Business Ethics and Business Management

This report discusses the ethical issues faced by Johnson & Johnson, a multinational company, and the role of business in society. It covers topics such as the opioid crisis, stakeholders, and the application of ethical theories. Recommendations are provided to overcome these issues.

Business Ethics and Business
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
Part-1 – A.........................................................................................................................................3
1. Ethical issues or Issues...........................................................................................................3
2. Role of business in society......................................................................................................4
3. Five stakeholders.....................................................................................................................4
4. Example of good and bad ethics ...........................................................................................5
5) Recommendation....................................................................................................................5
PART 1-B .......................................................................................................................................6
1 Describe the theory .................................................................................................................6
3. Critique- Advantages and disadvantageous of theories. .......................................................7
4. Recommendation.....................................................................................................................8
PART -2 ..........................................................................................................................................8
1. Ethical leadership management is an unethical organizational culture ...............................8
2. How to maintain integrity and compliance in unethical environment...................................8
3. Reflection of personal experience...........................................................................................9
4. Conclusion...............................................................................................................................9
CONCLSUION .............................................................................................................................11
REFERENCESS ...........................................................................................................................12

INTRODUCTION
A ethical issues are the problems or the situation which need a person or company to
choose between the alternative which must be evaluated as right (ethical ) or wrong (unethical
). It is necessary for the every company to understand importance of the business ethics, and they
should give first priority to their ethics in business.
This report will cover the case study of Johnson & Johnson which is American
multinational company (Adhariani., 2018). They are developing products which are related to the
medical like medical devices, Pharmaceutical and customer packaged good. Past year This
company is facing one of the ethical issues – Opioid Crisis which is affecting their business.
This company was selling Opioid Drug which is addictive for the people, and they are also
facing lawsuits for selling the addictive drug to the US people. An Oklahoma Judge has also
ordered Johnson & Johnson to pay $572m for its role in driving Oklahoma’s opioid epidemic.
The landmark ruling will have wide-ranging consequences for the other Opioid makers,
Distributor and Pharmacy chain facing thousands of lawsuits across the country.
Part-1 – A
1. Ethical issues or Issues
It is necessary for each company to understand their ethical issues and if there is any
ethical issue then they should make strategies to overcome from the ethical issues. Johnson &
Johnson is one of the top companies in America, and they are having presence in all over the
world. This company is facing lawsuit because they were distributing drug called Opioid which
is addictive for the people. Opioids are often used as medicines because they contain chemicals
that relax the body and can relieve pain. Prescription opioids are used mostly to treat moderate to
severe pain, though some opioids can be used to treat coughing and diarrhea Not only addictive
but this can lead people toward the danger, and they can also die if they are using this drug
continuously. On the other hand it can be contradicted as the company have. Johnson & Johnson
addresses issues from medical ingredients in products to environmental sustainability to full
disclosure of payments made to healthcare professionals and to the use of animals in product
testing. The firm have the major level of commitment doing the right thing benefits communities
and the world while improving shareholder value, reputation, productivity and employee
retention. Unethical behavior from the Johnson & Johnson can affect their business, and they
can face many problems (De Los Reyes Jr, Kim and Weaver., 2017). One of the issues they are

facing is Lawsuit which is around 1000 and judge also order them to pay around 572 million
dollar as a penalty. In his judgment judge told that they were using the drug which is without
having the proper test and many doctors complaint that this drug is little bit addictive and
having risk of heavy addiction. This kind of unethical behavior from the Johnson & Johnson
opioid is dangerous for the people who are using this and not only adult but chillers are also
using this pills for their treatment.
2. Role of business in society
Johnson & Johnson was having good reputation in the whole US market and other
market as well but after the ethical issues like Johnson & Johnson lost their reputation among
the people. This issues also highlighted in the new paper and news television which affect the
people mint and customers who used to buy products from this company. Its not only affect on
their Pharmacy chain and business both other subsidiary product also get affected from it, and
they see huge decline on their sales. Its hard for the people in society to believe on the other
drugs sell by the Johnson & Johnson because they can feel that their other drugs can also be
addictive, and they can affect on their immune system, and they can face danger (Fryer.,
2016). Its take time of the business to create goodwill in the society. It can take lime to make
god reputation in the market and Johnson & Johnson was successful and one of the oldest
company in the US but their unethical behavior put them into the problems and now they are
facing problems like they have to pay charges with their addictive drug distribution. They were
also selling the drug when it was confirmed that there drug is dangerous for the health of the
society, but they were selling continuously. It is necessary for the Johnson & Johnson to
understand their business ethics. This company has done many good work as well for the
society, like charity which help them to create good image in the society. Johnson & Johnson
company has committed to helping each and every child in the world to live their life long and
healthy and the vital work from this company that serves the children does is the basis for a
better world and better future. This shows that they know what is their responsibility toward
the society.
3. Five stakeholders
Johnson & Johnson is healthcare company who was doing good in their business but
after the Opioid crises , it affect on the performance of the business and also affect the
companies stakeholders like Customers, Top superiors, employees, shareholders and owner. All

of this stakeholder affected from these crises, customers who was loyal with them not able to
trust on them again because they can think that their other drugs can also be addictive, and they
should not use medicines from the Johnson & Johnson company. Employees of the company
also get affected from these crises because many employees who were working in this company
lost their jobs because company was facing these crises, and they were not able to run their
business. Superiors of the company also get affected because they criticized by the newspaper
which affect on their social life. Another stakeholder which affect on these crises most was
investors or shareholders was invested money on the Johnson & Johnson company. They do
not get benefits and their money also get shucked because of the lawsuit. Company can also
face problems because now its very hard for the Johnson & Johnson to get new investors who
can invest in their company (Greenwood and Freeman., 2018). 5 th stakeholder who affect the
most was owner of the company who have to face looses in their business.
4. Example of good and bad ethics
. Johnson & Johnson need to book both negative ethics of their business, so they can take
competitive advantages in their business. Every company has some good and some bad
ethics, Good ethics can helps them to take competitive advantages but Bad ethics can have
negative impact on the business, and they can face lose in their busies, Similarly, Johnson
& Johnson also has some two good ethics and Two bad ethics. Good ethics in the Jonson
company is that they are good with the employees and they provide proper training to
their employees./ they also provide them reward if they are able to complete their target
which provide them motivation, and they give their best in their task. One more good ethics
is Good Returns on Capital Expenditure – Johnson & Johnson is relatively successful at
execution of new projects and generated good returns on capital expenditure by building
new revenue streams. It is important to have the note that firm have clear level of
commitments over the ethical treatment of animals used in laboratory settings to advance
patient safety and well-being. Johnson & Johnson operating companies have policies and
guidelines in place that drive the ethical and humane treatment of the animals we use, and
that promote the use of non-animal alternatives whenever feasible. Bad ethics of the
Johnson & Johnson is their Opioid crises in which they were using addictive drug and it
affect on their business performance, and they also have to money to the court for their
illegal drug selling. Another ethic of their business is not providing good services to their

customers (Jabbar, S. Ali, Mohamed and Jalil., 2018). Many of their customers have
complained about the product services
5) Recommendation
Hence it can be concluded as Johnson & Johnson is the world’s largest health care company. It
is also the highest paid drug company in the world. J&J remains at the top of the Big Pharma list
of powerful corporations. Opioid crises affect the business of the Johnson & Johnson, and they
are suffering from the losses in their business, it is important for the Johnson & Johnson
company to overcome from the problem by using the proper strategies. One strategy which can
be used by them is social work. They should work for the society and helps people who are
suffering from the problems. This is the only way they can create reputation in the market
again. Corporate social reputability has huge impact on the business where they can able to gain
image among the people, and they can again start their business and create trust among the
people and achieve their goals and their objective of the business.
PART 1-B
1 Describe the theory
Business ethics refers to implementing appropriate business policies and practices with
regard to arguably controversial subjects. Some issues that come up in a discussion of ethics
include corporate governance, insider trading, bribery, discrimination, social responsibility, and
fiduciary responsibilities
Deontological Ethics
The Immanuel Kant’s deontological ethics, sometimes refers to the business ethics of
the duty (Kačerauskas., 2019). This is the theory which actions are not right or wrong based
on their result but rather because they are enhancing good or the evil. This theory is associated
with the father of the modern demonology
Utilitarianism
Jeremy Bentham's utilitarianism has its foundations in the belief that being ethical
means to do the greatest good for the greatest number of people. The idea is that the ethical
decisions are made based on their consequences of the action, because of this it is also know
by the consequences. This means they companies principles of the Utilitarianism states that
are ethically acceptable to release.
2. Apply theory

Johnson & Johnson can use both the theory to overcome from the ethical problems they
can use the deontological theory helps to overcome from the problems in which they can helps
the people through the charity work which does not have any benefits to their business but it
will clear their image in the society, and they can again take competitive advantages. This will
be direct benefit to the society and people can live better life. Johnson & Johnson should apply
this theory to overcome from the ethical problems which they are facing . Johnson & Johnson
lost their reputation among the people and sales. Its hard for the people in society to believe on
the other drugs sell by the Johnson & Johnson because they can feel that their other drugs can
also be addictive, and they can affect on their immune system, and they can face danger
Johnson & Johnson is healthcare company who was doing good in their business but after the
Opioid crises , it affect on the performance of the business and also affect the companies
stakeholders like Customers, Top superiors, employees, shareholders and owner.
Another theory which is known as Utilitarianism theory can be used by the Johnson &
Johnson and it can be beneficial for them because this theory says that do greatest for good for
the greatest number of people, but they have to be ethical. In the paramedical sector it is
allowed to the drug seller to sell medicines to the people with the warning tag (Karakuş., 2018).
If there is an any side effect but company have put the warning on their medicines then it is
depended on the customers I they want to buy or not. Johnson & Johnson can also sell their
product like this by mansion that this drug is addictive as a warning so people who want to buy
can use it and it will also not affect the reputation of the Johnson & Johnson company, and they
can easily sell their products.
3. Critique- Advantages and disadvantageous of theories.
Both the theories Deontological Ethics theory and Utilitarianism theory have some
advantages to the business and some disadvantages to the business. It s important for the
companies leader and managers to be aware about the Pros and Cos of both the theory, so they
can apply them effectively on their business and take competitive advantages in the market
where they are operating their business and overcome from the business ethics which they are
facing.
Pros of Utilitarianism Theory

 beneficial for the Johnson & Johnson to overcome from the Opioid Crisis, and they can
make their business effective through this theory.
 The attraction of this ethical prospective can lie with the customers of the Johnson &
Johnson but it can be appeared to be the way to weigh out the impact of the behavior
and determine the greatest goo for the greatest number (Lašáková, Remišová and
Kirchmayer., 2017).
Cons
 Decision makers can be forced to guess the outcomes of their choices.
 Their drug can be beneficial for the some and also can effect negatively so it will be
not possible for them to create good relationship.
Pros Deontological
 This can help them to create good relation with their customers and society.
 They will able to helps people and create good image among society
 This theory will help them to take competitive advantages in the market and also gain
customers loyalty.
Cons
 There may be Disagreement in this theory because of some principles involved in this
theory.
 It is possible or the company top have some conflicts in their workplace after applying
this theory.
4. Recommendation
There are possibility for the Johnson & Johnson company to overcome from the ethical
issues Opioid Crisis. Superiors of and managers of the company should apply this theory at
their work, so they can create good image in the market, and they can convert bad ethics into
the good ethics (Quarshie, Salmi and Leuschner., 2016). Before applying both the theories
superiors of the Johnson & Johnson should analyze the pros and Cons of both the theory, so
they can understand which theory can work to remove bad ethics from their business, and they
can successful create god image in the society and take competitive advantage's and show their
presence one again in the U.S market.
Both the theories are effective to overcome from the ethical issues of the Johnson &
Johnson which as discussed in the part A. They should apply this, so they can create good

image, and they will also understand the importance to give first priority to the ethics of their
business. This will also help them to get success n the US market, and they can show their
presence as emerging brand.
PART -2
1. Ethical leadership management is an unethical organizational culture
Unethical organizational culture can affect the performance of the business and also
affect in the moral of the employees. If employees are working hours at the workplace of the
company then it creates unethical organizational culture. As per my view in this intuation
ethical leadership management is important because they are superiors of the company, and
they are responsible to look for the problem faced by the employees who are working in their
company (Rendtorff., 2017). Leaders of the company should take this issue as the first priority
and look at the employees problems that they are working for the long hours so they should get
proper rest. Ethical leaders always communicate with their employees and treat them like
they are their friends. They should provide them prop[er resat and try to release them on the
times, so they can take proper sleep and rest and another day they can work effectively. Ethical
leaders always understand that their first priority is their business ethics which can make them
successful.
2. How to maintain integrity and compliance in unethical environment
Superiors of the company can able to maintain the integrity and comeliness in the
unethical environment by using their skills. Effective communication which is skills of the
effective leader shroud be use by them, so they can provide proper guidelines to the employees,
and they should also listen to the employees problems, so they can create good ethical
environment at their workplace. If leaders of the company will listen to the employees then they
will be motivated from it, and they will give their best in the task, and they will help company
to achieve their goals their objectives in the business.
One more important ethical problems which is common at the most of the companies w
workplace is discrimination problems which affect the metal health of the other employees
who are affected from it, and they will not able to perform good in their task. It is responsibility
of the leaders and mangers of the company to implement discrimination law at their workplace.
This can help them to overcome from the ethical issues at their workplace, and they can take
strict action against the problems which are faced by the employees and it can create better

environment at the workplace of the company and company can perform better in market and
achieve success in there business (Sami, Jusoh and Qureshi ., 2016).
3. Reflection of personal experience
I have also experienced the unethical behavior from the business, and I was working in
the company as a ethical manager. One ethical problem which was making the company's
environment worst was bad behavior with their customers. This was affecting the business
performance and company was also losing the customer's loyalty. As a ethical manager take
this problems serious concern and understand the employees need proper training how to
communicate with the employees, so I implement new program in which I called professional
from the industry. All the paraprofessional share their experience in that training program and
tell them about the importance of the customer (Sison, Ferrero and Guitián., 20180. They give
training to them about how they should have with the customer when they visit their store. This
training program helps them to understand how they should behave with the customer and how
it can help the company to take competitive advantages in the work. This helps me to create
better environment at the workplace and I also share my own experience and knowledge t how
they should communicate with the employees which helps to become the ethical issues in the
company and company able to perform better in their business and able to achieve goals and
objectives.
4. Conclusion
As per the reflection essay has been analyzed the importance of business ethics and role
of leader and managers to overcome from the ethical issues from the workplace. This report
has been discuss about an ethical leadership management in the unethical business
environment and also concluded that how they can maintain integrity ad compliance in the
unethical business environment. This report has been provided personal experience related to
to the ethics issues at the workplace and in the end of this report has bee provide conclusion of
the reflection part of the essay.
CONCLSUION
As per the report has been covered case study of the Johnson & Johnson which is facing
Opioid Crisis. It has been properly explained importance of the business ethics and how it helps
business to get success. In the first part it has been discus about the issues faced by the
company and explain the roles of business in the society. It also has been concluded five

stakeholders and discuss that how they get infected from it. In the B part This report has been
provided Two ethical theories Utilitarianism Theory and Deontological and also apply on the
Johnson & Johnson. It also has been concluded advantages and disadvantages of both theory and
In the part 2 This report provided reflection of the essay and share personal experience.

REFERENCESS
Books and journal
Adhariani, D., 2018. The Ethics of Care and Potential Gaps to be Fulfilled by Islamic Business
Ethics Theory. FOREWORD OF CHAIRMAN. p.121.
De Los Reyes Jr, G., Kim, T. W. and Weaver, G. R., 2017. Teaching ethics in business schools:
A conversation on disciplinary differences, academic provincialism, and the case for
integrated pedagogy. Academy of Management Learning & Education.16(2). pp.314-336.
Fryer, M., 2016. A role for ethics theory in speculative business ethics teaching. Journal of
business ethics.138(1). pp.79-90.
Greenwood, M. and Freeman, R.E., 2018. Deepening ethical analysis in business ethics. Journal
of Business Ethics.147(1). pp.1-4.
Jabbar, S. F. A., Ali, H. M., Mohamed, Z. M. and Jalil, F., 2018. Business Ethics: Theory and
Practice in an Islamic Context. In Regulations and Applications of Ethics in Business
Practice(pp. 257-271). Springer. Singapore.
Kačerauskas, T., 2019. Ethics in business and communication: common ground or
incommensurable?.
Karakuş, M., 2018. The moderating effect of gender on the relationships between age, ethical
leadership, and organizational commitment. Journal of Ethnic and Cultural Studies.5(1).
pp.74-84.
Lašáková, A., Remišová, A. and Kirchmayer, Z., 2017. Are managers in Slovakia ethical
leaders? Key findings on the level of ethical leadership in the Slovak business
environment. Periodica Polytechnica Social and Management Sciences.25(2),.pp.87-96.
Quarshie, A. M., Salmi, A. and Leuschner, R., 2016. Sustainability and corporate social
responsibility in supply chains: The state of research in supply chain management and
business ethics journals. Journal of Purchasing and Supply Management.22(2). pp.82-97.
Rendtorff, J. D., 2017. Cosmopolitan business ethics: Towards a global ethos of management.
Routledge.
Sami, A., Jusoh, A. and Qureshi, M. I., 2016. Does ethical leadership create public value?
Empirical evidences from banking sector of Pakistan. International Review of
Management and Marketing.6(4S).

Sison, A. J. G., Ferrero, I. and Guitián, G. eds., 2018. Business ethics: A virtue ethics and
common good approach. Routledge.