Inside a Dark Pact: Lafarge’s Terrorist Funding and Compliance Fallout in Syria

Executives at French cement maker Lafarge did not intentionally set out to fund terrorists. Instead, it was a gradual descent, marked by a series of “local concessions.” Operating in a war zone, with employees at risk and a $680 million plant hanging in the balance, withdrawing felt like a failure. This led to a series of deals, ultimately resulting in payments to the Islamic State of Syria (ISIS).

The story of Lafarge’s Syrian plant, unfolding amidst the Syrian Civil War and detailed in a U.S. government investigation and ongoing criminal proceedings in France, serves as a stark illustration of the perilous consequences when ethical and compliance standards are sidelined for the sake of business survival. It highlights how easily the line between right and wrong can blur until the severe repercussions become undeniable.

In high-risk, volatile environments, the pressure to compromise can be immense. A robust, values-based compliance program is crucial for maintaining essential boundaries.