"Siemens to Pay $1.6 Billion to Settle Bribery Case "-2008

Siemens is a globally recognized German engineering company, which has tapped into many sectors, such as telecommunications, healthcare, renewable energy, oil & gas, to name a few. Understandably, it is one of the most influential engineering companies in Germany and the world, explaining the immense magnitude of the US $1.6 billion settlement regarding bribery. The company has since pleaded guilty to corruption, in the form of paying bribes for public works contracts.

The ethical issue here is bribery. In order to expand their company, Siemens took an illegal and alternative route to get there, disregarding the regulations against bribery. Bribery was a way of life at Siemens, it was embedding into their business strategy. Since joining the NYSE in 2001, Siemens was supposed to abide with American regulations, which states bribery is illegal. By being unethical the company has subjected themselves to financial loss, but also a tarnished brand, which is ironic since the organization broke the law in hopes of becoming a more profitable and known company. The consequences of their actions go far beyond money and profits.  A Chinese official who accepted Siemens’ bribes was sentenced to death this year, and another, a long prison sentence, showing that people will do just about anything for money.

Other stories:

http://www.businessweek.com/blogs/europeinsight/archives/2008/12/siemens_to_sett.html

Sources:

http://www.nytimes.com/2008/12/16/business/worldbusiness/16siemens.html

http://www.washingtonpost.com/wpdyn/content/article/2008/12/15/AR2008121502926.html

http://english.peopledaily.com.cn/90001/90776/90882/7417043.html