July 19, 2004
By People's Daily Online
(China)
Dupont non-stick
cookware completely safe: Interview
with Chad Holliday,
Chairman and CEO of Dupont.
American Environmental Protection Agency (EPA)
has issued a complaint against DuPont a few days ago, alleging that this U.S.
chemical giant failed to report potential health risks from a chemical used
to make Teflon. And it is reported that once the EPA judge rules against DuPont,
Dupont would be fined a large sum of money.
Surprisingly the Teflon case in America has developed into a Teflon crisis
in China, where many consumers believe that their non-stick cookware produced
with DuPont Teflon coatings are likely to cause cancer. And the rumor is spreading
like wildfire.
In order to make Chinese consumers better informed on this case, Yong Tang,
People's Daily correspondent based in Washington DC, has recently conducted
an exclusive interview with DuPont Chairman and CEO
Chad Holliday.
Yong Tang: There is lots of press coverage about this
Teflon event, especially in China. It seems like a publicity disaster for
DuPont, a long-time model of safety and health. Is there any development on
this case so far?
Holliday: First, let me say that our company believes that we have been forthright
and have reported all appropriate information to the Environmental Protection
Agency (EPA) regarding PFOA, an essential processing aid used to make fluoropolymers
- some of which we sell under the Teflon(r) brand.
Our 202-year heritage is based on a commitment to safety and high ethical
standards. We value our worldwide reputation as a responsible company and
will defend our position.
It is very important to note that EPA's announcement is not about the safety
of our products, but is about a dispute between EPA and DuPont on reporting
requirements. Our products are safe - even EPA has concluded that consumers
should not stop using products because of concerns about PFOA-and other U.S.
agencies have reached similar conclusions.
Yong Tang: If the EPA judge rules against DuPont, will
you appeal to the US Appeals Court?
Holliday: We believe that we acted appropriately and will vigorously defend
our position. We trust that an Administrative Law Judge in EPA will agree
with us. Should that not occur, we will appeal the decision to a U.S. Appeals
Court.
Yong Tang: How do you predict the outcome of this case?
Holliday: I can't predict an outcome, and out of respect for the process I
will not speculate on what may happen. But, I believe that we will resolve
the issues within the EPA process or in a final court judgment. We are confident
that we acted appropriately.
Yong Tang: Chinese consumers are scared by the potentially
dangerous non-stick cookware. Chinese officials said they plan to inspect
non-stick cookware to see if they are safe or not. There is wild speculation
in China today that this Dupont-made cookware may cause cancer. How do you
clarify on this?
Holliday: We have conclusive scientific data that cookware produced with DuPont
Teflon(r) non-stick surfaces is completely safe for consumers and does not
contain PFOA. As mentioned earlier, the EPA and a number of other U.S. Federal
agencies have not called for consumers to stop using these products. The
Chinese people can be confident in the safety of our products. We stake the
reputation of our company on this statement.
Yong Tang: How do you assess the damages this incident
may cause to the reputation of DuPont? How do you cope with that challenge?
Holliday: We are disappointed that anyone has called the safety of our products
into question. Safety and our commitment to the health of people and the environment
have been a cornerstone of our business success for over 200 years. We will
do all we can to address the questions that have been raised - to make sure
that the facts are available to all who have questions. In the final analysis,
it is our performance that will be the ultimate metric and I am confident
that consumers will see our company as a honest, forthright company that is
focused on improving the lives of people throughout the world.
Yong Tang: Recently I have investigated some supermarkets
here in Washington DC. Most cookware salespersons told me that their non-stick
cookware sales were still strong. Many American people even don't know this
case at all. It seems that most American consumers have reacted to this EPA
case much less emotionally than their Chinese counterparts. Why is there such
a big difference? Do you think DuPont needs to establish a crisis management
system to adapt to such differences?
Holliday: DuPont is the leading supplier of non-stick coated cookware in the
United States. Teflon is a premium DuPont brand. About
80 percent of the cookware sold and used in the U.S. is non-stick.
This has been consistent for years. The continued use of coated cookware in
the U.S. demonstrates that consumers trust these products. This is particularly
true because of DuPont's reputation for quality and safety - and the Teflon
brand.
DuPont Teflon non-stick coatings for cookware were introduced
in the U.S. in 1962. Since then, consumers have safely used these products
and have confidence and trust in their own experiences and our company. Consumers
state that their primary reasons for purchasing non-stick cookware coated
with Teflon relate to confidence, convenience, and the greatest attributes
of Teflon-durability and quality.
Regarding your question about the differing consumer reactions, I can relate
our 40 years of consumer experience in the U.S. However, I am not in a position
to speculate on the reaction in China.
Yong Tang: According to a report, 62% of American companies
could survive no more than five years, 2% could live up to 50 years. Even
most of companies listed among Fortune 500 only have a longevity of about
40 to 50 years. Only DuPont has a long history of more than 200 years, the
oldest company listed among the Fortune Global 500. What is the secret of
this overwhelming longevity?
Holliday: Conducting our business on the foundation of our core values-commitment
to safety and health; environmental stewardship; high ethical standards; and
respectful treatment of people -- is essential. These values apply throughout
the world; they underpin our culture, our people, our businesses and guide
our thinking about our products. If you cannot live by these values, you cannot
work for DuPont. DuPont also has been able to transform itself several times
over 200-plus years in response to changing market conditions and business
opportunities. This also has been critical to our longevity.
Yong Tang: DuPont has long regarded safety as a core
value. According to a report, the first thing that a new Dupont employee will
do when he gets employed is to receive safety training. I know you also have
ten safety principals. It is reported that the safety record of DuPont is
10 times better than other industrial companies. DuPont employees are 10 times
safer during the work than after the work. Why does DuPont pay so much attention
to safety?
Holliday:Safety is fundamental to our culture and our success. It originated
with our founder over 200 years ago and became an essential part of our business
and personal lives. We are proud of our safety record and the recognition
it has created and deserves throughout our history. It has allowed us to manage
uniquely difficult processes and operations around the world with the consent
and the support of the communities that we are located in.
Our customers maintain the same level of confidence in us regarding the safety,
quality and continuity of the products we provide for them. In the final analysis,
it makes perfect business sense to excel at safety - for the protection of
our employees, our customers, consumers and the public. It is without question
a competitive advantage for any business - especially DuPont.
Yong Tang: A number of major DuPont innovations including
Nylons, Teflon and LYCRA have changed our life tremendously. As an old company,
how can Dupont maintain a mechanism to guarantee everlasting ability and incentive
to innovate?
Holliday: We look back at our heritage with great confidence. Those who went
before us - as we are today - took important steps to change DuPont to provide
a lasting future. We know that through our people, we will use science and
innovation to renew our company to provide products that continue to improve
the lives of people everywhere. We are aggressively transforming DuPont to
provide new and exciting products in markets - such as yours - in China that
meet the needs of the fast paced growth you are experiencing. We value our
relationship with your wonderful country and its people and we will do all
we can to maintain that relationship - we see science and innovation as a
critical component to our continuing success in your country and around the
world.
Our vision is to be the world's most dynamic science company, creating
sustainable solutions essential to a better, safer, healthier life
for people everywhere. We can, and will fulfill that vision.
Yong Tang: As a global enterprise, during the process
of operation, the goal of profit will unavoidably collide with the basic values
of an enterprise. You said on the DuPont homepage that DuPont succeeds everywhere
in the world by holding principals while not hampering basic values, without
exception even in those areas where corruption is an integral part of business.
How could DuPont achieve this?
Holliday: We are a company of over 55,000 employees operating in 70 countries
around the world - each employee is expected to conduct the business of our
company consistent with our core values. It is our culture, our tradition
over many years and is a well-known condition of employment.
Yong Tang: Recently DuPont said it will strive toward
a sustainable growth that not only adds stockholder and social values but
also reduces DuPont's footprint in the environment. DuPont maintains that
a sustainable growth should not be considered as a plan to improve the environmental
quality but an overall method of doing business, which may generate greater
economic values. I could not understand this point: why and how could the
investment in environmental programs bring about promising business returns?
Holliday: Our transformation to become a sustainable growth company is much
more fundamental than simply reducing our environmental footprint - even though
that is very important. It involves changing the way we create value. We're
moving away from a company that is driven primarily by material, energy and
capital to one where knowledge and service are increasingly important. It
also involves greater use of new and important technologies like biotechnology
to complement our existing strengths in chemistry and materials science.
Another important aspect of sustainable growth is our access to and interactions
with world leaders.
We are extending and broadening our relationships with global thought leaders
and non-government organizations to both seek guidance and oversight as well
as to form partnerships to bring our technology and resources to a greater
percentage of the world's people than we do today.
Sustainable growth is a mission that we see as essential for a viable future
and the longevity of our company.
Yong Tang: DuPont has a good record in human resources
management. DuPont has been ranked the best employer in America, Canada, Spain,
Belgium, Singapore and Brazil. It has been ranked among the top 50 companies
by Professional Mothers Magazine; Children Magazine has ranked DuPont as one
of the top 30 big companies which professional fathers like best; DuPont has
also been listed as the Best Employer for Women and Parents by the Wall Street
Journal; DuPont has been ranked in China among the top 30 companies which
many Chinese college graduates prefer to choose as their employer. What position
does an employee have in DuPont's overall growth strategy? How does Dupont
help its employees grow together with the company?
Holliday: Thank you for this question. We are very proud of who we are as
a company. DuPont is a great global enterprise - comprised of highly talented
people from all over the world. We are equally proud of our heritage; of who
we are as a company today; and of where we know this great company will go
in the future. All of the commendations and recognition that you have listed
above support the fact that we are focused on all of our stakeholders. I am
deeply honored to lead such a respected and admired enterprise.
We respect our employees and treat them as one of our most valued stakeholders
in our company. Our growth objectives provide the basis for who and how we
comprise our employee workforce. To be a global company, we have to have global
perspectives. One clear way is to hire locally and develop those employees
into leaders in local markets. We are fully dedicated to that goal.
We also encourage our employees to continue to add to their skills and knowledge
and we give their voices power and importance in the critical decisions we
make.
Change is often difficult. When we manage change that affects our employees,
we are committed to meeting their needs - with respect. After all, it is our
people who make DuPont successful.
Yong Tang: Dupont was originated from an explosive factory.
But today nobody could smell a hint of gunpowder in its plants. Over the last
200 years Dupont has witnessed three major transformations: from explosives
to chemical and industrial products, then to bio-technology, new technology
and many other innovative products arising from the combination of many updated
technologies. What kind of company will Dupont become in the foreseeable future?
Holliday: Our vision is to be the world's most dynamic science company, creating
sustainable solutions essential to a better, safer, healthier life for people
everywhere. We can, and will fulfill that vision. Thanks for the opportunity
to address your questions. (END)
