Scandals Shake German Corporate Culture

[Judi Lynn]

Scandals Shake German Corporate Culture
By MATT MOORE, AP Business Writer
44 minutes ago



FRANKFURT, Germany — In a nation where a handshake can launch a deal and business is considered a noble calling, a series of scandals at some of Germany's largest companies has brought embarrassment to a corporate culture proud of its honor system.

Allegations and admissions of bribery, corruption and misdeeds have surfaced at the highest levels of business this summer at five of Germany's blue chip companies: BMW, Volkswagen, DaimlerChrysler, Infineon and Commerzbank. Several executives have resigned or been fired, and some face criminal investigations.

The revelations show that even in a nation that prides itself on its economic dedication and know-how, the government and the business community need to fight harder against corruption, said Hans Joerg Elshorst, chairman of Transparency International in Berlin.
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Germany overall is above board, according to Transparency's annual ranking of corruption. The latest index put Germany as one of the 20 least corrupt countries.
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