Leadrship Development and business Ethics Essay Example | Topics and Well Written Essays - 500 words

Leadrship Development and business Ethics - Essay Example orders illegally from their clients was exposed in 2004 when a senior executive of the Company, Michael Kutschenreuter, received a worrisome call from Al Etsalat, an employee of a Saudi Consulting firm. Kutschenreuter was actually requesting for $910 dollars bribe for having assisted the Siemens Company to obtain telecommunication contract with the Saudi Arabia government. Al Etsalat threatened to expose the scandal to the US Securities and Exchange Commission, if the Siemens Company failed to pay him the agreed bribe. Kutschenreuter reported the matter to the Siemens management Company, and the Company agreed to pay Al Etsalat $50 millions so as to settle the matter. After the Kutschenreuter’s revelation, another senior executive of the company, Reinhardt Siekaczek , confessed of being aware of the Siemens’s Company management use of illegal means to obtain contracts from the clients. As the consequence, investigation was done, and the Company management were prosecuted for involvement in illegal deals. One of such deal was the illegal payment of 6 million Euros to an Italian government owned Company, Enel, so as to secure power generation equipment contract. The management of the Siemens Company were found guilty of bribery, and the Company was fined $ 51.4 million for the crime. The managers of the Company were also punished accordingly for the crime. Thereafter, the Siemens Company was prosecuted for many such crimes, and the Company lost more than $1.6 billion in fines for bribery. And in a move aimed at enabling the workers of the Siemens Company to freely give evidence of what really was happening in the Company, the workers were granted amnesty. This move enabled the workers to give evidence freely, without any fear of prosecution. A look at the Siemens’ company management manner of doing business and making profits, shows that the managers were guided by the utilitarian ethical principle, whereby it is the end that justifies the means; in other