Only 30 out of the top 150 companies that were included in the analysis done by audit firm Grant Thornton, had a whistle blower mechanism that allowed anonymous reporting of frauds and bribery and only 33 companies had an e-mail or hotline facility to report such acts.
Under the new Companies Act it has become mandatory to set up mechanisms for directors and employees to report acts of fraud, unethical behaviour or any violation of the company’s code of conduct.
According to Harish HV, partner, Grant Thornton India LLP, as much as there is a need to increase awareness about the whistle blower mechanism it is important to increase the confidence and faith of whistle blowers. He also goes on to mention that whistle blowers should also cover external stakeholders like customers, contractors etc.
Even though the corporate sector is trying to focus on a zero tolerance culture to bribery and corruption, many employees are unaware of their organisation’s polices on anti-bribery and corruption.
