Competitors: Fighting Corruption in the Marketplace

Abstract

What do offshore bank accounts, money smuggling, and shell companies have in common? They were all part of two decades of rampant bribery initiated by the German company, Siemens AG. Siemens, a multinational electronics company known for innovation and quality, admitted to bribing governments for contracts. Siemens faced accusations of bribery and other corporate corruption in 20 countries, including Argentina, Bangladesh, Greece, and Nigeria, making the Siemens case the largest bribery scandal in modern corporate history. China Mobile executive Shi Wanzhong received bribes totaling US $5.1 million in exchange for equipment contracts with Siemens. After the scandal was revealed, Shi was tried for economic crimes and given the death penalty, while the middleman who facilitated the bribes was given a 15-year prison sentence. The Siemens case forces us to address the issues of bribery, corruption, and unfair competition, as well as certain philosophical questions about moral relativism and universal moral values in the context of a globalizing economy.