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Case Evaluation - Essay Example

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The company concentrates on developing goods for electronic engineering and electronic based industries. Like the other big worldwide manufacturing companies, customers handled by Siemens Company are different governments and…
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Case Evaluation
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Download file to see previous pages Henceforth, Siemens Company and its challengers may at times have the temptation of using any possible means in persuading decision makers in signing contracts with their companies. Due to this persuasion, the company gets tempted to offer financial incentives that are not legal in closing the signed contracts (Stanwick, 2014). The illegal method used by Siemens Company to obtain orders from their customers was revealed when it was stated that six executives in Siemens Company had been detained for the actions they did. These actions related to offering bribes to German and different customers in the telecommunication industry.
Additionally, these executives were blamed of stealing money from Siemens Company to pay for the offered bribes. Thomson Ganswindt was among the arrested executives. He was heading the telecommunications equipment unit in the company. The assessed bribes amounted to 200 million euros and supposedly incorporated using bribes to get the security systems contract. This was at the 2004 Olympic Games held in Greece (Stanwick, 2014). The concerns began after Michael Kutschenreuter, a senior executive in Siemens Company, stated that he received a very worrying phone call in the beginning of 2004 from Beit Al Etisalat. Al Etisalat was an employee of a consulting firm in Saudi that was Siemens business partner.
Al Etisalat claimed that he be compensated 910 million dollars as commission payments by Siemens Company for the role he played in obtaining telecommunication contracts in Saudi Arabia. He went on to threaten the company that he would go to the United States Securities and Exchange with proof of bribes Siemens offered connected to the contracts if Siemens Company did not compensate him the commission payments (Stanwick, 2014). Due to this threat, Michael informed the company’s superiors, including the then present CEO Heinrich von Pierer and future CEO of the company Klaus ...Download file to see next pagesRead More
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