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A tool to good corporate governance  Mechanism for Whistle Blowing Safeguards  &  Reach
“ Corporate governance is… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Corporate Governance  -  The basic Framework  Output – Input  = Wealth Created ? Sustainability Happiness and Prosperity of all Stakeholders Reinvestment Distribu-  tion ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Wealth Creation Wealth Management Wealth Sharing Enhanced Capabilities Best Management Practices are Vital Here Law and Ethics are Vital Here
Corporate Governance Value Chain  “ Corporate Governance is not related to investors only, though they are most important Beneficiary.” The Stakeholders
The Stakeholders’ Value Chain SUPPLIERS CUSTOMERS HUMAN RESOURCE Supply Funds, Materials and Services Value Addition and Management of Resources Give Opportunity to Co. to Satisfy their Needs Adequate Returns for Funds, Material and Services Supplied Adequate Salary and Security for leading a Happy Life Best Quality Products and Customer Care at Minimum  Prices ROLE OF STAKEHOLDERS EXPECTATIONS OF STAKEHOLDERS Potential Suppliers, Human Resources and Customers Biological, Economic and Cultural Environment PUBLIC PUBLIC EXPECTS PARTNERHIP FOR SUSTAINABLE DEVELOPMENT
An indispensible  ingredient of ensuring  Good Corporate Governance  in Spirits  ,[object Object],[object Object]
Whistle Blowing …  the key concerns  ,[object Object],[object Object],[object Object],[object Object],Cont…
Whistle Blowing …  the key concerns  ,[object Object],[object Object],[object Object],[object Object]
Area of Whistle Blowing  Whistleblowers may make their allegations
Area of Whistle Blowing  The Subjects of Concern
Focal Areas for a person before whistle Blowing? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Legal Provisions governing Whistle Blower  in India  ,[object Object],[object Object]
Initiatives towards Whistle Blowing
Reference of Whistle Blower in  Indian Statues
Committees  recommending  Whistle Blowing as an element of Corporate Governance Committee Year Confederation of Indian Industry code on corporate governance  1998 Kumar Mangalam Birla Committee 1999 Naresh Chandra Committee  2002 N. R Narayana Murthy 2003
What does the Listing Agreement provides for Whistle Blowing? ,[object Object],[object Object],[object Object],[object Object]
RECOMMENDATIONS ON WHISTLE BLOWER BY  THE CORPORATE GOVERNANCE VOLUNTARY GUIDELINES 2009 ,[object Object],[object Object],[object Object]
Do other countries have similar laws to protect whistle blowers? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Instrument of effecting Whistle Blowing  ,[object Object],[object Object]
The Aims of the Policy  ,[object Object],[object Object],[object Object],[object Object]
Whistle Blowing in India Inc.
Components of an effective whistle-blowing policy
Procedural Aspects of Whistle Blowing Providing  confidence to person  to blow the whistle  Mechanism to aid  anonymous reporting  - email, telephone numbers. Independent Ombudsman or Chairman of Audit Committee  for handling such information Whistle Blower need not inform the supervisors Ensuring  confidentiality and securit y  of the Whistle Blower Specifying  specific flow of work  to  Audit teams –internal and external Review and affirmation of process by Board/Audit Committee
How to encourage Whistle Blowing  ,[object Object],[object Object],[object Object],[object Object]
Risks involved in the process
 
Some of the Biggest Corporate Collapse  The fate of millions to  stakeholders could have been protected  if the  Whistle Blower   was effective…
[object Object],[object Object]
The  Satyendra  Dubey  Fate … (2003) ,[object Object]
History Repeated in the Manjunath Shanmugham Incident (2005) ,[object Object]
Other Setbacks to Whistle Blowing  ,[object Object],[object Object],The Bombay Stock Exchange Scandal …  (2001)
Whistle Blowing  -  The missing links  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Recommendations ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Thank You  Pavan Kumar Vijay  Managing Director  Corporate Professionals (India) Pvt. Ltd. D – 28, South Ext- I, New Delhi 1100049 Tel: +91.11.40622200, Fax: +91.11.40622201 Email: info@indiacp.com Visit us at: www.corporateprofessionals.com

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Mechnism for Whistle Blowing: Safegaurds & Reach

  • 1. A tool to good corporate governance Mechanism for Whistle Blowing Safeguards & Reach
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  • 4. Corporate Governance Value Chain “ Corporate Governance is not related to investors only, though they are most important Beneficiary.” The Stakeholders
  • 5. The Stakeholders’ Value Chain SUPPLIERS CUSTOMERS HUMAN RESOURCE Supply Funds, Materials and Services Value Addition and Management of Resources Give Opportunity to Co. to Satisfy their Needs Adequate Returns for Funds, Material and Services Supplied Adequate Salary and Security for leading a Happy Life Best Quality Products and Customer Care at Minimum Prices ROLE OF STAKEHOLDERS EXPECTATIONS OF STAKEHOLDERS Potential Suppliers, Human Resources and Customers Biological, Economic and Cultural Environment PUBLIC PUBLIC EXPECTS PARTNERHIP FOR SUSTAINABLE DEVELOPMENT
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  • 9. Area of Whistle Blowing Whistleblowers may make their allegations
  • 10. Area of Whistle Blowing The Subjects of Concern
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  • 14. Reference of Whistle Blower in Indian Statues
  • 15. Committees recommending Whistle Blowing as an element of Corporate Governance Committee Year Confederation of Indian Industry code on corporate governance 1998 Kumar Mangalam Birla Committee 1999 Naresh Chandra Committee 2002 N. R Narayana Murthy 2003
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  • 21. Whistle Blowing in India Inc.
  • 22. Components of an effective whistle-blowing policy
  • 23. Procedural Aspects of Whistle Blowing Providing confidence to person to blow the whistle Mechanism to aid anonymous reporting - email, telephone numbers. Independent Ombudsman or Chairman of Audit Committee for handling such information Whistle Blower need not inform the supervisors Ensuring confidentiality and securit y of the Whistle Blower Specifying specific flow of work to Audit teams –internal and external Review and affirmation of process by Board/Audit Committee
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  • 25. Risks involved in the process
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  • 27. Some of the Biggest Corporate Collapse The fate of millions to stakeholders could have been protected if the Whistle Blower was effective…
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