Compliance at Siemens - PDF Free Download

Sectors and Divisions Energy Healthcare Industry Infrastructure & Cities Energy Service Audiology Solutions Customer Service Building Technologies Fossil Power Generation Oil & Gas Power Transmission Solar & Hydro Wind Power Clinical Products Customer Solutions Diagnostics Imaging & Therapy Systems Drive Technologies Industry Automation Low and Medium Voltage Mobility and Logistics Rail Systems Smart Grid Page 2

We have come a long way from taking immediate actions to establishing a compliance system Immediate Actions Implementation Support sustainable business! 2006 2007 2008 2009 2010 2011 Exchange of Leadership Team Program World Bank Settlement Focus on Risk Identification, Mitigation & Management Tone from the Top Organization Values & Integrity Training & Development Independent investigation Tools Collective Action Development of Regional Competence Centralization of bank accounts Settlement with DoJ/SEC & Monitor appointment Sustainable Development Continued Vigilance Page 3

The Siemens Monitor gave a positive statement on the efforts of the Siemens Management "The German prosecutor's confidence in Siemens' investigative abilities speaks volumes, especially when one considers that Siemens is just three years removed from its global settlement of extensive bribery allegations Siemens Monitorship Year Three Report, 7 October 2011 Dr. Theo Waigel, Siemens Monitor Page 4

Supporting sustainable successful business General Counsel Peter Y. Solmssen Operations Dr. Hans-Jörg Grundmann (Chief Officer) Governance Dr. Klaus Moosmayer (Chief Counsel ) Sector Officers Cluster Officers Corporate and Cross- Sector Units, Supply Chain Business Excellence Collective Action & External Affairs Legal Investigations Discipline & Integrity Remediation & Risk Prevention Complementing business and legal expertise in the leadership of the Organization will help us to strengthen the organization s capability as a trusted partner. is not a program, it's a way of doing business promoting integrity at Siemens Page 5

at Siemens Responsibility and Roles are clearly defined What is Observing the law in every country where we do business and the applicable Siemens policies - especially the Siemens Business Conduct Guidelines Role of Organization Enable a successful sustainable business as a trusted partner, drive a continuous communication about the importance of compliance for Siemens Expertise for Antitrust and Anticorruption (prevent, detect, respond) All violations of law, regulations or Siemens procedures are compliance issues if they entail a risk of penalties or reputational loss to Siemens - the Organization assures that all reported compliance violations are being properly handled, analyzed and remediated together with the responsible Governance owners and management Governance for investigations and disciplinary response Drive collective action initiatives in order to level the playing field for clean business is not a program, it s a way of doing business promoting integrity at Siemens Page 6

Siemens System aims at the synergy of all three dimensions Prevent Detect Respond "Tone from the Top" Organization Monitoring & Training Policies, Procedures and Tools Program communication Centralization Integration in personnel processes Continuous improvement investigations reviews controls Consequences for misconduct Global case tracking Monitoring effectiveness 1) Incl. Global Ombudsman function Page 7

Collective Action: What we do to drive fair market conditions Continuous stakeholder dialogue Collective Action project Project Learning Initiative NGO IO Collective Action Learning Initiative Transparency International UN Global Compact World Economic Forum Top 5 NGOs 1) IBLF ICC CIPE World Bank Institute Fight corruption in joint agreement with industry peers and other stakeholders Promote Integrity and Pacts as well as Long-Term Initiatives in order to foster fair competition in public sector www.siemens.com/integrity-initiative to fight fraud and corruption (US$ 100 million over next 15 years) Increase compliance awareness of current and future business leaders Share compliance best practices with stakeholders by www.siemens.com Harvard Case Study 2) www. Knowledge transfer Learning 1) NGO: Non-Government Organization TI: Transparency International ICC: International Chamber of Commerce IO: International Organization PACI: Partnering Against Corruption Initiative CIPE: Center for International Private Enterprise IBLF: International Business Leaders Forum 2) Is designed for class room discussions in university and highlights the importance of business integrity and compliance. Final draft will be presented by Harvard in Q2 FY 2010 Page 8

Important principles inherent to all internal investigations Respect the principle of confidentiality in an investigation, follow the need to know principle (NB.: aspects of leniency, Report distribution) Respect both the spirit and the letter of the law within each jurisdiction where Siemens conducts business. Respect all rights accorded to the individual by custom and law in upholding the presumption of innocence.. Protect the identity of persons reporting misconduct Protect the identity of the subject Protect the right of subject to be heard Investigators shall be sensitive to the cultural differences and unique business practices within each jurisdiction. Page 9

Code of Conduct for investigations and all fact findings Applicability Applies worldwide to all internal measures where fact finding of any kind may take place 1) The code has been aligned with the relevant stakeholders and falls under the governance of the Chief Counsel 2) Content Professional, unbiased, diligent, fair and respectful fact finding Applicable principles include: Presumption of innocence; Privacy and data protection; Transparent protocol; Need-to-know; Lawyer's presence; Whistleblower protection No fact finding at any cost (e.g. by secret tape recording, private investigators (with exceptions), promises, false statements, inducing violations) Conflict of interest situations must be handled correctly: Escalation; Exclusion of individuals and /or units from the fact finding; Outsourcing? See annex 1) CDP; CF A, OR, RIC; CHR / Sector HR / Local HR CL; CL CO-G; CSO; Workers s Council / GSpA 2) Messrs. Huber (CHR), McDonald (CF A), Mille (CSO), Sieg (GSpA) Page 10

Case Handling Process Incoming allegation TRACI 2) check Legal check / decision central or local case Investigation mandate Investigation Remediation Discipline Reporting All 1) Legal Legal Legal Legal & Investigations / CF A FOR Remediation / Discipline & Integrity Tell Us Ombudsman Audit Management / HR Legal & Organization Officer etc. case? Yes Case already in TRACI? No If not, filing a new case in TRACI Categorization Case category Central / local HR Others (such as Legal) When indicated: hand over to responsible local organization or to HR / others Allegation plausible Yes No close case Allegation substantiated Yes No Pre-evaluation Close cooperation with: Legal & Organization Reporter Substantiated? No Yes Draft investigation mandate & facts of the case by Legal Approval and signature of mandate by Head of Legal Approval and signature of mandate by Chief Counsel See detailed investigation process according to V-circular 17/2009 Remediation Remediation of all detected deficiencies Discipline Disciplinary actions Start of the Corporate Disciplinary Committee process Leniency / amnesty Reporting To Managing Board / Supervisory Board 1) Existing obligation to 1 report local and central cases via TRACI according to CL CO circular 2/2009 and 2 to hand over central cases to Legal 2) Tracking of Cases Internationally System Page 11

Processes and tools are important, but ultimately, controls are not enough. We need to continue fostering an integrity culture Questions to guide Siemens employees towards compliant and responsible behavior 1 Is it the right thing for Siemens? 2 Is it consistent with Siemens core values and mine? 3 Is it legal? 4 Is it something I am willing to be held accountable for? If the answer is YES to all of those questions, DON'T WORRY, BE CONFIDENT Page 12

Questions? Thank you very much for your attention! Dr. Jens Burgard Senior Corporate Counsel Head of Legal RF Siemens AG, Germany Tel. +49 (9131) 743 552 Email: jens.burgard@siemens.com Page 13 Siemens AG 2012. All rights reserved.