Case Analysis : ' Tylenol '

1943 Words Feb 8th, 2015 8 Pages
Tylenol
In 1982, tragedy struck the Chicagoland area when several people died from taking Tylenol capsules laced with cyanide. Johnson & Johnson’s responsive recall of over 31 million bottles of Tylenol prompted a movement that made over-the-counter-medications in addition to millions of other consumer goods tamperproof. General Robert Wood Johnson’s credo— responsibility to the consumers, healthcare professionals, employees, community, then stakeholders, proved to be a moral compass for the organization (Markel, 2014).
Johnson & Johnson 's response to crisis set a new standard in corporate responsibility and crisis management, one that companies can still learn from today (Macdonald, 2007). The company made the ethical decision to take a $150 million write-off and a possible loss of $525 million in annual sales by abandoning the capsules (see appendix 4). In assessing how all involved stakeholders were impacted by this decision, their shareholders’ interests were not ignored because the business decision would create value for the shareholder by creating sustainability of the organization (see appendix 3). The decision to abandon the capsules demonstrated Johnson & Johnson’s organizational priorities including customer safety, social responsibility, innovation, and being a leader in their industry. Johnson & Johnson 's response set a new standard in corporate responsibility and crisis management, one that companies can still learn from today.
If customer safety was…

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