Dilemma Dialogue: The Syria case of LafargeHolcim

Shortly after the merger, LafargeHolcim was confronted with serious accusations in 2016. The accusations were that Lafarge, in the years prior the merger indirectly paid militias in Syria, in particular the Islamic state IS, in order to continue operating a Lafarge cement factory. The Company immediately carried out a fully comprehensive investigation but clearly the reputation of the newly merged group was impacted massively. Investigations in France are still ongoing.

UNGC informed the company that it was losing LEAD status. Next steps were agreed on how to deal with the situation and what measures the company would have to take in order to remain a member of the UNGC.

LH has undertaken numerous actions in order to understand the underlying issues and manage the ongoing situation. It has taken into account the conclusions and initiated improvements to its processes, controls and culture to prevent similar misconduct in the future. From the perspective of the Global Compact Switzerland, these steps are an important example on how to handle such a crisis. It should also provide important impetus for UNGC members.

This first dialogue meeting serves the purpose of information and dialogue: what happened and why? How did the Board and management react? What steps have been taken and where does LH stand today? What measures have been taken for the future?

The dialogue will be confidential and is open to GCNS Business members only (excluding consultancies and NGOs). Participants are invited to listen and contribute their own constructive critical feedback and experience. The aim of the dialogue is to share learnings from misconducts and discuss solutions to prevent similar mistakes for member companies.