Johnson's Credo Research Paper

The objective of this case is to understand the importance of crisis management. This case is intended to make the reader consider not only financial implications at the time of the event but the effects on the long term strategies of the organization. Also, the case urges participants to think about the consequences not only on the customer but on those within the organization as well.

Mothers and nurses were giving children heroin-filled soothing syrups to treat a cold, or simply to “soothe” them to sleep. The journalist said, “the systematic doping of the delicate organisms of infants with these subtle and powerful drugs [was] practiced everywhere remorselessly or in desperate ignorance of its consequences.” The involvement of innocent children in the drug problem evokes a sense of urgency; however, the article does not just appeal to the reader’s emotions. Rather it is substantive, providing insight about what was happening in politics and medicine at the time. There was an attempt to investigate and try to regulate the medical use of opiates and other questionable drugs. The author cited an investigation by the Division of Drugs in the Bureau of Chemistry that found that soothing syrups often contained drugs such as powdered opium, chloroform, codeine, and cannabis, in combination or in place of heroin. It also referenced the action taken by pharmacists in Philadelphia to only sell these habit-forming “remedies” with a doctor’s approval or prescription. When looking at this article in a broad sense, one can see the change in mindset by medical authorities--which only ten years prior saw heroin as a great innovation in medicine.

The case starts in October 1982, when seven people in Chicago died after taking Tylenol, which is a pain killer medicine produced by Johnson and Johnson's subsidiary McNeil. Three victims from these were members of one family who died one by one on the same day. The reason of their death was diagnosed as in take of the extra strength Tylenol capsules taken from the same bottle. Other three deaths were also reported in Chicago due to intake of Tylenol.

Johnson and Johnson, commonly called J&J for short, is one of the world's well known, largest, most decentralized and most diversified health care companies. Since 1887, Johnson and Johnson has been producing, manufacturing and selling products related to human health and well-being. Today J&J has over 200 autonomous operating companies and do business globally specializing in consumer products, medical devices and diagnostics, and pharmaceuticals. Consumer products are the company's most recognizable segment, including popular brands like Tylenol, Johnson and Johnson Baby Shampoo and Band-Aid. The medical devices and diagnostics segment manufactures products including surgical equipment

How many of you have taken a tylenol pill. What if you died days after taking them, what about hours, minutes, seconds. This is what happened in Chicago 1982 after someone got tylenol pills and poisoned them with 100 to 10000 times the fatal dose. Seven people were killed and more poisoned bottles were found after this. One family and other individuals were found dead because of this. In total it ended up being seven dead. No one was ever convicted for the murders, but three people were suspects in the investigation.

The tragic deaths of seven people who died due to potassium cyanide-laced Tylenol capsules started as a disaster for Tylenol producer Johnson and Johnson. However, J&J communicated with their publics and the media proficiently, investigated their

(Smith) This led to the recall of lot 08 as well as any unused lots from the New England Compounding Center. Although this recall protected more Americans from the exposure of E. rostratum, it came too late for many others.

This happened on two occasions, the first in 1982 and the second in 1986. These episodes could have been devastating to the McNeil company by drastic decrease in consumption of the Tylenol products. The McNeil company rallied to the situation to counter this possible decrease in consumption. According to "Laurels: The National Business Hall of Fame", Tylenol's share in the one billion dollar analgesic market commanded thirty-five percent of the market before the 1982 incident. At the time of these episodes, consumer trust was damaged and market share decreased to seven percent. By February 1983, Tylenol had regained a twenty-four percent share of the market(Diary of an Amazing Comeback). In the 1990's, Tylenol again reached its thirty-five percent of the market which at this time accounted for a two billion dollar market(Laurels: The National Business Hall of Fame, Fortune). By regaining their share of the market, this demonstrated that the consumers had faith in the McNeil company's ability to produce safe and trustworthy products, i.e. Tylenol, for their comfort and happiness.

What ethical standards pertain to crisis prevention and intervention? (List the letter, number, and brief titles only).

Tylenol, an over the counter prescription product from Johnson & Johnson, was one of the top brands in the analgesic market. Within the company, it was also a large income earner that commanded nearly 15% of the company’s total profits. That being the case, the 1982 crisis was not only a big blow to the brand, but also to the company as a whole. The crisis jeopardized the company’s existence; putting at risk a multi million investment which the investors had a lot of faith in. Irrespective of whether the crisis was due to malicious acts from ill motivated criminals or not, the company had to act swiftly to counter the legal issues which were ensuing and mitigate huge impending losses. It was really a trying moment for the top management of Johnson & Johnson and more so to the CEO, James Burke, who faced the toughest test of his managerial career during this time. Though the crisis was amicably solved, there were some legal issues that were imminent and some valuable lessons learnt from the episode.

Johnson & Johnson was founded in 1886 by three brothers in America. It is a company that sells consumer packaged goods, medical devices and pharmaceuticals and has been one of the most trusted and well-respected brands around the world. Many families use their household products, from shampoos to drugs. The worldwide company should handle all business deals and services ethically. This report will look into how well Johnson & Johnson makes decisions in terms of the health and safety of consumers, honesty and its marketing strategies.

Sealed bottles were tampered with and extra-strength Tylenol capsules were replaced with cyanide-laced capsules. These bottles were then resealed and placed on shelves of pharmacies in the Chicago area. Seven people died as a result. Tylenol was called upon to explain why its product was killing people.

In a competitive market to which Johnson and Johnson operates, the smallest of errors can lead to consequences which can cut revenue. When large mistakes occur, millions of dollars are lost, and even worse, there is a loss of customer confidence. Johnson and Johnson has had numerous recalls in their consumer healthcare division recently, which rocked the organization’s once sound image, and diminished its profits. These recalls have hurt Johnson and Johnson’s stocks and cost the company about $900 million in sales last year (Rockoff, 2011).

Tylenol was the leading pain-killer medicine in the United States at the time. It was reported that

In 1886, three brothers, James, Edward, and Robert Johnson, started a multinational healthcare business in New Brunswick, New Jersey. Johnson & Johnson, one of the world’s largest American company, provides diverse healthcare products across the nation. Johnson & Johnson has gained a competitive advantage over most of its competitors because of its leadership in diverse healthcare products. This company offers a plethora of products such as baby care, oral care, skin care, wound care, women health, medical devices, and pharmaceuticals. Robert Wood Johnson crafted the company’s credo, a statement of in which he expresses the company mission of “caring for the world, one person at a time.” (Johnson & Johnson 2015). The company’s credo is very well-structured and very detailed about claiming full responsibility for its employees, doctors, nurses, and patients and also developing a positive business relationship amongst its stakeholders (Johnson & Johnson 2015). Johnson & Johnson is well known for its caring and fair culture to society and corporate environment, however, this company has faced multiple ethical dilemmas which have jeopardized their brand.