Gone are the days where companies undertake the act of doing business with integrity, honesty and honour when organizations like SNC-Lavalin can bribe high ranking Libyan government officials for profitable engineering contracts. SNC-Lavalin is one of the biggest engineering firms not only in Canada, but in the world. The company plays a dominant role in the infrastructure, mining, oil and gas, and power sectors around the world. Last February, SNC-Lavalin was charged with corruption and fraud. SNC-Lavalin has, according to Friedman in Corporate Ethics and Corporate Governance, a “social responsibility” to their stockholders, who are counting on them to make the right ethical and moral decisions with their invested capital to produce the greatest return. The fact that SNC-Lavalin is, according to its former CEO, Robert Card, “gearing up to avoid the full court process”, creates the suspicion that SNC-Lavalin has something to hide – an act that only creates more suspicion on whether they are truly guilty or not. In response to the potential impact on the economy that these charges on such a figurehead company may create, the Federation of Quebec Chambers of Commerce issued a statement saying, “the charges cannot be used to harm SNC’s business”. This is a case where the government is trying to step in to protect the economy from a setback, which only further supports the problem. As Friedman states, “the one and only social responsibility of a business (is that it) … engages in open and free competition without deception or fraud” – a principle that SNC-Lavalin has obviously forgotten.

 Sources

1. Hamilton, Gregory, ed. RCMP charges SNC-Lavalin with fraud and corruption linked to Libyan projects. N.p.: The Financial Post, 2015. Web. 17 Sept. 2015. <http://business.financialpost.com/news/rcmp-charges-snc-lavalin-with-fraud-and-corruption-linked-to-libyan-projects>.

2. Perreaux, Les, Jeff Gray, and Bertrand Marotte, eds. SNC-Lavalin faces rare corporate fraud and bribery charges. N.p.: The Globe and Mail, 2015. Web. 17 Sept. 2015. <http://www.theglobeandmail.com/report-on-business/snc-lavalin-faces-rare-corporate-fraud-and-bribery-charges/article23108284/>.

3. Van Praet, Nicolas, ed. SNC-Lavalin wants to avoid protracted court battle on corruption charges. N.p.: The Globe and Mail, 2015. Web. 17 Sept. 2015. <http://www.theglobeandmail.com/report-on-business/snc-lavalin-profit-beats-estimates-on-oil-contracts-cost-cuts/article24302270/>.

4. Zimmerly, Walther C., Klaus Richter, and Markus Holzinger. Corporate Ethics and Corporate Governance. N.p.: Springer, 2007. 173-78. Web. 17 Sept. 2015.