SNC-Lavalin Founded in 1911 by Arthur Surveyer Based in Montreal, Canada Serves as an engineering, procurement, and construction firm. Has contracts worldwide and is one of the largest engineering firms in the world. Vision: To maintain and strengthen its core business to develop new skills and activities, and to respond to the changing needs of clients and market.
SNC-Lavalin Crisis November 2011 Cyndy Vanier was arrested in Mexico due to allegations of trying to smuggle the Gaddafi son into the country. Hired by former Vice Presidents of SNC- Lavalin
SNC-Lavalin Crisis February 2012: Two Vice Presidents fired for not complying with Code of Ethics February 2012: Investigation to find the reasoning behind $35 million of unaccounted money. March 2012: Vainer linked to SNC-Lavalin March 2012: CEO Pierre Duhaime resigned. March 2012: Former VP Ben Aissa arrested in Switzerland for fraud and ties to Libyan scandal.
SNC-Lavalin Response Very reactive instead of proactive. Mostly consisted of Press Releases, Tweets linking back to articles, and comments to the media. Never acknowledged Cyndy Vanier in a press release and her ties did not rise to the surface until executives were fired. Representatives insist that the company does not support illegal or unethical behavior.
Media Response Very critical response to SNC-Lavalin One article attacked the leadership of the organization saying that they did not ask the proper questions. Another article in the Canadian National Post ripped the company a part for not handling the Vanier situation.
Stakeholder Response Investors suing SNC-Lavalin for $1.5 billion The shareholder contribution has gone down in the past year. Stakeholders are concerned with ethics and reputation of company. Regaining support from investors will be a long road for SNC-Lavalin.
Recommendations Transparent Communication Be honest. Do not seem like you are trying to keep secrets. Being completely honest may hurt the company a lot at first but trying to hide information will hurt worse in the end when it comes to the surface. Think about the future We try to fix situations in the present but end up hurting ourselves in the future.