Transcript Document
Confidential
Corruption and its Prevention - Shared Responsibility The Compliance Program of Siemens and affiliated Companies in Czech Republic Jürgen Schmidt
Regional Compliance Officer
Prague, November 12th, 2008
© Siemens AG 2007. All rights reserved For internal use only / Copyright © Siemens AG 2007. All rights reserved.
Compliance is an important component of our company culture and our values!
© Siemens AG 2007. All rights reserved
Our values Responsible Our Values – for a global business
Committed to ethical and responsible actions
Excellent
Achieving high performance and excellent results
Innovative
Being innovative to create sustainable value
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Highest performance meets highest ethical standards © Siemens AG 2007. All rights reserved
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Responsible Our principles for being responsible We conduct business in a truthful and transparent manner We foster health and safety We respect the dignity of all people We obey the law We are fair in our relationships with competitors and stakeholders We honor commitments We respect property
Responsible
We are fully engaged and empowered to achieve the best results We strive for the protection of the environment We are committed to good corporate citizenship © Siemens AG 2007. All rights reserved
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Compliance at Siemens
Compliance at Siemens means that business activities are based on observation of the laws and relevant internal regulations. Siemens expects all management and employees to obey the law and will not tolerate any violations.
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Current Situation
Public prosecutors and other government authorities in jurisdictions around the world are conducting investigations of Siemens AG and its consolidated subsidiaries and certain of its current and former employees regarding allegations of public corruption, including criminal breaches of fiduciary duty including embezzlement, as well as bribery, money laundering and tax evasion, among others.
Siemens has mandated Debevoise & Plimpton LLP, an external law firm, to conduct an independent and comprehensive investigation to determine whether anti-corruption regulations have been violated and to conduct an independent and comprehensive assessment of the compliance and control systems of Siemens. Debevoise is informing SEC and DOJ on a regular basis throughout the investigation.
Strengthening of Siemens Compliance Program © Siemens AG 2007. All rights reserved
Compliance is the top priority Prevent…
… through clear rules, training programs, communication and clear responsibilities monitoring
Detect…
… compliance violations through audits, reviews and
Act…
… with rigorous and appropriate measures in cases of compliance violations Uniform, seamless and mutually complementary legal, compliance and audit processes worldwide Compliance must be part of our company culture and firmly anchored in all business processes Unlimited commitment to integrity and responsible action Page 7
A business based on the highest ethical principles – at all times and everywhere in the world © Siemens AG 2007. All rights reserved
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Compliance – Progress Report (Q3 FY 2008) Prevent Training Participation web-based training 1) Target: ~120.000
~18,000 ~31,000 ~81,000 ~87,000 ~108,000 Q3 FY 07 Q4 FY07 Q1 FY08 Q2 FY08 Q3 FY08
Participation in-person training 1) Target: ~50.000
~980 ~1,200 Q3 FY07 Q4 FY07 ~1,400 ~14,800
~ 30,000
Q1 FY08 Q2 FY08 Q3 FY08
Helpdesk "Ask us" 3,077 questions (cumulative, status 07-09-08) 746 841 1,142 "Tell us" & Ombudsman
Not substantiated Substantiated
168 198 2) 61
37 24
114
41 73 52 116 Q4 Q1 Q2 Q3 FY07 FY08 FY08 FY08 Q1 FY08 Q2 FY08 Q3 FY08
Detect New internal compliance investigation 62 52 28
Q1 FY 08 Q2 FY 08 Q3 FY 08
123 Amnesty program 34 10 9
3)
3 67
Amnesty requests In progress Not necessary Others Amnesty rejected Amnesty granted
Implementation of anti corruption compliance program 18% 28% 54%
Implemented (incl. 160 high-risk/ most important entities) Implementation ongoing Implementation set up
Compliance Personal weltweit Compliance staff worldwide 86
FY 2006
310
Feb 08
~490
Oct 08
Collective action against corruption
June 2008: To help companies fight back against the insidious impact of corruption, a practical guide and a comprehensive web portal were launched. The portal outlines proven methods of fighting marketplace corruption through the collective action of businesses and other stakeholders. The initiative comprises NGOs and MNCs incl. UN Global Compact, Transparency International, Global Advice Network, CIPE, Grant Thornton and Siemens.
1) Cumulative 2) “Ask us” started Sept. 07 3) Individuals who haven’t replied despite multiple inquiries Source: Compliance Organization, CC CC
© Siemens AG 2007. All rights reserved
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A comprehensive Compliance Program: Examples of important measures PREVENT DETECT RESPOND Tone from the top
Top priority with clear lines of responsibility. Compliance is part of the leadership and corporate culture
Independent investigation
By Debevoise & Plimpton LLP as well as an assessment of the company’s compliance and control systems
Helpdesk
Outlet for the reporting of unlawful activities and violations of the Siemens Business Conduct Guidelines or other relevant policies (=
Tell Us
). Also includes a function for the answering of compliance questions (=
Ask Us
)
Ombudsman
Neutral individual as a communication channel for the reporting or discussion of compliance issues on a confidential and anonymous basis
No tolerance
Consequences arising from misconduct
Continuous improve ment
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A comprehensive Compliance Program: Examples of important measures PREVENT Business Conduct Guidelines
Corporate code of conduct and core of the Compliance Program
Training
Formal program of anti-corruption and other legal compliance training
Centralization of the Payment System
Siemens is in the process of strengthening internal controls through centralization of its bank accounts and cash payment systems.
Business Consulting Agreements
Prior written consent of two Group Executive Management members and the relevant Corporate Compliance Officer of Siemens AG.
Continuous improve ment
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Our Goal: Benchmark for Compliance and 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
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Restore trust
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"I have made the topic of compliance one of my top priorities.
There will be no compromises here: Illegal and improper behavior will not be tolerated under any circumstances."
(Peter Löscher, President and CEO of Siemens AG) Munich, July 2007
© Siemens AG 2007. All rights reserved
Munich, July 2007
© Siemens AG 2007. All rights reserved
Munich, July 2007
© Siemens AG 2007. All rights reserved
Munich, July 2007
© Siemens AG 2007. All rights reserved
Munich, July 2007
© Siemens AG 2007. All rights reserved
Munich, July 2007
© Siemens AG 2007. All rights reserved
Munich, July 2007
© Siemens AG 2007. All rights reserved