Siemens Ag

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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 “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 effective
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