WHISTLEBLOWING MECHANISMS AND CORPORATE SCAMS IN INDIA: A CRITICAL STUDY

Abstract

Corporate scams have become a major concern for corporate governance in India, raising questions about the effectiveness of internal monitoring systems. Among various governance mechanisms, whistleblowing plays an important role in identifying unethical practices, financial fraud, and misconduct within organisations. The present study critically examines the effectiveness of whistleblowing mechanisms in detecting and preventing corporate scams in India and identifies the challenges faced by whistleblowers in reporting misconduct. The study uses both primary and secondary data and employs a descriptive and analytical research design. A standardized questionnaire distributed via Google Forms was used to gather primary data, and 60 valid responses were obtained from students and those who understood corporate governance principles. Academic journals, industry reports, regulatory records, and corporate fraud case studies were the sources of secondary data. The study examines issues like fear of retribution and inadequate legal protection, as well as awareness levels, perceived efficacy of whistleblowing systems, and willingness to disclose misconduct. The results show that while respondents acknowledge whistleblowing as a useful strategy for spotting corporate fraud early on, their confidence in its actual application is still only modest. Employee reporting of misbehavior is severely discouraged by fear of reprisals, a lack of secrecy, and inadequate enforcement of legal protections. Additionally, secondary research indicates that whistleblowing methods frequently have implementation gaps in spite of statutory frameworks. According to the study's findings, whistleblowing procedures can greatly improve corporate governance in India; but, their efficacy is contingent upon robust legislative protections, organizational openness, independent reporting channels, and an ethically supportive culture within organizations.