Business Ethics Analysis of the Dow Corning Corporation
Business Ethics Analysis of
The Dow Corning Corporation
BACKGROUND
Dow Corning Corporation began operating with Dow Chemical in 1943 when Dow Corning agreed to supply the silicone technology, while Dow Chemical supplied the manufacturing processes (Wilkicki and Craig). In the 1960s, Dow Corning began manufacturing silicone breast implants to use for reconstructive surgery of cancer patients and for breast augmentations. However, Dow Corning knew as early as the 1950s that silicone and silica used to produce breast implants was “bioreactive, immunogenic, toxic, and inflammatory” when exposed to the human body (Rumptz, Leland, McFaul, Solinski, and Pratt). Research has also found that implants can rupture occasionally and leak silicone fluid into the rest of the body possibly causing autoimmune disease, cancer, as well as numerous other symptoms (Hermes). In 1991, Dow Corning was considered to be an industry leader. The corporation distributed more than 4,500 silicon-based products to 45,000 customers throughout the world. During this time, silicone breast implant products accounted for approximately 1 percent of the corporation’s total sales. Dow Corning’s corporate headquarters were located in Midland, Michigan, but it also had production facilities in many other locations including Indiana, Kentucky, North Carolina, and numerous countries around the world Wilkicki and Craig). In 1983, the Food and Drug Administration (FDA) proposed a further study of Dow Corning’s breast implant products. One year later, in 1984, a woman who sued Dow Corning over its breast implant product was awarded $1.5 million. However, the court records were sealed, and Dow Corning continued production of the product. During hearings in 1990 and 1991, Dow Corning submitted 30,000 pages of information to the FDA to prove the safety and effectiveness of its products. Finally, on January 6, 1992, the FDA asked silicone manufacturers and medical practitioners
The Dow Corning Corporation
BACKGROUND
Dow Corning Corporation began operating with Dow Chemical in 1943 when Dow Corning agreed to supply the silicone technology, while Dow Chemical supplied the manufacturing processes (Wilkicki and Craig). In the 1960s, Dow Corning began manufacturing silicone breast implants to use for reconstructive surgery of cancer patients and for breast augmentations. However, Dow Corning knew as early as the 1950s that silicone and silica used to produce breast implants was “bioreactive, immunogenic, toxic, and inflammatory” when exposed to the human body (Rumptz, Leland, McFaul, Solinski, and Pratt). Research has also found that implants can rupture occasionally and leak silicone fluid into the rest of the body possibly causing autoimmune disease, cancer, as well as numerous other symptoms (Hermes). In 1991, Dow Corning was considered to be an industry leader. The corporation distributed more than 4,500 silicon-based products to 45,000 customers throughout the world. During this time, silicone breast implant products accounted for approximately 1 percent of the corporation’s total sales. Dow Corning’s corporate headquarters were located in Midland, Michigan, but it also had production facilities in many other locations including Indiana, Kentucky, North Carolina, and numerous countries around the world Wilkicki and Craig). In 1983, the Food and Drug Administration (FDA) proposed a further study of Dow Corning’s breast implant products. One year later, in 1984, a woman who sued Dow Corning over its breast implant product was awarded $1.5 million. However, the court records were sealed, and Dow Corning continued production of the product. During hearings in 1990 and 1991, Dow Corning submitted 30,000 pages of information to the FDA to prove the safety and effectiveness of its products. Finally, on January 6, 1992, the FDA asked silicone manufacturers and medical practitioners
Cited: Alexander, Richard. “Update on Breast Implants: The New Evidence Against DOW Chemical.” The Consumer Law Page, 2007 Wilkicki, Kathryn J. and Craig, Maureen L. “Dow Corning Corporation: Silicone Breast Implant Product Liability (A).” American Institute of Certified Public Accountants, 1999