MASHINIi

CARILLION PLC.

CLLN.LSE | Construction of buildings

Carillion PLC was a British multinational facilities management and construction services company headquartered in Wolverhampton. It provided support services, construction, and infrastructure development. Its services included project finance, design, construction, and maintenance for buildings, ro...Show More

Ethical Profile

Mixed.

Carillion PLC's 2018 collapse followed severe ethical scrutiny. Critics point to aggressive accounting and a reported lack of transparency that allegedly obscured its true financial health, misleading investors and the public. This focus on winning contracts over profitability has been linked to poor risk management. Reports suggest cost-cutting measures negatively impacted worker conditions and led to delayed payments for subcontractors. Its extensive construction projects also inherently carried substantial environmental impacts, with concerns over resource consumption, waste, and pollution, suggesting environmental priorities were neglected amidst financial struggles. The collapse had widespread repercussions, including job losses and financial losses for many stakeholders.

Value Scores

Better Health for All-10
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-70
-100100
Kind to Animals0
-100100
No War, No Weapons-30
-100100
Planet-Friendly Business0
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products-20
-100100

Better Health for All

-10

Carillion's core business included construction and facilities management for hospitals and NHS bodies.

1
Its collapse led to the mothballing of major hospital projects, specifically the Royal Liverpool University Hospital and the Midland Metropolitan Hospital, and required government funding to maintain public sector services.
2
The Royal Liverpool Hospital project also encountered "extensive" asbestos on the brownfield site and developed cracks in the new building.
3
Carillion's financial disclosures were problematic; a £845 million profit warning was a a "surprise to the government."
4
A parliamentary report found "incredibly poor standards" in management information and "enormous cause for concern about how the company was governed," indicating a lack of transparency regarding risks.
5
KPMG was fined £21 million for "exceptional" failures in its auditing work for Carillion.
6

Fair Money & Economic Opportunity

0

No evidence available to assess CARILLION PLC on Fair Money & Economic Opportunity.

Fair Pay & Worker Respect

0

No evidence available to assess CARILLION PLC on Fair Pay & Worker Respect.

Fair Trade & Ethical Sourcing

0

No evidence available to assess CARILLION PLC on Fair Trade & Ethical Sourcing.

Honest & Fair Business

-70

The Financial Conduct Authority (FCA) found that Carillion contravened market manipulation rules and breached listing principles by publishing misleading information between July 2016 and July 2017.

1
The FCA would have imposed a financial penalty of £37,910,000 on Carillion, but this was reduced to £nil due to the company's liquidation.
2
Furthermore, 'systemic corruption' was prevalent within the company.
3
The board rejected an independent review of accounting irregularities, instead having KPMG review its own work.
4
KPMG, Carillion's auditor, was later fined £14.4 million by the FRC for providing false and misleading information during audit quality reviews related to Carillion's 2016 audit.
5
Carillion's CFO acted as a whistleblower, raising concerns about accounting irregularities in May 2017, but initially 'did not feel she was listened to'.
6

Kind to Animals

0

No evidence available to assess CARILLION PLC on Kind to Animals.

No War, No Weapons

-30

Carillion's portfolio of contracts supporting UK defence was valued at approximately £1 billion.

1
In 2016, the company reported a total revenue of £5,214.2 million.
2
This indicates that approximately 19.18% of its revenue was derived from defense-related contracts, which included supporting UK defence sites and establishments, and maintaining service families’ homes.

Planet-Friendly Business

0

No evidence available to assess CARILLION PLC on Planet-Friendly Business.

Respect for Cultures & Communities

0

No evidence available to assess CARILLION PLC on Respect for Cultures & Communities.

Safe & Smart Tech

0

No specific, concrete evidence was found in the provided articles to assess Carillion PLC against any of the Key Performance Indicators for the 'Safe & Smart Tech' ethical value. The articles primarily detail financial irregularities, accounting practices, and breaches of market and listing rules, rather than data protection, cybersecurity, or AI ethics.

Zero Waste & Sustainable Products

-20

Carillion achieved a 95% waste diversion rate from landfill in 2016.

1
The company was committed to sending zero waste to landfill by 2015.
2
It implemented several waste reduction initiatives, including reclaiming bricks from construction sites, refurbishing cabins on-site, harvesting rainwater at projects, and using plastic mats for access roads.
3
Carillion also required subcontractors to report on waste generated and the percentages diverted from landfill.
4

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.