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SNC-LAVALIN
Crisis Review
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.
Former Vice President and CEO
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.

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Crisis comm #2

  • 2. 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.
  • 3. 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
  • 4. 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.
  • 6. 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.
  • 7. 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.
  • 8. 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.
  • 9. 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.