H.B.

Fuller and The Street Children of

Central America
Syndicate - 9
✓ Jenjang Satriyo Utomo
✓ Abdul Karim Soleh
✓ Fadila Pratika HS Alimuddin
✓ Rifqi Agustin Hakim
✓ Joobu Wahyudi
Background
Honduras & Guatemala

▪ Honduras in 1993, GDP of only $1950 and unemployment of 20%. Guatemala GDP $3000 and
unemployment of 15%.
▪ More than a third of population is below poverty.
▪ Family life is unstable, children being abandon by family and become city street begging.
▪ These children are sniffing glue to make them feel comfortable and happy

H.B.Fuller

▪ H.B.Fuller S.A is a company that made and distributed adhesive products in Central
America, a subsidiary of Kativo Chemical Industries company.
▪ They produce and distribute glue products named Resistol which containing toluene.
▪ These toluene-based glue widely used throughout Latin America by shoe
manufactures, leather workers, carpenters, furniture makers and small shoe repairs
shops.

Resistol (Toluene)

▪ Toluene used a solvent for the ingredients that destroys the thin layers of fat surround nerves.
▪ Occasional inhalation impact will be nosebleeds, severe neurological dysfunction, brain
atrophy, loss of liver and kidney function.
▪ Prolonged use can result blindness, diminished brain function and death.
 H.B.Fuller Timeline of Actions

1989 1991 1992 1993 1994 1995

Control the 16th July 1992, Sept,1993, H.B.Fuller H.B.Fuller claimed
Found lied on the neither
distribution by H.B.Fuller stop H.B.Fuller had decided to
data shown effec manufactured nor
prohibiting sale to selling resistol stopped selling change the
tiveness and carc sold Resistol.
children, educate adhesives in glue to retailers, chemical
inogenic issue. They also claimed
kids on the Central America. only to industrial formula of its
dangers of inhaling customers. glue to make it that it was
glue, support less attractive subsidiary of the
social workers to to children and company in
work with street also increase Central America
children. the price by that actually made
Lobbied 30%. and sold Resistol.
government to
revoke law on
banned importing
and manufacturing
solvent based
resistol.
Ethical Analysis – H.B.Fuller
Actions
1989, Control the distribution by prohibiting sale to
children, educate kids on the dangers of inhaling glue,
support social workers to work with street children.
1989, Lobbied the Government to revoke law on bann
ed importing or manufacturing solvent based Resistol
1991, Found lied on the data shown effectiveness and
carcinogenic issue.
1992-1993, stop selling resistol adhesives and manag
e to stop retailers distributions
1995, Change the formula to make it less attractive to
children and increase price to 30%
Consequences
✓ Balancing multiple stakeholders by serving society (+)
✓ Unethical to still have profit for the business
✓ Company reputation
✓ Unethical business act
✓ Ethical to sacrifice profit to safe the community
✓ Sacrifice of losing customers
✓ Minimize misuse of the products.
Ethical Analysis – Government
Actions Consequences
In 1989, Honduran law on banned importing or ✓ Protection of society
manufacturing solvent based Resistol ✓ Impact to foreign investor
✓ Decreasing the GDP
In 1989, Honduran law has revoke its rules ✓ H.B Fuller can continue the business
✓ H.B Fuller must change its business concept
✓ There will still potential street children to do everything they can to get
glues
Numerous cases of children being detained and ✓ Cross the law and social norms
beaten by police by sniffing glue and mutilated ✓ Human rights issue
bodies of street boys in 1990 were later traced to
government-issued gun.
H.B.Fuller is not responsible for the addiction of street children to its
resistol products, but it’s the social conditions to blame.
▪ H.B.Fuller is a global company that had operations in
over 40 countries in North America, Europe, Asia
and Latin America, and no issue in other countries.
▪ The H.B. Fuller glue abused only happened in
Honduras and Guatemala.
▪ H.B.Fuller is control the distribution by prohibiting
sale to children, educate kids on the dangers of
inhaling glue, support social workers to work with
street children.
Government Action on the case
▪ In 1989, Honduran law prohibited sale of
01
toluene based products to children
▪ Numerous cases of children being
detained and beaten by police by sniffing
glue.
▪ Mutilated bodies of street boys in 1990
were later traced to government-issued
gun.
Parent Company wasn’t responsible
for the activities of its subsidiaries
▪ In 1996, Ruth Linares Polanco, a Guatemalan
citizen, has brought case of Joel Polanco, a si
xteen-year-old Guatemalan boy who died in J
anuary 1993, to US Court.
▪ US Court finally decided that they does not
have subject matter jurisdiction over this case
based upon diversity because Fuller-US
cannot be sued for the acts of its subsidiary,
and because as manufacturer of the glue,
Fuller-Guatemala is an indispensable party
▪ Nonetheless, even if the Court had subject ma
tter jurisdiction over this suit, the Court would
exercise its discretion and dismiss the case u
nder the doctrine of forum non conveniens as
it is more appropriate that this case be tried in
Guatemala.
 03 The Action that H.B.Fuller should have
done but it did not do :
H.B.Fuller didn’t conduct itself in a morally
▪ H.B.Fuller should have followed Testor Report
to use mustard-seed oil on their product earlier.
02 appropriate manner :

▪ H.B.Fuller should not lied on the data about ▪ H.B.Fuller taking actions on the case after years being
mustard seed oil. pressured by child advocate group in Central America &
US Government.
▪ In 1989, Honduran law banned importing or
manufacturing solvent-based adhesives that didn’t contain
mustard-seed oil.
▪ H.B Fuller pushed to follow Testor by adding mustard-
seed oil into the product.
▪ But, H.B.Fuller subsidiary lobbied the government to have
the law revoked and claimed they have data that the
mustard-seed oil might reduce the glue’s effectiveness
and also carcinogenic.
▪ In 1991, a journalist investigation revealed that
H.B.Fuller’s claim on mustard-seed oil was a lied.

https://law.justia.com/cases/federal/district-courts/FSupp/941/1512/2354252/
Thank you
 Story Line
H. B. Fuller and the Street Children of Central America HB Fuller
lobbied the governm
Child advocates a The government ent to have the law r
The Government nd social workers banned importing or evoked with the rea
HB Fuller Advocate groups son :
For several years th Sell toluene argued HB Fuller m manufacturing solve
e countries have ha Pressured to HB Ful ust follow the succe nt-based adhesives - Based on fuller d
based on gl ler about the glues u ata potentially car
d large deficit budge ue ss story (company that did not contain
ts 2 se by homeless chil which makes and m mustard-seed oil cinogenic
dren in Latin Americ arkets glues in the
5 - mustard seed oil
1 a for high had a short shelf
United States using
seed oil) life
3 - Government sho
4
uld attempt to co
10 6 ntrol distribution
11
HB Fuller
8 9 - Discontinued selling the glu HB Fuller
7 The Governm Journalist i The Governm e in small jars, - The company decided to ch
ent nvestigatin ent - paying for the support of se ange the chemical formula of
The new law b g Prohibited sale Wrong Action
veral social workers to work its glue to make it less attract
e scrapped an That “there i of toluene-bas with street children, ive t o children
d that the gove s no official s ed products to - providing information - Blame to Subsidiary of a su
rnment should tudy” mustar children Right Action
- argued that the problem did bsidiary of the company in C
concentrate on d-seed oil far not lie with its glue, but with t entral America that had actu
controlling distr from being c he “social conditions” that led ally made and sold Resistor
ibution arcinogenic children to misuse it.