'Siemens Bribery Case\r'

'Ian Collins Survey of Global vexation Professor Portillo BSAD 113W 18 February 2013 Assignment #3: sec Bribery Scandal in advance 1999 the intent of graft in Germany was non vile and could be deducted as a worry expense in a come with’s taxes. This allowed companies like due south to gain the velocity hand and deal an unfair advantage over their aspiration in acquiring barter deals vertical about the world. Then when the honor changed, randomness noneffervescent utilized bribery, and employed bribery tactical manoeuvre in other countries where it was also illegal.In this contingency study I’m personnel casualty to analyze the rationale and high levels of dejectness that transpired in the Siemens bribery scandalization and utilize the Organization for Economic Cooperation and suppuration’s (OECD) Guidelines for Multinational Enterprises to illustrate the disconfirming impact of bribery. Siemens work of bribery initially could have been cleanified by the fact that German laws allowed it and was non illegal until 1999; the issue was that Siemens continued to use bribery even after the law had changed.Corruption was deeply embedded in the business culture. Siemens transferred money into Swiss coast accounts to avoid detection and thus chartered contractors to set up the bribes. These actions were standard operating(a) procedures for corporate executives who viewed bribery as a business strategy. Senior executives even make certain individuals that were directly in lade of the bribery funds sign shape forms stating they had not engaged in that manikin of activity, bribes were referred to as ‘useful’ money.The punishment Siemens faced involved paying fines totaling $2. 6 billion. In the Organization for Economic Cooperation and increment (OECD) Guidelines for Multinational Enterprises, which sets voluntary principles and standards for business conduct, understandably outlines the negative aspects that comes from bribery. â€Å"Bribery and corruption are damaging to democratic institutions and the governance of corporations. They reprove investment and distort international war-ridden conditions.In particular, the diversion of funds through corrupt practices undermines attempts by citizens to achieve higher levels of economic, kindly and environmental welfare, and it impedes efforts to reduce poverty. Enterprises have an all-important(prenominal) role to play in combating these practices. ” In defense of the Siemens employees, many of them just believed that was how business was done and had the best interests of the association at heart. It was about keeping the business alive and not jeopardizing thousands of jobs,” if this indicates the intention of the employees then the act is more justifiable than just doing the action out of greed. Siemens is a company that allowed greed to cloud their perceptiveness to use bribery to gain the upper hand, as well as not evolving with the changing laws. You can only job as to the real thought fulfill behind the choice to engage in bribery, whether it was done knowingly to gain an unfair advantage or sincerely to cheer the jobs of many employees, the action was still committed.A company needs to be aware of the laws, regulations and what is considered satisfactory business conduct of the other countries it chooses to do business with and not violate them, including the use of bribery. ——————————————†[ 1 ]. http://lilymayunjue. blogspot. com/2012/06/summary-of-siemens-bribery. html [ 2 ]. http://www. nytimes. com/2008/12/16/business/worldbusiness/16siemens. html? _r=0 [ 3 ]. http://www. oecd. org/daf/inv/mne/48004323. pdf [ 4 ]. Article: Siemens Bribery Scandal\r\n'