A Comparative Study of the Whistle Blower Mechanism in Public and Private Sector Enterprises in Power and Chemical & Fertilizer Industries of India

Author:Kalpana Nebhinania*, B.D. Sharmab

Abstract:
The whistle blower mechanism has been made compulsory in new company act 2013. Whistle blower is an employee who openly and freely alleges or informs to government agencies and audit committees about wrong doing of his own company in the hope of preventing it. Now Indian companies are required to formulate an internal policy on access to Audit committees. The present study examined the effectiveness of whistle blower mechanism in Indian public and private sector enterprises from chemical & fertilizer industry and power industry. This study focuses on practices of Indian companies in reference to the protection to whistle blowers. The sample was collected from 400 employees from above industries. The main findings revealed that there is no significant difference between effectiveness of whistle blower policy in public and private sector enterprises. It was also found that many employees of these companies are not known about this policy. So the main recommendation for effective institutionalization of this policy were ; there is a need to develop intranet network platform by every company, as well as appropriate communicating of this mechanism is required to make all employees more aware about whistle blower mechanism. In addition to this confidentiality is required to protect whistle blowers in both sectors of Indian companies.

Keywords:Keywords: Whistle blower, Corporate governance, Public sector, Private sector, Whistle blower policy, Stakeholders, Audit Committee, Misconduct.

DOI:

International Journal of Trade & Commerce (Vol: 5 Issue:1)