can u please help me in answering these questions on the case of Siemens corrupt

Question

can u please help me in answering these questions on the case of Siemens corruption asap.

Introduction On November 15, 2006, German prosecutors raided offices and homes of Siemens AG staff as part of an ongoing investigation into bribery. The subsequent investigations covered businesses representing 60% of Siemens' revenues and spanned operations in Asia, Africa, Europe, the Middle East, and the Americas Headquartered in Munich, Germany, Siemens AG employed 475,000 people in approximately 190 countries and generated annual sales of $110.8 billion and net income of $3.8 billion at 2006 year end After two years of investigations, legal proceedings against Siemens AG were concluded in both Germany and the U.S. and resulted in the company paying $1.6 billion in fines and profit disgorgements to U.S. and German authorities, as well as $850 million for internal investigations that involved more than 200 outside lawyers and support staff from the law firm Debevoise & Plimpton, 1,300 forensic investigators from Deloitte & Touche, and 16 full time Siemens employees. As a result of the investigation, Siemens dismissed more than 500 employees who were implicated in corruption and sued nine former members of its Managing Board for $28.3 million for breaching their duties. Former CEOs Heinrich von Pierer and Klaus Kleinfeld agreed to pay Siemens $7.5 million and $3 million respectively to settle the case. How did this happen, and why? How did Siemens respond to allegations of bribery and corruption? How are they doing now and what challenges still lay ahead? Through interviews with key Siemens executives and supporting internal materials, this multimedia case takes a look at how one of the world's largest companies faced corruption head-on.

Explanation / Answer

There are actually no reaons to understand why corruption creeps in an organization and actually there are a series of reaosns behind it, in this case we see that Siemens an organization which has been quite a popular and successful brand is charged of illegal corruptional activities like bribery based on which the office of siemens and house of the staffs of siemens were raided and there was enough documents and proof that made it clear that the organization is corrupted. Corruption is such a disease that can actually cause death of an organization and in this case it could have been curtains for an organization like Siemens but the role that they played in this context was effective and they have been successful in sustaining the organization and they are still strong in the industry.

Siemens was quite strong and stringent in handling situations in this context and I believe that their strong reaction to the issue is also the reason the organization is strong at present and they also have a strong future because technically the organization is one of the superiors in the industry. Siemens paid a huge amount of $1.6 billion as fine and along with that they paid an additional amount of $850 million for managing internal investigations by paying it to lawyers and staffs involved and helped the organization to clean up the filth created. The organization also sued senior employees and demanded an amount worth $28.3 million from the employees or the senior management employees who have been involved in this heinous act. There was a termination of around 500 employees who were supposed to be involved in this act of bribery.

As conveyed that the organization is doing good and is one of the big players in its field of industry and they now possess a no tolerance policy regarding corruption and by the individuals that they have deployed in the head of affirs are having a repuation of being clean in their career. The challenges are still there because one mark on the company's repute has affected it and the organization actually strives to remove it from their history.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.