For this assignment our learning team discussed the Bribery Scandal at Siemens AG. As a group we analyzed the case and conducted additional research to answer critical questions in each key section. Supported by the course material and supplemental articles, the team compiled the research that discussed Internet technologies, affective technologies in management development strategies, global alliances and provided recommendations on cross border operations.
Key issues
Analysis of the Siemens case resulted in several key issues which explained the bribery scandal. Lack of leadership is the primary cause for the Siemens representatives convicted of bribery in 2007. The intention of the bribery was to ensure that Siemens obtained needed global contracts. The methodology offered supported no personal gain from this bribery and the organization gained contracts which negated a cause for an illegal act. In addition, Siemens was operated in countries where these acts were considered legal. There were no other documented strategies to obtain the contracts that did not include illegal activity (Deresky, 2011).
Although managers were able to offer defenses against the allegations, the underlying issue in this case is poor leadership will result in multiple scandals. The leadership team within this organization took no responsibility from an international perspective to create an ethical environment and standards for their employees. There was no acknowledgement of illegal activity and moved forward with unethical practice to support organizational growth.
Internet technologies are relevant to this case The many Internet technologies that affect this case do so and get involved with supply chain management, customer relationships, banking and finance, and global alliances. Supply chain management is so important and at the core of this case any many internet businesses online today. Without an organized structure or management, no online site or technology can prevail. In order to supply demand, we need to first create it than manage it. Leadership and management come into play here to make sure the customer relationships, the banking aspect are all in place. When talking about global alliances, it is so important to keep cost down and keep relations expanding. Transferring bribes and illegal actions goes into ethics and online the same rules do apply.
Use the Internet to expand global operations
In order for an organization to expand globally, advances in technology has to provide a seamless transition for innovation and continue to work as a means to advance the consumer. Cases of technological developments are necessary to build strategic alliances across industries.
The ability to grow rapidly in areas of an organization in which there are no direct references expertise or manufacturing capabilities are all made open communications via the internet. Although the Internet is a global medium, a company is still faced with the same set of decisions regarding how much its products or services can be “globalized” or how much they must be “localized” to national or regional markets. In the Siemens case, the goal by 1990 was to restructure the company into smaller sectors that could operate in a global market. As a dominant company in the industry, the information system created to boost its earnings and power generation through increased business in volume that allowed the benefits of synergy.

According to (Zoltan, 2011), the Internet allows clear opportunity for synergy and culture development of an organization. The focus on commitment and stimulation of high performance standards are the foundation for achieving global success to execute change that produces the best long-term results, despite challenges. As Siemens grew to one of the largest electrical engineering companies in the world, with operations in over 190 countries and 400,000 employees around the world, the Internet played a key role in the bribe scandal as funds were transferred and document online.
Affects of Internet Technology
In this case, Internet transactions through banking were the alleged charges for the board executive of Siemens, Thomas Ganswindt. According to reports, suspicious payments were shown to be made to external consultants for Siemens, whereas they were actually made to secure contracts in the fixed line telecommunications business in various international markets. According to previous bribery cases, embezzlement cases are always tracked through electronic funds and irregular transactions on the bank ledgers are flagged. These unethical practices cause a breakdown in global alliances as Bribes were suspected to have been paid to strategic partners and officials in Italy, Puerto Rico, Greece, the U.S., and several other countries.
Recommendation for Cross-Border operations
One of the primary functions of an international organization is to help set the standards for other organization operation within the market space despite the country or region it may be operating. Unethical practices are not acceptable technological advances used to communicate standard procedures. Standard procedures for multiple cultures and perspectives offer technological mechanisms that can help organizations achieve this as an “online reference tool.” The ideas make information cumbersome to obtain but make it accessible to those operating in a position that can ultimately make ethical decisions that will negatively or positively impact the organization. Creating a robust tool that is well-maintained an updated frequently from a diverse group ensures that there is fluid cross functional communication and international practices that are never swayed from without a clear understanding off the negative impact of doing so. In addition to standardized operations, cross-border alliances are formed to enhance market expansion, cost- and technology-sharing, avoiding protectionist legislation, and taking advantage of synergies. In the Siemens case, taking advantage of synergies allowed for a rapid growth into foreign markets and reduced the risks complex environments.