Over many years, Siemens global have had an open policy towards corruption. This has left the organization to explore all the heights of this vice for its advancement. Additionally, Germany had no laws prohibiting corruption especially giving of bribes. This led to deterioration of corruption status in Germany until 1999 when anti-corruption laws were enacted. At the same time the international business community has been agitated by Siemens corrupt nature to a point of becoming involved. This has lead to Siemens to take action to salvage its name.
The new CEO of Siemens global is justified to take stringent measures that he has taken. The image of such a large firm needs to be protected to survive. Additionally, the world is evolving, thus corrupt firms are slapped with hefty penalties. Siemens lost over two billion US dollars in fines due to corruption. Additionally this dented the image of the organization and may reduce the competitiveness of the firm. It means that with the increasing transparency in the global market, corrupt firms will continue to be named and shamed and may find themselves struggling to win contracts or remain afloat after hefty penalties. For this reason, the new CEO (Peter Loeschler) was justified to take the stringent measures he has taken to restore the image of this big organization.
After the corrective action of the new CEO, there has been to be systemic ways of ensuring that the whole system is corrected. It needs to be transformative such that everybody who works in this organization has more forces pushing him/her away from corruption towards making moral choices. This has to be preached throughout the organization. Additionally, the management has to ensure that moral decision-making is entrenched in the whole business system including tendering process among others. It has to be wired in a way that makes it difficult to engage in bribery. Also, he system should have indicators that warn beforehand to know if a deal is corrupt. For a firm search as Siemens, corruption is expensive and unnecessary. Siemens Global is an organization that has led the world to innovative technology at a competitive price, which lets to win contracts through corruption free means.
Siemens Global can make the required shift in policy by denouncing corruption and bribery. This should be complemented by formation of internal operating rules and statutes that will make it unethical to engage in bribery. This should be completed with punitive measures for people who go against such statutes. Additionally, the company should engage in rigorous training for its staff on ills of corruption and why the company is better without corruption. It should be written or formulated as a code of ethics in which all the employees are expected to follow.
An ethics policy is required on the same level as the CEO is. Employees are likely to respond more to an idea that is presented as the company’s policy. This should outline the existing ethical gap and the paradigm shift that the firm takes. It should be written in a tone that captures the gravity of the issue while at the same time not victimizing or condemning the employees in advance, as this can be counterproductive.
If I was the new Chief Ethics Officer, I would liaise with the personnel department such that every new employee passes through integrity test as a requirement to work for Siemens. Additionally, I would also introduce punitive measures for people who engaged in corruption both in the present and in the past. The punitive measures, among other administrative actions, would include firing such people. I would also arrange mechanisms to honor those who try to avoid acts of corruption.
From the Internet, Siemens seems to be capitalizing innovation than the corruption iissue. Corruption and bribery are ignored in public while the company carries out serious internal measures to curb this vice. Some innovations from Siemens include the development of gas tight switch for direct current, launch of the longest railway tunnel in the world (in France) and also the launch of research and innovation magazine. This is more important than publicizing bribery.
Siemens Global has now complied fully with the local and international laws against corruption and is working to establish and promoting a corruption free company. It is therefore illegal and unacceptable to give a bribe or other forms of canvassing for any contract. This is a competitive company and is committed to receiving all contracts through regular and ethically accepted means. Any member of this company who is found guilty of giving bribes in any form, say gifts of entertainment will be liable for a punitive administrative and even legal action. This company will take regular review and audits to establish areas where corruption will have occurred for action to be taken. We are also calling upon every employee to come on board and report any suspicious deals for further investigation to establish facts. Any information forwarded will be handled and be acted upon with ultimate confidentiality. All workers are required to account accurately for all transactions.
This organization will work on the following corporate values that are, observance of the law, upholding ultimate personal integrity, accurate and responsible accounting and respecting healthy competition at local or global level.
This will be infused through making any employee a team player in all circumstances, engaging various accounting as well as legal audits and also engaging various certification agencies for anti-corruption compliance such that the organization can fight this vice at global level.