In Germany, bribery was legal before 1999, now was illegal. However, Siemens continued bribery, they sent the money to the bank in Switzerland that was difficult to trace. Also, they hired a lot of “consultant” to help them accomplish corrupt business. Managers rationalized that bribes were looked like a “cost of doing business” and “useful money”. They believed this way could keep the business alive.
2. What do you think would have happened to a manager at Siemens if he or she had taken a stand against corrupt practices?
Manager could be fired or pushed out from a group because they don’t consider the benefits of company.
3. How does the kind of corruption Siemens engaged in distort competition?
Siemens tries to bribe officials to obtain many contracts. This is unfair competition.
4. What is the impact of corrupt behavior by Siemens on the countries where it does business?
The impact of corrupt behavior by Siemens is that people who live in poor countries have to pay too much for government service because of these illegal transactions. Also, Siemens expands the culture of corruption in these countries.
5. If you were manager at Siemens, and you became aware of these activities, what would you have done?
I'll try to investigate how many people are involved and find other colleagues who are not involved and we can think a good method to solve this problem together. If I cannot change anything, I will leave the company because I don’t want to go to jail.
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