Corporate governance and whistle blowing in India: promises or reality?

Abstract

PurposeThe purpose of this paper was to analyze the legal provisions relating to the protection extended to the private company employees who blows the whistle. It is a major requirement of the country that Whistle Blowers Protection Act should not only be made compulsory for public sector but also be made compulsory for private companies of any size so that illegal activities could be identified and major risk could be avoided. Presently, private sector is growing rapidly, and it has a growth in way of economic resources, and private sector is also entering into the public domain by privatization, so exclusion of private sector by the Whistle Blowers Protection Act, 2011 is very dangerous.Design/methodology/approachThe researcher has resorted to primary as well as secondary sources of data. The primary sources of data are the Whistle Blowers Protection Act, 2011, Official Secrets Act, 1923, Right to Information Act, 2005, The 179th Law commission report, report of Second Administrative Reforms Commissions, 2007 and recommendations made by Parliamentary Standing Committee on Personnel, Public Grievance, Law and Justice, 2011. The secondary data are the books and articles of different authors.FindingsThis Act provides a mechanism to receive complaints and inquire into the allegations of corruption or willful misuse of power by the public servants only. Although, this act has not come into existence, but on bare perusal, it seems to be inadequate and still needs more amendments for efficient outcomes or else the zeal of whistle blowers particularly in a private sector will fade away. The need of exhaustive and complete law is also necessary so that the evils like corruption can be curbed completely and effectively.Originality/valuePrivate sector, if included in the above-mentioned act, would definitely resolve the problem, but on the same hand, it will raise the question of space that needs to be given to private organization. So in concluding remarks, the author would like to suggest that, to improve the organizational quality of private sector, there should be a national legislation which should deal with substantial guidelines that needs to be adopted by private companies. There is a significant need to raise the standard of corporate governance in India, only then it could achieve stability, transparency and growth.