BACHELORS OF ACCOUNTANCY (HONS)

SEMESTER FEBRUARY – JUNE 2020

INTRODUCTION TO ORGANIZATIONAL BEHAVIOUR

(MGT430)

INDIVIDUAL ASSIGNMENT 2
CASE STUDY (CHAPTER 2)

PREPARED BY: NUR ADLINA ADRIANA BINTI ZAID

GROUP: MAC220 5B
STUDENT ID: 2019324789
PREPARED FOR: MADAM ANIDAH BINTI AZIZ
DATE OF SUBMISSION: 5 JUNE 2020
Question 1

Use the MARS model to discuss the main direct predictors of wrongdoing at SNC-
Lavalin

There are several motivational forces found in the case given. The senior executives were
under pressure because they need to maintain the successful contracts. In order to make it
happen, they did bribery to increase their chances of success to get the contracts. The
executives usually give some bribery fund to ensure they got the contracts or anything that
they desire. The employees are scared and motivated by the consequences if they refused
to involve in wrongful activity. Some of the consequences is they might get fired or lost they
opportunity to get promotion to higher position. In the case given, accept bribe had become
norms to the executives in the company. Because of that, it gives motivation to them or to
the subordinates to do wrongful activity.

The next predictors are the ability. The executive in SNC-Lavalin seems to had develop skill
at asking favour from former Libyan dictator’s son. As the bribery occurred for more than a
decade, the parties involved in that must have high skill in hiding that bribery. They must
know how to ensure that other people do not have suspicious about their bribery activity.
Besides that, situational forces is another predictors in the case given. SNC-Lavalin is a
company that is depend on the performance. Because of that, the shareholders give
pressure to the executives to maintain their strong performance by acquiring strong contract.
This give the executives forces and support to do anything in order to granted the
shareholders’ wish.
Question 2

Explain how moral sensitivity and moral intensity apply to the unethical behaviour
among several SNC-Lavalin executives and other staffs.

In my opinion, moral sensitivity and moral intensity occur due to cultural effect. In the case,
SNC-Lavalin viewed bribery as a normal activity in that company. When everyone think that
it is normal to accept or give bribe, the executives are likely become comfortable doing hat
illegal activity. They might taught that there is no person who is in the opinion to report that
act. The employees are mostly unaware that specific activities were a form of bribery. For
example, in the case, project consultancy cost refer to bribery in the company statement.
Some employees had low moral sensitivity regarding some of their action because they
assumed that the executives were doing the right thing in operating their business. This also
refers to employee that lacked knowledge or expertise to know that their action were wrong.
SNC-Lavalin wrongful activities such as bribery, money laundering had high moral intensity.
They were violating the ethical and legal principles. When there is high degree of moral
intensity, it increase the person’s moral sensitivity and judgement. This would result the
decision not to engage in unethical behaviour. They might review the bribery incidents
against the criteria for determining level of intensity. For example; they might be in the
opinion that the bribery activity is one of the process and the bribe amount is smaller
compared to the amount of the contract that SNC want to get.
Question 3

What steps should SNC-Lavalin and other companies in this situation take to
minimize these types of corporate wrongdoing?

SNC-Lavalin and other companies should create a code of conduct. This will provide the
employees and manager an overview about the conducts and behaviour that company used.
It mentioned what behaviour is considered unacceptable and what measures taken if they
violates the code of conduct. For example; on the first day of working in the company, the
employees will be expose to the code of conduct that the company applied and the
executives give warning to them if they violates the code of conduct, they will be punished.

The other steps that should be taken by the companies is leading by example. The
employees usually look for business owner or the person in high position for direction on
how they should do their task. As the owner, they should monitor his executives and
manager to ensure that they show good values to the employee. If they violate any company
practices, the owner should take action immediately. If the owner not take action or delay in
taking the action, the credibility of the executives will be affected. The employees might
follow their executives’ wrongful act or they might just turn a blind eye to their executives.

Besides that, the company should also show appreciation to their employees. This is
because loyal employees might feel that a company values the hard work that they put in
accomplishing the task given. A loyal employee have low possibility to act unethically. The
appreciation might be in any form such as giving bonus or giving them a few days holiday at
a relaxing place. After the employees get this reward, they might become motivated to
improve their work in the future.
Appendices
Reference

Brookins, M. (2019, February 1). Ways to Prevent Unethical Behavior in the Workplace.
Retrieved May 28, 2020, from https://smallbusiness.chron.com/ways-prevent-
unethical-behavior-workplace-21344.html

McShane, S. L., & Von Glinow, M. A. (2018). Organizational Behavoiur (8th Ed.). Penn
Plaza, New York: McGraw Hill Education Retrieved at May 28, 2020