Siemens Company and Global Compact’s Principles

Executive Summary

The business report is for Siemens Company based on two principles of Global Compact; corruption and bribery as well as employment discrimination. It is recognized that these two principles are very important in placing the organization at a better place in their quest to cut itself an edge in this competitive business world. Accountability and transparency reduced civil cases of fraud, corruption, and discrimination as benefits accrued when the principles will be incorporated into Siemens strategies and practices. It is worth noting that organizations, network members, as well as other stakeholders will benefit as a result of these recommendations.

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To attain this, although challenging tasks, recommendations, for instance, the formation of a committee to oversee issues of discrimination and accountability, harsh punishment, providing flexible working conditions among others are important. The major risk or challenge is resistance within the organization.


It is a fact that Siemens Company has gained international recognition as being the number one leader in three major sectors, which include healthcare, energy as well as industry. It is the biggest corporation in entire Europe (Weiher and Goetzeler, 1984). The company has close to fifteen divisions, a workforce of almost a half a million in as many countries as 190. It was founded in 1847 in Berlin by Werner von Siemens, having headquarters in Berlin, Munich, Erlangen, and New York.

The company engages in these products; communication systems, automation, lighting, medical technology transportation, generating power, information technology services, Siemens PLM software, firearms, water technology, and automotive, home appliances, and building construction. Services include financing, construction, and business services.

Siemens is registered on Frankfurt Stock Exchange, and as of 2009, it documented global revenue of almost 77 billion Euros. During the same period, operating income, net income, total assets, and total equity stood at 4.3 billion Euros, 95.0 billion Euros, and 27.0 billion Euros respectively.

Corruption and discrimination

In this competitive business world, every organization is trying its level best to cut for them a self-market edge and to outdo their closest competitors. It is mainly attained by incorporating various strategies that will provide the required synergy to propel the organization to greater heights. The two main practices and strategies most effective in making organizations realize such desire includes two principles brought forth by Global Compact; the elimination of discrimination in respect of employment and occupation and businesses should work against all forms of corruption, including extortion and bribery (Gredier, 1997).

Various scholars and most successful business organizations have realized that the most important asset that will keep day to day activities at there best for the betterment and attainment of its objectives is the human workforce/resource.

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According to Dipboye and Adrienne 2005, treating employees well is of paramount significance. Additionally, due to globalization, which has turned the world into a global village, individuals from varied backgrounds work together. There is thus a need to harmonize how these individuals interact. On the same note, transparency, honesty, and accountability dictate how an organization is viewed in the eye of the public, hence issues relating to corruption and fraud opt to be addressed (Brookton, 2010). All these have been achieved in part by Siemens Company, thanks to the incorporation of the same in the code of ethics as well as to conduct. However, a lot still needs to be done as there is room for further improvement.

Various fines against the company painted it a wrong picture in public eyes. A typical and one of the huge fines placed against Siemens by the United States of America in 2008 worth 800 million U.S dollars was over a very long case of corruption and bribery. Similarly, cases against the corporation concerning abuse of Equal Employment Opportunity Acts have tarnished the name of the corporation (Gelsenkirchen and Eberhard, 2005). Recent implementations of policies and regulation guiding the same seem to yield results, and in light of the same, we recommend the following to Local Network;


Provide a flexible working environment for the workers

Benefits and implications

  1. Employees will report to work at a time when they are comfortable.
  2. They will be highly satisfied hence provide customers with very high-quality services.
  3. There will be reduced conflicts between subordinates and their supervisors.

Strictly following the Equal Employment Opportunity Act

Benefits and implications

  1. It will help the organization to be in line with the government policies, laws, and regulations regarding the same hence reduced civil cases that might have led to the payment of huge fines s well as tarnished corporation names.
  2. Similarly, it will encourage having a diverse workforce, which carries it a myriad of advantages if well tapped, for instance, innovations, wider problem-solving capabilities among others.

Formulate a committee within Human Resource Management that will oversee the issues relating to forms of discrimination

Benefits and implications

  1. Complains will be addressed timely before they go beyond control
  2. Network members will reap from the benefit of having fewer court cases that usually paint them negatively in the eyes of other stakeholders.

Harsh disciplinary measures to perpetrators of discrimination. It might range from suspension to expulsion from work

Benefits and implications

  1. The corporation will regain public confidence as a place that any kind of person can secure a job despite their cultural background.
  2. Network members will be less worried about being discriminated against by those in authority (Dawn, 2008).

Imposing very harsh penalties to those who are corrupt and strictly following the code of ethics concerning transparency and accountability

Benefits and implications

  1. There will be reduced rates of such incidences as fraud, bribery hence better corporation’s public image and reduced court cases.
  2. Network members will not need to influence their superiors for favors such as to be promoted.

Have a committee to foresee issue relating to organization finance, transparency, and accountability

Benefits and implications

  1. A higher degree of accountability, responsibility, and transparency that will improve the image of the organization
  2. Net work members will be fully aware of how to finance are utilized as such information will be made available

Lessons learned

Having in place strategies that will keep employees discrimination at bay as well as fostering accountability and transparency by trying to tackle the issues of corruption, fraud, and bribery is of significance for Siemens to maintain its global reputation. Not having respective committees that check issues of discrimination and corruption derails effort to have satisfied employees as well as transparent and accountable organization. The passage of policies and regulations as well as the incorporation of them in the code of conduct is a positive step.

Benefits of complying with the GC Principles

According to Ansoff, 1965, the benefit is far much than just providing an equal opportunity to employees and enhancing transparency and accountability. It generally helps the corporation to be seen in a positive eye by the network members as well as safeguarding the company brand names.


The major risk in the quest for attaining the two principles is resistance within the corporation. Additionally, handing the issue of a diverse workforce is similarly a challenge in trying to build consensus.


It is appreciated that although complying with the Global Compact principles is very significant, it is equally a challenging venture in trying to incorporate them in our practices and strategies, especially if it is alien to our existing practices and strategies. Nevertheless, ensuring that the two principles are incorporated in how we do business will propel us to greater heights as all relevant network members will be satisfied.

Reference List

Ansoff, H. 1965. Corporate Strategy. New York, McGraw Hill.

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Brookton, A. 2010. Measuring Corporate Performance. Journal of Public Affairs 4 (5): 25-52.

Dawn, B.A. 2008. Employment Law for Business. New York: McGraw-Hill.

Dipboye, R. and Adrienne, C. 2005. Discrimination at work: The Psychological and Organizational Bases. Oxford: OUP.

Gelsenkirchen, W. 2000. Siemens, From Workshop to Global Player. Munich: Ten Portraits.

Gelsenkirchen, W. and J. Eberhard. 2005. The Siemens Entrepreneurs, Continuity and Change, 1847–2005. Munich: Ten Portraits.

Gow, D. 2008. Record US fine ends Siemens bribery scandal. Web.

Greider, W. 1997. One World, Ready or Not. New York: Penguin Press.

Weiher, S. and H. Goetzeler 1984. The Siemens Company. Berlin and Munich: Ten Portraits.

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