Siemens 2007 Annual Report Download - page 166

166 Management’s discussion and analysis
¢ The Managing Board has engaged an external attorney to act as an independent
“ombudsman” and to provide a protected communication channel for Siemens
employees and third parties. The Company has also developed a Compliance
Helpdesk with distinct features designed to receive compliance-related com-
plaints (“Tell us”) and to answer compliance-related questions from employees
(“Ask us”).
¢ The Company has established a Corporate Disciplinary Committee to consider
and impose appropriate disciplinary measures in cases where suspicions of vio-
lations of law or Company policies or other misconduct have been substantiated.
¢ The Company’s audit and compliance departments and an internal task force are
continuing their internal analysis and review of the Company’s compliance and
internal control system for defi ciencies and any possibilities of circumvention,
including by conducting internal control remediation visits in selected regions
and Groups.
¢ The Company is in the process of enhancing internal controls through central-
ization of its bank accounts and cash payment systems.
¢ The Company has implemented a moratorium on entering into new BCAs as well
as making new payments under existing BCAs. Any exceptions require the prior
written consent of relevant senior management as well as the written consent of
the Company’s chief compliance offi cer based on a review of the agreements in
question. As part of this policy, the Company is in an ongoing process of review-
ing existing BCAs for purposes of compliance risk in connection with their con-
tinued performance. The Company has discontinued payment under a number
of BCAs and, in certain cases, has terminated BCAs.
¢ The Company is in the process of enhancing its anti-corruption policies. The
Company has adopted, and is in the process of implementing, new policies
regarding anti-public-corruption compliance, retention of intermediaries who
interact with government authorities on Siemens’ behalf, compliance in M&A
transactions, joint ventures and minority investments, and gifts and hospitality.
¢ The Company is continuing the roll-out of a formal program of anti-corruption
and other legal compliance training for management, group and regional com-
pliance offi cers and other employees.
¢ The Company established a new Managing Board position for legal and compli-
ance matters, effective October 1, 2007. Peter Y. Solmssen was appointed a mem-
ber of Siemens’ Managing Board as well as the Company’s General Counsel, with
overall responsibility for legal and compliance issues.
¢ Effective September 19, 2007, the Managing Board appointed Andreas Pohlmann
as Chief Compliance Offi cer.
¢ Effective October 1, 2007, all company audit functions were merged into the unit
Corporate Finance Audit, which was assigned to the Corporate Finance Depart-
ment. Corporate Finance Audit is headed by Hans Winters, who was appointed
Chief Audit Offi cer with an independent reporting line to the Audit Committee
and its Chairman.