The Prevention of Sexual Harassment (POSH) Act, 2013 is not just another enactment. It is a moral and governance imperative that protects the dignity of every employee. It promotes the principle of a safe environment for employees. Transparent reporting, empowered internal committees, and ongoing awareness programmes reflect how seriously managements and Boards consider this mechanism. 

In India, however, this mechanism suffers from two major weaknesses –  the mechanical manner in which some cases are “disposed of”, and the inadequate punishment, that often fails to deter future misconduct or foster a genuinely safe work environment. Often the reporting in Annual reports does not mention whether the allegations were established, and if so, what remedial action followed. In a disclosure-based regime, such as India, completeness of disclosures is vital. 

Excellence Enablers recently published its 6th Annual Corporate Governance Survey, focussing on top 100 companies of India. 

The survey revealed the following:

• Reporting Trends: In FY 25, 21 companies reported receiving zero complaints. This could be an indication of a lack of confidence among employees to report incidents.

• Number of Complaints: In FY 25, the highest number of complaints in one company were 195, with an 83% resolution rate. 

• Awareness and Workshops: Without awareness generation, any mechanism will fail. In FY25, 83 companies mentioned that such programmes have been conducted, with the highest number in one company being 370. 

The Way Forward

Implementation of PoSH cannot be reduced to a compliance checklist. Boards and managements must ensure that complaints are handled with sensitivity and accountability, investigations are fair and timely, and the findings are effectively acted upon. 

Explore corporate governance practices being followed by NIFTY 100 companies in our 6th Edition of Corporate Governance Survey.