Mgmt Case Study

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Activity 9.3 - Case Study 8: Siemens Needs to Clean Up around the Globe Your assignment is to complete the requirements 1, 2, 3, and 4. This activity is due by the last day of Module 9. Before you submit your document, make sure you thoroughly review your response. 1) What are the cost and benefits of bribery? The cost associated with bribery is the abuse of power by the decision-makers and by officers in their respective position. A significant consequence is that bribery and corruption adds to the cost of doing business but, crucially, without adding corresponding value. Instead of the full contract amount going towards the delivery of the product or service, only a portion is productively employed. Another damaging cost to bribery is the unfair evaluations of a tender or procurement bid awarded to the contractor. Bribery promotes inefficiency and ineffectiveness of the business system and adds to the cost of doing business. A further cost relates to leadership, specifically because leaders exert the most powerful influence on ethics, defining by their behavior what is and is not acceptable. Therefore, when high profile citizens are involved in bribery and corruption, their impact as role models is very damaging. The message is not only that unethical and illegal behavior is acceptable, but also that the pursuit of personal gain takes precedence over service delivery. This risks creating an unethical culture among ordinary citizens where such "lowest common denominator" behavior predominates. The benefits of bribery for a corporation is that it usually gets what it wants and bribery is not always used to corrupt a contract to be favorably award but it may involve asking information or data that is deemed confidential. Another benefit to bribery is that it may hasten administrative procedures that usually take very long time to administer
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