Whistleblowing is one of the top mechanisms which are important for implementing better and effective corporate governance in any institution or organization. Whistleblowing advances good corporate governance, which is essential to a corporation’s growth and development. Whistleblower policy has been recognized as one of the basic features of corporate governance. As whistleblowing promotes good corporate governance, it is enviable that a clear and specific definition and procedure of whistleblowing should be established in every corporation’s whistleblower policy. Whistleblowing is an important tool in any organization’s corporate governance strategy as it empowers employees to act on incidences of misconduct and help maintain a safe workplace, while protecting profits and reputation of the company. Further, the whistleblowing is an essence of conscience keeping and the whistleblowers are the conscience keepers. A conscience keeper has an obligation to blow the whistle i.e. raise an alarm whenever he finds anything which is not as per standards of conscience. Thus, in order to protect corporate conscience, it is necessary to protect conscience keepers, i.e. whistleblowers. This paper will provide an overview of how whistleblowing is related to good corporate governance, highlight the importance of whistleblowing policy in corporations and provide details of Indian legal provisions promoting whistleblowing policy in corporations.
Cite this article:
Ajay Sharma. Whistleblowing as a Tool to Corporate Good Governance-An Indian Perspective. Res. J. Humanities and Social Sciences. 2018; 9(3): 671-676. doi: 10.5958/2321-5828.2018.00112.2