Siemens 2010 Annual Report Download - page 96

6 To our shareholders 21 Corporate Governance
23 Corporate Governance report
29 Corporate Governance statement pursuant to §a
of the German commercial code (HGB) (part of the
“Combined management’s discussion and analysis”)
30 Compliance report
34 Compensation report (part of Notes to
Consolidated Financial Statements)
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Compliance describes the way we do business, the way we
make decisions and the way we act in order to uphold integrity
throughout our Company. Combating corruption in all its
forms is a central aspect of our understanding of integrity.
Adherence to the law and internal Company regulations is the
foundation of all our business activities.
Ever since our Company was founded, our pioneering accom-
plishments have made a major contribution to technological
progress. The centerpiece of our Company vision, this pioneer-
ing spirit is closely linked to our commitment to innovation –
the development of new and better technologies that are suc-
cessful on the market and set new standards of excellence.
That’s why “innovative” is one of our three Company values.
The reliance on innovation and the willingness to compete on
the basis of innovative strengths are undermined by efforts to
influence business partners through unethical practices and
corruption. Corruption destroys the integrity of companies and
seriously weakens their competitiveness. By taking rigorous
action to combat corruption within our Company, we’re sharp-
ening our focus on our core competencies, enhancing our
competitiveness and concentrating on what has made us suc-
cessful for more than 160 years: innovative products and solu-
tions that provide answers to the toughest questions of our
time.
Viewed in this light, compliance is both a fundamental com-
mitment to ethical behavior and the basis for business success.
Our comprehensive Compliance Program is playing a pivotal
role in preventing corruption at Siemens.
COMBATING CORRUPTION AND PROMOTING
SUSTAINABLE DEVELOPMENT
We generate value for our Company and our stakeholders
through our business activities. At the same time, we make an
important contribution to sustainable development in the
countries where we’re key economic players. This means that
we strengthen our markets and benefit not only directly from
the profits generated by our business activities but also from
the social value we create.
Business success through pioneering accomplishments pre-
supposes markets that function properly and societies that are
on course for prosperous development. Corruption is a major
obstacle to both. It’s now clear that combating corrupt busi-
ness practices is also a major challenge for international devel-
opment partnerships.
It’s the poorest people who pay the highest price: corruption
destroys their opportunities and, in some cases, their lives. It
also undermines the effective operation of governments, pub-
lic administration and the rule of law. As a result, people and
companies lose confidence in the institutions that provide the
framework for economic prosperity. Left unchecked, this dis-
trust can lead to the breakdown of markets and the collapse of
national governments. But even when the consequences are
less extreme, corruption can prevent countries from realizing
the full potential of their markets.
Going it alone has only a limited effect. To make significant
progress in the fight against corruption, all market participants
and stakeholders – or at least as many as possible – must act
in concert. That’s why Siemens has joined forces with other
organizations to combat corruption through collective action.
Compliance report