Improving Whistleblower Protection in India: Western Lessons
White-collar crime is a major issue worldwide, but brave whistleblowers have played a crucial role in holding companies accountable by exposing misconduct. Many countries are now strengthening whistleblower protections and offering incentives to encourage reporting. Let’s take a closer look at some global frameworks to see what India can learn from them.
In the US, the Securities and Exchange Commission (SEC) recently granted its largest-ever whistleblower award of $279 million to an anonymous individual. This shows how financial incentives can boost reporting. The US Department of Justice (DoJ) also launched a Corporate Whistleblower Awards Pilot Program, rewarding individuals who report corporate misconduct related to financial violations, corruption, bribery, and fraud. These programs aim to protect whistleblowers from retaliation and encourage accountability.
On the other hand, the European Union (EU) takes a different approach by focusing on legal protections for whistleblowers rather than financial rewards. While some argue that rewards can motivate individuals to come forward with vital information, others warn that it may compromise the ethical foundation of whistleblowing.
In Singapore, rewards are offered for reporting anti-competitive practices, but the system is limited to certain violations. China and South Korea have more comprehensive whistleblower laws, with substantial rewards given to individuals who report violations. India, on the other hand, has seen a significant increase in financial crime reporting, with agencies like SEBI and the CBI taking action against offenders. However, current whistleblower reward systems in India, like SEBI’s regulations on insider trading, are limited in scope.
As India continues to tackle financial crimes, there is a growing need to consider strengthening whistleblower protections and offering incentives for reporting across all sectors. By learning from successful global frameworks, India can create a culture of integrity and accountability that benefits society as a whole.
