Business Ethics Johnson & Johnson

Business ethics Johnson &
Johnson

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
A The nature of the ethical issue and the role of business in society..........................................3
Discussion of key stakeholders and the impact on them with examples of how ethical choices
have dis/benefited other businesses.............................................................................................5
Suggestions and recommendations for company emerging from analysis..................................6
B Apply two ethical theories to the case study............................................................................7
PART 2............................................................................................................................................8
Reflection on qualities recognized for ethical leadership and the creation of an ethical
organisation..................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business ethics is an important tool that is defined by code of conduct, corporate
governance, the fundamental business policies in order to run the business in the most legal and
responsible manner. Business ethics are also liable to meet corporate, social, legal principles and
norms in a business environment. It plays a fundamental moral principle and guidelines about
how a business actually needs to be operated professionally and legally in a business
environment. A business needs to have fulfilling responsibilities towards society and welfare of
stakeholders associated with the business. In context of Johnson and Johnson, an American
Established global organisation from pharmaceutical industry, dealing in delivering medical
devices, customer package goods and pharmaceuticals. The company was founded in the year
1886 in New Jersey, United States by James Wood Johnson, Robert Wood Johnson I, Edward
Mead Johnson. The current report covers ethical issues and the role of the business in society,
key stakeholders and the impact on them with examples of how ethical choices have
dis/benefited other businesses, recommendations for company emerging from analyses, ethical
theories applied to the case study, reflection on how qualities recognize ethical leadership and
creation of ethical organisation (Barry, 2016).
PART 1
A The nature of the ethical issue and the role of business in society
According to The Guardian 24th July (2019), the goodwill of the business has been
deteriorated from past few years of non-compliance to ethical dimensions of the business and
failure of the business promise towards the customer and its stakeholders. Ethical dilemma is
defined by decision making between two alternatives under two conflicting moral requirements.
Johnson and Johnson was selling harmful ingredients to the society for its own profit
maximization (Ciulla, 2020). There are certain ethical issues raised by the business which have
not only caused harm to the stakeholders and the society but also lead to business failure. Some
of these ethical issues that have turned to ethical dilemma for the business are discussed below.
BBC Health News 10th September (2019) Johnson and Johnson’s offered poor quality products
to its customers causing chronic health conditions to the consumers of the products, the business
have used opioid drugs substances in the products which have caused 1.7 million individual

suffering from health disorders, it is also claimed that seven people died after taking Tylenol
Capsules of the company.
Lack of transparency: The company has neglected to disclose health problems and the risk
associated with the delivered products (Ciulla, 2020).
Non-compliance of legal regulations and standards
Parramore, L (2017) The organisation has offered the products in the market with non-
conformity of the quality standards which caused severe health disorders and illness to the
consumers. The business has failed to comply with the safety requirements of the products or
delivers.
Role of business in society:
Corporate social responsibility is determined by the practices and the policies adopted by any
business that have a positive impact on the society. CSR is a concept that means to protect the
interest of the stakeholders associated with the company by abiding with the law and doing
things which are right and proves respecting to stakeholders of the business including employees,
community and society. CSR adds value to the business by operating the business in the most
ethical manner and enhances the brand image that further improves the financial performance
and business performances (The Guardian, 2019; Paramore, 2017)
Johnson and Johnson’s CSR looks on environmental sustainability but due opioid drug crisis, the
business failed to deliver fair, right and just products in the society. The association used unfair
means by manipulating the scientific research, misleading doctor’s perception which negatively
affected the society and made suffering 1.7 million people in the United States and 6000 number
of deaths in Oklahoma (The Guardian, 2019).
Oklahoma’s general attorney stated that Johnson and Johnson was only focusing on earing the
revenue irrespective of negative consequences of the products delivered in the society. Such
unfair means practices affected the stakeholders of the business including researchers, regulars,
politicians and the medical professionals. It delivers the unfollowed ethical values of the business
that negative impacted the stakeholder associated with the business.