Case Study : Johnson & Johnson Essay

Case Study : Johnson & Johnson Essay

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Johnson & Johnson, a healthcare company that has dominated its industry for several decades, is currently undergoing managerial upheaval in light of recent blunders amongst its top-tier managers. It has spent years priding itself on appeasing stakeholders and being a safe provider of various pharmaceuticals, but product recalls and subsequent revenue drops have plagued the company as of late. Alex Gorsky spearheads Johnson & Johnson’s revival after previous CEO William Weldon resigned due to missteps. The cause of which stems from misinterpretation of common business ethics through poor leadership and social responsibility that damage the stakeholders.
Managers have a responsibility to place stakeholders such as customers and stockholders before the company itself because the stakeholders help keep a business afloat. The customers enjoy products such as Tylenol and bandages because they improve their health, but Johnson and Johnson betrayed them by allowing deficient products into the market. This may have occurred due to poor quality control in the lower levels of the management pyramid. Operational employees whose jobs are to monitor machines and make sure proper medicines and products are produced may have slacked during their work hours, resulting in malevolent medicine. Other poor leaderships roles like top level managers in charge of distribution allowed faulty products to enter the market. Although Johnson and Johnson took corrective measures to make sure the least number of people purchased the faulty products, the company failed stakeholders partially because of uncharacteristic production and distribution.
Johnson and Johnson’s shortcomings in each of three types of social responsibility - economic, legal, ethical, pl...


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...rgo the same issue. This simple action benefits the public more because customers are consuming safer products as well as bolstering company sales and customer satisfaction. In terms of internal solutions, managers need to take more responsibility for lower level employees so another recall does not occur. First-line managers need to make sure the employees’ values and goals resonate with Johnson and Johnson’s. Johnson and Johnson prides itself on supporting the interests of the stakeholders and preserving product safety. Those who focus on individual goals more than company goals should be removed from the company, or else Johnson and Johnson will lose revenue from mishaps again. Even upper management needs to change its mindset involving economic responsibility. Rather than aim for profit, it should benefit the public good, especially when selling pharmaceuticals.

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Case Study : Johnson & Johnson Essay

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