In 1982 seven people died in chicago after taking Tylenol capsules made by Johns
ID: 350390 • Letter: I
Question
In 1982 seven people died in chicago after taking Tylenol capsules made by Johnson&Johnson investigation revealed that this was sabotage. The Tylenol bottles had been tampered with and the capsules had been laced with cyanide poison.
The investigation cleared Johnson and Johnsoon from any wrong doing.
However, James Burke, the company's chairman made the financial risky decisoin to recall the entire stock of Tylenol from the slues of all the pharmacies where the product was sold.
It should be noted that prior to 1982 nobody had ever recalled anything. In fact a similar scandal involved The Ford Pinto car in the 70s. Low speed rear end collisions ignited fires causing victims to burn to death. The Ford Company fought numerous law suits of failing to make the pinto safer for about seven years and it did so, successfully!
Management's recall of the Tylenol cost Johnson & Johnson close to $300 million in present value dollars.
Required
A. State and consider each of the three guiding ethical criteria. Examine ant possible convergence between them, leading in support of Burke's decision.
B. Consider Johnson & Johnson 's mission statement. In particular the customer component .
C. " Who is responsible for society ?" State the answer provided by each of the three different socioeconomic views.
Explanation / Answer
johnson & Johnson is committed to legal compliance and upholding the highest ethical standards in every aspect of our business and in every market where we operate. By conducting business with integrity, we sustain the trust of our patients, health care providers, customers, partners and the communities we serve; and reinforce shareholder and investor confidence in the long-term health of our business
Johnson & Johnson markets a broad range of health care products from our Consumer, Pharmaceutical and Medical Devices business segments throughout the world. We do not sell or market products that are banned within markets products developed and commercialized through our Pharmaceutical and Medical Devices businesses meet all applicable laws regarding package inserts, which contain appropriate information for health care professionals and patients. For over-the-counter pharmaceutical products, packaging and inserts are likewise used to communicate with consumers. Our Consumer products include clear, easy-to-read instructions and information on how to use our products appropriately
The Company is committed to marketing all products responsibly to honor the trust that consumers place in us in choosing our products and to ensure efficient markets. Lawsuits, claims regarding commercial and other matters, governmental investigations, and other legal proceedings arise from time to time in the ordinary course of business.
The mission statement has been defined in several ways by many authors (Table 1). However, they have all emphasized its role as an enduring statement of purpose for organizations that identifies the scope of operations in product and market terms and reflects the organization’s values and priorities. For instance, Drucker (1974) argued that a specific business is not defined by its name, statutes, or articles of incorporation, but by its business mission statement.
Only a clear definition of the mission and purpose of the organization can result in clear and realistic business objectives. Likewise, more recent literature has revealed the importance of a mission statement by tagging it as a strategic tool and an essential component in strategic planning (Stone, 1996; Bart, Bontis, & Taggar, 2001). Many firms have employed a strategic planning process as a mechanism to communicate their policies, practices, strategies, and goals, and the mission statement plays an integral part in this process as it facilitates achieving an organization’s objectives and enables it to attain its ultimate vision. As described earlier, the strategic management process enables organizations to constantly scan their internal and external environments and take necessary measures to maintain their sustainability. Consequently, it allows a firm to develop effective strategies in response to changing environmental circumstances, market conditions, evolving technologies, and emerging opportunities and to evade risk and threats.
A well-established and documented mission statement provides the foundation for outlining and drafting business objectives that the organization strives to accomplish. In return, those goals become the barometers against which performance is evaluated (Matejka, Kurke, & Gregory, 1993). Furthermore, the mission statement facilitates decision making, planning, creating effective strategies, and formulating policies for the short and long term. Also, the mission statement provides a clear sense of direction that guides and inspires the organization’s executives, managers, and employees toward mutual goal attainment. It assists in setting priorities, plans, and allocating resources toward that end (Cochran, David, & Gibson, 2008). Establishing a mission statement should not be a one-man show, but a team process involving executives, top-level management of the organization, employees, and if required a third-party consultant.
Such involvement may mean engaging all stakeholders in brainstorming and discussion sessions in which each member expresses his or her opinion so that divergent views can be revealed and resolved and mutual agreement can be reached (David, 2004). Moreover, connecting many personnel from different organizational levels to this process contributes to creating, learning, documenting, and communicating an effective mission statement, as well as establishing a stronger commitment by all participant parties to achieve the underling objectives. The process and stages may differ from one organization to another, but the concept is relatively the same. It is worth mentioning at this point that mission statements can easily become obsolete as a company grows in size and complexity. In addition, as the circumstances surrounding the organization and the environment in which it operates change over time, periodic revisions, reviews, and re-drafting of mission statements is necessary (David and David, 2003).
This research evaluates mission statements in a sample of 45 public companies in Oman in terms of available components and statement readability level. The coming sections are ordered as follows: a review of extant literature on mission statements appears first; this is followed by a brief description of the methodology used to collect and categorize data. The findings are then discussed and communicated in detail, and the study implications and limitations are addressed thereafter. The final section provides a conclusion and offers recommendations based on the conclusion
WHO IS RESPONSIBLE FOR SOCIETY ?" STATE THE ANSWER PROVIDED BY EACH OF THE THREE DIFFERENT SOCIOECONOMIC VIEWS.
corporate social responsibility has defined Johnson & Johnson’s corporate identity from the very beginning. The credo is the foundation of our corporate social responsibility. In a regularly published Sustainability Report from Johnson & Johnson, we document our diverse international commitments (in English).
We support selected organizations – including in Switzerland – both financially with product donations and, above all, with our own hard work. The following section contains a project description as example.
Increasing social participation among the elderly
Following retirement, older people are often left with limited options for active involvement in the common good and contributing to society’s development. They are under-represented both in institutions and on boards, meaning that other people make decisions that affect older generations.
The “Active Aging” project from the RADIX foundation, with support from the Johnson & Johnson Campus Switzerland, supports the active participation of older people on many levels, and supports projects that increase their quality of life. The goal of the project is to improve health services and social services in the communities, provide the elderly with access to adequate care and revitalize their relationships in the community. For example, seniors can become involved by joining committees or transferring their knowledge to the younger generation at cultural and educational institutions.
Planning for the first projects is set to begin soon. At a neighborhood in Zürich, the residents of a nursing home are designing an adjacent fitness trail. A cooperative project for healthy lifestyles is being created in communities in South Tyrol and in the canton of Graubünden