The elements of zero tolerance policy include compliance with the law, definition of unethical behavior, integrity statement, anti bribery, gifts and entertainment, reporting mechanisms, confidentiality, accurate accounting.
The element of anti bribery, gifts and entertainment is missing in Siemens. Siemens have executed bribery for the business advantage by making illegal payments to foreign accounts in countries with lax banking regulations. They also funneled money to phony companies in nations where they were bidding for contracts.
Siemens CEO Peter Loscher has made clear that there will be zero tolerance to have no grave zones and Siemens stands for clean business everywhere. The Global efforts to root out corruptions Siemens have taken following steps.
Removed half of the management board
Selected the company’s general counsel to be chief compliance officer and made him a member of the board.
Fired offenders even if they didn’t local laws
Centralized business functions to make it harder to individuals and divisions to operate illegally.
Established a program in which employees can come forward with information without fear of punishment.
Adopted new antibribery rules
Hired outside legal and financial investigers to identify suspicious payment.
Increased the compliance staff
Created web portal for employees to ethically evaluate their interaction with customers and consultants.
Hired cofounder of transparency international to develop an anti corruption training program for employees.
Though Siemens have taken enough steps to eliminate corruption, it is very difficult to remove the roots. Employees and executives should take it as a responsibility to fight against corruption and make their company a better work place. Training programs are organized by Siemens to educate the employees and employees should understand the value of morals in life. The employees should actively participate in discussions and point out whenever they find any chances of ethical issues including corruptions. This will help Siemens to eliminate corruption and also other ethical issues.
Employees need to respect each other and top management should stand as an example for integrity, trust and treating employees equally. It will help to develop a healthy ethical climate where each employee can work without fear. The equality among employees should be developed beyond compliance and management should be open to suggestions that will help employees to express their concerns.
