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Ethical Problem: Siemens Building Technologies

CASE STUDY 1:

The business background

In the construction industry, Siemens Building Technology works primarily as a subcontractor doing building automation designs where we bid on agreements for specific parts of an overall task.

In the building business, the marketplace consists of many multi-million dollar projects which can be essentially a product on the wide open market. When Company X chooses to create a new hospital, after that it sells the primary contract to an over-all Company (GC) who in transforms sells individual subcontracts to subcontractors (SCs), like Siemens, that specialize in specific areas: electrical power, domestic plumbing, and automation manages to name a few. These SCs subsequently sell further contracts for the materials, and labor had a need to do the job. With ethical bidding, sellers seek out the best deals available from buyers by any legal means at their disposal. Such as, asking subcontractors for prices, negotiating subcontractor's price or opponents' prices.

The Ethical Dilemma

Siemens has routinely honored subcontracts to JDS Electrical for jobs all over the talk about of Colorado as well Wyoming. During one particular contract negotiation, Siemens was placed into an ethical problem by an associate of JDS Electricals' sales team. During phone appointment, the salesman talked about that JDS didn't have manpower to bet on this contract, but were pleased for the offer. However, through the dialogue he specifically asked if we desired the price list of other contractors which may have been used in previous contract specs. Which essentially means would you like to see how many other companies have bet for similar jobs. Insurance agencies that information Siemens may potentially "bid cut" those companies to make more earnings which is illegitimate. By being offered information like this it put our sales manager in an moral dilemma.

Available Options

Acting on the manager's role responsibility and power he has been given, the manager acquired multiple options.

  1. He could refuse the offer and just hauling on with business as regular. Siemens has done business with JDS for nearly 20 years plus they have a fantastic business record.
  2. He could Advise the JDS salesman that is not how he does indeed business nor does indeed Siemens.
  3. He could inform upper management and the legal office.
  4. He could recuse himself out of this project contract discussions.

Solution and Results

As due to the ethical issue, the sales manager did three of the four options: First, he informed them no and hung up. In so doing, the manager didn't allow his personal ideals to be corrupted. Actually, it was his moral persona that allowed him to find their way the ethical problem. Second, once he got off the telephone, he immediately called the general manager and wanted a meeting at the earliest opportunity. By the very next day, he adopted his role responsibility to the letter and reported the unethical offer and a potential bribe. Third, he asked to be taken off this job considering what he was offered. After talking about it with the general administrator, they both felt that was the proper action, and was in keeping with the organizational beliefs, especially after talking to the legal team. Matching to legal, the offer violates Colorado Felony Code: 18-8-307. Crime of Designation of company prohibited. "Any open public servant who requires or directs a bidder or service provider to cope with a particular person in procuring goods or services required in submitting a bid to or fulfilling a agreement with any administration commits a school 6 felony. " (Colorado Lawbreaker Code) Relating to Siemens, the sales administrator acted exactly like thy hoped he would act. Siemens believes in its ownership culture where every worker calls for personal responsibility for the business's success. "Always act as if it were your own Company" - this maxim applies to everyone at Siemens, from Handling Mother board member to trainee. " (Siemens 2017) By taking this approach with every home based business Siemens ensures the staff role responsibility always gets the company's best interest in mind as well as our customers. In so doing, it creates Siemens a socially liable company.

Final thoughts

With the moral problem that the sales administrator faced, I did so see possible anxiety between prices or responsibilities. For instance, when people are confronted with an unethical dilemma, most people do not respond ethically even though they think they would, for this reason the sales supervisor didn't allow his "want do it yourself" to override his "should self" and acted ethically and in kept to his role responsibility. On top of that, I also saw unity between different responsibilities as well. The reason for this is Siemens strong commitment to stakeholders. Siemens ensures their primary values were created around their people and community. "[Siemens] will tools all our actions to certain requirements of our own customers, our owners and our employees as well regarding the values of culture. " (Siemens 2017) Thus ensuring accountability and corporate and business public responsibility.

Work Cited

Siemens Strategy. (2017)

http://www. siemens. com/about/en/strategic-overview. htm

COLORADO Lawbreaker CODE - GOVERNMENTAL Businesses. . . (n. d. ). Retrieved from https://www. criminal-lawyer-colorado. com/colorado-criminal-law-code-of-offenses

CASE Review 2:

The business background

As something engineer for a significant building automation company, once a task has been verified that we received the bid, there is a process that occurs before the anatomist design begins. One of the most critical stages is the sales to operations turnover. In this phase, the task manager and engineer review the scope of work for the design. Out of this, questions arise based on the actual intent of what the client is looking for and how correct the sales estimate is compared to the real design process. More importantly, if we are using third party material, it's the responsibility of the sales team to acquire that information. After the project director and engineer both feel safe with all the current information we allow the work and design period begins.

The Ethical Dilemma

During one project I was building, I was working with an experienced job manager who experienced just transferred to the region from Seattle ahead of his wife and family. As I worked through the info, I found out that the sales team did not correctly bid a little portion to the work. The info that I came across was charging the client $20, 000 for migrating data from an existing third party system and swapping it with a new automation computer system so that our network could control the associated equipment. However, to accomplish the intention of the work specification, this could be achieved without putting in a specified automation computer for the migration, in so doing saving the client $20, 000. Upon obtaining this fault, I visited see the project manager and enlightened him of the mistake for being well as my motive to continue to develop the job minus the migration and automation computer. He arranged that it did not need to be part of the design. Considering everything was good, I asked if he was going to inform the customer or would I add it to my records for the weekly project meeting with the customer. He responded with, "Absolutely not. " When I asked why "he said that would give us some extra room and cover any unexpected wear the task. "

Available Options

As a person with good moral identity and high ethical standards, I came across myself in an uncomfortable situation. Thankfully, I put multiple possibilities to me.

  1. I could try and handle the problem at my level first by speaking with the task manager.
  2. I could allow the answer and simply design the job.
  3. Considering that he just started out with the business and was along the way of moving his family, I possibly could go with what he said so I do not get him in big trouble and cause him and his family problems.
  4. I could speak to other engineers and ask if they would review the standards and ask them because of their perspective on the migration and see how it comes even close to my decision because my decision could be wrong.
  5. I could speak to my manager requesting to be removed as the engineer because I do not want to acquire my name on a job that is blatantly deceiving the client.

Solution and Results

As a result of the ethical dilemma, I did seek the other engineer's perspective, in the engineering field there are multiple ways to create something, and my way may not always be the simplest way. After speaking with them, they also arranged that the sales estimate was wrong and what I found was appropriate. Considering my own values, I could not just go along with the ethical issue. So I sent the project supervisor an email explaining what I found after talking to the other engineers and asked him again if he was going to inform the client or performed he want me to look after it during a getting together with or via an email. Additionally, I recommended him that if he makes a decision to keep this from the customer, I will ask to be taken off the project. Within a matter of minutes, he was within my desk. In so doing, I created a paper trail that secured myself and my personal beliefs as well as forcing him to do something ethically, even if he does indeed so for the wrong reason. Furthermore, based on my plan of action, by pursuing my core prices it ensured my activities were commensurate with my job responsibility which is to create something that at the very least, satisfies the customers' expectations; without taking advantage of customers with information asymmetry. On top of that, by not allowing my own prices to be jeopardized, my actions aligned with the organizational prices that require everyone in the business to be dependable and to take action in an moral manner because we could accountable for our actions. By doing so, I was able to overcome this ethical dilemma by being true to myself, for that reason I avoided a project manager from taking good thing about customers to increase his profit percentage on that job.

Final thoughts

When I look again on the entire events of honest dilemma which i dealt with, I do see lots of tension between my own ideals and my role responsibility to the company as well as the clients. After reading "Blind Areas, " and reflecting on the occurrences, I could see some similarity to Bazerman's "in-group favoritism" as i considered keeping peaceful and going along with the project manager because we worked well alongside one another and were both previous military. Additionally, the very thought of not attempting to get him in big trouble crossed my mind. However, by not immediately reacting and taking the time to look at all my options, it allowed my "should self" to come forwards and act in an ethical manner which explains why Siemens is viewed by their customers and the community as an organization that is socially in charge.

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