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