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Abstract

Johnson & Johnson, a trusted healthcare company in the US, was facing criminal investigation over its over-the-counter drugs (OTC) recalls in 2009-10. The company, with its exclusive McNeil division, had been a market leader in the OTC segment in the US. Since its inception, it had proven itself by conducting business in a highly ethical manner, following the values set by its founder and enshrined in the mission statement of ''Credo''- customers being the first priority. The company emphasised on the quality of its products to a very high extent and emerged triumphant from the crisis of Tylenol poisoning during the 1980s by following its credo. However, of late, the Food and Drug Administration charged the company for not following the good manufacturing practices and engaging in a secret product recall in 2009. The continuous lapses in the manufacturing and quality control systems of its McNeil division raised several questions on the conduct and integrity of the company. The case study highlights issues related to frequent product recalls and retrieval in the light of the credo and ethical values of Johnson & Johnson Group which were seemingly at stake.
Location:
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Other setting(s):
2009-2010

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Abstract

Johnson & Johnson, a trusted healthcare company in the US, was facing criminal investigation over its over-the-counter drugs (OTC) recalls in 2009-10. The company, with its exclusive McNeil division, had been a market leader in the OTC segment in the US. Since its inception, it had proven itself by conducting business in a highly ethical manner, following the values set by its founder and enshrined in the mission statement of ''Credo''- customers being the first priority. The company emphasised on the quality of its products to a very high extent and emerged triumphant from the crisis of Tylenol poisoning during the 1980s by following its credo. However, of late, the Food and Drug Administration charged the company for not following the good manufacturing practices and engaging in a secret product recall in 2009. The continuous lapses in the manufacturing and quality control systems of its McNeil division raised several questions on the conduct and integrity of the company. The case study highlights issues related to frequent product recalls and retrieval in the light of the credo and ethical values of Johnson & Johnson Group which were seemingly at stake.

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Location:
Industry:
Other setting(s):
2009-2010

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