StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

A case summary - Essay Example

Comments (0) Cite this document
Summary
Siemens had built a highly organized and systematic method to embezzle funds including secret codes and setting up foreign bank…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.4% of users find it useful
A case summary
Read TextPreview

Extract of sample "A case summary"

Summary of the case The case highlights Siemen’s illegal method of obtaining orders from using bribes and embezzling funds from Siemens to pay for the bribes. Siemens had built a highly organized and systematic method to embezzle funds including secret codes and setting up foreign bank accounts to establish slush funds. Siemens had spent approximately 200 million euros in bribes to get government contracts ranging from telecommunication to power generation. By 2007, investigation into the corruption began and top officials at Siemens stood trial. Some high level officials also left including the Chief compliance officer and chairman of the advisory board. In October 2008, Siemens was ordered to pay a fine amounting to $284 million and convicted of funneling money. Corruption had steeped throughout the organization and the announcement of the amnesty plan led to low level employees coming forward with crucial information.
By 2008, the head of the medical equipment division went on trial and the investigation expanded to include 270 former and current employees. There were various charges including the allegation that a former Siemens board member used Siemens money to support an employer friendly union to counter the Siemens worker union. By December 2008, Siemens agreed to pay a fine of $800 million to settle the charges and in July 2008, Siemens agreed to pay the World Bank $100 million for its role in bribing Russian officials.
What is the ethical issue? Why is this an ethical issue?
The ethical issue in this regard is the fact that Siemens used bribery as a method of obtaining contracts and bypassed the selection tests using money. This is unfair to other companies who competed for the same contracts using their merit and own abilities. It is against the free market policies and this practice gives an unfair advantage to Siemens. The culture of corruption had steeped through the company, from the top level executives to the lower level employees. There was a method to the corruption and this leads to Siemens becoming a company with absolutely no moral direction.
Moreover, the sheer magnitude of the corruption suggests that all members of the company felt that the corruption wasn’t really an issue. A company blinded by profits and willing to compromise on such basic morals, would also compromise on the quality of the service they provide. Besides, since the selection is not done on the basis of merit and the best company might not have been necessarily selected, the quality of the work might be compromised as well. The safety of the people using the services provided by Siemens would be compromised as a result.
Who is effected and how?
The segments which were affected include the competitors and the end users/general population. The unfair advantage that Siemens attains using these bribes leaves no room for healthy competition and growth. The competitors feel that their merit stands for nothing and hence they also resort to such underhanded techniques thereby perpetuating a culture of corruption. This affects the quality of the service they offer, the general competitive landscape becomes more hostile and not conducive to healthy business activities (As seen by the Siemens and Al Etisalat dealings).
The dealings of Siemens with the government officials also injected corruption on a governmental level. This corruption in the government itself has a direct impact on the general population and tax payers. If the government deals with such companies, they would also look the other way if substandard services were provided to them. At the end of the day, the general population or the users of those services would not get the best that they deserve after all the taxes they pay.
What leadership issues need to be addressed?
The organizational structure of the company means that at the end of the day, there is a high degree of autonomy in matters which should be standardized and thoroughly checked by multiple officials. When these loop holes were addressed, there was reluctance and resistance. The chief compliance officer in charge of standardizing procedures across the divisions left his job because he felt he was not given the freedom and authority he needed to fully conduct his job. So essentially, there needs to be a set hierarchy model in every division with checks and balances in place.
The top executives in Siemens were also involved in corruption which means that the leadership itself needs to change with a revamping of the company culture and values. The leadership of Siemens needs to have a greater span of control and needs to hire the right people in the crucial places which need a strong moral compass. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“A case summary Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
A case summary Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/management/1635392-a-case-summary
(A Case Summary Essay Example | Topics and Well Written Essays - 500 Words)
A Case Summary Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/management/1635392-a-case-summary.
“A Case Summary Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/management/1635392-a-case-summary.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF A case summary

Case Summary

... employees arent giving specific reasons for their defection. The company must determine how to stop the exodus. Readers will explore questions such as how the CEO can play a stronger role in retaining top talent, how to create a safe environment for employees to express complaints, and how to make leaders throughout the organization more accountable for attracting and retaining talent. subjects covered: Employee retention Name: Tutor: College: Course: Date: Case Summary: Retaining Star Performers in Trying Times Problem: There are trying times when businesses face enormous challenges in their normal operations. These challenges could be caused by circumstances like impacts of global warming, global economic depression and so... ...
2 Pages(500 words)Essay

Case Summary

...W & Registrar of Marriages Hong Kong’s law making body had its nail biting observation of a trial at the court over the issue of transsexual marriage crises recently. While post operative male-to-female transsexual man’s or female-to-male transsexual woman’s issue has been treated on par with the constitutional provisions which determines that anatomically altered sexuality of a person does not constitute to legitimate sexuality with entitlement of marital rights according to the laws in Hong Kong. Sex reassignment surgeries (SRS) are on the rise in the country as it is similar in almost every country in the world. At this wake, it is disputable to fix the clash between legal and logical spheres of the case that relates...
5 Pages(1250 words)Term Paper

Case summary

... NCAA v. TARKANIAN, 488 U.S. 179 (1988) - Case Summary of Case: NCAA v. TARKANIAN, 488 U.S. 179 (1988). Argued October 5, 1988 Decided December 12, 1988 Parties: National Collegiate Athletic Association (NCAA) and Tarkanian Petitioner: National Collegiate Athletic Association (NCAA) Respondent: Tarkanian Court: US Supreme Court Facts: National Collegiate Athletic Association (NCAA) is an unincorporated association consisting around 960 public and private universities and colleges. NCAA frames rules with respect to the student athletes in the university/college. NCAA has a committee that investigates and monitors the functioning of the member institutions. University of Nevada, Las Vegas (UNLV) is a member of the NCAA... NCAA v. TARKANIAN,...
2 Pages(500 words)Essay

Case summary

...MEMORANDUM Case Citation Terry J. Welle and Chrisse J. Welle v. Commissioner of Internal Revenue, 14 T.C. No. 19. Facts a) Terry J. Welle is the only shareholder of TWC, a construction incorporated company. b) Petitioners have a property in Detroit Lakes, Minnesota, and planned to erect a second home. Its construction commenced in 2004 and completed in 2005. c) Petitioners contracted TWC to aid the construction of their home. d) Petitioners contracted subcontractors directly and engaged them as if acting on behalf of TWC. e) Petitioners reimbursed TWC the cost of construction that paid to the subcontractors contracted by the petitioners. f) Petitioners only paid TWC the operating expenses cost and did not factor in the...
2 Pages(500 words)Essay

Case Summary

...Case 3 TOMS Shoes: Helping Soles All Over the World Case Summary Summary of the case TOMS Shoes, a company in the business of manufacturing shoes,is collaborating to provide shoes to the needy children worldwide through ‘One for One program. Tom Shoes has taken this decision to provide shoes to the needy children because children can become easy victim of certain foot related diseases, such as hookworms, podoconiosis, jiggers, and tetanus. Especial about One for One program is that the company will return back to those villages after a certain time where it has distributed one million pairs of new shoes through its customers to replace outgrown shoes with...
2 Pages(500 words)Essay

Case Summary

... to those in need. Offering of nutritional foods aims at helping in solving the random cases of malnutrition diseases globally. This mainly solves the rampant cases among children. Most of the children conceived in most developing countries are often characterized by malnutrition diseases such as rickets and marasmus among others. The program aims at reducing such cases by providing the proper diet for the affected children, as well as for expectant and lactating mothers to help in curbing these diseases. However, the program has been the fastest respondent of natural calamities on their occurrence. During the January 2010 earthquake in Haiti, the WFP responded quickly to the problem and helped in providing food to the residents... World...
2 Pages(500 words)Essay

Case summary

...Case Summary Case Summary The executive housekeeper Lisa Oliver complains to the hotels general manager AshleyAustin about poor performance of Paula Cooper. Paula has been working as a house keeper for 25 years and Lisa believes that Paulas age is the main reason of her low productivity. Paula cannot meet new bedding standards of the hotel. Other housekeepers have to help her after they finish their work. Even though the quality of her work is high, Lisa is not satisfied with the quantity. Ashley Austin has to decide whether to keep Paula or let Lisa fire her. While Lisa believe that age is the main reason of Paulas slow work, there are more possible explanations to the...
2 Pages(500 words)Essay

Case summary

...Case Summary Q1. In evaluating its products lines and business operations, LEGO should ensure that the productlines and business operations fulfill the following criteria: strategic fit, financial viability, competitive advantage and partner viability. Q2. The changes in the marketplace mean that the future of the toy industry will undoubtedly change the way in which companies operate. The reduction in competition barriers in the industry is likely to heighten competition level because of easy market entry for new companies. However, acquisition by major firms is likely to lower the threat posed by smaller emerging companies. Q3. Despite its success in early periods of operation, LEGO faced some...
1 Pages(250 words)Assignment

Case summary

...Case Summary The case study d as Emirates Airline: Connecting The Unconnected has been ed by Alcacer et al. and the purpose of this case study was to focus on the factors and the reasons due to which Emirates Airline had gained success (Alcacer 714). The author states that the company is at least 28 years old and during the period of 2013 the company was ranked amongst the three largest airlines throughout the world that operated at the commercial level. The case states that one of the factors that have contributed to the airline’s success is the customers it is targeting. Furthermore the locality of the airline provides it with a competitive advantage...
1 Pages(250 words)Assignment

Case summary

...Case Summary How do firms in the supermarket industry make money? Some of the products offered by Trader Joe were sophisticated products to the consumers who were interested for good bargains. Trader Joe store offered products such as sprouted wheat bread, black rice and whole bean coffees which were not initially found at other supermarkets. He later chooses to sell many natural and organic foods after which the supermarket industry started offering private label items. Private labels items which included a variety of non-food items which catered for both educated to non-educated. (Nicholas 60) On the other hand, most of the supermarket stores are quite small in size but they are always stoked. Most...
2 Pages(500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic A case summary for FREE!

Contact Us