Ethical Dilemma: Case Study of Johnson and Johnson’s and Its Major Competitor

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Introduction

Johnson and Johnson`s is one of the well-known companies in the world. It is developed in 1886 by three brothers, Robert wood Johnson, James Wood Johnson, and Edward Mead Johnson. It is a fortune 500 Pharmaceutical and consumers packaged goods manufactured multinational company. It has more than 265 operating companies in more than 60 countries approximately 126500 peoplesss. Moreover, company launched number of products among them Johnson baby powder was most prominent in market. Its success leads to the company’s heritage baby business. The corporation incudes 250 subsidiaries and products sold in over 175 countries. The company business is divided into three major segments.

J&J Family of Companies

Pharmaceuticals Medical Devices Consumer Products
Janssen Biosense Webster Skin and hair care
Janssen Diagnostics Mentor Baby care
Janssen Pharmaceuticals Janssen Diagnostic Oral care

Vision of the company

“To continue the path set forth by the founders of Johnson`s Enterprises, by committing ourselves to our clients and employees and also contributing to the community”.

Mission of the company

“To provide our clients with the best possible service and product. Which meet our demands in quality and safety regulations, by assuring that our employees have all the necessary tools, training and expertise to accomplish their given tasks?”

Objectives

To provide the high-quality services and products in cure disease.
To improve the quality of life.
To be the leaders in the customer satisfaction.
To encourage the peoples for using or attracting their products.

Major Competitor

Pfizer

Pfizer Inc. (Pfizer) is a multinational biopharmaceutical company. It is involved in the discovery, development and production of health products. It has vast portfolio such as medicines and vaccine. Corporation has three business segments e.g. pharmaceutical, Animal health, Corporate. Coselling its products over150 countries worldwide about 98000 employees are working in 115 countries. The main strength of this brand is that six of their products are among the top pharmaceutical’s brands in India. It has a superb R&D wing that constantly produces and modernize products. Because of their sturdy brand name, Pfizer is considered as one of the highest Johnsons & Johnson competitors.

Merck

One of the well-known companies in the world, and it is in the United States. It was established in the year 1891; it is a multinational healthcare company. The corporation gives diverse health solutions through their vaccines, medicines, and animal healthcare products. Organization has four main segments, Animal health, Pharmaceutical, Healthcare services, and Alliances. Moreover. The Company`s care Services offers services and solutions which will specialize in engagement, health analytics, and clinical services. The corporate incorporates a vast portfolio of products and has an outstanding R&D wing. Because of their sturdy brand with in the pharmacy sector, company is taken into account as one of the top Johnsons challenger.

Novartis

Novartis is the Swiss pharmaceutical company located in Basel, Switzerland. It considered largest companies in pharmacy sector by means of income and market placed capitalization. The organization is a member of diverse associations such as European Federation of Pharmaceutical Industries and Associations (EEPIA), an international Federation of Pharmaceutical Manufacturers and Associations (IFPMA) and others. The corporation produces drugs for respiratory and infectious illness, cardiovascular, dermatology, urinary complications, and animal health products. Their recognition is to investigate, broaden, and marketplace innovative merchandise associated with medication in an effort to assist to treatment sickness and to ease the struggling of human beings to help them live a excellent lifestyles. Due to their worldwide attain, Novartis is taken into consideration as one of the top Johnsons Johnson competition.

Alex Grosky

Alex Grosky is chairman, Board of director, as well as the Chief Executive of the company. He illustrates the transformational leadership style in action. Alex began his Johnson & Johnson career as a sale, marketing, management, culminating in being CEO and Chairmen in 2012. He said that “The world today requires the very best that Johnson & Johnson has to offer, and we are constantly striving to come up with ways we can innovate and lead”. During his tenure, Johnson & Johnson has become a leading global Pharmaceutical company as well as the industry’s number one investor in research and development.

Marketing of Baby Powder

The target audiences of Johnson and Johnson company is “mother and babies”. The product includes Johnson baby powder and shower-to-shower baby powder. In 1893, Johnson and Johnson had developed baby powder and promoted It to absorbed unwanted moistures and odors(smell) from babies and women. with the passage of time talcum powder became a top selling product of the company.

About Talcum Powder

Talcum powder is made from talc. Talc is a white grey and pale green stone, that is made from clay mineral composed of hydrated magnesium, silicon, and oxygen. Talc is most natural form, the objective of the talc is to make skin smooth, it contains asbestos, which is the cause of lungs cancer due to this disease all the products of U.S has been free from asbestos since 1970s.

Johnson baby powder lawsuits

Up to 2009-year, people was using products of Johnson and Johnson without any worry. The baby powder was so much prominent among women because of its hygienic nature and beautiful fragrance. They used to prefer Johnson and Johnson over any other product. The company was earning its profits on its product because of its well-known brand image among people but the product has a flaw-a deadly-flaw which has a potential to cause death of its customers. It would not be wrong to say that It was working as a slow poison as continuous use of it was causing cancer, but the company did not mention any such problem. They have kept this information secret from its customers. Johnson and Johnson`s product credibility was questioned for the first time when a lady named Diane Berg in 2006, Physician`s assistant by profession, claimed in a court that the use of Johnson and Johnson products have caused her cancer. Moreover, she said the product has elements which cause cancer by mutating the normal cells. Although, she died of cancer but later few more customers have sued the company for same reason. Still today, the company do not bother to inform its customers about the threat its product can pose on many lives. More than 30% girls in Pakistan keep using their baby products even when they grow up and most of them are unaware about its issue. Transparency is considered as a liability of a company and providing right information to its customers is the very first responsibility of a company (Specially, when it is a multinational firm) when It is causing such a severe damage to its customer. Still today, the company`s advertisements do not address this issue. Further, the very first question that arises here is ‘Is It ok to let these firms operate in market specially, in such markets where most of the people are already illiterate? Secondly, is imposing a fine to the company on death of people is fair? Because life is subjective and it worth more than any penny, pound or rupee. So, counting value of life in monetary terms is justifiable? Specially, when the company is not going to change its policy and keep on reporting its mistakes.

Challenge for Gorsky

On September 2016, J&J was facing 1800 cases against its talcum powder. In September 2016, another case filed in St. Louis by Deborah Giannecchini from Modesto, California. She stated that she had diagnosed with cancer in 2012 after using J&J talcum powder.

Conclusion

Johnson and Johnson is one of the most renowned company in the world. It provides number of products among them Johnson baby powder is top selling product. As it is talc-based powder so long usage of this powder causes cancer in consumers. In May 2016, jury in St. Louis, Missouri, awarded US $55million to a woman who was suffering from cancer after using talc-based Johnson`s baby powder for nearly 40 years.

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