Manville Corp., World Leader in the Asbestos Industry (A)

  • Reference: BE-159-E

  • Number of pages: 15

  • Geographic Setting: Estados Unidos

  • Publication Date: Jan 12, 2006

  • Source: IESE (España)

  • Type of Document: Case

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Despite being the world leader in the asbestos industry, with a continuing high level of economic results, Manville Corp. is on the verge of bankruptcy. The reason is an accumulation of sentences for damages to empoyees and users of its products through the inhalation of asbestos fibers, as well as a large number of pending legal processes, which could result in further negative sentences. Furthermore, there is a set of regulations requiring enormous financial provisions to cover possible indemnizations. The case explains in detail how the company came to be in this situation, and allows the analysis of a number of ethically questionable actions, and a range of company responsibilities. The case also discusses how to deal with the crisis, and possible future actions.

Learning Objective

Discussion of ethical issues and responsibilities. Crisis management and turnaround strategy.

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