Executive Summary

Being Competitive (And Ethical) - The Fuller Way

Walter Kissling
President & COO of H.B. Fuller Company

January 1995

Companies are not all alike. Some are more competitive than others. (The competitive ones stay in business). Some also are more ethical than others. At H.B. Fuller Company, our objective is to be competitive and ethical.

Being competitive is fundamental. If we are to continue as company, we must be as good or better than our competitors - and we must remain profitable.

That’s why we place a lot of emphasis on sales growth and on operating efficiently. It’s why we emphasize customer service and why we’re continually investing in the development of new products and technology.

As we look to the future, our sales and earnings goals will continue to be aggressive and challenging. To accomplish them will require the best qualities and skills that every member of our enterprise can offer.

Even as our attention is focused on the achievement of our business goals, at H.B. Fuller Company we recognize we also have some basic responsibilities to society. A large part of that is an obligation to conduct our business in a legal and ethical manner - all the time, under all conditions, everywhere.

This represents a major challenge for any company that operates a highly competitive environment.

Today’s business world is in constant change, but our value system continues as our basic foundation. Our ethics, our moral standards are not just a new fad. They aren’t just stated to match up with today’s political correctness. They have been built slowly, patiently and steadily for more than 60 years.

Operating our company "the Fuller way" has brought us a favorable reputation with our customers. It has brought us praise from investors and allowed us to develop a very special relationship with our employees. We have been able to maintain the high road of behavior while growing as a company in both earnings and sales.

We are proud of our record. To maintain and build upon our record, our value system must continually be practiced throughout H.B. Fuller - at every level, in every plant, in every country. There can be no exceptions.

The idea of ethical behavior is not new to any of the Fuller people. All of us know what H.B. Fuller Company aspires to be. We all know how we are expected to act.

Associates have followed certain principles for many years. Now we’ve put them in writing in a book entitled The Fuller Way and distributed it to all our managers.

The book, The Fuller Way, is intended as a guidebook for our managers. It’s intended to help managers keep our company on course. Copies also are available to all employees in their lunchroom reading racks. A condensed version also has been distributed to employees.

Once each year we also ask all managers to study and sign our Policies on Ethical Conduct. I remind them not to be casual or careless about this. If there are questions, they must be answered; issues must be discussed and conflicts must be resolved.

Just as important as what we achieve is how we achieve it.

Our Corporate Mission Statement has three sentences: 1) describes our business focus: "…to be a leading and profitable worldwide formulator, manufacturer and marketer of quality specialty chemicals, emphasizing service to customers and managed in accordance with a strategic plan." 2) states our responsibilities: "…in order or priority, to our customers, employees, shareholders and communities." 3) defines who we are: "H.B. Fuller will conduct business legally and ethically, support the activities of its employees in their communities and be a responsible corporate citizen.

These three sentences define our course, not always the easiest of paths, but the path we have chosen and will continue to choose.

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