The European engineering giant settles a massive bribery case, pays US$1.6 billion in fines, and somehow manages to stay off US government blacklists, which (in theory) prohibit giving contracts to companies who pay bribes. Daniel Kaufmann has an analysis of the echoing hollowness of Seimens’s previous CSR commitments.
“The case of Siemens illustrates what is important and what is not in seriously addressing corporate corruption. As usual, the bottom line resides with incentives: what truly raises the cost of bribing will matter, in contrast with PR-friendly measures that are useless in raising the cost of corruption.”
The whole post is worth reading.
Siemens and the illusion of CSR and codes of business integrity
“Now an era is essentially over for the corporate sector: no longer there is credibility to the notion that corporate (or sector-wide group of corporates) self-enforcement, self-regulation or self-principles will individually or collectively work on its own — without serious complementary measures, further transparency and third party monitoring.”
It’s a pretty excellent post.
— Jonathan Eyler-Werve
Good link — the enormous check is a nice touch. Sadly, Global Integrity’s funders just transfer money to our bank.
mmmmh. Maybe not quite the watershed we hope. Ananias Gweinho Tumukunde, a Ugandan govt. official was convicted in the UK for receiving a bribe of GBP83,000. Sentence? 12 months inside (released early for good behaviour).
The briber? Niels Tobiasen of CBRN Ltd, was given five months, suspended for a year.
As for the “all shall have prizes” response by the British government, check out the ensuing ritual at http://www.monitor.co.ug/artman/publish/news/UK_returns_arms_bribe_to_Uganda_76600.shtml