2. Company Profile
Began in 1886 as a small medical products company in New Brunswick, N.J.
Has grown to more than 250 operating companies in 60 countries employing
approximately 128,000 people
Products include Band-Aid Brand bandages, Tylenol medications, Johnson’s baby
products, Neutrogena skin and beauty products, Clean & Clear facial wash and
Acuvue contact lenses
The world’s sixth-largest consumer health company
The world’s largest and most diverse medical devices and diagnostics company
The world’s fifth-largest biologics company
The world’s eighth-largest pharmaceuticals company
3. Credo
“We believe our first responsibility is to the doctor’s, nurses, and
patients, to mothers and fathers and all others who use our products
and services.”
~Robert Wood Johnson, 1943
4. Critical Challenges
Consumer Confidence has dropped
Dozens of products recalled
Critics claiming attention to quality has declined
In 2011, pleaded guilty to bribing European doctors and paid $70 million in fines
In January, Texas settled a similar case with a subsidiary, Janssen Pharmaceuticals
for $158 million. In 2011, a South Carolina judge levied civil penalties of $327
million, and in 2010, a Louisiana jury awarded nearly $258 million in damages
Fined $1.19 billion for 240,000 violations of Arkansas's Medicaid fraud law
In April, J&J and Janssen were ordered to pay $1.2 billion for concealing dangers
associated with Risperdal. Lawsuits are pending in several other states
Federal Government recently rejected a $1 billion settlement
5. Change in Strategic Leadership
In April 2012, Alex Gorsky took over as CEO as William C. Wheldon stepped
down to chairman
Gorsky promises to stick to the values of the corporate credo
6. Strategic Management Process
Plans to remove a host of potentially harmful chemicals, like formaldehyde, from
consumer products, becoming the first major consumer products company to make
such a widespread commitment
Conceding to years of pressure from environmental and consumer groups
Plans to phase out other ingredients including all parabens, a type of preservative in
baby products
Announced it will raise quarterly dividends by 7 percent, to 61 cents per share,
marking the 50th straight annual dividend increase
Wheldon received a huge salary reduction when stepping down. Emphasizing a
change in leadership and a reluctance to waste on excessive management salaries
Gorsky plans to expand by acquiring other companies on a very large scale
7. Conclusion
Is Johnson & Johnson really a company with high ethical
standards or just portraying to be one?
