Arun Arangil, University Institute of Legal Studies (UILS), Chandigarh University
"Citizens never support a weak company, and birds do not build nests on a tree that does not bear fruits."
ABSTRACT
Corporate governance is a framework, system, or method corporations use to evaluate how their firms run, establish their policies, and achieve their goals. For the adoption of Corporate Governance Practices, whistleblowing is vital and relevant. A whistle-blower is an employee who notifies the public about fraud, corruption, or misbehavior within a company. The Whistle Blower Policy may be created and administered by management, but it must be disclosed to the Audit Committee and Board of Directors. A whistle- blower policy is a valuable mitigating mechanism because all corporate organizations struggle to segregate their tasks adequately. Whistleblowing is an essential element of healthy business culture. However, fostering a culture of fearless expression within the organization is equally important. Significant public investigations and publications in fields such as business and healthcare have addressed the dearth of whistle-blowers. In India, whistle-blowers are protected by the Whistleblower Protection Act. Establishing a vigil system is helpful for the organization since it provides employees with a means to report illegal operations, fraud, and other misconduct. Due to scandals such as Satyam, Tyco, AIG, Enron, Worldcom, and Zerox, there is a demand for more ethical governance. In India, there is no particular whistle-blower statute. The obligation to encourage whistleblowing falls on both businesses and the government. There is a possibility that whistle-blowers' inclination to reveal information may be diminished. Ultimately, employers and employees may contribute to developing an effective risk management system.
