Ethical Problems and Solutions with Tylenol and Enron

1894 Words Jan 8th, 2013 8 Pages
| Ethical Problems and Solutions With Tylenol and Enron | | |
Many large corporations are often are faced with ethical issues that determine the success of the company. Two of the most famous companies that were faced with ethical dilemmas was Johnson and Johnson and Enron. One of these companies was able to deal with their ethical dilemma correctly and it saved the company, while the other company did not properly handle its ethical issues and it resulted in the collapse of the company.

In the late 1900’s Johnson and Johnson produced a pain killer called Tylenol. Tylenol was a very successful product in the US. Tylenol was responsible for 19 percent of Johnson & Johnson's corporate profits during the first 3 quarters of 1982.
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Within a year, Tylenol's market share rebounded and they were successfully able to patch up their brand image in the eyes of consumers. Scholarly Journals was quoted saying "The Tylenol crisis is without a doubt the most exemplary case ever known in the history of crisis communications. Any business executive, who has ever stumbled into a public relations ambush, ought to appreciate the way Johnson & Johnson responded to the Tylenol poisonings. They have effectively demonstrated how major business has to handle a disaster."

The Tylenol murders were never catch and brought to justice. The one positive outcome of the disaster was that it led all drug makers to develop tamper-proof seals for their products, this was something that was virtually nonexistent before the Tylenol crisis. To further show how well Johnson & Johnson recovered from their lose; In 1982, Johnson & Johnson’s stock, had been trading near a 52-week high just before the tragedy, after the tragedy the stock went into a selling frenzy but it manages to recover to its high selling points only two months later. Investors have had little to complain. If you had invested $1,000 in Johnson & Johnson shares on September 28, 1982, just before the first Tylenol episode, you would have $22,062 today, after four stock splits.

Enron was an American energy, commodities, and Services Company based in Houston, Texas. Before the 21st century began Enron employed over 20,000 people.
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