Siemens 2011 Annual Report Download - page 134

6 A. To our shareholders 23 B. Corporate Governance
25 B. Corporate Governance report
31 B. Corporate Governance statement pursuant to
Section a of the German Commercial Code
(HGB) (part of the combined management’s
discussion and analysis)
33 B. Compliance report
36 B. Compensation report
(part of Notes to
Consolidated Financial Statements)

As shown on the previous page, the Siemens Compliance
System is organized into three pillars: Prevent, Detect and
Respond. The central element is the full responsibility of all
Siemens managers for compliance. In addition to specifying
a role-model function for senior management, the system
goes further: all our managers must exemplify compliance
and ensure that business decisions and actions in their areas
of responsibility are always in complete accordance with the
relevant legal requirements and our own values and guidelines.
The new Advice and Support element relates to the compli-
ance organization’s role and function of helping all Siemens
business units implement compliance, thus contributing to
our long-term business success. This element encompasses
tools such as the “Ask us” help desk, which answers employ-
ees’ compliance-related questions. However, it is primarily in-
tended to foster close, confidential cooperation between the
Compliance Officer and Siemens units.
Finally, we’ve included collective action – cooperation on the
part of companies and other organizations in the battle
against corruption – in our Compliance System. We want to
make it clear that compliance at Siemens goes beyond inter-
nal measures and processes and our relationships with busi-
ness partners and suppliers. Together with other external
stakeholders, we’ve been promoting ethical business practic-
es and fighting corruption in all our markets for several years.
Detailed information on the Siemens Compliance System is
available on our website at www.siemens.com/compliance
For further information on collective action, please go to
www.siemens.com/collective-action
B..2 Clear standards
for internal investigations
As part of our Compliance System, we’ve created a special in-
vestigative process and provided the necessary resources for
looking into possible compliance violations. Reports of possi-
ble misconduct submitted to us via secure reporting channels
– for example, the “Tell us” help desk and the ombudsman –
or by investigating authorities are examined under the cen-
tralized authority and responsibility of the Chief Counsel Com-
pliance. These investigations are led by the Compliance Inves-
tigations Department or the Internal Audit Department, with
legal support provided by lawyers from the Compliance Legal
Department. The investigation process proceeds on the as-
sumption of innocence and is conducted in accordance with
the codetermination rights of the Works Council and data pro-
tection regulations.
During fiscal , we also issued guidelines – applicable to all
Siemens units – prohibiting, among other things, investiga-
tions “at any cost” and stipulating clear rules to ensure the fair
and respectful treatment of employees in connection with in-
vestigations.
We respond to compliance violations with clear consequenc-
es, employing all sanctions allowed under labor law to punish
compliance violations internally. Further information, includ-
ing figures relating to disciplinary measures, is available in
the combined management’s discussion and analysis C...
Compliance on pages 73 - 75.
B.. Collective action at work
Going it alone can have only a limited impact in the fight
against corruption. If substantial progress is to be made, all
market participants – or at least as many as possible – and
other stakeholders must act in concert. That’s why we’ve
joined forces with other organizations to combat corruption
through collective action.
Expert analyses and assessments suggest that intermediaries
who act on behalf of companies, such as agents, pose one of
the greatest corruption risks. In response to these findings,
legislatures and enforcement agencies are tightening the re-
quirements they place on companies. As a result, companies
must review their anti-corruption processes and, in particular,
exercise greater transparency in dealing with business part-
ners. In concrete terms, this means they must find effective,
efficient solutions for implementing these requirements, and
they must enforce adherence to them.
In July 2008, we developed guidelines and a strict monitoring
process for dealing with all our business partners. In accor-
dance with this process, a standardized risk analysis and due
diligence process must be conducted before concluding or
renewing contracts with business partners. For this purpose,
we’ve developed a web-based tool that is used throughout
Siemens. Both our due diligence process and this tool are