When a business files papers of incorporation it acknowledges that its owners, management, and shareholders understand a commitment to social responsibility and will uphold to ethical and moral standards. While its incorporation indicates that financial feasibility and fiscal profit are at the forefront, it also suggests that management will operate within the framework of various entities and organizations associated with the business and at all times maintain integrity within the society it operates and the societies that benefit from its services or products. For the success of a business, it is imperative that communication between stakeholders be open and clear and that strong moral and ethical standards be upheld for the interest of both the business and the communities in which it has a presence. When this fails, fallout often affects an underserved populace that becomes exploited as a result of both primary and secondary situations. Such is the case of H.B. Fuller Company, an American manufacturer of industrial sealants, coatings, and adhesives. The H.B. Fuller Company ships its products to countries around the world, including the Central American countries of Guatemala and Honduras where street children acquire the products for illicit use. As a result of perceived lax social responsibility ethic, the company has been linked to what is termed Central America’s Children’s Substance Abuse Controversy.
Violation of social responsibility and ethics by an organization comes up when a company fails to attain a balance between its business endeavors and promoting the general well-being of the society. These conflicts arise as a result of the ethical dilemmas that may require a company to sacrifice aspects of its business operations to accommodate the comfort of the society in which it operates (Rossi, 2001). According to the social responsibility ideology, the actions of the business entity must strive to achieve results that enhance and benefit the whole society. Business equilibrium is attained through the balance of ultimate achievement and maintenance in the economic and social welfare of the constituents. Such is not the case with H.B. Fuller Company where there is a defined clash between its production activities and the street children of Central America (N’kaoua, 1993).
H.B Fuller is widely known for its production activities of adhesive products that are used by various business entities in the large and lower scale. The glues manufactured and distributed by H.B Fuller are used by carpenters, shoe manufacturers, leather workers and the shops associated with shoe repair on a small scale. Honduras and Guatemala form an enormous market base for the company (Velasquez). However, the glues which are easily attained, are widely misused by the street children in these countries. Readily available to the children, these addictive products are inhaled leading to numerous health and social challenges in the streets. As with any substance abuse problem, it requires a concerted effort and buy-in from all stakeholders. Aware of the issue and their role in the problem, H.B. Fuller invested massive resources toward the education of the children and other social responsibilities in the streets as a step toward to control and mitigation of the situation. Sensing failure to reduce the abuse of the substance among the street children, they also tried increasing product pricing and cancelled all small-scale product sales, with little effect on the social challenge that was underlying its operations (Velasquez).
While it is evident that H.B. Fuller made efforts to curb a growing problem in nations where it did business, its business practices within the framework of ethics must be evaluated. Ethics form an elemental part of a business entity. To some extent, the ethics also define the responsibilities of businesses in the communities their provide services. All business entities must be very sensitive and passionate to the people they perceive to be their support base. This can be achieved through the organizations taking care of all interest and matters that are intimate to the communities to promote the general comfort of the society (Rossi, 2001). The major role of ethics in this perspective is to provide a guideline for strategies in handling situations that may be of ethical magnitude. Where did ethics play a role in H.B. Fuller’s experience in Central America? Should they, could they, have responded sooner to the situation? Did fiscal responsibility to shareholders cloud ethical judgement of a situation that affected an impoverished people? Ethics provides businesses a framework for moral decisions that do not violate the values and principles of the societies to which they provide their services, without restricting the operations of the company. While making organizational decisions concerning matters of social interest, a company can incorporate the ethical protocols outlined by social standards as a practical way of appealing to the society (Rossi, 2001). Because their efforts to curb a growing problem were unsuccessful, it begs the question as to whether or not H.B. Fuller understood, and focused on, social responsibility.
Manufacturers must make decisions that enhance the level of their social security by reducing the amount of conflict that is likely to arise (Crane, 2008). In most situations, the manufacturers are strictly responsible for any social and ethical implications of their products, and upholding an obligation to protect society and the environment and meet the criteria of the law on production. For the manufacturer to portray a sustainable production culture, it is important that organizations balance these entities with its business objectives of optimizing its production. The manufacturers should also manage the extreme situations associated with ethical and social obligations by committing sufficient resources to the control of the situations (Rossi, 2001). However, in situations where a product of a manufacturer falls victim of a social conflict for another challenge that exists in the society as in the case of H.B. Fuller’s adhesives, it can absolve itself from the social responsibility if the corrective efforts do not bear sufficient fruit.
Corporate citizenship is an essential tool towards the management of the controversies that are identical to H.B. Fuller’s case (N’kaoua, 1993). Through corporate citizenship, business entities should embrace social responsibility through adhering to the economic, ethical and legal responsibilities. The major objective of this ideology is for the business entities to promote high living standards by enhancing the quality of life of the surrounding communities while upholding the ultimate profitability and viability for a business entity. The most practical and realistic way for a company to achieve corporate citizenship is through dedicating and committing sufficient resources for the corporate entities that require their attention (Crane, 2008). In this case, a good approach for H.B Fuller and companies with similar challenges is to identify the cause of the challenge and try to manage the controversy at that level. Dedicating monies toward education, and then stopping sales to the area will not make a difference if exploration of the root of the problem is not made. Identify how adhesives are getting on to the streets and in the hands of children. Work with local authorities to ensure that local business owners are following the laws and restricting access of said products to children. If no laws are in place that protect the children, H.B.Fuller and other companies need to work with national level government to draft laws that protect these children from exploitation. Social responsibility is everybody’s problem and the backlash to companies such as H.B. Fuller from issues such as this could be potentially greater than revoking sales to those nations where they fail to work to protect the lives of children. H.B. Fuller and other companies have a responsibility to look at both the issue and the bottom line and through judgement based on ethical and moral standards make a decision that best reflects the mission of the business and the well-being of the societies in which it does business.
- Velasquez, Manuel. H.B. Fuller and the Street Children of Central America. “Business Ethics: Concepts and Cases.”
N’kaoua, Laurence. “The Sweet Smell of Success.”CityPages Publication. 11 August, 1993. - Crane (2008). “The Oxford Handbook of Corporate Social Responsibility”
- Rossi, Alice (2001). “Caring and Doing for Others: Social Responsibility.” Chicago: University of Chicago Press.
