on various counts. The scope for disputes is very large. Besides, the contract value itself may only be an estimate of the work to be done, since the contract may provide for cost escalation, variation contracts, additional contracts, etc. It is, therefore, important that the contractor ensures that the contract is well drafted to provide clarity of the obligations of the two parties and for resolution of disputes that may arise in the course of execution of the contract. Contractors are well advised to use the Standard Conditions of Contract (International) prepared by the Federation International Des Ingenieurs Conseils (FIDIC) jointly with the Federation International du Batiment et des Travaux Publics (FIBTP).

What are the risks covered by Construction Works Policy?

The Construction Works Policy of ECGC is designed to protect the Contractor from 85% of the losses that may be sustained by him due to the following risks:

| Insolvency of the employer (when he is a non-Government entity); | | Failure of the employer to pay the amounts that become payable to the contractor in terms of the contract, including any amount payable under an arbitration award; | | Restrictions on transfer of payments from the employer's country to India after the employer has made the payments in local currency; | | Failure of the contractor to receive any sum due and payable under the contract by reason of war, civil war, rebellion, etc; | | The failure of the contractor to receive any sum that is payable to him on termination or frustration of the contract if such failure is due to its having become impossible to ascertain the amount or its due date because of war, civil war, rebellion etc; | | Imposition of restrictions on import of goods or materials (not being the contractor's plant or equipment) or cancellation of authority to import such goods or cancellation of export license in India, for reasons beyond his control; and | | Interruption or diversion of voyage outside India, resulting in his incurring in respect of goods or materials exported from India, of additional handling, transport or insurance charges, which cannot be recovered from the employer. |

12) Specific Policy for Supply Contract | | The Standard Policy is a whole turnover policy designed to provide a continuing insurance for the regular flow of an exporter's shipments for which credit period does not exceed 180 days. Contracts for export of capital goods or turnkey projects or construction works or rendering services abroad are not of a repetitive nature and they involve medium/long-term credits. Such transactions are, therefore, insured by ECGC on a case-to-case basis under specific policies. | | What are the formalities to be completed before applying for specific policies for contracts? All contracts for export on deferred payment terms and contracts for turnkey projects and construction works abroad require prior clearance of Authorized Dealers, EXIM Bank or the Working Group in terms of powers delegated to them as per exchange control regulations (Kindly refer to 'Projects Exports Manual' of Reserve Bank of India. For further details go to www.rbi.org.in). Applications for the purpose are to be submitted to the Authorized Dealer (the financing bank), which will forward applications beyond its delegated powers to the EXIM Bank. Proposals for Specific Policy are to be made to ECGC after the contract has been cleared by the Authorized Dealer, EXIM Bank or the Working Group, as the case may be.

13) Insurance Cover for Buyer's Credit And Line of Credit | | Buyer's Credit is a credit extended by a bank in India to an overseas buyer enabling the buyer to pay for machinery and equipment that he may be importing from India for a specific project.
A Line of Credit is a credit extended by a bank in India to an overseas bank, institution or government for the purpose of facilitating import | | of a variety of listed goods from India into the overseas country. A number of importers in the overseas country may be importing the goods under one Line of Credit. | ECGC has evolved schemes to protect the lending banks from certain risks of non-payment. These covers take the form of an agreement between the lending bank and ECGC and are issued on a case to case basis. Credit terms and the length of the credit period should be in conformity with what is appropriate for the export of the relevant items. There should be adequate security for the repayments to be made by the borrower. | | Cover can be granted either for political risks or for comprehensive risks. Political risks covered under the scheme are: | | | The occurrence of war between the country of the overseas party and India. | | The occurrence of war, hostilities, civil war, revolution, rebellion, insurrection or other disturbances in the country of overseas party. | | The operation of law or of an order, decree or regulation having the force of law which in circumstances outside the control of the lender and/or the overseas party, prevents, restricts or controls, the transfer of the sums due to the lender by the overseas party under the Financial Agreement. | | | If ECGC agrees to provide comprehensive risks cover, the risk of protracted default of the borrower to pay the amounts due under the loan agreement and insolvency of the borrower, where applicable, will be covered in addition to the political risks mentioned above. The premium rates applicable to comprehensive risk cover will naturally be higher than that for political risks cover. Normally ECGC covers up to 85% of the loss. | | The premium rates depends on the country to which exports are made and the period of repayment. | | When is the premium to be paid for the cover for Buyer's Credit and Line of Credit? | | At least 20% of the total amount of premium should be paid in advance. The balance amount of premium may be paid on a quarterly basis in proportion to the amount of credit disbursed. | 14) POLICIES FOR SME SECTOR

ECGC introduced a Policy exclusively for the SME sector units in 4th
July, 2008. The Policy is particularly provides the SME Sector easy administrative and operational convenience. The features of the SME
Policy are as under;

Features of Small and Medium Exporters Policy at a glance

No. | Particulars | Details | 1. | Policy period | 12 months | 2. | Processing Fees | Rs.1000 | 3. | Credit limit fees | No | 4. | Discretionary Limit | No | 5. | Declarations | No | 6. | Premium | Rs.5000 | 7. | Maximum Loss Limit | Rs.10 lacs | 8. | Single Loss Limit | Rs. 3 lacs | 9. | Report of overdue | 60 days from the due date | 10. | Waiting period | Two months from the duedate or extended due date | 11. | Percentage of cover | 90% |

This Policy is meant for exporters engaged in manufacturing activities having invested in plant and machinery or engaged in export of services having invested in equipment as per MSMED Act, 2006.
This Policy can be issued to an exporter qualifying as per the MSMED Act, 2006. The exporter desirous of obtaining the Policy should furnish the certificate issued by the designated authority. (District Industries Centers) This Policy is not meant for the exporter.s carrying out trade activities only.…...

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...1 Virtue Theory, Utilitarianism, and Deontological Ethics. Judith Glowinski ETH/316 - 4/16/2013 MARY CARTER 2 When comparing the similarities and differences between virtue theory, utilitarianism, and deontology we find that they all deal with how one judge’s morality and ethics. These theories all include judging in different aspects, whether it is in the moment, what happens after, or over a lifetime. The ethics and morality behind these theories all deal with what is right, or what is best for the present, then separate paths as the theories work toward the future. With virtue ethics a person strives for excellence performing duties, and acquiring traits that others would admire. With utilitarianism a person makes a decision based on the best results, and what is best for the most amounts of people. With deontology a person makes a decision depending on what he or she thinks is morally correct, not necessarily based on the best results for the people, but more for the wellbeing of that person. The similarities between the three theories all deal with results. These theories all work toward the best result depending on what someone believes the best result may be. Many people will take different sides when it comes to a decision that benefits either the present or future, whether a person’s decision is the best for the moment or best for the future is what differentiates these theories. Putting the best interest of the team before one’s personal......

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...Shanice Naidoo 212538675 Ethics 101: Essay African ethics and its characteristics This essay seeks to explain what African ethics is as well as its characteristics. In order for that to be done, we must first explain what African ethics is and the foundations upon which it is built. African ethics refers to the values, codes of conduct and laws that govern the moral conduct of people within a given society. African ethics as a whole tends to place its focus on mankind. In this essay paper, we will also seek to explain the concept of Ubuntu, which is a concept that is strongly embedded in African ethics. African ethics is founded on three main concepts, firstly, God; followed by the community and lastly human dignity. According to the norms of African ethics, God is the pivotal focus in one’s life. Africans believe that God is the only one that can judge man because he has created it. They believe that humans should behave in a loving and forgiving manner because God loves and forgives them. It is held that any troubles that people encounter, such as, bad health; natural disasters etc., are not of God but rather of the devil or evil spirits ‘Satan’. Community in African ethics refers to the society as a whole or a certain group of people that one belongs to. The central focus here is the welfare and interests of each member of the community rather than that of the individual. They hold the view that being a member of the community by nature; the individual is......

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...Running head: Ethics and the College Student 1 The Ethics and College Student Title Page: BY MAURICE M. OWENS ABSTRACT The purpose of this paper is to see the college students’ view of ethics. There was enough evidence to say that college students’ perceive ethics instruction, and those who teach it, to be relevant and beneficial in shaping their own ethical behaviors. Students’ attitudes towards cheating is measured by their perception of cheating in high school, college, and non-major classes. The use of technology has an impact on college ethics since it is easier to cheat in online/hybrid classes and when some kind of technology is used in a course. College students believe that they are living in an ethical campus environment, where their faculty members are mostly ethical in nature and that it is never to late to learn about ethics in college. The Ethics and College Student Title Page: 2 Ethics is truly and important asset within today’s society, there are so many ways you can define ethics. I will say that to me ethics is about your upbringing, starting from the day you were born. Ethics will keep together and organization or it will dismantle and organization, you must enforce structure and guidelines. There are three strong principles when we talk about students and ethics. I call this (R, A, O) Responsibility, Accountability and Ownership. Students must be Responsible and withhold the obligations and the integrity of the school in......

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...ETHICS IN JAPANESE BUSINESS ENVIRONMENT Romanian Economic and Business Review – Vol. 2, No. 2 Caraiani Gheorghe, Maduţa Gyongyver Gheorghe Caraiani is Professor of International Business at the Romanian American University in Bucharest. Maduta Gyongyver is Assistant Professor of English Language at the Romanian American University in Bucharest. Abstract At first sight it is easy to understand that “ethics in business” is a field which aims at explaining problems of moral aspect which come up currently in the activity of economic agents from a market economy. Considering the cultural variety of moral values and principles lengthwise and crosswise the planet and, since the adopted policies led to many unacceptable effects, the idea of drawing up international ethic codes appeared more and more substantial through the explicit agreement of some governmental and non-governmental associations in which the big transnational corporations have the main role. The company system in Japan is so strict that it is quite hard, sometimes even impossible for a company to do business with another company with which it does not have personal, tight and previously established relations. The Japanese philosophy is that only the company in which the human relations are good will succeed in while the one with bad human relations will go bankrupt. In order to understand a Japanese company and to be able to cooperate with it, it is really useful for one to see it as an exclusive club, a......

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...Kathleen F. Brochu Manage Principles Dr. M. Miller Research Paper “Ethics” Should Ethics be taught in the Corporate Environment? By Kathleen Brochu Table of Contents Cover Page Title: “Ethics” Should ethics be taught in the corporate environment? By: Kathleen Brochu Introduction What is Ethics? Can ethics be taught? Whose responsibility is it? Body Meaning of Ethics How one learns ethics How to promote ethics in the work place Conclusion Higher production rates Caring Employees Improved Companies relationships Today’s business environment is not only fast-paced, but also highly competitive. In order to keep pace and stay ahead, possession of several key work ethics is a plus for achieving a successful career. Holding key traits such as attendance, character, teamwork, appearance, and attitude add value to both you as a person and your company. Successful careers come in many flavors, but work ethics are a main ingredient in most recipes for success. Ethics are not born in a vacuum. Ethics are more like a jigsaw puzzle that is thrown together over time, that when complete makes up who you are and what you believe. From our earliest days of life, we start to learn from those around us. These learned behaviors add to the traits that we are already born with and help to shape us into the person we will become. As part of this learning process, we develop what will become our norms. Norms are our......

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...Ethics Essay ETH/316 May 21, 2014 University of Phoenix Ethics Essay This week's reading assignment covered many aspects of ethics. In this written assignment, we are asked to compare the similarities and differences between three types of ethical behavior, virtue, utilitarianism, and deontological ethics. To understand the three separate ethic behaviors, I must first define them. Virtue ethics deals with a person’s character, their inward behavior. If a person’s character is good, then so are his or her choices and actions. A person should always strive for excellence in everything that they do. Virtue ethics is not team-based; it’s all about the good of a particular person and how he or she think and act on a daily basis. An example of virtue ethics is, me being in line at the grocery store, the person ahead of me does not have enough money to complete his purchase, so I pay the difference to help him out. Utilitarianism ethics is different from virtue ethics because it promotes the greatest amount of good to a group. Utilitarianism is not individually based, it is more people based. Best described when a person sacrifices a little, in order to get more in return. A personal example of utilitarianism could be the time I was babysitting my niece and two nephews. Instead of me watching basketball on the television, I allowed them to watch a children’s movie in order to gain peace and quiet throughout the house. I gave up the television for the greater...

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...Running Head: Business Ethics Main Title: The Cultural Dimensions of Business Ethic Monroe College Contents Rationale 3 Introduction 3 Some Factors which may Influence Business Ethics 3 How Peoples Action can Affect Business Ethics 4 How Structure Affects Business ethics 4 How Culture, Norms and Laws Affect Business Ethics 5 Unethical Practices and How They May Affect a Business 5 Recommendations 7 Conclusion 8 Sources 10 Rationale The purpose of this paper is to discuss and address cultural aspects of business ethics. It will also examine how these cultural aspects may affect businesses and shape societies view on these organizations. Recommendations will also be made for example, on the aspect of setting companies policy while taking morals and ethical matters into consideration. Introduction Ethics is a huge area of interest, study and debate. According to Dictionary.com, Ethics is a body of moral principles or values governing or distinctive of a particular culture or group. Business ethics can be described as the behavior that a business adheres to in its daily interactions with society .The ethical standards of a business can be examined by looking into the firm’s human rights policy, its regulations of bribery and corruption, and its execution and compliance of its codes of ethics. The ethical standards of business can vary significantly depending on the country it is headquartered in. These standards apply not......

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..."Building a code of ethics to make a strong organization has many requirements to make it successful, organized, and valued."-Vivek Wadhwa. One main concept an organization needs to have to drive its success is a code of ethics. Having a code of ethics will manage an organization throughout its expansion and outset. The code of ethics will guide and teach the organization stay on board to its vision, plans, and goals but doing it in a manner or alignment that will protect the organization and its employees. Serving in the military, working in human resource, has introduced and taught a code of ethics for its organization which has many requirements to make it successful, organized, and valued. Working for the military has ethical fundamentals that help address or solve issues and situations that happen. Being in the military there is a certain look that soldiers must represent; this includes the proper uniform attire, attitude, and behaviors. If a soldier goes against what is expected of him or her there are different approaches and regulations that must be considered. For instance, when a soldier violates the law in his or her workplace like lying on documents or stealing, the outcome is an article15 and chances of getting promoted. The code of ethics for the military offers information on reporting suspected violations in reference to enforcement of the provisions of joint ethics. Having a code of ethics in the military keeps soldiers, as well as their families,......

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... Computer Ethics By Brenda B. Covert |    | | 1     Ethics is a short, two-syllable word of six letters that affects every segment of our lives. Ethics is a moral code involving a clear understanding of right and wrong. Another word for ethics is values. When people talk about ethics, they may be focused on one specific area, such as business, medical, political, environmental, religious, or personal ethics. Today we are going to focus on another important area of ethics: computer ethics.   2     If you have good computer ethics, you won't try to harass or hurt people with your computer, and you won't commit crimes such as information theft or virus creation. The problem that often arises when some of us are on a computer is that we don't see the harm in snooping in another person's private information or trying to figure out their passwords. It seems smart to copy and paste information into a school report and pretend that we wrote it. (Even if the information were public property --which most of it isn't-- that would be dishonest.) The crimes committed with hacking or gaming scams may not seem harmful because the victims lack faces. Flaming (aiming abusive, insulting messages at another person online) seems risk-free since we are anonymous. Indulging in obscenities and other offensive behavior online might feel empowering simply because no one knows who we really are. No one is going to come knocking on the door and demand a physical confrontation. However, every one of...

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