Hi,
I need some clarification: can we keep two separate policies for Whistleblower and Open Door? We already have an Open Door Policy but now have to implement a Whistleblower policy as a mandate. Should we scrap the Open Door policy or combine them together? Can I have some suggestions or help, please?
Thanks
From India, Chandigarh
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I need some clarification: can we keep two separate policies for Whistleblower and Open Door? We already have an Open Door Policy but now have to implement a Whistleblower policy as a mandate. Should we scrap the Open Door policy or combine them together? Can I have some suggestions or help, please?
Thanks
From India, Chandigarh
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Hi, both the policies are related more to the escalation matrix. Yes, you can club both the policies together or scrap one and utilize either one of it depending on your day-to-day activity, nature of business, or need of the hour.
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Whistle Blowing Policy is Mandatory for Organizations
As per "The Companies Act, 2013" and "The Securities and Exchange Board of India (SEBI)" circular dated August 26, 2003, the Principles of Corporate Governance incorporated in the standard Listing Agreement require the formulation of a Whistleblower policy for companies. Clause 49 of the Listing Agreement to the Indian stock exchange now also mentions this requirement.
Importance of Keeping Both Policies
In my point of view, you should keep both policies because whistleblowing is an important aspect that has the inherent power to mitigate a crisis-like situation. The whistleblower’s revelation needs to be handled correctly and promptly for sustained value creation in the organization. It cannot be disputed that many large corporate frauds have come to light only through an insider’s revelation or a confession, and not through an audit report or a regulatory investigation. Thus, it becomes very essential to provide the whistleblower a smooth route for their revelation through an efficient whistleblower policy.
Open Door Policy and Organizational Culture
The Open Door Policy deals with organizational culture and the values, policies, ideologies, and beliefs of employees. Employees must have a cordial relationship with their superiors and management for a smooth flow of information and better understanding at the workplace. We know that transparency is essential at all levels in the hierarchy to avoid conflicts and unnecessary disagreements. No one should feel neglected at work. Problems arise when queries remain unattended and bosses do not have time for their team members. To avoid these situations, organizations need an "Open Door Policy."
Conclusion
The Whistle Blowing Policy is a legislative need that protects against any types of fraud or scam, while the Open Door Policy is necessary for developing cultural transparency and effective communication between employees and management at the workplace.
Regards,
Amit
From India, Surat
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As per "The Companies Act, 2013" and "The Securities and Exchange Board of India (SEBI)" circular dated August 26, 2003, the Principles of Corporate Governance incorporated in the standard Listing Agreement require the formulation of a Whistleblower policy for companies. Clause 49 of the Listing Agreement to the Indian stock exchange now also mentions this requirement.
Importance of Keeping Both Policies
In my point of view, you should keep both policies because whistleblowing is an important aspect that has the inherent power to mitigate a crisis-like situation. The whistleblower’s revelation needs to be handled correctly and promptly for sustained value creation in the organization. It cannot be disputed that many large corporate frauds have come to light only through an insider’s revelation or a confession, and not through an audit report or a regulatory investigation. Thus, it becomes very essential to provide the whistleblower a smooth route for their revelation through an efficient whistleblower policy.
Open Door Policy and Organizational Culture
The Open Door Policy deals with organizational culture and the values, policies, ideologies, and beliefs of employees. Employees must have a cordial relationship with their superiors and management for a smooth flow of information and better understanding at the workplace. We know that transparency is essential at all levels in the hierarchy to avoid conflicts and unnecessary disagreements. No one should feel neglected at work. Problems arise when queries remain unattended and bosses do not have time for their team members. To avoid these situations, organizations need an "Open Door Policy."
Conclusion
The Whistle Blowing Policy is a legislative need that protects against any types of fraud or scam, while the Open Door Policy is necessary for developing cultural transparency and effective communication between employees and management at the workplace.
Regards,
Amit
From India, Surat
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Whistle blower policy and the Indian corporate governance.doc