STUTTGART, Germany -

In light of the company’s recent troubles involving bribery and corruption — and the hefty fine it paid for its alleged transgressions — the Daimler AG Board of Management voted to expand its ranks and name an outside executive to fill an “Integrity and Legal” board member position.

The person will be in charge of heading up the legal and compliance organization and oversee its processes. The board member’s responsibilities also include leading business ethics and taking charge of compliance and integrity.

Daimler said its goal is to “to create a corporate culture that not only fulfills the requirements of applicable law, but also meets the highest ethical demands and is regarded as exemplary throughout the industry,” so it is planning “further initiatives” beyond this post, as well.

The company was previously knee-deep in charges from the U.S. Department of Justice and the Securities and Exchange Commission alleging that Daimler violated the Foreign Corrupt Practices Act, charges it settled in April for $185 million.

“Compliance and integrity are extremely important to the Daimler Group and we intend to set new standards in this respect. Another aspect is that the requirements placed on a globally active company by regulations and legislation are constantly becoming stricter and more complex,” noted Manfred Bischoff, Daimler’s supervisory board chairman.

“This is why we have decided to create a dedicated board of management position for Integrity and Legal. We already have a clear idea on how to set up the position,” Bischoff continued.

Dieter Zetsche, chairman of the board of management of Daimler, added: "On the subject of compliance, we follow the same principles we apply in our business: to be pioneering with innovations in our industry.

“To do so, on the one hand we are now creating the organizational and structural basis. On the other hand, we will continue to consistently prioritize integrity as a key element of our corporate culture. No business in the world is worth violating applicable laws, regulations or ethical standards,” he continued.

Zetsche also said: “The new board of management position is a consistent step in the further development of our corporate structure and culture. At the same time, it is and it will remain the task of the entire board of management and of all executives to permanently anchor throughout the group a keen awareness of adherence to the law and regulations, as well as for business ethics.”

As such, Daimler’s board is boosting compliance efforts, including how it interacts with business partners.

Officials explained that the Daimler Group has a presence almost 200 nations through its own entities or via business partners, and to ensure adherence to regulations, the company indicated there must be a “properly trained compliance organization with a worldwide reach as well as effective procedures and controls.”

So, Daimler said it plans to put in place “even clearer structures” and utilize “more resources” so that compliance is kept.

These measures will augment the host of steps Daimler has already taken to improve compliance in recent years.

For example, the company now has a chief compliance officer who is under the oversight of the new board member. It has also implemented a global compliance organization and spread compliance managers to various subsidiaries and operating units. Moreover, Daimler has a global training program and a compliance consultation desk.

Interestingly enough, Daimler has also offered “whistleblower possibilities,” whereby all employees and external personnel, should they spot any compliance issues, can alert the company.