Siemens 2011 Annual Report Download - page 135

51 C. Combined management’s discussion and analysis 273 E. Additional information 153 D. Consolidated Financial Statements
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generally considered international benchmarks. Due to its
scalability and user-friendliness, the system has attracted
widespread recognition and is now available for use by other
companies on a license-fee basis.
B.. The Siemens Integrity Initiative
On July 2, 2009, the World Bank Group announced a compre-
hensive settlement with Siemens. As part of the settlement,
we agreed to cooperate in changing industry practices, clean
up procurement practices and engage in collective action
with the World Bank Group in order to fight fraud and corrup-
tion. Under the agreement, we provided US$100 million for
the Siemens Integrity Initiative. The initiative supports orga-
nizations and projects that promote ethical markets and fair
competition by combating fraud and corruption through col-
lective action and through training and continuing education
measures. We’ll dispense funds in several – probably three –
selection rounds extending over 15 years.
The first funding round began on December 9, 2009, Interna-
tional Anti-Corruption Day. About 300 organizations and proj-
ects from 66 countries submitted applications involving col-
lective action projects and education and training projects.
We invited a selection of applicants to present full project pro-
posals, including details of concrete activities, budgets and
schedules. Following careful evaluation of these proposals,
we selected 31 projects and concluded funding agreements
with the associated “integrity partners” during fiscal 2011. In-
depth descriptions of all projects funded, including the
amount of funding awarded, and detailed information on the
selection criteria as well as reports on the current status of
the initiative are available on our website at
www.siemens.com/integrity-initiative
B.. Focus topics for the
ongoing de velopment of the
Siemens Compliance System
Our Compliance System will always be a work in progress. In
what is ultimately a comprehensive, long-term management
process, we’re ceaselessly honing the system, identifying and
seizing opportunities to implement improvements and re-
spond to the continually changing requirements of our busi-
nesses worldwide. Compliance will remain an ongoing, criti-
cal responsibility at Siemens.
At the beginning of fiscal 2011, our compliance management
team – working within the framework of our One Siemens
strategic target system – defined four medium-term priorities
for the continuing development of our anti-corruption and
anti-trust activities, and implemented or launched various re-
lated projects (see C... Compliance on pages 73 - 75). One
central element spanning all our compliance priorities will be
management responsibility – at the middle management lev-
el, in particular. This responsibility will be further intensified
by measures such as communications and training activities.
As described above, compliance at Siemens means much
more than uncovering past misconduct and establishing pro-
cesses to prevent such behavior in the future. Compliance
means acting in accordance with clear principles of integrity.
And this understanding of compliance has become an inte-
gral part of our corporate culture.