Kenda, a Practising Company Secretary was addressing one of the professional forums about corporate governance and regulatory aspects. He emphasized that the corporate sector, not only in India, but the world over, has b

The corporate sector not only in India but the world over has been through several progressive changes over the last few decades. These changes, however, have constantly been overpowered by widespread controversial corporate scandals. These scandals not only adversely impact the reputation of the company but also hamper the interest of various investors and stakeholders of the company. Those inside the organization are definitely better positioned to prevent these wrong happenings and thus the even increasing need for whistle blower policy. The need for whistle blower policy is for the following reasons - To promote transparency -An effective whistle blowing policy facilitates a transparency among employees. Prevent victimization of whistle blowers - A robust whistle blowing mechanism protects anyone who exposes alleged wrongdoing in the institutions and projects. To promote an open enterprise culture - Effective protection of whistle-blowers will support an open enterprise culture where employees not only have confidence in reporting but are also aware of the reporting procedures. Reduce corruption - Strengthening whistle blowing mechanism will helps to prevent misuse of power by public servants and thus curb corruption. To uphold rule of law and democracy - Strengthening of the whistle blower protection mechanism will helps in upholding the principles of democracy and ensure public participation in governance. To create a better work environment - Whistle blowing helps in rectifying even the smallest incidents of wrongdoing, thereby instilling similar responsibilities in others and creating a better environment for all.