Product Liability and Innovation Managing Risk in an Uncertain Environment (1994) / Chapter Skim
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The Chemical Industry: Risk Management in Today's Product Liability Environment
The Chemical Industry: Risk Management in Today's Product Liability Environment
Pages 47-53
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From page 47... ...
Innovation in the supply of raw materials such as chemicals, plastics, fibers, and electronics has a dramatic effect on the ability of businesses and industries to innovate in making and selling improved and competitive finished products. RISK MANAGEMENT The manufacture of most raw materials and finished products requires the application of risk management skills.
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From page 48... ...
Every material that is proposed for development and eventually sold is initially and periodically thereafter subjected to a rigorous analysis for hazards related to safe transport and recommendations for safe handling and disposal. In addition, if a product, sodium cyanide, for example, has unique hazards that require a special level of customer sophistication, risk management procedures are designed to ensure that the customer meets these requirements.
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From page 49... ...
The principal responsibility of the product steward is to analyze the general hazards of the basic material related to safe transport, safe handling and disposal, employee safety, toxicity hazards, and environmental impact both during development and on an ongoing basis. The steward also certifies compliance with regulations and advises customers of the general hazardous properties inherent in the raw material; reviews material safety data sheets, labels, and product literature; visits the customer when necessary; and identifies anticipated future requirements and trends and helps adjust business strategies accordingly.
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From page 50... ...
This does not refer to breast implant litigation, in which DuPont has no involvement. Rather this refers to the current refusal of several raw material suppliers to sell any raw materials to companies or researchers working in the field of permanent medical implants such as artificial hearts, pacemakers, hip replacements, vascular grafts, and thousands of other useful finished products.
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From page 51... ...
Even if the raw material supplier is found innocent and without liability in all of the cases, it can cost millions of dollars in defense costs. The litigation tarnishes the reputation of the company, distracts employees from normal operations, and guarantees that employees will never pursue developing or selling products used in the medical device field.
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From page 52... ...
When mistakes are made and no laws are violated, there should be no incentive to invent evil intent. · The monetary incentive to achieve enormous financial gain through punitive damages and the destruction of the reputation of responsible companies and their employees must be stopped.
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From page 53... ...
Countries with different tort law systems will benefit sooner from these solutions and may indeed own them and export them to countries like the United States. Responsible behavior of companies is driven by the simple fact that such behavior is vital for continued business success.
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