Johnson & Johnson

Definition

Johnson & Johnson is a multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer health products. Known for its commitment to quality and safety, the company has faced significant ethical challenges and scandals that highlight the complexities of corporate governance and responsibility.

5 Must Know Facts For Your Next Test

1. In 2018, Johnson & Johnson was ordered to pay $4.7 billion in damages to women who claimed their talcum powder products caused ovarian cancer.
2. The company's Credo emphasizes the importance of responsibility to customers, employees, communities, and stockholders, reflecting its commitment to ethical practices.
3. In 2001, Johnson & Johnson faced a significant scandal when they were implicated in price-fixing for their pharmaceuticals, leading to legal repercussions.
4. Johnson & Johnson has been scrutinized for its handling of the COVID-19 vaccine rollout and concerns about its safety profile compared to other vaccines.
5. The company has implemented numerous changes in governance and transparency practices following past scandals to restore public trust.

Review Questions

• How have ethical failures at Johnson & Johnson impacted its corporate reputation?
  • Ethical failures at Johnson & Johnson, such as the talcum powder lawsuits and price-fixing scandals, have significantly tarnished the company's reputation. These incidents not only led to substantial financial penalties but also eroded consumer trust and confidence in the brand. As a result, the company has had to work diligently to rebuild its image through increased transparency and commitment to ethical leadership.
• Discuss the role of corporate social responsibility in mitigating risks associated with ethical failures at Johnson & Johnson.
  • Corporate social responsibility (CSR) plays a critical role in helping Johnson & Johnson mitigate risks related to ethical failures. By prioritizing ethical practices and stakeholder engagement through initiatives that align with its Credo, the company can foster a positive corporate culture and improve public perception. Effective CSR strategies can also help anticipate potential ethical dilemmas, allowing the company to proactively address issues before they escalate into scandals.
• Evaluate how Johnson & Johnson's response to past scandals reflects on its future business strategy and ethical considerations.
  • Johnson & Johnson's response to past scandals showcases a pivot towards more robust ethical considerations in its future business strategy. The implementation of improved governance practices and an enhanced focus on transparency indicates a desire to prevent similar issues from arising again. By integrating ethical leadership into its operations and emphasizing corporate social responsibility, the company aims not only to restore its reputation but also to build long-term sustainability in an increasingly socially conscious market.

Related terms

Talcum Powder Lawsuits: Legal cases against Johnson & Johnson alleging that their talcum powder products were contaminated with asbestos and caused cancer.

Corporate Social Responsibility (CSR): A business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Ethical Leadership: The practice of being honest and ethical in decision-making processes, focusing on the well-being of stakeholders.