for effective management and distribution of wealth and discharge of social responsibility for sustainable development of all stakeholders”
Institute of Company Secretaries of India
Corporate Governance - The basic Framework Output – Input = Wealth Created ? Sustainability Happiness and Prosperity of all Stakeholders Reinvestment Distribu- tion
Payment of Taxes and Partnership in National Development Projects
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
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?
Provides for establishment of mechanism of whistle blowing
Adequate safeguards to be established
Proper communication of mechanism
Power of audit committee to ensure proper functioning
RECOMMENDATIONS ON WHISTLE BLOWER BY THE CORPORATE GOVERNANCE VOLUNTARY GUIDELINES 2009
Institution of a mechanism for employees
Establishment of adequate safeguards against victimization of employees
Direct access to the Chairperson of the Audit Committee
Do other countries have similar laws to protect whistle blowers?
Several Countries have initiated towards or are initiating towards WHISTLE BLOWER PROTECTION LAW. The Level of Whistle Blower Protection however, differ from Country to Country.
Some of the Countries which have formulated such law are:-
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
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