Page 19 - The Insurance Times February 2025

Insurance Demystified

Insuring the

Insurance: A

Model for

Investment in Prof (Dr) Abhijit K.Chattoraj

Ethical Capital Chartered Insurer, Insurance and
Risk Management Professor and
Director of Management
Development Program & Consulting
- IMS Unison University, Dehradun.

If today's organizations have to survive and sustain themselves, they must invest in ethical capital,
or they will go the way of dinosaurs. In other words, all capital ventures must be ethical, and an
investment in ethics is inevitable, for it follows the spirit of Rule and an inclusive approach towards
all stakeholders.

I f today's organizations have to survive and sustain 'Ethical capital is a transformative force in reimagining eco-
nomic systems for a sustainable and equitable future. Rooted
themselves, they must invest in ethical capital, or
they will go the way of dinosaurs. In other words, all
in the relational framework of field economics, it underscores
capital ventures must be ethical, and an investment
in ethics is inevitable, for it follows the spirit of Rule and an the interconnectedness of human and non-human actors
within dynamic networks. By fostering trust, reducing sys-
inclusive approach towards all stakeholders. temic inefficiencies, and aligning economic activities with
collective well-being, ethical capital challenges entrenched
An organization wedded to value must believe in ethical paradigms of profit-driven, individualistic value creation'
leadership and develop a culture that harnesses ethical con- (Prabhakaran 2025).
duct, leading to the formation of ethical capital. The Inter-
national Integrated Reporting Framework must work to- 'Ethical capital is the collective value that derives from the
wards including ethical capital as a distinct capital. organization's commitment to ethics' (Cynthia Schoeman -

2019). It necessarily means that the value of ethics should
A good organization depends on its ethical status for its be ingrained in all the six capital models, i.e., financial,
success. Tata Group of companies in India is one example of manufactured, intellectual, human, social and relationship,
a conglomerate that thrives on its ethical positioning. LIC and natural capital. The degree of impact value may vary
of India, with its excellent market communication and depending on the capital source. The degree of impact on
tagline - Zindagi ke saath bhi - Zindagi ke baad bhi,({O§XJs the human capital that fosters people's competencies, ca-
o
o
§
H$ gmW ^s, {OXJs H$ ~mX ^s) has leveraged its ethical status pabilities, and experience is very high as it is key to imple-
to emerge as a deep brand- an example of ethical capital. menting an organization's governance outline, strategizing
LIC of India, no wonder, is also considered a trusted brand risk management approach, and stimulating ethical values
for its fair and ethical customer dealings. in keeping with the overall shared value of the organization.

18 February 2025 The Insurance Times