Case Study Of Johnson & Johnson

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Johnson & Johnson was founded in 1886 by the Johnson brothers. It is an American based pharmaceutical, medical and consumer product manufacturer. Since the 1960’s the company has been based out of New Brunswick, New Jersey. In the United States they are ranked third in being one of the most environmentally conscious companies. The company is run on the principals of, according to Johnson & Johnson (1997) as “Broadly Based in Human Health Care, Managed for the Long Term, Decentralized Approach and Our People and Values” (The J&J Strategic Framework). Enterprise Risk Management is a strategic plan which includes the whole company. It is designed to identify risk or events which could affect the enterprise, which allows them to assess and fix…show more content…
This means that each employee is encouraged to be open, candid and fact-based in discussing risk issues, making all relevant facts and information available so the company can consider all possible options and make decisions" (Internal Environment and Objective Setting). Business management and leaders are responsible and held accountable for managing risks which could affect the company as well as their stakeholders. Johnson & Johnson’s key stakeholders are the United Nations, whose goal is to create new alliances and the Gates Foundation, who work to cure neglected tropical disease.
The Board of Directors oversees senior leadership. They are also responsible for providing the companies independent auditor with regular reports from their senior company leaders. But their most important function is overseeing all risk management processes. Accountability is the condition of being held responsible for something. In any given company, accountability needs to be evenly distributed. Putting too much pressure on one section of the company could result in major
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It is called the Performance and Management Approach (P&D). All employees who work in management level positions are monitored through this approach. It bases its foundation on frequent manager to employee conversations. According to J&J (1997) they have created a , “5 Conversations Framework, which consists of performance and development planning, mid-year, career planning, year-end performance and compensation conversations” (Strategic Framework). In order to complete accurate evaluations the P&D approach uses two specific measures to understand employee quality. The first measure looks at results. It studies what goals employees have verses the actual goals of the company. The second measure is leadership. Leadership is studied to understand and reflect on the success and failures of the company. After these two measures are studied, a four point rating scale is used to understand the link between performance and wages. Performance is then compared with bonus increases and leadership with reward. So in this case, hard work does pay
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