Management and Siemens Continuing Business
1. What explains the high level of corruption at Siemens? How did managers engaged in corruption rationalize it? The corruption was brought on by Siemens continuing business practices that were legal at one time but they continued to the activity for financial gain. They rationalized the corruption by believing they were saving their business and the jobs of its employees. 2.
What do you think would have happened to a manager at Siemens if he or she had taken a stand against corrupt practices? Knowing the level of corruption, I think it safe to assume that anyone opposing the corruption would be fired or worse. Siemens probably had strong influence on politicians that could have brought false legal actions, through trumped up charges, against anyone who spoke out against the corruption. 3. How does the kind of corruption Siemens engaged in distort competition?
These practices did not allow any real competition since competing businesses had no chance of winning contracts with these governments. It gave Siemens an unfair advantage. 4. What is the impact of corrupt behavior by Siemens on the countries where it does business? It has a negative impact on those countries. The countries, where Siemens bribed officials, would lose the trust of their people and the corruption would show a negative impact on their political system.
It could also lead to those countries not receiving the best goods or services they could have gotten and might not have been for the best price available since the competition was kept out. 5. If you were a manager at Siemens, and you became aware of these activities, what would you have done? It would be a hard decision but I would have exposed the corruption. I would have to be prepared for the consequences but I couldn’t be a part of a company that had those types of business dealings.