Business Ethics and Responsible Management: J&J Case Study Report

This report provides a comprehensive analysis of the business ethics of Johnson & Johnson, focusing on the ethical issues arising from the opioid crisis. The report is divided into two parts, with the first part examining the value of business ethics within an organization, the specific ethical issues faced by Johnson & Johnson, the role of business in society, the effects of business ethics on stakeholders, and providing recommendations for ethical conduct. The second part delves into ethical theories, including utilitarianism and the ethics of rights and justice, applying them to the Johnson & Johnson case. The report critically analyzes these theories and offers further recommendations for ethical business practices. The analysis highlights the importance of corporate social responsibility, stakeholder considerations, and the application of ethical principles in decision-making within a business context.

BUSINESS ETHICS
AND RESPONSIBLE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1 A........................................................................................................................................3
Value of business ethics within the organization.........................................................................3
Issues of business ethics within the business organization given in case study..........................3
Role of business within society ...................................................................................................4
Effect of business ethics on stakeholders ....................................................................................4
Recommendations .......................................................................................................................5
REERENCES...................................................................................................................................5
PART 2 (A)......................................................................................................................................6
1. Description of Ethical Theories...............................................................................................6
2. Application of Ethical Theories...............................................................................................6
3. Critical Analysis of Ethical Theories.......................................................................................8
4. Recommendations....................................................................................................................9
REFERENCES ...............................................................................................................................9
PART 2 (B)....................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Business ethics define as the kind of applied as well as professional ethics, which
identifies that ethical principles & moral along with ethical problems which might be arise in the
business environment. It has been said that the business ethics applicable to each and every
aspects of an organisation along with the individual within workplace (Crane and et. al., 2019).
The present report is based on the case study of Johnson and Johnson where the main aim is to
examine different aspects of business ethics within the organisation. The present report is
divided into two different sections where part one is about the significance of business ethics
within the organisation. On the other hand, second part is divided into two sections where one
part includes various theories of ethics and on the other part reflective essay is going to be
prepared.
PART 1 A
Value of business ethics within the organisation
For every organisation, it is significant to follow ethics and norms as it help in smooth
implementation of activities without any delays and interruptions as well. In the present context
of Johnson and Johnson, it has been identified that this is the business organisation which
prepare as well as manufactures different types of drug products where the main objective is the
betterment of living being of individuals. Apart from this, the main negative aspect related to this
organisation is that they are not giving detail and clear information of the drugs used by them in
order to prepare medicine. In context to Johnson and Johnson, it is stated that company which is
enable to following all the ethical policies which is one of the main reason of high penalties
imposed to companies (Buchanan, 2017).
Issues of business ethics within the business organisation given in case study
In reference to the present case study which is based on the company Johnson and
Johnson, It has been identified that they are misguiding the medical professionals, customers as
well as patient related to the medicines offered by them. It has been analysed that because of
misguidance given by company, doctors also describing such medicines to their patient which as
a result raises the sales of business entity at the competitive marketplace. These ethical issues
lead towards opioid addition crisis where Johnson and Johnson face a penalty of $572 million.

This as a result affect the overall business entity in an adverse manner along with the negative
image of organisation at the competitive marketplace.
Role of business within society
Every business entity has a significant role within the society as it assist in improving the
conditions of societies and also contributes for the welfare of societies, therefore it becomes
essential for the higher authorities of an organisation to perform all their operations in an
effective and ethical manner (Hintz and Dean,2 020). Every decision which is being taken by the
higher authorities must not create adverse impact on the overall growth and development of the
company. For this, effective ethical practices and policies needs to be followed and adopted by
the management team of the organisation while taking decisions. First and foremost element
which needs to be considered by the top management team of Johnson and John is that Corporate
Social Responsibility is one of the most crucial factor.
At the time period of conducting all the business functions, it is said that managers need
to consider all those strategies which affect the overall goodwill of the company at the
competitive marketplace. Ethical policies are basically he guidelines for staff members of
business entity to behave in a right manner and maintain standards at workplace. In addition to
this, it is analysed that good ethical policies develop culture based on transparency as well as
trust. Each and every services which is provided by the company must be developed by
following every ethical policies which as a result must not affect stakeholder in an adverse
manner. In relation to Johnson and Johnson, its offer those products which affect adversely on
health of people and also impact negatively in the societies(Wright and Schultz, 2018). In this
context, company only think about their profit and conduct fraudulent acts which as a result
highly influences the overall health of the organisation. This as a result decline the overall brand
image of respective organisation in society which in turn has influence on its market
performance in a negative manner. Moreover, it also reduce the level of profitability and revenue
level that negatively impact on its market share.
Effect of business ethics on stakeholders
Stakeholders are the person who have interest in the activities of company and has
contribute some amount for implementation of operations as well as activities of organisation. In
addition to this, they are liable to take profits that is depend on their percentage of share.These

stakeholders have specific roles and responsibility which need to be considered as well as
performed by them so that they can attain positive outcomes in the growth and development of
business entity. Some of the most essential stakeholders are going to be discussed as follows:
Patient: They are the stakeholders which do not have any control over the functions of
business entity but hold most essential as well as crucial position within the business entity. This
is because they are the one who usually allows business entity to generate more profitability at
the competitive marketplace. In relation to Johnson and Johnson, it is said that patients are the
one who are highly influenced by the overall decisions taken by higher authorities of the
company in order to manufacture medicines (Watt, Kirschen and Friedlander, 2018). Large
number of people loose their life due to consumption of medicines offered by organisation as
they unethically use large number of drug which affect the human body in an adverse manner.
Doctors: They are the another most essential stakeholder where doctors are required to
promote such medicines offered by business entities. It has also been identified that the
interaction among doctors and patients highly influence the business entity and help them in
order to attain their targets in timely manner. In reference to the present organisation Johnson
and Johnson, it has been identified that due to the unethical act conducted by the business entity,
doctors as well as patients both loose their trust which create negative impact on the business
entity.
Recommendations
It has been recommended to the business organisation that they must adopt CSR activities
while performing their business functions so that they will be able to gain positive results from
their customers (Senior and Scott, 2018). On the other hand, business entities like Johnson and
Johnson need to take decisions on timely manner so that they can reduce the negative impact and
gain maximum positive results.
REERENCES
Books & Journals
Moosmayer, and et. al., 2019. Leaving the road to Abilene: A pragmatic approach to addressing
the normative paradox of responsible management education. Journal of Business
Ethics, 157(4), pp.913-932.

Crane, A., Matten, D., Glozer, S. and Spence, L., 2019. Business ethics: Managing corporate
citizenship and sustainability in the age of globalization. Oxford University Press,
USA.
Haski-Leventhal, D., 2018. Strategic corporate social responsibility: Tools and theories for
responsible management. Sage.
Pagan, V. and McGuigan, E., 2019. Lecturer-Student Collaboration as Responsible Management
Education: Benefits and Challenges. Journal of Business Ethics Education, 16, pp.25-
40.
Ciulla, J.B., 2020. Business ethics as moral imagination. In The Search for Ethics in Leadership,
Business, and Beyond (pp. 121-129). Springer, Cham.
PART 2 (A)
1. Description of Ethical Theories
Theory of Utilitarianism:
This theory is consider as one of the persuasive and best theories of normative ethics
which main objectives is determination of what is wrong and right as per ethics that is in the way
of consequentialism. In addition to this, Utilitarianism theory is basically the theory of decision-
making making and ethical behavior which consider or advocates for action which results into
more happiness and pleasure and is also against the action which results into grief or sorrow
(Crane, Glozer and Spence, 2019). Moreover, it is analyzed that such theory is rely on the
promotion of something good and beneficial of the society. As per the theory of Utilitarianism,
an action that is expected to outcome into positive value for large number of people within the
society is morally and ethically a right decision. Therefore, an action which is converted into
happiness for large number of people prevailing in society is morally deed called Justified.
Theory of Ethics of rights and justice: The Ethics of Rights and Justice is most crucial
theory that involves rights a person has to gain such as right-to-live, equality, privacy and several
other. In all of the cases , it is important to recognise that in all of the situations, human rights
must not be violated, whether it's towards benefit of the individual or benefits of others. When
focusing at case scenario of corporation Johnson and Johnson, it is easy to use the principle of
rights and ethical justice concept within it (Foglia and Cohen, 2019). Corporation had in this
case not given much and further facts regarding the opioid medication they had planned.

2. Application of Ethical Theories
In relation to given case of Johnson and Johnson, Theory of Utilitarianism can be applied
to identify the individuals within the society that get benefits from the actions made by higher
authorities and management of respective organization. The concept of Opioid pain relievers is
approved by the federal government as per the statement of Johnson and Johnson and the
company is gaining maximum profits and revenue level that aid in maximization of shareholders
investment and brand image of company (Urmson, 2020). It is analyzed that people in Oklahoma
is facing issues like emotional loss, addiction, death due to over use and so on. In addition to
this , the judge in Oklahoma is ordered company to pay $ 572million in order to decline the
effect of the stated that deals with Opioid crisis. Therefore, application of Utilitarianism theory in
the given case study can be proved to highlight the ethical issues that is face by Johnson and
Johnson in implementing business practice.
As per the theory of Ethics of rights and justice, it is said that it is entitled to knowing
about the medication but they were not supplied with it. Looking at respective scenario, it can
seamlessly said that here human rights have been affected, and also health care professionals
need to have direct access to all medicine-related information and relevant details so that they
might have made better choices about whether or not to write a prescription of such a medicine.
And it often becomes patients' responsibility to know properly about medicine they took. Here
incorrect knowledge was given because it removed all pros. In short, providing all
of detailed knowledge about Opioid including its key strengths and weaknesses becomes vital for
company Johnson and Johnson.
Additionally, the awareness and branding that was rendered to patients when less
evidence were offered that treatment would reduce percentage of suffering with much less
money. This was reason that medicine consumption was growing day after day and for
successful decision something had been needed to be prepared. Here, primarily the organisation
has concentrated on medication treating their pain (Garner, 2019). Afterwards, some critical
decision that is linked to the biassed knowledge of medicines was taken by the approved
government authority. Only valid information was given to respective person who benefited
from medicine sales.

Simply stated, it can clearly be argued that theories described helped to establish the idea
of ethical competency. With the aid of case analysis, this idea has helped establish the principle
of taking the appropriate decisions. It is since there was such a difficulty in case of Johnson and
Johnson, there were multiple ethical problems, but with the aid of discussed ethical theories this
is easy to draw a reasonable conclusions.
3. Critical Analysis of Ethical Theories
Theory of Utilitarianism:
Benefits:
The purpose of Utilitarianism theory is to work for benefits and good of the society & is
easy to execute. In addition to this, it is analyzed that such theory is highly accepted and
renowned because it puts happiness within the center of existence (Werhane, 2019). Acquisition
of universal ethics in an objective way develops Utilitarianism theory applicable within the daily
life. Moreover, the theory emphasis in democratic approach for taking decision by undertaking
interest and benefits of more number of people prevailing in society.
Limitations:
Utilitarianism often develop an unrealistic view for society like a person can save the life
three to four individuals by donating organs that is morally a right decision as per the theory of
theory of utilitarianism. In addition to this, uncertainty of future and unpredictability is also
consider as a weakness of such theory that emphasis on advocating actions which leads to
positive results in the coming future.
Theory of Ethics of rights and justice:
Benefits:
Major advantage of this theory is that it offers a systematic framework for compliance
with ethics and enable organization to comply with all regulations concerned with human rights.
Adoption of this theory in business helps corporation to develop a better image among buyers
and enhance customers' trust on corporation (Twiss, 2018)
Limitations:

More focus towards ethics and human rights some times lead to loss or deficits in
business. Sometimes more emphasizes towards ethics and human rights may effect decisions and
result in rigidness in business decision-making.
4. Recommendations
 It is suggested to the higher authorities of Johnson and Johnson to undertake the impact
of decision as well as choices associated to development of addictive pain relief for the
people living in society which consist of negative impact on health of people, emotional
conflicts, isolation, death due to high dose and many more (Ciulla, 2020). Opiod based
pain relief is important tool for pain relief so it is suggested to respective organization to
find its alternative that does not affect on the health of people. Moreover, using of
alternative that is ethical and consume by people assist in raising performance and profit
of the company.
 Further this has been advised to respective company that in order to regain the trust of
customers and enhance brand image company should adopt and strictly comply with
ethical framework based on the provisions of discussed above.
REFERENCES
Books and Journals
Ciulla, J.B., 2020. Business ethics as moral imagination. In The Search for Ethics in Leadership,
Business, and Beyond (pp. 121-129). Springer, Cham.
Schaltegger, S. and Burritt, R., 2018. Business cases and corporate engagement with
sustainability: Differentiating ethical motivations. Journal of Business Ethics, 147(2),
pp.241-259.
Rendtorff, J.D., 2019. Corporate Social Responsibility, Sustainability, and Stakeholder
Management. Philosophy of Management and Sustainability: Rethinking Business
Ethics and Social Responsibility in Sustainable Development, pp.43-52.
Miska, C. and Mendenhall, M.E., 2018. Responsible leadership: A mapping of extant research
and future directions. Journal of Business Ethics, 148(1), pp.117-134.
Jamali, D., Abdallah, H. and Matar, F., 2018. Opportunities and challenges for CSR
mainstreaming in business schools. In Business Education and Ethics: Concepts,
Methodologies, Tools, and Applications (pp. 613-643). IGI Global.

PART 2 (B)
Business environment is flexible and dynamic wherein people work with their full
potential in order to attain positive results or outcome as well. For this, human resource are
consider as significance tool that help in attaining success and also they managed by leaders as
well as managers of an organization (Ugoani, 2019). As per my opinion, Leadership is a way of
motivating and influencing people to achieve their common goal in an effective and timely
manner. This concept is becoming more adaptable and successful in organizations as it
encourage staff members or people to work with full zeal and potential as well (Manasakis,
2018). Ethical leadership is a leadership which is directed by respect for ethical values and
beliefs and also for the right & dignity of others. This concept is mainly associated with
charisma, trust, consideration, honesty and so on. For an organization, ethical leadership
management is helpful in order for holding employee within the organization & also tends to
make effective decision that is advantageous for a company. As per me, I am working for in such
organization where ethical leadership needs is followed, in addition to this, such principle are
undertaken as the service, justice, community as well as honest foe the core business ethics.
It is analysed by me that an unethical business environment provide injustice to staff
members who perform for an organisation for both operational as well as functional level. In
addition to this, performing as a leader is highly unethical in relation of implementing unethical
practices (Chari, 2019). For this, I require find issues which made an unethical environment to
take place in organisation and grow as well. In order to maintain integrity, the initial step is to
focus on where ethics are not followed within the organisation structure. Along with this, there is
requirement to find out the policies that arise issue from top level to lower level management
which leads to development of unethical practices. Another way is providing training and
development session also significant for developing ethics (Shen and Zhang, 2019). Furthermore,
workers encourage or motivate for working ethically and employee implement unethical
activities should be noticed and reported as well. This, implementation of all such practices poses
staff members for performing operations and activities ethically. In addition to this, it supports
ethical practices that assist in declining unethical businesses in a proper manner.
Moreover, it is analysed that four V model is one of the effective framework that assist in
developing positive working environment at workplace. As per this model, one of the most
effective point where a leader is required to commit towards the values of company (Matsumori,

2019). Vision is the another important element where leaders use all the ethical policies for
functioning out activities in an appropriate manner Third most essential factor is the Voice, that
is a leader must have effective communication skills so all the roles as well as responsibilities is
assigned to employees in a clear and proper manner. At last Virtue is the another element which
is quite essential for a leader in order to examine the right and wrong decisions that impact on the
overall performance of company.
In addition to this, if I am working in an organisation and manufacturing the drug the
most essential point than it is important for me to communicate all the relevant information about
drug on the packaging. All the information must be given by me in detail manner to the doctors
so that they have clear idea about the medicine which will assist in reducing pain. This as a result
assist in developing positive image of the company in this competitive marketplace (Berghs,
2018).
CONCLUSION
As per the above mentioned analysis, it has been said that every business entity must adopt
all the ethical rules and regulations while performing their business operations in an effective
manner. It has also been said that there is an implementation of ethical theories within the
business entity so that they can conduct every activity in an ethical manner and produce positive
outcome. It has also been said that all these framework help a business organisation in order to
perform all their task in an ethical and effective manner so that they can create positive results
which is beneficial for the company.
REFERENCES
Books & Journals
Shen, J. and Zhang, H., 2019. Socially responsible human resource management and employee
support for external CSR: roles of organizational CSR climate and perceived CSR
directed toward employees. Journal of Business Ethics, 156(3), pp.875-888.
Ugoani, J., 2019. Business Ethics and Its Effect on Organizational Sustainability. Global Journal
of Social Sciences Studies, 5(2), pp.119-131.
Kazeroony, H.H. and Barton, C.D., 2018. THE NEED FOR A NEW BUSINESS ETHICS
MODEL. Management Education for Corporate Social Performance, p.99.
Manasakis, C., 2018. Business ethics and corporate social responsibility. Managerial and
Decision Economics, 39(4), pp.486-497.

De Roeck, K. and Farooq, O., 2018. Corporate social responsibility and ethical leadership:
Investigating their interactive effect on employees’ socially responsible
behaviors. Journal of Business Ethics, 151(4), pp.923-939.