Fuller Company was found in 1887, and is now a global manufacturer of Adhesives, sealants and other specialty chemicals. It has Operation in over 40 countries in the North America, Europe, Asia and Latin America. It was brought to the attention of the company, by newspaper articles, that children were abusing their products by inhaling. The glue contains TOLUENE, a sweet smelling chemical that destroys the inner organs and can result in death. Homeless children throughout Latin America had become addicted to inhaling the glue.
Company received total revenues of $1,243 billion in 1995 up from $1,097 billion in 1994. (Increase of $146 billion). They also had a thirty eight (38) million increase in profits between 1994 - 1995. Fifteen percent (15 %) of sales revenue came from its Latin America operations, which accounted for 27% of its profits. $450,000 profits a year from glue sales in Central America.
There was a suggestion to use Mustard seed oils was recommended, but was not implemented because it would not have shelf life required. In March 1989, legislation was passed which banned the product, but was later revoked.
Certain steps were taken to correct the problem, such as:.
o Employing social workers.
o Discontinued selling in small jars.
o Providing information to distributors.
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Identify the Ethical Issues. Is H. B. Fuller morally responsible for the addiction of the street children to the Resistol Product?.
The rights theory suggests that the consumers and society have a right to a safe product. It would then extend to suggest that H. B. Fuller had a duty to provide a safe product. The product when used correctly was "safe" however the firm failed to effectively educate persons on the correct use of the product.
In addition the firm in their rational not to exit the market applied the Utilitarian Theory. They sated that they had to remain in the market because of their contribution to the economic viability to the society.