Siemens 2008 Annual Report Download - page 124

28 Corporate Governance Report: Compliance Report
A good corporate reputation is a company’s most valuable and competitive asset.
It is directly linked to uncompromising compliance with applicable laws, regula-
tions and internal guidelines. Compliance is thus a central pillar of our manage-
ment and corporate culture and, at the same time, an integral part of all business
processes. Achieving outstanding performance and maintaining the highest level
of ethical integrity is certainly not a contradiction. On the contrary: this mindset
and approach have made Siemens strong. Our message is clear and straightfor-
ward: Only clean business is Siemens business.
We are convinced that corruption and other wrongdoing are not only a violation of law and ethics, but that
adhering to compliance guidelines also pays off economically. Compliance fosters fair competition and is there-
fore not only mandatory, but a key prerequisite for sustainable corporate governance. In other words, compli-
ance is not an end in itself, but rather an integral part of our corporate culture. It is based on the enduring Com-
pany values that govern and guide our activities.
Strategic objectives for the future
Following the rst important compliance measures implemented in scal 2007, we focused last year on ensur-
ing the long-term effectiveness of our entire compliance program. To this end, we outlined the following strate-
gic objectives:
 to build a compliance organization that is commensurate with the Company’s size, role and special situation
 to establish a compliance control system designed to detect and remedy weaknesses
 to create an awareness for the dangers of corruption and provide managers and the so-called sensitive
functions worldwide with a working knowledge of international laws and regulations as well as internal
guidelines
 to restore our credibility and reputation with our stakeholders.
Clearly defined responsibilities
In 2007, the Company-wide compliance organization had an average of 170 employees. The number has since
increased to over 600 employees throughout the world who deal with the various aspects of compliance. Com-
pliance has become a full-time function that takes absolute priority.
The most important feature of the organization is its clear structure of responsibilities. Today, the Company’s
compliance ofcers report in a direct line through the Sector compliance heads and Regional coordinators to
the Chief Compliance Ofcer. Moreover, the Chief Compliance Ofcer is responsible for the appointment, target
agreements and supervision of the compliance ofcers. The corporate compliance team consists of approxi-
mately 70 members working in various departments.
Compliance Report