Essay On Siemens Scandal

903 Words4 Pages
At first Siemens downplayed the affair saying that it was only a matter of a few millions Euros. However within a month their own estimate skyrocketed up to an amount of 420 million Euros. Furthermore Klaus Kleinfeld the then recently installed CEO, denied awareness or involvement. Siemens’ first statements were exemplary of an ill-suited cursory attempting to downplay a developing scandal prematurely. This tactic appeared egoistical and lacked moral responsibility. It also damaged stakeholders’ impressions of Siemens’ integrity and in general damaged its reputation in the public eye. Many viewed this defensive acknowledgement as incompetent. Then however Senior Executives made public pledges to restore the firm’s battered reputation just a month later.Siemens mandated the New York law firm Debevoise and Plimpton LLP and several…show more content…
Therefore this honest diagnosis was met with internal resistance, and it was not until the following year that the most serious revelations came to light. This resulted in the departures of the CEO and Chairman, and the decision by the newly appointed CEO, Peter Löscher, to announce a month-long amnesty for employees to come forward, explicitly excluding, extending the scandal’s reach into the previous management Board. What was especially remarkable was the fact that not individual but systemic elements contributed to this scandal. These include: • a too aggressive growth strategy that portrayed bribes as a “ tempting short-cut” to hitting though performance targets; • minimal oversight from HQ due to the fact that the de-centralised, matrix-like structure allowed divisions to effectively run themselves • above all, it is a well known fact that Siemens’ corporate culture at the time which seemed openly tolerant of such
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