Siemens Ag Bribery

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Siemens 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. The present company was founded in 1847 in Berlin and is now headquartered in Munich, Germany. The discussion and the proper analysis of this bribery scandal will help to learn many effective lessons from this situation helping organizations and individuals to avoid such cases and experiences in the future. Siemens was considered one of the most powerful and productive companies in the field of electronics and that bribery scandal surely…show more content…
Deming stated that Siemens AG failed “to have and publicize a system whereby employees and agents could report or seek guidance regarding potential or actual criminal conduct without fear of retaliation (Deming 91). Siemens Company and people working there on a regular basis faced a great number of disadvantages associated with the decisions that led to the bribery scandals. The major disadvantages included not only great financial losses due to fines and court procedures but mainly the lack of trust and confidence on the part of customers, investors, business partners and other persons. Siemens simply had to re-gain trust and respect in the world trying to remain competitive, successful and productive either on the national or international business arena. These disadvantages surely affect the organization’s values, beliefs, culture, control, and its strategic ways of doing business in the modern competitive environment. Brooks and Dunn stated that “each line of business had a managing director and a separate managing board, and this structure inhibited accountability and allowed corruption to spread” (Brooks and Dunn 291). The great number of persons was convicted in making illegal payments and being involved into fraudulent bribery activities, such as Andreas Kley, Johannes Feldmayer, Hans-Werner Hartmann, etc. These persons
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