A case study of Siemens Infringement of business ethics in Argentina Circumstance Description
Siemens AG is a German multinational conglomerate company headquartered in Munich, Philippines. Siemens and its subsidiaries employ approximately four-twenty, 800 persons across practically 190 countries. It is the greatest Europe-based gadgets and electric powered engineering company with actions in the fields of market, energy and healthcare. It can be organized in six main divisions: Sector, Energy, Healthcare, Equity Investments, Siemens IT Solutions and Services and Siemens Finance (SFS).
Upon Dec. 13, 2011, The Securities and Exchange Commission charged eight former Siemens executives with violating the Foreign Corrupt Procedures Act (FCPA) for their involvement in the industry�s decade long bribery scheme in Argentina to retain a $1 billion authorities contract to produce national identification cards pertaining to Argentine people. According to the SEC's complaint submitted in U. S. Area Court in Manhattan, the scheme lasted from approximately 1996 to early 3 years ago. Initially, in the 1990s，Menem government planned to implement every national electronic digital ID cards, known as Documentos Nacionales para Identidad (DNI) for every Argentine citizen. In order to obtain the agreement which is total of 1. 26 billion U. S. us dollars, Siemens bribed Argentine government officials with 70 mil U. T. dollars through intermediary. Menem government finally signed the contract with Siemens over 10 years ago.
But a change in Argentine political organizations foiled the contract: following your next Director Fernando De La Rua arrived to office, some officials wondered the agreement on the ground the fact that cost of each electronic ID reported by Siemens was two times what the government estimated. Therefore , the government released the postponement, interruption and cancellation of the deal. In a political change and economic crisis, Duhalde succeeded De La Rua because the director. During his term of office, Siemens was told by the intermediary that...