Siemens Ag
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
The case “Are Top Managers Responsible When Corruption is Afoot?” discusses the degree of liability that senior managers have in corruption activities at a German company named Siemens Aktiengesellschaft. The debate presents two sides of the argument, one stating that culture of the company and senior managers are at fault and the other stating that senior managers cannot be held accountable for divisional accounting activities. The case study will address key questions and provide a thorough analysis of the each item. Finally a recommendation would be offered on how to reconcile local expectations of questionable payments with the United States Foreign Corrupt Practices Act (FCPA) with a recommendation of what I suggest Reinhardt Siekaczek should have done to explain the situation.
Main Individuals and Situational Factors
The arguments for and against provide details about the cultural climate and key individuals that could be held responsible for the state of the conditions at Siemens. Prior to a recent reorganization, “Siemens operated through a complex array of business groups and regional companies” (Scarboro, Muoio, Price, Hansberry, & Dodge, 2008, p. 4). Prior to 1999, German Law did not prohibit foreign bribery and
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
The case “Are Top Managers Responsible When Corruption is Afoot?” discusses the degree of liability that senior managers have in corruption activities at a German company named Siemens Aktiengesellschaft. The debate presents two sides of the argument, one stating that culture of the company and senior managers are at fault and the other stating that senior managers cannot be held accountable for divisional accounting activities. The case study will address key questions and provide a thorough analysis of the each item. Finally a recommendation would be offered on how to reconcile local expectations of questionable payments with the United States Foreign Corrupt Practices Act (FCPA) with a recommendation of what I suggest Reinhardt Siekaczek should have done to explain the situation.
Main Individuals and Situational Factors
The arguments for and against provide details about the cultural climate and key individuals that could be held responsible for the state of the conditions at Siemens. Prior to a recent reorganization, “Siemens operated through a complex array of business groups and regional companies” (Scarboro, Muoio, Price, Hansberry, & Dodge, 2008, p. 4). Prior to 1999, German Law did not prohibit foreign bribery and
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