ABSTRACT
This chapter explains how management deals with a crisis when things go wrong. German engineering giant Siemens is the poster child for anti-corruption makeovers. In 2006, Siemens was struck by scandal when it emerged that extensive bribes had been paid to secure contracts for power generation equipment in Italy, telecommunications infrastructure in Nigeria, and national identity cards in Argentina. Swedish telecom operator TeliaSonera's anti-corruption journey is more recent, after bribery allegations surfaced in 2012 over deals made in central Asia. Sweeping efforts to address the issue and restore the company's reputation have included: a change of senior leadership, extensive employee anti-corruption training, and a transparency report. Like Siemens, TeliaSonera sees this as a long-term investment and has seized the opportunity to put in place a state-of-the-art risk management and E&C system, of which culture change is a core element.
