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Business - Case 4 HB Fuller.docx

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Western University
Philosophy 2074F/G
Michael Herbert

HB FULLER IN HONDURAS: STREET CHILDREN AND SUBSTANCE ABUSE  Kativo Chemical Industries, a wholly owned foreign subsidiary of HB Fuller sells a solvent based adhesive in several countries in Latin America called Resistol  Came to the companies attention that street children in the central American country of Honduras were sniffing glue and that Resistol was among the glues being abused  The glue has properties that are not possible to attain with a water based formula  Resistol is similar to airplane glue  Widespread inhalant abuse can be attributed to the depth of poverty there  That the name of a Fuller product should be identified with a social problem was matter of great concern the company was widely known as a socially responsible corporation  Beto had a reputation for emphasizing the importance of making the bottom line that was an important part of the Kativo corporate culture  Attempts to persuade the Honduran legislation not to require the addition of oil of mustard to its glue  Staff found evidence that indicated that oil of mustard was a carcinogen and hence was potentially dangerous to employees and consumers  Stockholder’s question was how can a company like HB Fuller claim to have a social conscience and continue to sell Resistol which is literally burning out the brains of children in Latin America  Johnson knew that headquarters should become actively involved in addressing the problem CASE 4 - SHOULD WAL-MART DO MORE?  Wal Marts Global Procurement Organization was formed in 2002 and took ownership of Wal Marts Global Factory Certification Program, which had existed for 10 years and managed the ethical conduct of Wal Marts s
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