Discussion #5: Bribery Go to pages 304-306 of the text and read the “Daimler’s” case on bribery.

Discussion #5: Bribery

Go to pages 304-306 of the text and read the “Daimler’s” case on bribery. Answer question #2 – “What internal controls could have been usefully introduced to prevent bribery at Daimler?”

This question is for an Accounting Ethics course.

To prevent bribery, organizations can implement several internal controls. Here are some controls that could have been introduced at Daimler:

  1. Strong Code of Conduct: Daimler could have established a comprehensive code of conduct that explicitly prohibits bribery and other unethical practices. The code should outline the company’s commitment to ethical behavior and provide guidance on expected conduct.
  2. Clear Anti-Bribery Policy: Daimler should have developed a specific anti-bribery policy that defines bribery, provides examples of prohibited conduct, and outlines the consequences of non-compliance. The policy should be communicated to all employees and stakeholders.
  3. Due Diligence on Business Partners: Daimler could have implemented a robust due diligence process for selecting and engaging with business partners, such as suppliers, distributors, and agents. This process should involve conducting background checks, verifying reputations, and assessing their commitment to ethical practices.
  4. Whistleblower Hotline: Daimler should have established a confidential reporting mechanism, such as a whistleblower hotline, to encourage employees, customers, and suppliers to report suspected cases of bribery or other unethical activities. The company should ensure that reports are treated confidentially and that appropriate follow-up actions are taken.
  5. Regular Training and Education: Daimler could have provided regular training programs and educational materials to employees at all levels to raise awareness about bribery and its consequences. This training should include real-life examples and emphasize the importance of ethical behavior.
  6. Independent Audits and Internal Controls Review: Daimler should have conducted periodic independent audits to assess compliance with anti-bribery policies and internal controls. This would help identify potential weaknesses and areas for improvement. Additionally, the company should have reviewed its internal controls to ensure they are designed effectively to prevent and detect bribery.
  7. Management Oversight: Daimler’s management should have demonstrated a strong commitment to ethical behavior and set the tone from the top. They should have actively promoted a culture of integrity, emphasized the importance of compliance, and held individuals accountable for any violations.