Managing Ethics: Daimler and Siemens AG IntroductionExperts believe that the managing of employees in different geographies are becoming increasingly difficult due to various ethical issues such as unfair employment practices, child labour, corruption, ethical trade etc. (Tulder & Kolk 2001; Bansai & Sama 2000; Enderle 1999). Business ethics in general concerns with the requirements that companies need to fulfill to conduct their businesses in an ethical manner by abiding the law of the state (Kaptein & Wempe 2002). In order to maintain its image and reputation in the market it is imperative for companies to focus on avoiding ethical issues.
It has been found that these issues are very sensitive and may result in damaging the reputation and thereby, the revenue of the company as well (Bowie & Vaaler 1999; Buller & McEvoy 1999). Corruption and bribery have been major public concern in around many countries. This is also because of the result of press coverage of the corruption charges being levied on the public officials. Iterations in the foreign bribery laws and with the recent trend that was found very vigorous failed to keep a scanner on the issue bribery.
One of the most topical issues of business ethics is covered over the world in today’s time in the global market. It can be defined as study of situation in a business, decisions and activities that had to be addressed as an issue which may be right or wrong. Thus, focused on morality or giving gifts or even bribing has become one of the common business ethical problems which has been raised huge debates and even disagreements with regards to domestic companies and most foreign companies that have various cultures.
That said, bribery is also fact of life in some of the countries. In these countries, when an international company does business they are found offering bribes to be in business (Florini 2003; Mauro 1995). The importance of considering ethical issue of bribery is understood through the discussion of the two case studies of Daimler and Siemens AG in this paper. Case study 1: DaimlerDaimler has been accused of paying money as bribe to foreign officials for over 10 years i. e.
1998-2008. They have been accused of securing government contracts in any state they wanted to do business in. On 1st April 2010, Russian and the German Daimler subsidiaries were confirmed the accusations, through which they were fined a sum of $185 million for getting into illegal actions. Also, this would bring one of the biggest corporation would come surveillance. They would also face harsher penalties in case they do not comply with the two year agreement as per the Court ruling (Kollewe 2010). At the start of the month, April 2010, Daimler was brought to court by US prosecutors.
This was done as they were accused of paying millions of dollars in the form of bribery to approximately 22 governments around the globe. The subsidiaries also admitted they paid large sum of money, and have come under monitoring trial for a period of two years. And in case they do not comply; they will be subject to facing harsher penalties (Kollewe 2010).