Wal-Mart and Johnson & Johnson as Social Entities

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Wal-Mart is doing enough to become more sustainable

Wal-Mart is doing enough to become more sustainable than ever before. The company has already improved the efficiency of its fleet by increasing it by 25% (Ferrell, Fraedrich & Ferrell, 2013). It has also retrofitted more than 500 stores with refrigerated display cases of both low and medium temperatures. The company has also embarked on conservative measures by going green. For instance, it redirects 70% of its solid-wastes to conservation programs for reusing and recycling (Ferrell, Fraedrich & Ferrell, 2013).

The problems that Wal-Mart has faced and its appropriate measures

The problems that the company has faced include criticisms due to ethical issues, stiff competition, problems with suppliers and employees, as well as workplace discrimination (Ferrell, Fraedrich & Ferrell, 2013). In an attempt to address these problems, the company has taken the best appropriate measures. For instance, it has initiated goodwill with its consumers. This move has helped the company to solve the critical issues. To curb controversies regarding suppliers and employees, Wal-Mart has continued to demonstrate high concern for its stakeholders. It has embarked on sustainable initiatives aimed at making the company socially responsible. To curb competition controversies, the company has decreased its wastes and carbon emissions in its operations. It has also embarked on differentiation strategies aimed at reducing costs and maximizing profits.

Wal-Mart vs. other retail outlets

The company has improved its performance easily compared to the other outlets because of several reasons. The company identifies the loopholes that pull it down in advance and employs appropriate measures. It does not only focus on making profits but also engages in social initiatives towards needy families (Ferrell, Fraedrich & Ferrell, 2013). This makes the stakeholders loyal to the company. It also utilizes resources, and hence reduces operational costs and maximize profits.

How Patrick Murphy characterized J&J’s handling of the Tylenol product recall

Murphy characterized the incident as a gold standard because J&J made a recall of the product. However, this was not only related to the recall, but also to the response of the management. One of the distinguishing factors was James Burke’s action. The chairman of the organization openly called a press conference and accepted liability (Murphy, 2011). The company withdrew its products from the market even though some of its products had been tampered with before they got to the shelves.

What guided J&J through the recall process?

The major factors that guided the company through the crisis are the openness and transparency shown by its leadership. The management was quick to accept responsibility. Their first cradle was to ensure the safety of the patients who used their products. Murphy argues that in such a scenario, a company should quickly divulge information to the public and recall the affected product.

What unethical problems were J&J guilty of starting in 2010?

In 2010, the FDA and the justice department charged J&J with two different lawsuits because the company was accused of paying kickbacks to several intermediaries. This move was undertaken to influence the health institutions to use the organization’s products in their facilities. The allegations were reported to have begun in the late 1990s, up to 2010. The FDA forced J&J to recall several products. This questioned their position as a gold standard organization (Murphy, 2011).

What ethical actions does Patrick Murphy recommend for J&J to do?

For J&J to regain the credibility it has to take drastic actions, which include being more transparent. Murphy suggests that instead of the company doing the recall on its own, it should hire a different firm to conduct the recall (Murphy, 2011). This will enhance the organization’s transparency. He also advises the management to reinstitute the cradle challenge meeting that it faced in the late 1970s. This will help in addressing the issue of trust that the company had previously lost.

References

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2013). Business ethics: Ethical decision making and cases. Mason, OH: South-Western/Cengage Learning.

Murphy, P. (2011, April 13). Interview – Johnson & Johnson. Web.

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