India has emerged as one of the fastest-growing economies in the world, ranking fifth globally in 2023, in terms of GDP with FDI surpassing USD81 billion in the 2022-2023 fiscal year. Japanese companies have been key contributors to this growth, with more than 1,400 firms operating across sectors such as automotive, electronics, IT and manufacturing.
As these companies expand their operations in India, the need for strong corporate governance mechanisms – particularly in areas such as whistleblowing, anti-corruption and fraud prevention – has never been more pressing. Sound whistleblowing policies and mechanisms play a vital role in uncovering suspected unethical, illegal or inappropriate conduct, and corporate governance gaps, which could lead to legal, financial and reputational risks.
The number of whistleblower complaints in India has surged significantly in recent years. According to data compiled from BSE-50 companies, whistleblower complaints in listed companies increased by 8% year-on-year, reaching 1,074 in the 2023-24 fiscal year. This uptick underscores a broader shift towards greater corporate accountability and transparency. Both India and Japan have recently strengthened their whistleblowing frameworks. Japan amended its Whistleblower Protection Act, offering enhanced safeguards against retaliation. Similarly, India’s Companies Act, 2013 and the Companies (Meetings of Board and Powers) Rules, 2017 mandate that certain companies implement a “vigil mechanism”...
The Eleventh Circuit declined to revive a former Quest Diagnostics Inc. compliance officer's False Claims Act suit against the lab testing company, ruling she had failed to allege a specific claim....