A Critical Assessment Of Why Snc Lavalin Has Faced This Crisis

3124 WordsOct 17, 201413 Pages
Case Analysis Introduction The following analysis will provide an in-depth critical assessment of why SNC-Lavalin has faced this crisis, how SNC-Lavalin did in terms of ethical crisis management, and what needs to be done further in order to reach its ethics missions. By determining the underlying causes leading up to the scandals, the question of whether the origin of this problem is individual or systemic will be addressed. Furthermore, whether the actions taken in response to this ethical crisis are efficient and appropriate will be assessed in detail. Underlying Causes SNC-Lavalin faces allegations of misconduct on a range of malpractices and over several continents. Four of its highest executives have been charged or detained over…show more content…
It is worth noting that Union Montréal’s former leader, Montréal mayor Gerard Tremblay resigned amidst allegations of fraud concerning his party’s acceptance of bribes (Van Praet, 2013). In view of Quebec’s construction business culture linking organized crime, politicians, and construction companies, it can be said that the industry does provide signals enticing companies to engage in unethical activities. Since numerous construction companies in the Montreal region have been in the course of the last decades cultivating unlawful relationships with officials to obtain contracts, firms that are not doing so are disadvantaged when competing for projects (Van Praet, 2013). Furthermore, in the case of organized crime, these payments have been alluded to as protection money where companies were constrained to deals with the mafia in order to do business in the Montréal region (Van Praet, 2013). Even though public opinion is currently demanding more transparency and tougher regulations, it has been said that Quebec 's culture of laissez-faire might be the origin of the leniency of the administration towards wrongdoers. Substantial political donations from company heads, political leaders vacationing on
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