Case Study: the Bribery Scandal at Siemens AG - Coursework Example

Case Study: the Bribery Scandal at Siemens AG Lessons to be Gleaned from this Case with Respect to Bribery The bribery scandals at Siemens reflected the ethical costs of intense competition in the global market. Companies were resorting to ‘under the table’ payments with the intention to win contracts. Business is a fair game to play and thus involvement of any unfair means to win can be termed as the malfunctioning of business corporate ethics. The companies should have the capacity to resist and patience to wait.

The companies should rather adopt ethical means for the business to survive in the fiercely competitive market. Every business entity is entitled with a sense of responsibility towards business oriented environment and society in which it operates. A sense of commitment towards integrity and ethical business must be followed from the top level so as to imbibe the same in the other members of the organization. And most of all, the organizational leaders should consider the fact with immense significance that business based on honesty, integrity and ethics is sustainable.

Though in the short-run phase, the bribery system or malfunctioning of corporate ethics might look advantageous, in the long-run, it is most likely to hamper the business and its goodwill as well just as in the example of Siemens AG (Hoffmann, 2010). Siemens AG is perceived as a company that pays crooked dollars for buying a business which can be termed as an example of malpractices of the code of conduct in the business. Several foreign operating companies charged Siemens AG of practicing delinquency in business (Jour, 2010).

Such practices of business can prove to be beneficial for the corporate but only in its short-run performances. It does not promise profit for a long-run, rather it harms the organizations as the goodwill of the company is considerably jeopardized, as in the case of Siemens AG. Companies often get attracted towards these short-run profits which later prove to be a wrong decision harming the company to a large extent. Here, managers have a very vital and crucial role to play. The decisions taken by the managers of a company can often be observed as among the significant reasons behind its success or failure.

It is in this context that preserving the ethics of the business code in relation to decision-making is widely considered among the core responsibilities of the managers. It is worth mentioning that performing any misconduct of the business code is likely to harm the company significantly causing losses in market position, fall in share price and conflicts in the supply chain of the company as well (Jour, 2010). RecommendationsEngaging company’s fortune in bribing the employees in various nations with an intention to buy businesses proved to be a harmful decision adopted by the managers of Siemens AG.

Thus, the company should ensure conformity with the ethical code of conduct so as to operate the systematic functioning of the business. Company should contribute significantly in ethics in order to maintain the employees’ as well as employers’ level of honesty in the corporate governance system. Business entities, in the 21st century, possess strengths such as technical expertise, capital resources, and economic leverage among others which can be termed as beneficial tools to score against corporate malfunctioning.

In this context, ethical misconduct in corporate though initially seems to be very fascinating for increasing profit margin, but in the long-run it proves to be a curse for the business entity as it had been in the case of Siemens AG (Hills & Et. Al, 2009). ReferencesHills, G. & Et. Al. (2009). Anti-corruption as Strategic CSR: A call to action for corporations. Social Impact Advisors. Retrieved from http://www.ethics.org/files/u5/Anti-corruptionFINAL.pdfHoffmann, A., (2010). Lessons Learned.

Corporate Accountability Conference. Retrieved from http://www.corporateaccountability2009.com/CAC09%20Amsterdam/Panel%20I/Hoffman%20Slides.pdfJour, N. D., (2010). Research Brief. Introduction. Retrieved from http://www.focus.com/briefs/bribery-scandal-siemens-ag/