Case analysis the bribery scandal at
What are the causes of the corruption problems within siemens
In order to set new processes and rules on anticorruption and compliance in the global business, an advisor was appointed by the company to help in the set up. The event happened when bribery was a common practice in Germany, but Siemens scandal was the greatest in German history, causing damages of about 1. Some economists argue that doing such practices such as bribery is the price that must be paid to perform a greater good. Federal authorities, appreciated it. If a light cannot be readily shown upon it, I believe it is without question, unethical. The case also highlights the opinions of several analysts on the issues related to bribing by the German companies and Siemens in particular and the challenges the new CEO is likely to face at Siemens. The board members were also negligent since they failed to provide sufficient oversight, thus harming the interests of investors and the public in general. The senior executives made pledges publicly to restore the battered reputation of the firm Giroux, , They could operate with a clear and unwavering zero-tolerance policy for bribery; recognizing that it will be necessary to educate those conducting bid processes in markets where it is believed to be common to expect questionable payments. In addition, the company had a structure which was complex and decentralized; this allowed divisions to run themselves effectively, with the headquarter having minimal oversight.
Are there flaws in the German System of Corporate Governance? It was an accepted way of doing business.
Within one month, the damage caused was estimated by the company to be million Euros. The company enacted new processes, procedures and people, but according to Giroux,67this does not bring any difference without a change of culture.
Siemens builds locomotives, traffic control systems and infrastructure.
Conclusion and Recommendations A failure of responsible management takes several years to be resolved, and can be very costly and debilitating. Institutional and individual investors lost huge amounts of their money the statements of financial performance were misleading through inappropriate accounting practices.
In short, yes, Siemens is to blame, and yes, they are okay with it.
based on 94 review