-For this assignment, find a recent article describing an operational change that a company has gone through. Your example should relate to two topics: Value Streaming and thenrelate it ti Applying si

11/6/2019 U.S. Manufacturer H.B. Fuller Discloses Potential Sanctions V iolation - WSJ

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https://www.wsj.com/articles/u-s-manufacturer-h-b-fuller-discloses-potential-sanctions-violation-1 1569881020

RIS K & C OM PLIA N CE J OU RN AL

U .S . M an ufa ctu re r H .B . F u lle r D is c lo se s

P ote n tia l S an ctio n s V io la tio n

Min neso ta c o m pan y s a ys i t s h yg ie n e p ro d u cts w ere p oss ib ly r e so ld i n I r a n

H .B . F u lle r C o. , a U .S . m an ufa ctu re r o f a d hesiv es, s a id i t m ay h av e v io la te d U .S . e co n om ic

s a n ctio n s o n I r a n t h ro u gh t h e p ote n tia l r e sa le o f i t s p ro d u cts b y s o m e c u sto m ers o f i t s

s u bsid ia rie s.

T he S t. P au l, M in n., c o m pan y i n a r e g u la to ry ﬁ li n g s a id i t s h yg ie n e p ro d u cts w ere p oss ib ly

r e so ld i n to I r a n t h ro u gh c u sto m ers o f i t s s u bsid ia rie s b ase d i n T urk ey, s ta rtin g i n 2 0 11, a n d i n

I n dia , f r o m 2 0 14 .

H .B . F u lle r, w hic h m akes a d hesiv es u se d i n e le ctr o n ic s, f u rn it u re , c o n str u ctio n a n d d is p osa b le

b ab y d ia p ers , s a id i t m ad e a s e lf d is c lo su re o f t h e p oss ib le v io la tio n t o t h e U .S . T re a su ry

D ep artm en t’s O ﬃ ce o f F ore ig n A ss e ts C on tr o l, w hic h e n fo rc e s U .S . e co n om ic s a n ctio n s, i n

T he M ila d T ow er i n T eh ra n . H. B. F u lle r r e p ort e d t h at i t s h yg ie n e p ro d u cts w ere p oss ib ly r e so ld i n to I r a n t h ro u gh c u sto m ers o f i t s

s u bsid ia rie s. P HO TO : A LI M OHA MMADI B LO OM BER G N EW S

Sep t. 3 0 , 2 0 19 6 0 3 p m E T

B y M en gq i S u n 11/6/2019 U.S. Manufacturer H.B. Fuller Discloses Potential Sanctions V iolation - WSJ

https://www.wsj.com/articles/u-s-manufacturer-h-b-fuller-discloses-potential-sanctions-violation-1 1569881020 2/2

This copy is for your personal, non-commercial use only . To order presentation-ready copies for distribution to your colleagues, clients or customers visit

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Ja n uary 2 0 18 . T he c o m pan y s a id i t s to p ped s a le s t o t h ese c u sto m ers i n ﬁ sc a l 2 0 18 , a d din g t h e

co m pan y d oesn ’t c u rre n tly c o n du ct a n y b u sin ess i n I r a n .

Still, t h is c o u ld r e su lt i n a ﬁ ndin g t h at U .S . s a n ctio n s w ere v io la te d a n d p oss ib le p en alt ie s, t h e

co m pan y s a id i n i t s q u arte rly r e p ort ﬁ le d w it h t h e S ecu rit ie s a n d E xch an ge C om mis s io n l a st

w eek .

T he c o m pan y d is c o vere d t h e p ote n tia l v io la tio n

d u rin g a ﬁ nan cia l r e v ie w a n d h asn ’t r e ce iv ed a

r e sp on se f r o m O FA C, a cc o rd in g t o c o m pan y

sp okesw om an K im berle e S in cla ir . T he p oss ib le

v io la tio n c o u ld r e su lt i n m on eta ry p en alt ie s

ra n gin g f r o m z e ro t o $ 10 m illi o n , H .B . F u lle r s a id

in t h e ﬁ li n g.

“H .B . F u lle r n ev er s o ld a n y p ro d u cts i n to I r a n ,”

M s. S in cla ir s a id . “ A c u sto m er i n t h e M id dle E ast

d iv erte d a s m all a m ou n t o f b ab y d ia p er a d hesiv e

in to I r a n . W e i m med ia te ly a le rte d O FA C w hen w e

fo u n d o u t.” M s. S in cla ir s a id t h e c o m pan y

m an ufa ctu re s b ab y d ia p er a d hesiv es i n I n dia a n d

has a s a le s o ﬃ ce i n T urk ey.

T he c o m pan y s a id i n t h e ﬁ li n g t h at i t r e ta in ed l e g al c o u n se l t o c o n du ct a n i n te rn al i n vestig atio n

on t h e i s s u e i n 2 0 18 . M s. S in cla ir s a id t h e c o m pan y h as c o n clu ded i t s i n te rn al i n vestig atio n a n d

has s u bm it te d t h e r e su lt s a n d ﬁ ndin gs t o O FA C.

T he T ru m p a d m in is tr a tio n i n S ep te m ber i n cre a se d s a n ctio n s o n I r a n i n r e sp on se t o a tta ck s o n

crit ic a l o il s u ppli e s i n S au di A ra b ia . T he U .S . l a st w eek b la ck li s te d s e v era l C hin ese c o m pan ie s

fo r a lle g ed ly s h ip pin g I r a n ia n o il i n v io la tio n o f U .S . s a n ctio n s.

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