Leadership and Governance: A Case Study of Siemens

Running head: LEADERSHIP AND GOVERNANCE
Leadership and Governance
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1LEADERSHIP AND GOVERNANCE
Table of Contents
Introduction....................................................................................................................2
Overview of the case study............................................................................................2
Case of Siemens.........................................................................................................2
Part 1..............................................................................................................................3
Preventive measures taken by board of directors against unethical practices of
CEOs......................................................................................................................................3
Part 2..............................................................................................................................5
Leadership qualities of a high performing CEO........................................................5
Part 3..............................................................................................................................7
Earning employee loyalty by improving organisational culture................................7
Conclusion......................................................................................................................9
References....................................................................................................................11

2LEADERSHIP AND GOVERNANCE
Introduction
The report intends to concentrate on various leadership style and governance model
by using examples of C-suite employees functioning different business operations. Following
a case study which deals with different keys of business leadership, procedures of managing
organisations based on industrial background will be discussed here. Further, leadership
responsibility does not restrict itself between giving instructions and checking revenue. The
success of this job role depends on their capability of monitoring performance and examining
corporate direction. Audits will be necessary for managing risks and ensuring organisation’s
compliance. The overall success of organisation depends on understanding different
perspective of stakeholders and try to keep a balance with those. All these areas will be
addressed and analysed in this report as a brief guideline for managing organisation by
implementing effective leadership style.
Overview of the case study
Case of Siemens
As discussed in Charléty (2018), in order to understand the role of CEO within a
company maintaining all the theoretical aspects of corporate governance is significant.
Considering the case of former technological leader Siemens it can be said CEOs must be
efficient not only in terms of governance but being ethical and maintaining the core value of
organisation. The case study states that in the year 2006, after the news of record growth and
revenue Siemens was identified as they offered bribe to Government officials which led to
several arrests and detailed investigation (Charléty, 2018). The company faced huge penalty
and had to invest the most reliable human resource expecting to regain lost pride and
stakeholders’ trust.

3LEADERSHIP AND GOVERNANCE
It took two years to filter the entire system and structure. New CEO of Siemens
decided to lead more strongly and focused more on corporate governance and employee
behaviour to ensure maintenance of company’s ethical guidelines and mitigating risks (Tao &
Hutchinson, 2013). While recovering workplace culture has been changed along with
business strategy in order to keep the practices best in class. Therefore, apart from its
efficient application of recovery procedure and operational strategies it can be said that this
situation can occur in any organisation at any level. Acknowledging this issues, it can be said
CEOs must not engage themselves into such practices and must take responsibility of
preventing such unethical behaviour and practices (Visser & Tolhurst, 2017). They must be
clean and unquestionable so that company can present themselves as epitome of trust in terms
of serving stakeholders. By following this rule, according to the case Siemens was able to
regain integrity among the employees and management.
Part 1
Preventive measures taken by board of directors against unethical practices of CEOs
As mentioned in the case study a degrading examples of bad behaviour has been
found among the C-suite employees. In case of Siemens, CEOs violated both the company
norms and ethical guidelines of business. As argued by Filatotchev and Nakajima (2014),
aligning employee behaviour continuously with parameter of organisational value is a secret
behind long term sustainability of business. It ensures both the financial and commercial
success of organisation. Ethical considerations must come as every employee’s first
consideration while executing responsibilities. As described in Puat Nelson and Devi (2013),
there are guidelines and policies, organisational code of conduct, the manner executives and
managers are using while dealing with stakeholders, management procedures and employee
value in terms of their authenticity. These factors help to align with core values and increases