Ref: IMD-1-0282

Case study

Reference: IMD-1-0282

Order this case study

Corruption at Siemens (B)

By Stewart Hamilton and Anna Eckardt

In November 2006, 200 German policemen and prosecutors raided 30 offices and homes of Siemens managers to investigate allegations of embezzlement at Siemens’ fixed-line phone unit. In the wake of internal investigations started at the end of 2006, Siemens finally admitted to having identified dubious payments amounting to €1.3 billion from the years 1999 to 2006.

As a result, Siemens replaced all but one of its managing board members. At the end of July 2008, a former sales manager at Siemens’ telecoms division, Reinhard Siekaczek, was convicted for his role in setting up the slush funds used to win contracts.

In the B case, he shares his insights about the Siemens corporate culture, his lessons from the trial, and the pros and cons of the slush fund system he created.

Learning Objective

Introduce students to the issues surrounding corruption in international business.
KeywordsBusiness Ethics, Corruption, Finance, International Business, Moral
SettingsEurope, Germany
Siemens
2008
TypeField Research
Copyright©2009
LanguageEnglish
Related materialTeaching notes
Order this case study

Reference: IMD-1-0282

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Fax +44 (0)1234 751125
Email info@thecasecentre.org

The Case Centre Babson College

Babson Park Wellesley MA 02457, USA
Tel +1 781 239 5884
Fax +1 781 239 5885
Email info.usa@thecasecentre.org

Harvard Business School Publishing

60 Harvard Way Boston, MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email custserv@hbsp.harvard.edu

Case Center Japan

2nd Floor, Toranomon Jitsugyokaikan,
1-1-20 Toranomon, Minato-ku,
Tokyo 105-0001 Japan
Tel +81 3 3503 6621
Fax +81 3 3501 0550
Email info@casecenter.jp

Copyright information

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information, please contact our Information Center.

Do you need more information?
Contact us for additional information or republishing

Case study

Reference: IMD-1-0282

Order this case study

Other case study in this series

Corruption at Siemens (A)


Looking for something specific?

Keep reading

Back to top