Whistleblower policies driving compliance at companies
India Inc. According to a recent survey by law firm AZB & Partners, 74% of the respondents agree that the use of the whistle-blowing mechanism is a significant driver in unearthing ethical issues within organisations.
The firm conducted a survey by reaching out to its over 500 clients. «A reputation for legal and fair business now has tangible and measurable benefits in terms of better valuations, availability of a deeper pool of external debt and equity capital at more favourable terms and of quality employees to run and grow the business,» said Zia Mody, co-founder of law firm AZB & Partners.
The report suggests that the efforts that have been taken in relation to the establishment of the whistle-blowing mechanism by corporate India are showing results. Also, it suggests that increasing investments by foreign investors, including Foreign Direct Investment (FDI) in the country has a push factor in driving the ethics and compliance culture in India.
According to the study, about 71% of participants believe that people are now more open and forthcoming in making complaints and raising red flags on ethical issues. Also, about 82% of the respondents stated that their organizations investigate anonymous/ pseudonymous whistle-blower complaints based on merits.
«Limited Indian business ethos has evolved and matured — doing business in an ethical manner and addressing bribery and corruption risks, is fast becoming an integral part of the DNA of India Inc,» said Deepak Parekh, Chairman of Housing Development Finance Corporation Ltd in the report. «This structural change augurs well, increasing India's attractiveness as a preferred investment destination.»
. Read more on economictimes.indiatimes.com
