Siemens case study

Solution Preview

Whew! Here you go- hope this helps. Please let me know if you have any questions.

1. The high level of corruption at Siemens can be attributed to corporate culture. The case study states "corruption at Siemens was deeply embedded in the business culture" (CITATION NEEDED FROM YOUR TEXT). This is due in part because Siemens is a German company and bribery of foreign officials was not illegal in Germany before 1999. In fact, bribes could be deducted as a business expense under the German tax code. It was an accepted way of doing business. After the law changed in 1999 the company chose to not comply with the new legislation, thus further encasing the practice into the culture.
2. It is likely that a Siemens manager who took a stand against bribery would be unlikely to find success in the company. This would be going against corporate culture and an unpopular method of doing business. In addition, since customers had come to rely upon Siemens giving bribes the individual would be fighting an uphill battle and unlikely to be personally successful at the company, thus leading to failure as well.
3. Corruption like Siemens engaged in distorts competition by giving an unfair advantage to the company giving bribes. As long as Siemens viewed bribery as a cost of doing business competitors not giving bribes are not on a level playing field and are unlikely to be successful with many customers willing to be paid off. Corrupt practices cause dishonest customers to enjoy lower prices. It is unfair.
4. Siemens' corrupt behavior would result in lower prices for German electronics in the ...