The Bribery Scandal at Siemens Ag

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Case One: The Bribery Scandal at Siemens AG Organization and Industry Overview: The case, “The Bribery Scandal at Siemens AG,” underscores how employee involvement with unethical behavior can cause irrevocable damage to a company’s reputation and ultimately their profitability and success. Werner von Siemens and Johann Georg Halske founded Siemens AG in 1847 in Munich, Germany as a manufacturer of telegraphic systems. Over the next 150+ years, the company grew rapidly expanding operations in information and communication, automation and control, power, transportation, medical, and lighting while expanding their global network in over 190 countries. When Siemens made their listing on the New York Stock Exchange in 2001, they were…show more content…
Interpreting laws within the context of “cultural sensitivity” is a major challenge and some may view as ambiguous. Also, the development of a new department may be too costly. The final alternative proposes a sound infrastructure for accountability systems and the day-to-day operations. No doubt, a systematic monitoring of performance is necessary and clear communication across all company levels is required. This alternative leaves little to the imagination and provides a level of transparency that was previously absent. Conversely, some would argue that this alternative is costly and too “data driven” to leverage the expertise of employees. Without question, the interrelatedness of three alternatives is apparent and the common denominator is the hands-on approach of an ethical leader to affect real change. Recommendations: To make a turnaround, Siemans requires an executive makeover (Alternative 1) and corporate remodel (Alternative 3). Without question, the new company leader must be trustworthy and fair as he or she will be the yard stick by which all others are measured. Consequently, measurement of performance through a new accountability system will be the key for tracking progress. If such leadership and accountability had been in place, these problems could have been easily avoided. Implementation Plan: First and foremost, it is the responsibility of the external stakeholders to find the right
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