MGSC14H3 Lecture Notes - Lecture 11: Bes, United States Department Of Justice, Fiduciary
Document Summary
Siemens had millions in slush funds to bribe foreign officials. Used the accounting system to mask these activities. After several fines, they failed to adhere to fiduciary duties. Corp culture to be reformed to prevent misconduct. Teleology - ethical decision is the ones that provides the benefit of all parties. Company offering bribe wasn"t the first choice, but by using bribes , pushing towards partnership that gives short term benefit. Deontology - ethically correct behaviour based on the motivation of the decision make. Based on moral code, virtuous, free od deception. Carried out actions not consistent w, stakeholders. Act in a way in which you would want everyone to act. Misguided employees to believe it was right. Didn"t act w/ malicious intent, flaws in mgmt. Didn"t adjust their objectives to the stakeholder objectives. Instead the copr culture encouraged employees to act unethically. Internal controls values didn"t reflect stakeholder values. Prior to legal troubles, strong brand & reputation.