Page of 3 ZOOM
Bausch & Lomb’s Hazardous Contact Lens Cleaner
In 2005 cases of fungal infection began to surface which were seemingly linked to a
contact lens cleaning product. In early 2006, Bausch & Lomb suspended sales of ReNu with
MoistureLoc® in Singapore and Hong Kong, but not in the U.S. On April 13, 2006, Bausch &
Lomb (B&L) CEO Ron Zarrella indicated that B&L would not be recalling their soft contact lens
cleaner Renu with MoistureLoc. Drugstores in the United States were, however, removing the
product from their shelves due to a concern over reported infections related to Fusarium
keratitis, a fungus frequently found in drains and sinks. Zarrella went on to say that Renu kills
the fungus that causes the infection, and he was considering how to rebuild the brand and
mitigate the "ripple effect" caused to other B&L products. Up to April 12, B&L’s shares had
fallen by 7% due to these health concerns.
On May 31, 2006, B&L indicated that it was halting worldwide sales of Renu because
tests showed that misuse could cause blindness due to Fusarium fungal infection. "B&L said it
appeared common, if frowned-upon, lens care practices—like topping off solution in storage
instead of replacing it—could leave a film on lenses that shielded Fusarium from the sterilizing
agent in MoistureLoc." The company also found unacceptable manufacturing practices in the
company’s Greenville, South Carolina, factory, but said they did not relate to the infection
problem.
When Zarrella was first questioned, he knew that there had been a number of incidents of
infection in Hong Kong, which B&L had reported to the U.S. Centers for Disease Control and
Prevention in December 2005, as well as other reports in the United States. However, another
product from the Greenville plant was also implicated. Although the incidence of infection were
five times higher for Renu than for any other cleaner, the evidence was not enough to halt
production and sales.
At the time, lens care contributed 20% of the company’s revenue, which had amounted to
$1.75 billion in the first nine months of 2006. When the recall was announced, the company’s
stock rose 12.7% but was $10 below its early April level. Lawsuits subsequently occurred.
References
Sources: Juliann Walsh and Duncan Moore, "Bausch & Lomb Refuses to Recall Suspect Lens
Cleaner," Toronto Star, April 13, 2006, C4; Barnaby J. Feder, "Bausch & Lomb Halting Lens
Cleaner Sales Worldwide," International Herald Tribune, May 31, 2006.
REQUIRED:
• Complete this assignment individually. This is NOT a group assignment.
• Demonstrate your decision-making processes and understanding of ethics in the business
environment.
• You should provide a well-organized thoughtful discussion which addresses
o How/why did the product create an ethical dilemma for the company or its
management
o What alternatives did the company or its management have for handling the product
issue? Identify and analyze at least three alternatives.
o How/why might product issues impact a company’s financial performance
o Recommendations for companies and managers when facing these or other issues
• Include at least two sources, appropriately cited and referenced. Use APA formatting.
Submission
• Limit your submission to about two pages.
• Your responses must demonstrate graduate level knowledge and communication skills.
• Format the paper using a standard font: Times New Roman, Courier, or Arial; a standard
font size: 10, 11 or 12; indent each new paragraph; double space; and a one-inch margin
on all sides. Use the page break feature and include a reference page.
• Use Microsoft Word when submitting your paper. Spell check/grammar check.
• Do NOT submit a PDF file or file type other than Word.