Corporate Governance Standards in PSUs
In terms of the Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs) issued by the Government in 2007, which are voluntary in nature, CPSEs may establish a mechanism for employees to report to the management concerns about unethical behaviour, actual or suspected fraud, or violation of the company�s General guidelines on conduct or ethics policy.
All CPSEs have already been advised to establish �Whistle Blower Policy� listed in para 8 of Annex VIII of Guidelines on Corporate Governance for CPSEs, 2007. Oil and Natural Gas Corporation Ltd. (ONGC) has voluntarily adopted �Whistle Blower policy� with effect from November, 2009 and GAIL (India) Ltd. is in the process of formulating a �Whistle Blower policy�.
The Government has now decided to make the Guidelines on Corporate Governance for CPSEs mandatory.