Question

Discuss the ethical principles, and analyze the three factors might influence the unethical behaviours in SNC-Lavalin.

Answer 1

SNC Lavalin is an engineering and construction based Canadian company. The company was caught bribing Libya government officials in the period of 2001 to 2011 for gaining certain construction contracts.

The ethical principle involving this scandal is that companies are required to behave ethically and morally in conducting its business internally as well as with third parties. There can be tremendous pressure on the company to crack contracts and win bids, beating the competition. However the company needs to abide by its principles as well as culture and value system and is required to behave as a fair company.

The 3 factors which may have influenced the unethical behaviors in SNC-Lavalin are as follows:

· Greed for personal gain: If the management of the company wants to beat competition and enhance the profitability of the company using any means, then the management can go to any extent and may resort to anti-social means to pursue the gains.

· Lack of morals: If the company or its management has no morality and is not law fearing, then the company will not hesitate in indulging in bureaucracy or corruption.

· Weak or absence of corporate governance: If there is no stringent corporate governance in the company, then the officials will not have any fear of getting caught. Hence they will not hesitate in resorting to unfavorable means to get frivolous gains.