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Microeconomics Discussion

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Micro Economics
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Sanit Marys University
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Analysis of SNC-Lavalin Case Study
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Question 1: Main direct predictors of wrongdoing at SNC-Lavalin
MARS model of individual performance and behavior is an important framework to
be used in this case because it elaborates on why and how the behavior of stakeholders
associated with a particular company affects their performance and how such behavior is
associated with internal and external factors within the company. MARS model reflects on
four factors that determine the performance, results, and behavior of the affected stakeholders
within SNC-Lavalin, a company found in Canada. Former executives of SNC-Lavalin
Company are directly associated with some of the worst and illegal activities like bribery,
forgery, possession of criminal assets, money laundering among other activities which make
the MARS model an effective tool to describe their behavior and performance. Concerning
the aspect of motivation, managers at the company are motivated by acts of bribery as a way
of maintaining their positions and improving their financial freedom. Officials who fail to
engage in bribery practices are terminated unlawfully. Since the officials were so eager to
win the contract in Libra, they engaged in bribery by funneling over $120 million using
offshore bank accounts as a safe and quick way. Since officials engaged in corrupt behavior,
the subordinates were also influenced and they could not resist the orders of their bosses.
They thus accepted to engage in corrupt deals even if they believed it was not the right thing
to do, as witnessed in the case of an engineer and his subordinate in Nigeria.
Therefore, the wrongdoing culture at the company makes the company fail to oppose
any illegal acts like bribery because such acts defined how business was conducted. In
relation to the other aspect of the model, Ability, the behavior of executives at the company
was influenced by the ability of the company to influence government officials like Gaddafi’s
son through bribery and get away with it. A good example is a process used to obtain
contracts in Libya. Since the executives were highly skilled at corrupting the government,
then it was easy to get what they wanted easily. Regarding role perception, the behavior and

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1 Analysis of SNC-Lavalin Case Study Name Professor Course Date 2 Question 1: Main direct predictors of wrongdoing at SNC-Lavalin MARS model of individual performance and behavior is an important framework to be used in this case because it elaborates on why and how the behavior of stakeholders associated with a particular company affects their performance and how such behavior is associated with internal and external factors within the company. MARS model reflects on four factors that determine the performance, results, and behavior of the affected stakeholders within SNC-Lavalin, a company found in Canada. Former executives of SNC-Lavalin Company are directly associated with some of the worst and illegal activities like bribery, forgery, possession of criminal assets, money laundering among other activities which make the MARS model an effective tool to describe their behavior and p ...
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