The Bribery Scandal at Siemens Ag

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1. • In your opinion, is “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 in turn creates a barrier for entry for prospective companies and promotes the oligopoly or monopoly in place. The lack of competition affects consumer choice by reducing their options which then stifles innovation within the industry as there is no…show more content…
By offering a larger bulk order discount or other forms of compensation such as a royalty after a set number of units sold. This shifts the bribe from an illegal under the table pocketed amount of cash to an above the board legal bonus contingent on performance. Offering outstanding business intelligence skills is the ability to transfer organizational skills to better manage costs, strategies, and tactics in developing quality products and services in the foreign country. The transfer of these skills will most likely develop a long term relationship between the company and the foreign nation it operates in. In addition, companies value intelligent partners. With this in place, companies can stand out with this knowledge or expertise. 2. • Was the board right in not extending Kleinfeld’s term, especially in view of his over performance as a CEO? The decision to refrain from extending Kleinfeld's term was undoubtedly a difficult one for a number of reasons, however it was the right decision given the awkward circumstances surrounding his term as CEO. The primary concern with this decision was that Kleinfeld had brought many benefits to Siemens in a short time. In just two years under his direction Siemens' stock price shot up and there was a shift in the way the company did business as the importance of Siemens' customers was stressed as equally
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