Siemens Ag - 3113 Words

Executive Summary The report will analyze the case study discussing the bribery scandal at Siemens AG. The case study raised the question of accountability of senior managers to the rampant corruption occurring in global divisions. Siemens AG is a German based company with executive offices in Munich. Siemens builds locomotives, traffic control systems and infrastructure. The company was brought up on charges of violation to the FCPA as a result of bribes of government officials. Outlining the corporate culture in Germany and how it led to wide-spread corruption in their business practice. The document will also provide a recommendation of how I would have conducted business as a manager of the foreign subsidiary. Introduction†¦show more content†¦Bad ethical habits were the way of life and were strictly encouraged to improve the company’s competitive edge. Role of Senior Managers Top managers understood and knew that corruption was prevalent and part of the business culture. Being faced with stricter guidelines that come along with NYSE registration, they chose not to enforce the basic rules and made it very difficult for external auditors from assessing the activities of the firm. Through weak policies, management provided the â€Å"rubber stamp of approval† to conduct business as usual. In my opinion they are responsible for allowing the corporate culture of bribery to exist. To reverse this activity, strict policies should have been instituted in the company with non-prejudicial enforcement. In a large conglomerate like Siemens AG, management must provide the appropriate guidelines and funding to ensure that detecting and eliminating bribery payments is possible. According to Daniels, Radebaugh and Sullivan the four criteria for an effective internal code of conduct is the following: †¢ Global policies are homogeneous throughout the company. Anyone working throughout the company must comply with the policy (Daniels, Radebaugh, Sullivan, 2011, p. 205). †¢ It communicates company policy not only to all employees but to anyone who does business with the company (p. 205). †¢ It states policies and consequences of not adhering to the policies. To be effectiveShow MoreRelatedThe Bribery Scandal at Siemens Ag1661 Words   |  7 Pages1. †¢ In your opinion, is â€Å"bribing† unethical illegal or just a cost of doing business? Discuss this in light of Siemens’ bribery scandal. We believe that bribing is unethical because it takes away the fairness of a business transaction between bidders of a contract. Bribing also has a negative impact on competition because it allows for oligopolies and monopolies to emerge in an industry due to smaller competitors being unable to financially compete with the amount of the bribes. This inRead MoreCase Analysis: the Bribery Scandal at Siemens Ag Essay1771 Words   |  8 PagesCase Analysis: The Bribery Scandal at Siemens AG The Siemens bribery scandal brought to light a strategic dilemma facing multi-national firms attempting to gain a competitive edge by operating abroad; specifically, how can they balance adherence to their own ethical and legal standards with the customs required to do business efficiently, or perhaps at all, in foreign markets? ïÆ'Ëœ Germany’s Co-Determination law has since drawn intense criticism as hampering competitiveness and creating untenableRead MoreSiemens Ag Bribery1261 Words   |  6 PagesSiemens AG Bribery Scandal This paper will focus on the analysis of the well-known and popular bribery scandal in the world, such as Siemens AG Bribery Scandal which occurred in November, 2006. Siemens AG is one of the largest and most popular electrical engineering companies operated in the world. 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