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Mona Sorya

Thomas Package

PH 305-D

November 24, 2015

Business Ethics: HB Fuller in Honduras

H.B Fuller is a leading manufacturer of paints and adhesives. The company has strong

market presence in the North and South America. Among its brands in the South American

market is Resistol. The product has a strong market position in South America, especially in

Honduras. However, the adhesive has chemical components that stimulate the brain and

cause irreversible damage. The product has gained a bad reputation in Honduras due to its

usage as a drug by street children. The company has come under sharp criticisms on whether

it should sell the product with the same addictive formulae. Ethical business practises demand

that corporations produce goods with highest safety standards and desist from activities that

portray irresponsibility.

From the case, it is clear that HB Fuller is facing a dilemma on what should be done

in Honduras to stop the abuse of Resistol. There exists evidence that the drug has ruined the

lives of many homeless children in the country. Various parties raised questions about the

legality of the company’s actions and the ethical angle that the company was using to sell the

product. It is thus important to analyse the company’s position regarding the sale of Resistol.

HB Fuller mission statement stipulates that the company works with a profit motive to

satisfy its stockholders, service to customers and corporate responsibility. Production of

Resistol is highly profitable to the company as it enjoys near monopoly status in Honduras.

However, it is the corporate responsibility part that defines whether it should keep on
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producing Resistol or not. A decision involves weighing the economic benefits arising from

its production versus the social problems arising from its abuse.

The company management argues that the company has the moral right to produce

Resistol since it is meant to be used as an adhesive. The fact that it contains substances that

can be abused does not influence or affect the company’s interest. The moral obligation of the

company is to ensure that the product meets the required standards for its genuine use.

However, it should consider the morality of having toxic substances that can be abused in its

product. The fact that the company does not owe the duty of care to abusers is not an excuse

to ignore the social and moral issues that come with the usage of Resistol.

It is morally inappropriate to continue manufacturing Resistol in the current

composition. It is the obligation of companies to ensure the safety of their products. Resistol

is a dangerous product, with dangerous chemical substances that can be used a drug. As such,

the product is not suitable to be used by humans. It is difficult to prevent the children from

obtaining the product since it is not classified as a drug. It is only ethical to ensure that the

composition of the adhesive is safe.

The company cites strong brand and profitability for its unwillingness to withdraw

Resistol from the market. However, the knowledge that the product has addictive properties

could have triggered a deterrent mechanism from the start. Donaldson’s question on how

corporations behaves when facing different ethical requirements is at play in the case.

Companies in the US are required to include deterrent mechanisms, such as mustard oil, in

products that are susceptible to abuse. Being a company registered in the US, HB Fuller

chose to apply double standards in Honduras.

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Donaldson asserts that international businesses can invoke ethical imperialism.

Ethical imperialism implies that a company is expected to behave everywhere as it would at

home (478). In this case, HB Fuller was obligated to include a deterrent is Resistol to prevent

abuse in the Honduran market as it would do in the US market. The social problems arising

from the abuse of Resistol in Honduras would be prevented by having similar ethical

standards as those in the United States. Hence, HB Fuller has no moral right to hold on to the

current composition.

Responsible corporate citizens are required to uphold key human values, which

determine the ethical nature of businesses. There is a consensus among theorists and common

sense that respect for human health is a parameter of determining business ethics. It is clear

that the damage that Resistol causes irreversible brain damage to people who abuse it.

Hence, it is a moral obligation of the company to remove the chemical components that cause

the damage or addiction. Producing safe products is one way of showing respect for human

health, and hence ethical behaviour.

The current composition of Resistol gives it two uses; as an adhesive and as a drug. It

follows that the product is purchased in Honduras for the two purposes and thus increasing

the company’s sales. In essence, the company benefits from unjust business practises. By

making the product in the current composition, the company disregards the moral principle of

not benefiting from injustice (Donaldson et al. 5). It is thus important to change the

composition so as to prohibit the purchase of the product for the wrong purpose.

HB Fuller management is sincere about finding a deterrent to abuse of its products.

The company considered the inclusion of toxic substances that would discourage sniffing the

glue. However, the push to change the composition was hijacked and a new strategy of
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community awareness adopted. Community education may not be a sure way eliminating the

problems. The company should instead withdraw the product from the market until an

alternative composition is found.

Withdrawing the product from the market would significantly uphold the ethical and

moral stand of the business. There is no point of having a strong brand that has strong

negative consequences. The public outrage about the ‘Resistoleros’ situation does the

company more harm than good. In fact, it show that company’s ‘’don’t care attitude’’

towards that children affected by the glue. Withdrawing the product for serious

considerations about the composition would go a long way in rebuilding the reputation of the

brand.

Resistol has gained a bad reputation and ‘’Resistoleros” is synonymous to drug abuse.

The perception taints the image and the name of the brand. As such, the company can benefit

by changing the composition of the product, and rebranding. Rebranding would cost the

company a lot of resources and markets share but would be worth it to uphold its integrity.

The uproar about the harmful nature of Resistol can cause buyer apathy and hence offering a

free marketing tool for competitors. The company can introduce water-based products that

cannot be abused. Investing in research and development is crucial as long as it helps the

organization live to its ethical stand as expressed in the mission statement.

Changing the composition of Resistol is that people will detect the socially

responsible behaviour. Donaldson explains that consumers can develop a taste of socially

responsible behaviour in an organization (272). In the wake of calls to ban the glue, the

company can maintain its moral standing by admitting the flaws of the current composition.

Despite the costs that may come with the change, consumers are likely to prefer the
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company’s product, just to support its moral and ethical standing. Also, it would show that

the corporation is mindful of its customers and also the wider social wellbeing of the people.

Despite the fact that corporations make products for a particular purpose, they should

determine other possible uses that may be unwarranted. The primary objective is to ensure

that products are safe to use. HB Fuller used deceit in supplying Resistol to the market. From

the case, the management had full knowledge of the possibility of abuse of the product and

went ahead to supply it. Using a Kantian consequence-based approach, it is unethical for the

company to offer its products to the Honduras market when it has full information about its

consequences (Holmes 119). The company thrived on a habit of deceit by not providing the

safest product.

In conclusion, ethical behaviour of a company can influence the success of a company

in a particular market. The case of abuse of Resistol in South America is an example of an

ethical dilemma that multinational corporations find themselves in when operating in foreign

markets. It is also an example of how multinational corporations apply double standards in

their practices. For example, HB Fuller would not offer Resistol in the United States.

Exploiting differences in countries legal framework or norms only shows the unethical nature

of the company. As such, it should cease production of Resistol suing the current formula.

Protecting the children of Honduras should be one of the objectives of introducing a new

formula.
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References

Donaldson, Thomas, Patricia H. Werhane, and Margaret Cording. Ethical Issues in Business:

A Philosophical Approach. 8th ed. Upper Saddle River, N.J: Prentice Hall, 2008. Print.

Holmes, Robert L. Basic Moral Philosophy. Belmont, Calif: Wadsworth Publications, 2007.

Print.