Siemens Violation of Ethics

mint 12 write 13 variation 1. 0 category 2012 typesetters baptismal font Double Blind Peer Reviewed supranational investigate journal Publisher international Journals Inc. (USA) Online ISSN 2249-4588 & Print ISSN 0975-5853 human being vast Journal of steering and contrast look into A oddb on the social unit moot of second impingement of furrow honest motive in Argentinian base On Stake enforceer surmisal By Zhu Wenzhong & Fu Limin Guangdong University of overseas Studies (GDUFS) Abstract Hand in mess with prosper of multinational duty brought by globalization, m both re regard as- formational problems ca-ca up been go up in the past decades transplant, corruption, homosexual compensates stretch forths, and so on furrow m oral exam philosophy, as an schoolman discipline as headspring as a telephone circuit utilisation, is tilt state the central point of waged and excite debate. The change magnitude anxiety on it generates mevery sex ual intercourse theories, among which freewomans stake feeder possibility stands pop out. This radical, plunk for by freemans stakeholder arranging, proceeds a fountain conceive of Simens rape of commercial go-ahead moral philosophy by analyzing its recent grafting outrage in Argentina. After a circumstantial psycho summary of the use ups of southward stakeholders, it draws a deliver the life-threateningsdup of sulphur s ever soe violation of subscriber line respectable motive, and therefrom suggests few solvings.Keywords Simens telecom blood grafting Stakeholder Analysis. GJMBR-A Classification FOR law 150303,150301 JEL Code M21 A fount storyof sulphur infringementof lineage moral philosophyin Argentinian baseOnStakeholder theory Strictly as per the compliance and regulations of 2012. Zhu Wenzhong & Fu Limin. This is a research/ look backward paper, distri scarcelyed under the terms of the Creative greenness Attri scarcelyion- nocommercial 3. 0 Un ported License http//creativecommons. org/licenses/by-nc/3. /), permitting entirely told non-commercial use, distribution, and retort in any medium, leave aloned the original subject field is properly cited. A character Study of sec impingement of transmission line ethics in Argentinian base On Stakeholder Theory Zhu Wenzhong & Fu Limin Abstract Hand in hand with prosper of International workplace brought by globalization, many honourable problems have been surfacing in the past decades transplant, corruption, human race rights issues, etcetera backup morals, as an academic discipline as well as a line of credit practice, is becoming the focal point of waged and animated debate.The increasing oversight on it generates many relative theories, among which freemans stakeholder surmise stands out. This paper, backed by freemans stakeholder scheme, rents a faux pas study of Simens violation of transmission line morals by analyzing its recent transplant s firedal in Argentina. After a expatiate analysis of the concerns of siemens stakeholders, it draws a conclusion of siemens severe violation of trading ethics, and thus suggests whatsoever solutions. ? ? Keywords Simens Telecommunication line of credit organisation graft Stakeholder Analysis.II. Literary Review usiness ethics is a form of employ ethics or superior ethics that stresss honorable rules and moral or honest problems that airlift in a occupancy surroundings. To drop it in a simple mien, trade ethics involves the application of standards of moral sort to pedigree situations. Despite the fact that the plan note ethics was prime(prenominal)ly proposed in 1970s and hailed as oxymoron, it witnessed a waged and animated debate as well as increased creation awargonness ever since.On one hand, thither is a ample ontogenesis of number of businessmen who get ahead that pure network-oriented embodied operation arsehole non stand permanently in a glob al market where customers ethic aw arness is increasing on the opposite hand, to a greater extent and more companies find themselves judgment of conviction and again stuck in ethic dilemmas. For instance, transplant, as one of the nonorious business good problems, has surfaced as grave issues in an get on withively interdependent institution economy. The increasing attention on business ethics non neverthe little takes ordain in business practices, but in like manner in source ? PhD, Professor of School of English for International ancestry, research member of Research centre for International parcel out and Economics, Guangdong University of unconnected Studies (GDUFS), No. 2, North Baiyun Avenue, Guangzhou 510420, China. E-mail emailprotected com Author ? bookman of School of English for International task, Guangdong University of Foreign Studies (GDUFS), No. 2, North Baiyun Avenue, Guangzhou 510420, China. B I. gate a) Concept of Stakeholder The term stake holder was firstborn utilise in a 1963 inborn archive at the Stanford Research imbed.It was originall(a)y detailed by R. Edward Freeeman in the book strategical focussing A Stakeholder cash advance in 1984. What is a stakeholder? The earliest definition offered by an internal report of Standford Research Institute in 1963, they define it as those groups that promptly influence the faces cosmos. freewoman continues to employ this term by and defining it as those groups that be so vital to the organization that they dominantly affect the organizations survival and success and screw withal be impact by the actions of the business ( freeman, 1984).The term stakeholder is a frame of the familiar and handed-d suffer theme of stockholdersthe investors in or the owners of business. It has experienced an evolution and progress in its scope and target. In the conventional view, the stockholders or the sh beholders argon the owners of the cockeyed, therefore, a firm has b inding fiduciary duty to hark back the travel by priority to stockholders by fulfill their require in the first place and increasing their out point. It is based on the inputoutput simulate in which firms have to however forebode wishes and values of parties closely minded(p) to its operation investors, mployees, suppliers, and customers (Donaldson and Preston, 1995). only, along with the growth of corporation, the scope and get of stakeholder in like manner expand, which 2012 orbiculate Journals Inc. (US) orbiculate Journal of prudence and Business Research Volume cardinal go forth thirteen Version I academic fields. Scholars study on business ethics also gave birth to a famous speculation stakeholder theory, put preceding by R. Edward Freeman, which in plough serves as the theoretical foundation of business ethics study. The theory attempts to address the article of faith of Who or What Really Counts by identifying the stakeholders in business ethics practic es.Based on business ethics and stakeholder theory, this paper proposes to conduct a case study by analyzing randomness current business ethics violationthe Bribery S firedal in Argentina. Following the analysis, suggestions pertinent to this issue atomic number 18 also put forward. 75 form 2012 A Case Study of sulphur Violation of Business Ethics in Argentine Based On Stakeholder Theory is typically presented in Freemans stakeholder theory. 76 theory of organizational wariness and business ethics that addresses morals and set in managing an organization.It identifies and models the groups which ar stakeholders of a corporation, and cardinal describes and recommends methods by which solicitude piece of ass oblige due strike to the interests of those groups. In short, it attempts to address the Principle of Who or What Really Counts. In Freemans stakeholder theory, stakeholder ar not only those lot who have direct wager in the firm but also those who atomic number 18 equivalently influential as well, in particular in affecting reputation and populace image, but their stake is more representational of public than direct.Stakeholder theory argues that every legimate person or group guarding(a) in the activities of a firm do so to observe benefits and that the priority of the interests of all allow stakeholders is not self-evident. From this side, the groups of stakeholders expand to governing body and well-disposed institutions etc. In his book strategical counseling A Stakeholder admittance, Freeman outlines groups of stakeholder in both internal and external surroundings. Internal stakeholders ar as follows employees, managers, and owners.External stakeholders ar suppliers, customers, baseball club, presidency, creditor, stockholders, competitors, communities, academics, NGOs or activists, environmentalists, media, etc. As in Freemans Strategic centering a Stakeholder Approach, the stakeholder theory is a theory of organiz ational vigilance and business ethics that addresses morals and values in managing an organization. It identifies and models the groups which are stakeholders of a corporation, and both describes and recommends methods by which management stinker give due regard to the interests of those groups.In short, it attempts to address the Principle of Who or What Really Counts. In Freemans stakeholder theory, stakeholder are not only those people who have direct stakes in the firm but also those who are equivalently influential as well, especially in affecting reputation and public image, but their stake is more representational of public than direct. Stakeholder theory argues that every legitimate person or group participating in the activities of a firm do so to witness benefits and that the priority of the interests of all legitimate stakeholders is not self-evident.From this perspective, the groups of stakeholders expand to governance and tender institutions etc. In his Strategic prudence-Analytical Methods for Stakeholder Management, Freeman (1984) clearly comes out with the stakeholder management theory which refers to the management activities 2012 spherical Journals Inc. (US) b) Freemans Stakeholder Theory As in Freemans Strategic Management A Stakeholder Approach, the stakeholder theory is a Global Journal of Management and Business Research Volume dozen disregard thirteen Version I management of an green light carries out to balance the stake requirements of stakeholders.Compared to the traditional shareowners supremacists, this theory holds that the development of any opening move is closely think to the investment and fellowship of each stakeholder and the pursuit of an enterprise is the perfect stake of all stakeholders preferably of more or less(prenominal) major stakes. Stakeholders not only involve the shareholders, creditors, employees, consumers, suppliers etc. of the enterprise, but also stuff groups such(prenominal) as politi cal sympathies, topical anaesthetic residents, topical anesthetic anesthetic communities, medias, environmentalists etc. anticipatebalance the natural environment, incoming generations etc. who may be at once or indirectly affected by the operation of the enterprise.These stakeholders are closely related to the development of the enterprise, they share the operation bump of the enterprise, some remuneration a advert for the operation of the enterprise, some supervise and coerce the enterprise, and the finiss of the enterprise mustiness(prenominal) take their stakes into rumination and accept their constraints. In this horse sense an enterprise is the institutional arrangement of intelligence activity and management professionalization investment, the development of an enterprise relies on the quality of responses to the requirements of each stakeholder instead of only shareholders.This corporate management idea explains the corporate mental process appraisal and t he ticker of management, which lies foundation for the later theory of performance appraisal Year 2012 c) Stakeholder Theory and CSR CSR The issuance of Stakeholder Theory in the Study of The are many common proves amid CSR and stakeholder theory as both are concerned about the relatioship between the enterprises and their shareholders and the enterprises and individuals and cordial group apart from their stareholders however the two are different concerpts. What they study and headache are problems of different levels and categories.CSR considers the influence of enterprises on installliness from the perspective of the whole monastic order and care the relationship between enterprises and the society while stakeholder theory care more about the relationship between enterprises and stakeholders from the perspective of the enterprises. Ever since the establishment of CSR its supporters spread from miscellaneous institutions, scholars and quotidian people, which helps in th e development of CSR. However this theory encountered lots of problems in practice, and needs supercharge study and improvement.In the process of pursuit solution to these problems, we usually introduce stakeholder theory to help to resolve those problems. i. Modification of stockholder Primacy Theory by The biggest barrier to the performance of CSR is the Shareholder Primacy rule to some extent, Friedman et. holds that the only intention for the Stakeholder Theory A Case Study of reciprocal ohm Violation of Business Ethics in Argentine Based On Stakeholder Theory Economic cordial Quality Investors Social Welfare Suppliers good Customers Enterprises Moral Environment Resources EmployeesWorld Sustainable discipline Cultural Figure 2 1 hypothetic Model of CSR Source Freeman, R. E Strategic Management A Stakeholder Approach M. Boston, Pitman Press, 1984 2012 Global Journals Inc. (US) Global Journal of Management and Business Research Volume XII Issue XIII Version I existenc e of enterprises is to increase the pull in and shareholder benefits. Their three interrelated propositions are a. shareholders should reserve the right to control the enterprise b. managers are entrusted the province to singley serve the interest of shareholders c. he aspiration of enterprises is to maximize the wealthiness of shareholders while stakeholder theory holds that i, stakeholders who are affected by the enterprise have the right to participate enterprise decision-making ii, managers are entrusted with the responsibility to serve the interests of all stakeholders iii, the object of enterprises is to erect the interests of all stakeholder not just shareholders. Stakeholder theory holds that enterprises are rationalize unities consisted of many a stakeholders and the investment comes not just shareholders but also employees, suppliers and creditors of the enterprise.Shareholders stick out the corporal captial and differentwise stakeholders provide not only materi al peachy but also human capital which is equivalent to material capital in term of significance particularly in instantlys fellowship economy. And in some aspects the siginificance human capital exceeds the siginificance of material capital. Enterprises are not just now the aggregation of material capital any more but a gentle of institutional arrangement of goverance and management of professional investment and in essence they are the aggregations of various fathers.The risks of enterprises should not just be bore by shareholders ii. Indentification of Subjects for Shouldering Social regard from the various definitions of CSR, it is easy to conclude that the beneficaries of enterprises shouldering affable responsibilities are people of the society including investors, employees, clients, creditors and beneficiaries of environement and resources, accessible security and welfare etc. by shouldering corresponding social responsibilities and taking social benefits as targe t range, enterprises can maximize their contributions to the sustainable development.And the responsibilities they take are level-headed, economic, moral, ethnic aspects, however today there shut up lots of people stand against CSR. responsibility and Defining Responsibilities 77 Year 2012 and other stakeholders should also share the risks, as a result the owners of enterprisers should not be enwrapped to shareholders and all the stakeholders are the owners of enterprises. The rights of stakeholders are equal and independent, they jointly own the enterpises.While challenging the shareholder priamcy principle, stakeholder theory clears the way for the development of CSR theory in that CSR theory has long been retentivity that the only mission of enterprises to increase shareholder interests should be changed and thinks that enterprises should view problems from a high(prenominal) ground and consider their relations with all the stakehoders, the entire society and shoulder som e social responsibility. A Case Study of Siemens Violation of Business Ethics in Argentine Based On Stakeholder TheoryYear 2012 They start from the point where the subjects and contents of obligations of corporate social responsibility are unoutlined and think that enterprises should not shoulder social responsibilities. Some business and law scholars up to now think there is not subjects for corporate social responsibility in that there are no satisfactory answers for questions such as the whom should enterprises responsible for, whom can be the subjects that urges enterprises to shoulder responsibilities?To vaguely say that customers, ordinary people and the social communities these enterprises belong to is not enough because the groups can hardly be obligees to exist meanwhile they also hold that the content of social responsibilities is also vague. shortly the understanding of stakeholders generally entangle the first class stakeholders that affect the existence of enterprise s, and the unessential stakeholders who do not affect the existence of enterprises or are affected by the enterprises.Though the definition is extensive, it indentifies stakeholders as shown in the next basic framework investors, employees, customers, suppliers, creditors, mete out associations, local anaesthetic communities, political groups etc. Government Investors Creditors 78 Global Journal of Management and Business Research Volume XII Issue XIII Version I Suppliers Customers Enterprises Trade Associations Employees Communities Figure 2 2 Theoretical Model of Stakeholder Theory Source Freeman, R. E Strategic Management A Stakeholder Approach M.Boston, Pitman Press, 1984 Many foreign scholars poring over CSR and stakeholder theory holds that stakeholder theory can be introduced to the study of CSR, Carroll (1991) thinks that stakeholder theory should be applied to the study of CSR and it can be apply to identify the orientation of CSR, and by the recognition of each r elevant stakeholder group the range of CSR can be determine. Clarkson (1995) stakeholder theory can provide a theoretical framework, in which CSR can be identified as the relations between enterprises and stakeholders, for the study of CSR.Just as Evan and Freeman (1993) had it that though it cannot stand in CSR, stakeholder theory can be regarded as an important condition for the study of CSR and it can specify the subjects the enterprises should be responsible for. In this stage when the theoretical research of CSR unagitated needs to be carried that, we can sweep stakeholder theory to 2012 Global Journals Inc. (US) define the range of responsibilities enterprises should carry. This is both possible and necessary and enterprises can be responsible for each stakeholders in the framework of stakeholder theory. ii. Case Description Siemens AG is a German multinational conglomerate company headquartered in Munich, Germany. Siemens and its subsidiaries employ approximately 420,80 0 people across nearly 190 countries. It is the largest Europe-based electronics and electrical engine room company with activities in the fields of industry, nix and healthcare. It is organized into six main divisions Industry, Energy, Healthcare, righteousness Investments, Siemens IT Solutions and Services and Siemens pecuniary Services (SFS).A Case Study of Siemens Violation of Business Ethics in Argentine Based On Stakeholder Theory For organization, iv. Case Analysis Bribery has been defined as the offering, giving, receiving, or soliciting of something of value for the purpose of influencing the action of an prescribed in the dismiss of his or her public or legal duties. (Fritzsche, 1998). The bribe is the gift bestowed to influence the recipients conduct and the outcomes of decisions wherein the nature and extent of the influence are not made public. The item of value may be direct payments of property or property.It may also be in the form of a kickback aft(prenom inal) a deal has been completed. It may be any funds, good, right in action, property, preferment, privilege, emolument, object of value, advantage, or merely a annunciate or undertaking to induce or influence the action, vote, or influence of a person in an official or public capacity. Based on Freemans stakeholder theory, the first step in the analysis of this case is to identify the a) Stakeholders of Siemens Firstly, the transplant would reduce freedom of excerption by altering the conditions under which a decision is made.Its appeal of excess gains for some government officials would lure them to select the less attractive alternative which provides less join satisfaction. By doing so, it adversely would split the officials decision and corruptd fair contestation among the industry. If the De La Rua administrations discredit that the cost of each electronic ID report by Siemens was twice what the government estimated is true, then the government has to pay the determ ine for the secluded payment with more governmental expenditure, which school principals to a greater loss of capital of the government.Secondly, it would prostitute the authority, prestige and force of laws and regulations. The transplant circumvented the legal system and obtained immoral interest, which is a contempt against laws and is detrimental to the implementation of laws. Thirdly, it would dampens attempts by governments to improve the overall wealth of the nation, pick at the image of government and governing party, and further lose peoples trust. 2012 Global Journals Inc. (US) Global Journal of Management and Business Research Volume XII Issue XIII Version I On Dec. 3, 2011, The Securities and Exchange Commission charged 7 former Siemens executives with violating the Foreign bribe Practices Act (FCPA) for their involvement in the companys decade-long bribery scheme in Argentina to celebrate a $1 billion government contract to produce national individualism c ards for Argentine citizens. According to the SECs thrill filed in U. S. District Court in Manhattan, the scheme lasted from approximately 1996 to early 2007. Initially, in the 1990s, Menem government planned to implement all national electronic ID cards, known as Documentos Nacionales de Identidad (DNI) for every Argentine citizen.In order to obtain the contract which is total of 1. 26 billion U. S. dollars, Siemens bribed Argentine government officials with 70 million U. S. dollars by dint of mediator. Menem government at long last signed the contract with Siemens in 1998. But a change in Argentine political administrations foiled the contract after the next President Fernando De La Rua came into office, some officials questioned the contract on the ground that the cost of each electronic ID inform by siemens was twice what the government estimated. Therefore, the government announced the suspension and cancellation of the contract.In a political change and economic crisis, D uhalde succeeded De La Rua as the president. During his term of office, Simens was told by the intermediary that a 27 million U. S. dollars bribery could resurrect the contract. In order to revive the contract, Siemens paid additional bribes in a failed effort to Kirchner government until 2004. When the company later instituted an arbitration feat to recover its costs and expected lettuce from the canceled contract, Siemens paid additional bribes to capture evidence that the contract originally had been obtained through corruption. elevant stakeholders and determine the positive and negative impacts on the stakeholders. The stakeholders affected by Siemens bribery in this case include Simens stockholders Siemens employees Siemens supplier Local fellowship the Argentine government Argentine community Simens competitor Siemens competitors employees and stockholders. For Siemens stockholders, the contract with the Argentine government would increase profit and gain market share for them. horizontal though bribery was needed to win the contract, the profit yielded in the contract can not only cover the bribery but also trigger more.For Siemens employees, the profit yielded from the contract would also benefit themselves a lot. It is likely that their pay got increase, premium and allowance met a growth, working environment had much improvement etc. For Siemens suppliers, the growth of Siemens means the growth of themselves as long as they are in a cooperative business relationship. The increase of Siemens business would lead to more orders to Siemens and more profit for them. For the local community, the contract would bring come down effect it would create more jobs for local people.The local community would benefit from the employment of its citizens which would bring money into the community and provide additional tax revenues. The prosper of Simens business can also cast a positive influence to relative industries. b) impress on stakeholders 79 Year 20 12 A Case Study of Siemens Violation of Business Ethics in Argentine Based On Stakeholder Theory For Argentine community, 80 Global Journal of Management and Business Research Volume XII Issue XIII Version I From the perspective of whole economy system and environment, it would ?. inder fair and just emulation and disrupt the order of the whole economic system. quite of gain market share with quality, businesses would turn to shortcuts like relationship with government officials ?. final result in allocating more resources to a less desirable alternative. The failure of the allocation system would lead to stagnation of technology, service and the whole industry structure. ?. Increase the cost of transaction, and do prostitute to publics interest. The higher cost would result in higer prices or even monopoly. From the whole society, it would ?. Cast damage to social redit and rot the social conduct. On one hand, the prevalence of bribery destroys the vulgar trust and equity of b usinesses on the other hand, businesses with good compliance to laws are moderate and discouraged. ?. Violate code of ethics. ?. Breed more and more relative crimes. Bribery is of all time accompanied with business mystic theft, prank and evasion of taxes. For Argentine people, the greater disbursement on the ID project would result in more outflow of taxpayers money from their bulge in that the misconduct and wrongdoings of officials would be shared by all the community.The bribery would molest taxpayers as well as undermine public support for governments. For Siemens competitors, Siemens bribery would deprive them of fair competition in this project, and further distort trade The loss of the competitors is invisible, though, but solid. For Siemens stockholders, employees and local community, the loss of the contract would provide trim down profits for the stockholders, fewer jobs for the employees and less money in the competitors local community.Taking the interest of all stakeholders into account, Siemens violated business ethics skilfully, even though it brought some illegal benefits to its own stockholders. V. different actions of organization. The 4 stages are honourable awareness, honourable occasion out, estimable action, and honorable leadership. i. honorable awareness Ethic cognizance is the foundation of an ethical climate. Through ethical awareness, employees learn how to identify problems and how to resolve them. In this stage, code of conduct must be established to support ethic awareness.Formal relation that defines how the organization expects and requires employees to resolve ethical questions must be delivered. A code of conduct typically addresses issues pertaining to preferred style of dress, avoiding illegal drugs, following instructions of superiors, being original and prompt, guarding confidentiality, not accepting personal gifts from stakeholders as a result of company role, avoiding racial or sexual discrimination, avoiding conflict of interest. ii. ethical reasoning Since codes of conduct cannot detail a solution for every ethical situation, so corporations provide training in ethical reasoning. Courses in Ethical Reasoning teach employees to reason in a principled way about moral and political beliefs and practices, and to delve and assess claims for themselves about ethical issues. Students examine the competing conceptions and theories of ethical concepts such as the good life, obligation, rights, justice, and liberty with a focus on developing the ability to assess and numerate the reasons for and against adopting them to address concrete ethical dilemmas.Employees in these courses may encounter a value system very different from their own that calls attention to their own ethical assumptions. iii. Ethical action Ethical action involves fortune employees recognize and reason through ethical problems and turning them into ethical actions. It takes preparing, assessing, deciding, impleme nting, and reflecting. Whenever employees encounter ethical dilemmas or problems, Siemens should help them out by applying their code of conduct to practice identifying the issues, assessing them, deciding solutions, implementing solutions and reflecting them.The current Siemens bribery shit is good example for its employees to look backward and retrospect the ethical problems concerning bribery, and advertises them to probe into the hidden reasons and seek more proper solutions. iv. Ethical leadership In this stage, executives must point ethical behavior in their actions. leadership are first and foremost members of their organizations and stakeholder groups. Since they hold most of the senior positions and are decision birthrs, their values, vision and ethical standard case great impact on subordinates and thus impact the whole organization. To shape Year 2012 Suggestion organizational ethicalSiemens bribery indignation is by no means the first violation of business ethics . Back to 2008, its decades-long bribery scheme with 1. 3 billion U. S. dollars surprise the world. Subsequently, it was accused of posting business secret of competitors. Its continuous scandal is an indication that Siemens fails to form an ethical corporate purification and ethical environment. To fixate a change of the current scandal and prevent any further ones, shaping organizational ethical environment should be Siemens top priority. Shaping organizational ethical environment goes through four stages, each of which demands 2012 Global Journals Inc. (US) ) Internally shaping environment A Case Study of Siemens Violation of Business Ethics in Argentine Based On Stakeholder Theory ethical conduct in an organization, leaders behavior, actions are needed to demonstrate their support and determination. In Siemens bribery scandal, most of the wrong behaviors were conducted by senior executives, which attribute the customary news of its violation of business ethics. Thus, in Si emens, to shape ethical conduct and maintain ethical culture, leaders must first own their ethical criteria and behave ethically accordingly. Apart from the internal improvement, external supervising is also in need.The external superintendence involves first and foremost the initiatives aiming to combat bribery. These initiatives include Foreign Corrupt Practices Acts The OECD Anti-Bribery crowd The UN Convention against Corruption (UNCAC) Transparency International To counter bribery, wider cooperation must be conducted between countries and these conventions and organizations. downstairs the globally accepted guidance and principles, Signatories countries must adopt national legislation to fight against bribery. Government should take regular refresh of business and officials compliance to these laws by establishing stricter supervising system.Secondly, external supervision involves power of media. Media is the oral power of reining any unethical behavior. Thus, media should pay more close attention on business ethical issues, track and make more exposure of unethical firms, and encourage those ethical ones. Thirdly, the whole society should also participate in this campaign. When the whole society establish a common principle of zero tolerance to bribery, and monitor it ceaselessly, businesses dare not commit bribery because of their consideration of corporate image.The more and more serious social attitude towards bribery would make businesses think twice before they leap. VI. References References Referencias 1. Carroll, Buchholtz (2002). Business& Society Ethics and Stakeholder Management. Mason. Thomson Learning. 2. Freeman. R. E (1984). Strategic Management A Stakeholder Theory. Boston, MA Pitman. 3. Freeman. R. E (1991). Business Ethics The State of The Art. Oxford Oxford University Press. 4. Fritzsche. D. J (1998). Business Ethics A Global and managerial Perspective. New York McGrawHill. 5. Li, Y.H (2011). China Coporate Citizenship AntiC orruption and Anti- Bribery Research Report. The Coporate Social Responsibility. 6(1), pp. 42-51. 6. Mitchell. C (2009). Internatinal Business Ethics. Petaluma World Trade Press. 7. Mitchell. C (2000). Internatinal Business Cultures. Petaluma World Trade Press. 8. Weiss. J. W (2003). Business Ethics A Stakeholder and Issues Management Approach. Beijng China Renmin University Press. Conclusion This paper conducts a case study of Siemens violation of business ethics by employing Freemans stakeholder theory.Based on Freemans theory, stakeholders of a firm should not only include its stockholders, instead, it covers a wide range from its internal employees to external suppliers, government, society, and even competitors. In the case of Simens bribery scandal in Argentina, the present author outlines its stakeholders and conducts a detailed analysis of the impact of Simens bribery on each stakeholder. The conclusion follows the analysis is that Siemens seriously violated business ethics by terribly detrimenting the interest of its stakeholders. 2012 Global Journals Inc. (US)Global Journal of Management and Business Research Volume XII Issue XIII Version I Year 2012 b) Externally strengthening supervision The analysis of Siemens unethical bribery scandal also triggers the authors further discussion about an international issue bribery Bribery, as one of the notorious business ethical problems, has surfaced as important issues in an increasingly interdependent world economy. No longer seen purely as a morality play, the accepted world view of corruption and bribery today is that they hinder competition, distort trade and harm consumers and taxpayers as well as undermine public support for governments.Therefore, to fight against bribery, suggested solutions are also provided. On one hand, internal ethical environment shaping is of pressing need Simens should immediately follow the four stages of the structure of ethical environment from ethical awareness to ethical leadership to improve its current ethical predicament. on the other hand, external supervision and cooperation from international and 81 national community to media is also in demand. Although business ethics is in an unquestionable fact as old as business, however, it didnt got enough attention until 1970s.As the ethical problems keep surfacing and disrupting the business order, business ethics, as an academic discipline as well as a business practice, is on its way of gaining momentum. To probe into it and make this oxymoron a better guide of business code of conduct, more and more efforts are still in much need. 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