Introduction

A whistleblower protection program forms a key pillar in any company’s corporate governance framework. Since the onset of the COVID-19 pandemic as well as the ‘great resignation’, there has been a sharp rise in not only the number of whistleblowing complaints received by the authorities but also the number of whistleblowing awards given out.

In the current business environment, whistleblower protection procedures are not just best practices undertaken by companies to fulfil regulatory requirements. They now form a critical component of the corporate culture, that distinguishes the integrity and ethics of one company from that of another. The investors, the employees and all other stakeholders are now increasingly interested in a company’s ethics, culture, and values before investing their time, money and efforts.

• In FY 2021-2022, USA’s Securities Exchange Commission (SEC) received 12,300 whistleblower tips which is a record high since the inception of the program.
• FY 2021-2022 is the second-highest year for the SEC in terms of whistleblowing award amounts and number of award recipients.

Important Legislative Developments (2018 – 2023)

• European Union: Transposition of the EU Directive (2019/1937) On the Protection of Persons who Report Breaches of Union Law by EU Member States.
• USA: Amendment of the Whistleblowing Program Rules in relation to the amount of payment of potential awards to whistleblowers by the SEC.
• India: Introduction of a new chapter on...

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