Product details

The case gives an overview of the problems faced by Johnson and Johnson (J&J) because of Tylenol. Tylenol was the first acetaminophen-based analgesic to be sold as an over-the-counter (OTC) drug. The product was promoted aggressively and had become a leader within a few years. In 1982, it was found that Tylenol capsules had been laced with cyanide, which resulted in the death of many people. However, with the company''s proactive and effective public relations programme, Tylenol regained its market share within six months. J&J again faced problems when people died due to overdoses of Tylenol. This was mainly because the public, as well as the medical practitioners, were not well informed about the product''s side effects. Though the company received bad publicity and had to spend millions of dollars in legal settlements, J&J was reluctant to have more explicit warnings on Tylenol''s labels. This was in contrast to the company''s response in the previous product tampering crises. However, in 1997, following the Food and Drug Administration (FDA) labelling rules, J&J made many changes in Tylenol''s labels. At the end of the discussion students should: (1) understand J&J''s response to the Tylenol crisis in 1982 and the underlying principles that shaped the strategy; (2) examine the company''s response to the Tylenol overdose controversy in the late 1990s and compare and contrast the same with its 1982 approach; (3) identify the ethical issues involved in the overdose controversy and discuss the right approach to resolving the crisis in a right, proper and just way; and (4) examine J&J''s alternatives to tide over the controversy and evaluate the company''s measures to meet this responsibility. The case is intended for MBA/PGDBM level students as a part of the ethics and social responsibility curriculum.