Wednesday, December 30, 2015

Corruption in an organization

Corruption
1. High level of corruption and the role of the manager
There are a number of things that derive a business to opt for a way that is illegal and not in accordance to the law. For instance if a business wants to go global, there incur some factor that do not allow it to get expended and the management of the organization has to use the other sources especially the financial ones to get the job done. These factors might be the lack of interest from the side of the government or the non-governmental factors that demand their share in whole of this process. This is what happened in most of the cases where the businesses have to expand its operations especially in the developing countries. This is the external factor that causes to promote the illegal ways in the country where the business is expending or focusing towards.

The internal factor that became the reason and was used to justify this act of greasing the palms of the official was that the taking and giving bribe culture was common in Germany, as the laws were in favor of it. The management of the Siemens should have understood later on when the related laws changed that now this practice cannot be carried out for any longer time. The managers of the organization engaged in these activities of corruption as they know they will be unable to win the contract in the legal ways and would have to take care of the interest of the business. They were not even taught to get shut of it before and after the rules and regulations were changed.

2. What had happened to managers?
If they take the stand they might have to bear the loss as they would not have otherwise. The single manager might have been compelled to stand down from the job; it requires a collective action from the side of the management as it requires the change of the culture prevailing only inside of the organization. The managers should know that whatever they are doing is deteriorating the culture of the countries where the organization is planning to expand its business. The corrupt practices should be gotten rid of as soon as possible to avoid the loss of the goodwill.

3. Distorting the competition
The business has some ethics which should be applied in all the processes in which its employees will be engaged. Same is the case with the process of competition where the opportunities for the other businesses should not be grabbed without following some rules and regulations. When the other organizations are choosing legal and justified ways to take the contracts in various countries of the world, Siemens should not be setting aside these ways to do so. It clearly reveals that the organization is not following the rules and regulations and greasing the palms of the officials to gain financial benefits.

The whole of the environment of the competition is disturbed due to this sort of practice and there is no comparison of a legal and illegal business in any way or in any case. Siemens actually took the contracts in the other countries in an environment that was illegal and make it an illegal business that should be fined with a heavy sum of money. The profits earned through it should be held by the officials of the government of Germany where it is originated. The competitors lost their markets and the share of profit which they could have gained if Siemens Corporation could not have corrupted means.

4. Effects on countries
The values of a country are based over beliefs and when the later becomes affected, the prior ultimately diminishes. Siemens Corporation makes the whole of the system filthy by corrupting the people who claimed to be the representatives or officials of the other countries. It brings about a system where anybody could not anything without any harm, and the only thing to do is to grease the palms of the relevant authorities.

The whole of the value system destroyed and the people of the certain countries also lose their faith on their representatives as well. When the confidence of the people shakes, the sensations of the loathsome for a particular government are raised. Both - the officials of the government and the organization - should be dealt with strict hands so that a lesson could be learnt for not doing corruption. The filthy and corrupted culture of taking bribes was brought forth by the company in the countries where it expanded it business.

5. What would be done?
Being a manager means there are a lot of responsibilities that are to be done for the survival of the company. In that situation, when that was obvious that the company was involved in some illegal acts that could not be borne in any case, the rational decision at that time could be to discuss the matter with the colleagues working in the same company. They should be told about the situation as consultation with them was compulsory. Furthermore, if those colleagues were not ready to take the matter, the top most senior persons of the company should be told about this practice.

The pros and cons of this corrupted scheme should have been brought in front of them so that they could understand my concern, and if they also gave no response. The only left option is to leave the company, especially at the time when the government itself had said that there would be zero tolerance for any such activity. The resignation will be the only left option at that time which could make me strong morally and ethically.

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