1. Human Rights & Business

✔ Why It Matters

• Respecting human rights is not only ethically right but also good for business.

• Failure to do so can lead to:

• • Lawsuits

  • Reputational damage

  • Loss of business opportunities

  • Difficulty in attracting top talent

✔ UN Guiding Principles on Business and Human Rights (UNGPs), 2011

• Unanimously endorsed global standard

• Known as the Protect, Respect, and Remedy Framework with three pillars:

Pillar

Responsibility

I

State’s duty to protect human rights

II

Business’s responsibility to respect human rights

III

Access to remedy for victims of business-related human rights violations

2. Whistle / Vigil / Grievance Redressal Mechanism

✔ Origin of the Term

• “Whistle” – like a referee’s whistle indicating foul play

• Popularized by Ralph Nader (1970s) to avoid negative connotation

• Definition: “Making a disclosure that is in the public interest”

✔ Meaning of Related Terms

• Whistleblowing – Reporting of illegal, immoral, or fraudulent activities

• Vigil – Active surveillance or purposeful observation to guard

3. Genesis of Whistle Blowing

Source

Contribution

Kautilya (Arthashastra)

Whistleblowers (witnesses) were rewarded:- 1/6 of the recovered amount if outsider- 1/12 if government employee

Athenian Orator

“Neither laws nor judges can bring any results until someone condemns the lawbreakers.”

USA (Sarbanes-Oxley Act, 2002)

Protects investors through transparency and improved disclosures

UK (Public Interest Disclosure Act, 1998)

Protects employees from discrimination due to whistleblowing

India

- 2001: Law Commission proposes law- 2004: PIDPIR via Central Vigilance Commission (CVC) to protect govt. employees- 2007: 2nd ARC recommends separate statute- 2014: Enactment of Whistle Blowers Protection Act, 2014 for public servants

4. Whistle Blowers Protection Act, 2014

✔ Objective

• Provides mechanism to:

• • Receive complaints of corruption/misuse of power

  • Inquire into disclosures

  • Safeguard whistleblowers from victimization

✔ Key Provisions

• Applies only to public servants

• Anonymous complaints not allowed

• Maximum period to file complaint: 7 years

• Appeal against Competent Authority: Within 60 days to High Court

• Penalty for revealing whistleblower’s identity

• SPG (Special Protection Group) is exempt from the Act

5. Types of Whistleblowers

Type

Description

Internal

Reporting within the organization (e.g., to seniors)

External

Reporting to outside entities (media, regulators)

Alumni

Former employees

Government

Reporting misconduct in government bodies

Corporate

Reporting unethical practices in corporations

personal

The Person Whose Rights are Infringed(Self)

Impersonal

For Public

Open

Identity is Open to Public

6. Need for Whistleblower Mechanism

• To prevent unethical practices and scandals

• To promote transparency and accountability

• To protect whistleblowers from victimization

• To encourage open organizational culture

• To reduce corruption and strengthen democracy

• To create a safer and ethical work environment

7. Legal Framework Supporting Whistleblower Mechanism (India)

✔ (A) The Companies Act, 2013 and Rules

• Section 177(9) (Read with Companies (Meetings of Board and its Powers) Rules, 2014)

Applicability:

• All listed companies

• Companies accepting public deposits

• Companies with borrowings > ₹50 crores from banks/financial institutions

Provisions:

• Mandatory Vigil/Whistleblower Mechanism

• Audit Committee must oversee it

• Director nominated to receive complaints

• Direct access to Chairperson of Audit Committee

• Must be disclosed on company website and in Board’s Report

• Frivolous complaints → Company may take action

• Section 208 & 210: Registrar or Inspector can investigate company records

✔ (B) Companies (Auditor’s Report) Order (CARO), 2020

• Applies to all listed companies

• Mandatory disclosure of all whistleblower complaints to the auditor

• Auditor must include these in the audit report

✔ (C) SEBI (LODR) Regulations, 2015

Regulation

Requirement

Reg. 22

Vigil mechanism for employees and directors; protection against victimization

Reg. 46

Whistleblower policy must be uploaded on a dedicated section of the company website

Reg. 34 & 53

Include vigil mechanism details in Annual Report under “Corporate Governance”

Reg. 4(2)(d)(iv)

Every listed company must establish a whistleblower policy

Schedule II

Audit committee must review the functioning of the vigil mechanism

MAJOR WHISTLE-BLOWING LEGISLATIONS AROUND THE WORLD (Brief)

United States

• Whistleblower Protection Enhancement Act (2012) strengthened protections for federal employees, addressing gaps in the earlier 1989 Act.

• Sarbanes-Oxley Act (2002) mandates anonymous whistle-blowing systems in public companies; retaliation can lead to criminal penalties.

• False Claims Act incentivizes reporting fraud against the government with financial rewards and protection against retaliation.

United Kingdom

• Public Interest Disclosure Act (1998) protects workers from retaliation if disclosures are made via prescribed channels. Media disclosures are not protected.

Canada

• Public Servants Disclosure Protection Act (2007) protects federal employees but is criticized for being too restrictive.

• Provinces like Ontario, New Brunswick, and Saskatchewan have limited protections under specific laws.

Australia

• The Corporations Act offers civil protections to whistle-blowers, including job reinstatement and immunity from defamation or legal consequences, provided disclosures are made to authorized persons and the whistle-blower identifies themselves.

Example of Whistleblowing Policies in Indian Companies:

• HCL Limited: Allows internal and external stakeholders (vendors, auditors, etc.) to report breaches of ethics or policy violations. Complaints can be made in writing or electronically. Investigations are handled by the Ethics Committee, with direct access to the chairman in exceptional cases.

• TATA Power Ltd: Whistleblowers can report violations to the Chief Ethics Counsellor or Audit Committee. Complaints are investigated, and actions are recommended to the audit committee. Frivolous complaints may lead to appropriate action against the whistleblower.

Best Practices in Designing and Implementing Whistleblowing Mechanism:

1. Reporting Monitoring & Evaluation

2. Embedding the Programme

3. Designing Reporting Mechanisms

4. Developing a Whistleblowing Policy

5. Gaining Top-Level Commitment

Seven Dimensions of Organizational Culture Influencing Whistle-Blowing Behavior:

1. Vigilance

2. Engagement

3. Credibility

4. Accountability

5. Empowerment

6. Courage

7. Options

Notable Whistleblower Cases in India:

1. Satyendra Dubey (2003): Project Director at NHAI, Dubey exposed substandard work in road construction. Despite reporting his concerns to the PMO, he was murdered.

2. M Shanmugam Manjunath (2005): Manjunath, an IOC manager, was murdered for sealing a corrupt petrol station selling adulterated fuel.

3. Narendra Kumar (2012): A police officer fighting illegal sand mining in Madhya Pradesh, Kumar was run over by a tractor.

4. Lalit Mehta (2008): An RTI activist, Mehta exposed scams in the NREGA scheme in Jharkhand before being murdered.

5. SP Mahantesh (2012): A Deputy Director in Cooperative Audit, Mahantesh was attacked after exposing land acquisition irregularities.

6. Satish Shetty (2010): A Maharashtra activist, Shetty fought land scams and was killed after using RTI to expose corruption.

7. Rinku Singh Rahi: A civil servant exposing corruption in welfare schemes, Rahi was shot six times but survived.

8. Yashwant Sonawane: An Additional District Collector in Malegaon, Sonawane was killed after investigating an oil adulteration scam.

9. D. K. Ravi (2015): An IAS officer known for anti-corruption efforts, Ravi was found dead under suspicious circumstances after investigating sand mining and tax evasion.

10. V. Saseendran: Company Secretary at Malabar Cements, Saseendran was a key witness in corruption cases before being found dead in 2011, with suspicions surrounding his death.

Safeguards to Whistleblowers

Whistleblowers play an essential role in exposing corruption, illegal activities, and unethical practices. Legal provisions and reports have been established to ensure the safety and protection of whistleblowers. The following points highlight key safeguards available under Indian law:

1. Criminal Procedure Code (Cr.P.C.)

• Section 173(6):

• • Allows police officers to withhold parts of a statement recorded under Section 161 if it is not essential for justice or public interest. This protects the whistleblower’s identity from being disclosed to the accused.

• Section 273:

• • Requires evidence to be presented in the presence of the accused, but in certain exceptional circumstances, the accused may be denied the right to cross-examine a witness in open court, protecting the whistleblower.

• Section 299:

• • Provides provisions to conceal the identity of witnesses, including whistleblowers, in the interest of justice.

2. Law Commission Reports

• 14th Report (1958):

• • Examined the need for adequate facilities for witnesses attending court proceedings, ensuring their safety and comfort.

• 4th Report of National Police Commission (1980):

• • Acknowledged the challenges faced by witnesses attending proceedings and recommended improvements for their protection.

• 154th Report (1996):

• • Emphasized the importance of building confidence among witnesses by ensuring they are protected from retaliation by the accused.

• 178th Report (2001):

• • Recommended inserting Section 164A into the Cr.P.C., allowing for the recording of material witnesses’ statements in front of a Magistrate, especially in serious cases punishable by imprisonment of 10 years or more.

3. Criminal Law (Amendment) Bill, 2003

• Pending Enactment:

• • Based on the Law Commission’s recommendations, this bill seeks to provide greater protection for whistleblowers, but it is still under review by the Rajya Sabha.

4. Law Commission’s 179th Report on Public Interest Disclosures

• Public Service Ideals:

• • Stated that good-faith whistleblowers represent the highest ideals of public service, challenging abuses of power and placing the country above loyalty to individuals, parties, or governments.

• Importance of Protection:

• • The report highlights that whistleblowers take significant risks in exposing corruption and misconduct and therefore require legal protection.

5. Witness Protection Programs

• Consultation Paper:

• • The Law Commission also issued a consultation paper focusing on witness identity protection and witness protection programs. The paper advocates for a systematic approach to safeguard whistleblowers.

6. Court’s Role in Protecting Whistleblowers

• Interpretation of Provisions:

• • Courts should interpret the provisions related to whistleblower protection in a liberal manner to ensure the safety and confidentiality of whistleblowers, protecting them from retaliation and harm.

Judicial Response to Whistleblower Protection

The Supreme Court of India has been supportive of protecting witnesses and whistleblowers, with a focus on justice and the integrity of trials. Key judicial responses include:

1. Gurbachan Singh v. State of Bombay

• The Court upheld a provision of the Bombay Police Act, 1951, that denied a detenue the right to cross-examine witnesses who deposed against him.

• It was held that this law applies to exceptional cases where witnesses are fearful of violence and unwilling to testify publicly.

2. Naresh Mirajkar v. State of Maharashtra

• The Court recognized the procedure of holding in-camera trials where the identity of witnesses could be kept confidential.

• The Court supported the idea of protecting witnesses’ identities in special circumstances.

3. Maneka Sanjay Gandhi v. Rani Jethmalani

• The Court emphasized the need for a congenial atmosphere for a fair trial, which includes the protection of witnesses.

4. A.K. Roy v. Union of India

• The Court stressed protecting the identity of informants. It was argued that disclosing the informant’s identity could prevent people from coming forward, particularly under the stress of cross-examination.

5. Kartar Singh v. State of Punjab

• The Court upheld sections 16(2) and 16(3) of the TADA (Terrorist and Disruptive Activities Prevention Act, 1987), which allow the court to keep a witness’s identity secret under certain circumstances.

• It held that the accused’s right to cross-examine witnesses was not absolute and could be subject to exceptions.

6. People’s Union of Civil Liberties v. Union of India

• The Court upheld the validity of Section 30 of the Prevention of Terrorism Act, 2002 (POTA), emphasizing exceptions to cross-examination and witness protection.

7. State of Maharashtra v. Dr. Praful B. Desai

• The Supreme Court recognized the use of electronic records as evidence, including video conferencing.

• Video conferencing allows witnesses to give evidence from distant locations, thus ensuring protection for those unable to appear due to fear, distance, or age.

8. Sakshi v. U.O.I

• The Court referred to the 172nd Report of the Law Commission and set guidelines to protect victims of child sexual abuse during trials.

Whistleblowing – Way Forward

On January 18, 2021, the Vice-President of India urged corporations to adopt and encourage whistleblowing mechanisms with adequate safeguards for whistleblower protection. Effective corporate governance and whistleblowing frameworks can significantly benefit both companies and society.

1. Importance of Corporate Governance

• A strong corporate governance framework ensures transparency, promotes full disclosures, and strengthens the relationship with stakeholders and employees. It aids in preventing wrongdoings, malpractice, corruption, and fraud.

2. Whistleblowing Framework

• A strong whistleblowing framework can detect wrongdoing early and discourage unethical behavior.

• Protecting whistleblowers is essential, and companies should maintain confidentiality while also rewarding those who provide evidence of wrongdoing.

3. Suggestions for Improvement

• Awareness Generation:

• • People must be educated on the legislative provisions available for whistleblowers and their benefits.

• Protecting Whistleblower Identity:

• • Whistleblower identities must be kept confidential, except when consent is given or disclosure is required for public interest.

  • This will provide robust protection to the whistleblower.

• Widening the Scope:

• • Expanding whistleblowing mechanisms to include state governments and private organizations can broaden the impact of anti-corruption efforts.

4. Incentivizing Whistleblowers:

• Companies should adopt an incentive mechanism to reward whistleblowers who raise genuine concerns and provide evidence of malpractice or wrongdoing.

Workplace Practices & Employee Rights

1. Human Capital as a Competitive Advantage:

2. • Employees are a crucial part of corporate governance.

   • Employee participation in governance enhances wealth creation.

   • Human capital (knowledge, skills) is often a company’s most valuable asset.

3. Health & Safety:

4. • The Constitution of India and international regulations aim to ensure safe working conditions.

   • Health and safety in the workplace have a direct impact on productivity and economic development.

   • Safety is a corporate governance issue, with boards integrating health and safety into governance structures.

5. Occupational Health & Safety (OHS):

6. • OHS aims to prevent accidents, injuries, and exposure to harmful substances at the workplace.

   • Benefits of prioritizing OHS:

   • Reduced risk of accidents and injuries.

   • Increased efficiency and productivity.

   • Improved employee relations and morale.

   • Lower insurance premiums.

   • OHS policies help:

   • Reduce workplace incidents and absenteeism.

   • Improve productivity and employee morale.

   • Enhance company reputation.

   • Build a safety culture and compliance.

7. Case Study: Union Carbide & Bhopal Gas Leak:

8. • In 1984, a gas leak in Bhopal caused thousands of deaths and injuries.

   • Union Carbide was the majority stakeholder, and the incident highlighted the importance of safety regulations.

   • Aftermath:

   • Laws like the Environment Protection Act (1986) and the Public Insurance Liability Act (1991) were enacted.

   • The event raised awareness of the human, environmental, and economic risks of industrialization.

9. L&T Corporate Environment, Health & Safety (EHS) Policy:

10. • L&T follows a structured EHS framework, promoting “Mission Zero Harm.”

    • EHS policy includes:

    • Regular audits of contractors and suppliers to ensure safety compliance.

    • Integration of Artificial Intelligence (AI) for identifying hazards.

    • Use of 3D models, Virtual Reality (VR), and drones for safety monitoring.

    • Behavioral-Based Safety (BBS) programs to foster safety culture.

    • EHS management system follows ISO 45001:2018 standards.

    • Advanced technology (AI, predictive analysis) is used to prevent accidents and ensure safety.

    • Workers can raise safety issues through a Safety Ambassador.

1. Introduction to POSH Act

• Purpose: The Prevention of Sexual Harassment (POSH) Act, implemented in 2013, aims to:

• • Protect women from harassment in the workplace.

  • Provide a safe and non-discriminatory work environment.

2. Origin of POSH Act

• Vishaka & Ors. vs. State of Rajasthan & Ors. (1995):

• • The Supreme Court verdict was the catalyst for the POSH Act.

  • The case involved a social worker who was gang-raped at work, leading to a call for strict laws for women’s protection at workplaces.

  • The court recognized sexual harassment as a grave violation of women’s constitutional rights.

3. Key Provisions of POSH Act

• Sexual Harassment includes:

• • Physical contact/advances.

  • Requests for sexual favors.

  • Sexually colored remarks.

  • Showing pornography.

  • Other unwelcome physical, verbal, or non-verbal conduct of a sexual nature.

• Workplace: The Act defines “workplace” broadly, including:

• • The organization itself.

  • Any location the employee visits during employment (e.g., transportation, work-from-home).

• Workplace Harassment: Any form of action or communication directed to demean, mock, discriminate, threaten, intimidate, or sexually assault an individual.

4. Impact of the POSH Act

• Legal Recognition: Sexual harassment at the workplace is legally classified as a crime.

• Corporate Response:

• • Many top companies have updated policies to comply with the Act.

  • Increased Reporting: Women now feel empowered to report harassment cases.

  • Some companies have gone beyond compliance, adopting best practices for preventing harassment.

5. Challenges in Implementation

• Under-reporting: Despite progress, some sectors still under-report sexual harassment incidents.

• Focus on Vulnerable Sections: Industries employing women from socio-economically disadvantaged backgrounds require better implementation and awareness of the Act.

6. Employer and Organizational Responsibilities

• Internal Complaints Committee (ICC): Organizations must establish this committee to handle complaints effectively.

• Training and Awareness:

• • Managers, HR personnel, and team leaders are responsible for creating awareness and ensuring the Act is empowering for both genders.

  • Provisions for conducting POSH training are crucial to ensure employees understand their rights and responsibilities.

7. Gender-Specific Nature of the Act

• The POSH Act is gender-specific and targets women’s protection but must be viewed in an empowering manner for all genders within the workplace

POSH Training: Objectives and Importance

Main Objectives of POSH Training

1. Familiarization with Definitions: Make employees aware of various aspects and definitions of sexual harassment in the workplace.

2. Training Internal Committee Members: Equip internal committee members with a better understanding of situations where POSH Act is applicable and how to effectively handle such issues.

3. Gender-Neutral Training: Provide information on gender neutrality and how the POSH Act can also be used by men who face sexual harassment at work.

Impact of Inappropriate Behaviour at the Workplace

Professional

• Decreased work performance

• Increased absenteeism

• Loss of promotional opportunities

• Retaliation

• Gossip and scrutiny at work

• Ostracization

• Job and career consequences

• Weakened support network

Personal

• Depression

• Anxiety, panic attacks

• Traumatic stress

• Sleeplessness

• Shame, guilt, self-blame

• Difficulty in concentrating

• Headaches

• Fatigue, loss of motivation

• Loss of confidence and self-esteem

• Loss of trust in people

• Withdrawal and isolation

Consequences of Sexual Harassment on the Workplace

Emotional and Physical Issues

• Physical Health: Loss of appetite, weight changes, migraines, sleep difficulties.

• Mental Health: Anxiety, depression, and low self-esteem.

Decreased Company Productivity

• Increased absenteeism

• Low morale

• Tension and gossip

• High employee turnover

• Increased recruitment costs

Financial Challenges

• Loss of work recommendations, termination

• Missed pay and unpaid leave

• Leaving the job due to a hostile environment

Brand Name and Reputation

• Lawsuits and legal consequences

• Negative publicity

• Loss of sales

📌 Case Study: Vishaka vs. State of Rajasthan and Ors.

Citation: JT 1997 (7) SC 384 (Bhanwari Devi Case)

🟡 Background:

• Incident occurred in 1992.

• Bhanwari Devi, a lower caste social worker under the Women’s Development Programme in Rajasthan, tried to stop a child marriage.

• She was allegedly gang-raped by five upper-caste men.

• Police failed to carry out a thorough investigation.

🟡 Legal Journey:

• Trial Court acquitted the accused due to lack of medical evidence and other reasons.

• Women’s groups and organizations appealed against the verdict.

• A Public Interest Litigation (PIL) was filed in the Supreme Court.

• The PIL focused on sexual harassment at the workplace.

🟡 Supreme Court Observations:

• Sexual harassment of a woman at workplace violates:

• • Article 14 – Right to Equality

  • Article 15 – Prohibition of Discrimination

  • Article 19 – Right to Freedom

  • Article 21 – Right to Life and Personal Liberty

• Considered as a violation of human rights.

• Acknowledged statutory vacuum; judicial legislation proposed.

🟡 Guidelines Issued (Vishaka Guidelines):

• Employer/responsible person to ensure procedures and settlements for preventing sexual harassment.

• Formation of Complaint Committee at all workplaces.

• Committee must be:

• • Headed by a woman employee.

  • Include NGO/third-party participation.

  • At least 50% women members.

• All complaints to be dealt with by this committee.

• Employers must take appropriate action as per law.

• Committee to advise victim on further course of action.

• Provided for the definition of sexual harassment.

🟡 Outcome:

• First set of gender equality guidelines in India for workplace safety.

• Applicable in both public and private employment.

• Led to the enactment of:

• • The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013

  • Came into force on 9 December 2013.

  • Superseded the Vishaka Guidelines.

🧩 EMPLOYEE TURNOVER / ATTRITION RATE

📌 Overview

Term

Description

Employee Turnover

Refers to employees parting ways with a company (both voluntarily and involuntarily).

Turnover Rate

The percentage of employees who leave an organization during a specific period.

Attrition

A subset of turnover where positions are not refilled. Terminations/force reductions are excluded.

🔄 Types of Turnover

Type

Description

Subtypes

Voluntary Turnover

Employee leaves by personal choice (e.g., resignation, retirement, relocation).

Often unpredictable, costly, and disruptive.

Involuntary Turnover

Employee leaves due to employer’s decision or unavoidable external factors.

Controllable: Termination due to poor performance or behavior. Uncontrollable: Death, disability, downsizing.

⚠️ Effects of High Turnover

1. Workflow Disruption

2. • Reduces productivity

   • Increases pressure on remaining staff

3. Low Morale & Mental Stress

4. • Overworked staff feel insecure

   • 1 in 4 employees quit due to mental stress

5. Financial Impact

6. • Costs of rehiring and training new staff

   • Potential customer dissatisfaction

7. Negative Reputation

8. • Jobseekers avoid high-turnover companies

   • Employee engagement drops by 37% with job insecurity

9. Loss of Talent

10. • Risk of losing skilled and irreplaceable staff

    • Can trigger further voluntary resignations

 Recent Trends in India (Post-Pandemic)

• 📈 Work-life balance is a rising priority (36% → 47%).

• 🔕 Quiet quitting is on the rise—employees doing the bare minimum due to lack of engagement.

Gender Parity at Work – Professional Notes

1. Concept of Gender Parity

• Definition: Gender parity means equal representation of all genders, typically focusing on achieving a 1:1 ratio of men and women in positions across levels.

• Purpose: It serves as a measurable tool to track progress toward gender equality by focusing on numerical representation.

• Foundation of Equality: While not equal to gender equality, parity is a step toward achieving it.

2. Gender Parity vs. Gender Equality

Basis

Gender Parity

Gender Equality

Definition

Equal representation (e.g., 50:50)

Equal treatment, access, and opportunities

Measurement

Quantitative (ratios)

Qualitative and systemic

Scope

Narrower – focuses on numbers

Broader – focuses on outcomes

Focus

Boardrooms, executive representation

Pay equity, leadership access, bias removal

3. Importance of Gender Equality in the Workplace

• Ensures equal pay for work of equal value.

• Removes barriers to participation for women.

• Provides equal access to all roles and leadership positions.

• Eliminates gender-based discrimination, especially around caregiving roles.

4. Why Workplace Gender Equality Matters

• Improves productivity and national economic growth.

• Boosts organizational performance and innovation.

• Attracts and retains talent.

• Enhances corporate reputation and sustainability.

5. Women on Corporate Boards

• Current Trends: Increase in the number of women on boards globally.

• Significance:

• • Symbolic impact: Breaks stereotypes.

  • Encourages women to pursue leadership roles.

  • Broadens women’s career aspirations and confidence.

• Benefits:

• • Statistically significant financial outperformance (McKinsey, 2020).

  • Improves decision-making through diverse perspectives.

  • Reduces excessive risk-taking and aggressive tax strategies.

  • Enhances company reputation and earnings quality.

6. Strategic Importance for Companies

• Investing in women leaders builds future board-level talent.

• Reduces regulatory risk and ensures compliance with diversity laws.

• Promotes inclusive culture, leading to better employee engagement and retention.

• Helps address issues like the gender pay gap and promotion bias.

7. Role of Shareholders

• Can influence companies to:

• • Implement quotas voluntarily.

  • Enhance diversity metrics.

  • Align investment practices with ESG expectations.

• Drive faster change than governments through activist investing.

8. Expanding the Scope: Intersectionality in Gender Discussions

• Women experience varied challenges based on:

• • Race, caste, religion, disability, and sexual orientation.

• Importance of collecting disaggregated data to craft inclusive policies.

• Avoid reducing women to a tokenistic “diversity target”; recognize competence and leadership potential.

9. Broader Economic & Social Relevance

• Women and girls constitute 50% of global talent.

• Gender inequality hinders socioeconomic development.

• Women’s participation is essential for:

• • Addressing climate challenges.

  • Innovation and problem-solving.

• Labor force participation of women globally is 25% lower than men.

10. The DEI Conversation

• Diversity, Equity, and Inclusion (DEI) now central to:

• • Corporate governance

  • Investor expectations

  • Regulatory frameworks

• Gender diversity at the top is a visible indicator of inclusive culture.

Conclusion & Way Forward

• Parity is a measurable milestone, not the final goal.

• Companies should:

• • Promote more women into senior roles.

  • Cultivate inclusive pipelines.

  • Treat gender equality as a strategic priority.

• Long-term benefits include:

• • Lower risk,

  • Enhanced innovation,

  • Better alignment with stakeholder and regulatory expectations.

Case Study: HCL – An Exemplar of Gender Diversity

1. Diversity, Equity & Inclusion (DEI) at HCL

• HCL embraces DEI as a core organizational value.

• Workforce comprises individuals from 165 nationalities.

• HCL sees diversity as both an asset and a differentiator.

2. Gender Diversity Statistics

• Women constitute 28% of HCL’s global workforce.

• Senior leadership gender diversity has increased by 2.5% over four years.

• Overall gender ratio improved by 3.1% in the same period.

3. DEI Culture & Vision

• Intentional efforts towards:

• • Gender equality

  • Cross-cultural diversity

  • Inclusion of persons with disabilities

  • LGBTQ+ inclusion

• Vision: To enable all employees to thrive, contribute, and innovate equally.

Monetary and Non-Monetary Benefits

1. Definition & Purpose

• Incentives are rewards to drive desired actions and behavior.

• Aim to motivate, recognize, and retain employees.

Monetary Benefits

1. Features

• Linked to financial compensation.

• Address social, security, and physiological needs.

2. Types

• Piece Rates: Payment based on quantity produced; common in production sectors.

• Pay Raise: Reward for tenure, performance, or completion of training.

• Bonuses: For meeting sales targets, project completions, or annual performance.

• Profit Sharing: Distributes a portion of company profits among employees.

• Contests: Performance-based cash rewards, especially in sales roles.

3. Limitations

• Effects may not be long-lasting once basic needs are met.

• Not always sufficient to maintain employee motivation or loyalty.

Non-Monetary Benefits

1. Features

• Experiential or tangible rewards with emotional/motivational value.

• Particularly valued by Gen-Z and Millennials.

• Enhance emotional engagement and workplace satisfaction.

2. Types

• Flexible Working Arrangements: Work-from-home options, flexible hours.

• Physical Rewards: Gifts or branded items with emotional appeal.

• Experiential Rewards: Events or experiences based on employee interests.

• Growth Opportunities: Training, education, and career development.

• Recognition & Praise: Verbal/written acknowledgments; public appreciation.

• Extra Time Off: Additional leave, early-outs, or extended breaks.

• Fringe Benefits: Health insurance, paid leave, commuter perks, etc.

Impact of Incentives on Employees

1. Role of Employees

• Central to achieving organizational goals and objectives.

• Motivation enhances productivity, loyalty, and engagement.

2. Comparison of Incentive Types

• Monetary Incentives:

• • Fulfill basic human needs.

  • Boost productivity through direct performance linkage.

  • Encourage output and performance improvement.

• Non-Monetary Incentives:

• • Promote intrinsic motivation.

  • Encourage enjoyment of work and psychological satisfaction.

  • Foster loyalty, cooperation, and long-term commitment.

  • Enhance communication, participation, and emotional connection.

Part C: Supplier Practices – Supplier Code of Conduct

• SUPPLIER CODE OF CONDUCT The Supplier Code of Conduct outlines ethical and business practices that suppliers must follow when working with a company. It ensures responsible and sustainable practices in the value chain, including labor practices, human rights, environmental impact, and business conduct. Non-compliance may lead to termination of the supplier relationship. Regular audits and certifications are part of monitoring supplier adherence to the code. It helps mitigate supply chain risks, improve reputation, and align with the company’s mission.
• CASE STUDY – GOOGLE Google’s Supplier Code of Conduct emphasizes the importance of treating workers with respect and dignity, ensuring safe working conditions, and conducting environmentally responsible operations. Suppliers must comply with applicable laws and certifications like ISO 50001, 14001, or OHSAS 18001. They must manage labor and human rights, combat modern slavery, and ensure voluntary employment. Suppliers must also comply with health, safety, and environmental standards. Google expects suppliers to operate with integrity and uphold ethical business practices, including respecting intellectual property and safeguarding privacy.
• CASE STUDY – INFOSYS Infosys follows the UN Global Compact principles and integrates them into its supply chain governance. Suppliers must sign the Supplier Code of Conduct, comply with local laws, and prevent child and forced labor. Infosys regularly audits suppliers and assesses their ESG performance, covering governance, ethics, fair business practices, and environmental impact. An external partner conducts responsible supply chain assessments for top suppliers, helping them improve ESG performance and create an education program for smaller suppliers.

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Local Procurement – An Overview

Local procurement means buying goods and services from businesses within the local community. It is common in both emerging and developed markets (like Australia and Canada) and is also called:

• Local sourcing

• Local content

• Local supplier development

Why Companies Choose Local Procurement /Benefits

1. Supports Local Suppliers – Greater community support and social value.

2. Meets CSR Targets – Helps achieve public procurement targets for local spend.

3. Shortens Timeframes – Local suppliers reduce sourcing time amidst supply chain challenges.

4. Reduces Costs – Lowers transportation and logistical costs, especially with high fuel prices.

5. Environmental Benefits – Reduces shipping and storage, lowering environmental impact.

Challenges for Local SMEs (Small & Medium Enterprises):

• May lack required standards in safety, operations, environment, and technology.

• Need support like training, mentoring, and capacity building to compete effectively.

Local Procurement Programs (LPPs):

• Help bridge the gap between company standards and local SME capacities.

• Provide support externally (to suppliers) and encourage effort internally (within the company).

Example: Make in India Initiative

Launched in September 2014, Make in India aims to:

• Promote India as a manufacturing and investment hub.

• Simplify regulations and make governance business-friendly.

• Open up key sectors (e.g., railways, defence, insurance) for more foreign investment.

• Drive innovation, protect intellectual property, and build top-tier infrastructure.

Public Procurement Preference under Make in India:

• Order 2017 mandates preference to local suppliers in government purchases.

• Minimum local content: Generally 50% (can vary by item).

• Purchase preference margin: 20%

• Nodal Ministries are responsible for overseeing and implementing the order.