1. A megújult Siemens vezetés korrupció ellenes politikája
Előadás a Német-Magyar Kereskedelmi Kamara részére
Kühn János
Compliance Igazgató
DUIHK, Február 10, 2009

2. Collective Action – Meeting with Dr. Szentkuti
Agenda
SIEMENS BRIBERY SCANDAL
Pierer gives up
The resignation of Heinrich von Pierer, head of the Siemens supervisory board, has been speculated on for quite some time. Still, the announcement last night that he would step down was a surprise for many. He has obviously been under massive pressure from the group‘s top management.
© Spiegel-Online, 20 April 2007
KLEINFELD THROWS IN THE TOWEL
Siemens CEO Undermined by Board
Siemens CEO Klaus Kleinfeld couldn't hang on to his job once the supervisory board had turned against him – despite his having turned Siemens around and announcing increased profits. On Wednesday he jumped before he could be pushed.
© Spiegel-Online, 26 April 2007
BRIBERY SCANDAL
Two more Siemens board members to leave
Next, please: Klaus Kleinfeld‘s head was not the last to roll at Siemens: Two more board members, European operations chief Johannes Feldmayer and Jürgen Radomski, in charge of personnel, are preparing for the end of their careers as board members – both are implicated in the bribery scandal at Siemens.
© Spiegel-Online, 27 April 2007

3. Our goal: Benchmark for Transparency
Tone from the top
No tolerance on a global basis for illegal behavior
Thorough and independent investigation of past compliance cases
Compliance Program with focus on “Prevent – Detect – Respond”
Clear commitment of management
Restore trust

4. Selected differentiators
The Siemens compliance program represents a paradigm change in corporate governance
"To ensure buy-in beyond doubt, Siemens is pushing its program further than most firms dare“ CFO Magazine, October 2008
Selected differentiators
Prevent
Detect
Respond
Training
Policies & Procedures
Program communication
Centralization
Forensic & part of standard audits
Compliance reviews
Compliance controls
Consequences for misconduct
Global case tracking
Monitoring effectiveness
Integration with personnel processes
Compliance helpdesk (incl. Global Ombudsman function)
Compliance Organization
"Tone from the Top"
Continuous improve-ment
Built-in controls provide operational oversight– with blocking rights on partners and transactions!
Incentive system linked to compliance (appr. 20% of management bonuses based on compliance-related metrics)
Escalation and detective mechanisms
Involve external parties to combat corruption

5. Elements of operational control
Compliance framework
"As economies slow and profits are hard to come by, will ethics programs be shifted to the back turner? That's a huge temptation for business people in difficult times. But I would warn against it. It's something that could come back and haunt you. Just ask Siemens" Jermyn Brooks, Director of the private sector program at Transparency International. In: CFO Magazine, October 2008
Elements of operational control
Risk-based evaluation of business and support areas
Pushing control onto suppliers and intermediaries: special provisions and monitoring for higher risk partner contracts
Blocking payments to excessive risk partners
No-go in case of doubtful business or acquisition

6. Disziplinarmaßnahmen
Compliance – Fortschrittsbericht Q1 GJ 2009
Prevent
Detect
Respond
Handeln
Zielgröße 180,000 Trainings übertroffen
Training 1)
Helpdesk
Disziplinarmaßnahmen
Teilnahme an persönlichen Schulungen
"Tell Us" & Ombudsmann
175 geahndete Verstöße
Teilnahme an web-basierten Schulungen
Beendigung Arbeitsverhältnis
Kein Anfangsverdacht
196,4
196
175,2
Anfangsverdacht
168
138,0
143
30%
114 60
101,8
82,4 61
125 97
108,0
123,0
129,3
116
110 81
87,0 73 24
Verwarnung / Abmahnung 18
Q1/08 Q2 Q3 Q4
Q1/09
Q1/08 Q2 Q3 Q4
Q1/09
Andere 2)
Angaben in Tausend
Helpdesk
Helpdesk
Compliance Personal weltweit
"Ask Us"
Q1 Themen "Tell Us"
Fehl- verhalten
621
Andere
100 4)
22%
28%
Betrug 7%
863) 8%
Korruption
18%
17%
Arbeits- bedingungen
GJ 06
GJ 07
GJ 08
Q1/08 Q2 Q3 Q4
Q1/09
Interessenskonflikt
1) Kumuliert 2) Verlust von variablen und freiwilligen Entgeltbestandteilen, Versetzung, Suspendierung 3) Compliance nur ein Teil der Aufgaben
4) Beinhaltet Implementierungs-Manager
1) Status is Sep. 30, exception: Findings/ Disciplinary Sanctions Sep. 15, ) Cumulative 3) Embezzlement of company assets, harassment, discrimination, etc. 4) Forfeiture of variable payment elements, transfer to another position, suspension ) mainly part-time 6) Including implementation management

7. Corruption rewards inefficiency
Corruption rewards inefficiency. Collective action may help achieve fair competition.
Rationale for Collective Action
Collective Action
Corrupt environment
Level playing field
Siemens is benchmark in compliance
Competitive disadvantage in corrupt environments
Collective Action to foster fair competition in Public Sector