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Dabur to adopt 'whistle-blower' policy
January 22, 2004 15:44 IST
Having already put in place an elaborate mechanism for self-evaluation of its board members, Dabur India said on Thursday that it will adopt a comprehensive whistle blower policy in the January 28 meeting to further strengthen its corporate governance initiatives.
The policy, 'Direct Touch', will allow and encourage employees to bring to the management's notice concerns about suspected unethical behaviour, malpractice, wrongful conduct, fraud and violation of the company's policies.
The Direct Touch committee will report to Dabur's Audit Committee, which will review the former's existence and functioning.
The company has already adopted an elaborate mechanism for self-evaluation of its board members.
"We have put in place a formal, documented process for self-evaluation of the board members on an elaborate set of criteria. Thus, each of the board members will be evaluated by the remaining nine members," he said.
The criteria include statutory compliance and corporate governance, role in setting up annual business plan and various processes in the company and keeping the board informed of major developments in the industry and within the company.
While the spokesperson declined to confirm whether the evaluation process also has a clause whereby non-performing directors may be shown the door, sources said this would ensure that even promoter directors are evaluated and their re-election held up if the others so opine.