Insuring the Insurance: A Model for Investment in Ethical Capital

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.

- Prof (Dr) Abhijit K.Chattoraj

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.

An organization wedded to value must believe in ethical leadership and develop a culture that harnesses ethical conduct, leading to the formation of ethical capital. The International Integrated Reporting Framework must work towards including ethical capital as a distinct capital.

A good organization depends on its ethical status for its success. Tata Group of companies in India is one example of a conglomerate that thrives on its ethical positioning. LIC of India, with its excellent market communication and tagline - Zindagi ke saath bhi - Zindagi ke baad bhi,({O§XJs Ho$ gmW ^s, {O§XJs Ho$ ~mX ^s) has leveraged its ethical status to emerge as a deep brand- an example of ethical capital. LIC of India, no wonder, is also considered a trusted brand for its fair and ethical customer dealings.

'Ethical capital is a transformative force in reimagining economic systems for a sustainable and equitable future. Rooted in the relational framework of field economics, it underscores the interconnectedness of human and non-human actors within dynamic networks. By fostering trust, reducing systemic inefficiencies, and aligning economic activities with collective well-being, ethical capital challenges entrenched paradigms of profit-driven, individualistic value creation' (Prabhakaran 2025).