Ethical Issues and Stakeholders: Johnson & Johnson Case Study Report

This report examines the ethical issues surrounding Johnson & Johnson, focusing on the opioid crisis and its impact. The report is divided into three parts: Part 1-A analyzes the ethical issues, the role of the business in society, five stakeholders affected by the crisis, examples of good and bad ethics, and recommendations. Part 1-B explores and applies utilitarian and deontological ethics. Part 2 includes a reflective essay on ethical leadership and management within an unethical organizational culture. The report investigates the ethical leadership, applying the utilitarian and deontological ethics theories, and offering recommendations for ethical practices, and concludes with a reflective essay.

Johnson & Johnson

Table of Contents
INTRODUCTION.......................................................................................................................................3
Part 1-A REPORT.......................................................................................................................................3
Part 1-B TWO THEORIES.........................................................................................................................5
Part 2 Reflective essay.............................................................................................................................7
Conclusion...................................................................................................................................................9
REFERENCES..........................................................................................................................................10

INTRODUCTION
Ethical practices refers to the building or creating trust by adopting role model of ethical
behavior by applying principles and values for decision making in positive manner (Arnold,
Beauchamp and Bowie, 2019). ethical practices is very much important in the business world in
which every firm rushing for earning profitability by using greenwashing. Respective report is
based on the Johnson & johnson which is an American multinational corporation founded in the
year 1886 the develop the medical devices, pharmaceutical and various kinds of consumer
packaged goods. Respective report is based on the case study Johnson & Johnson taking the pain
that based on the opioid addiction crisis. To collect necessary knowledge and information
required to identify the ethical issue and role of business in society and its development,
stakeholders affected from unethical practices, examples of good and bad ethics and many more.
Further it includes the theories and practices to illustrate the nature of ethical practices and way
to deal with it. Finally it includes the ethical leadership management in unethical leadership and
reflective essay to show the understanding.
Part 1-A REPORT
1. Ethical issue or issues – Ethical issue is kind of problem or situation that needed an
individual or organization to choose one of best alternative that should be evaluated as
right or wrong (Crane and et.al., 2019). As per the case study the ethical issue that
founded that impact on the business and its value in the whole world. It has been analyze
that organisations are liable for the effects of their own products. Judge of Oklahoma
ordered to respective organization to pay the $572m for lessening the effects of opioid
addiction crisis. As it has been analyze that opioid is very much dangerous for the health
of people and sales campaign ran false and dangerous that caused addiction and death. In
the damning decision the judge ruled that the organization have to take responsibility to
assist the people to build the worst drug epidemic in the US history. In that regards it is
the accountability of every organization to build the products that are safe and secure for
every consumer and not proved harmful for their health. For an organization it is very
much potential to evaluate the various factors that directly impact on the business

performance and loyalty of their consumers.
2. Role of business in society – companies of all size and scope from the one individual
operations to the giant multinational corporation are engaged in producing the products
and services (David and James, 2019). they producing the products and services that
willing to purchase by consumers, along with businesses also produce products that are
“Bads” that are unwanted and unfortunate environmental and influenced by the social
problems. Respective conditions are the flip side of the production of products and
services and composed the bad impact in form of child labour, environmental pollution,
bribes and habitat destruction and harmful impact on the health of human being. As the
part of research it is accountability of organization to evaluate and discuss the effect of
each and every kind of social issue on the community and other individuals. In context of
Jonhson & Johnson that get order to pay the $572m for the mitigating the effects while
dealing with the opioid addiction crisis. Respective crisis proved very much hazardous
for the people as per the report of CNN estimated that 1.7 million individuals in the USA
suffer from the substance use disorders related with the prescription of opioid pain
relievers. It has been analyze that it is the only story of the Johnson & Johnson that is one
just a single organization but many more organisations get profitable but on basis of high
cost. It has been analyze that respective crisis impact on the organisational sustainability
into the marketplace and lessen down the no. of loyal consumers as it hurts their faith
while purchasing organisational products and services. so it is the accountability of
society to pay attention on the development
3. Five Stakeholders – Stakeholders are very much important that work in the self interest of
the organization in order to achieve the definite goals and objectives (de Bakker, Rasche
and Ponte, 2019). In context of Johnson & Johnson the major stakeholders of the
organization are advocacy group/ trade associations, consumers, employees, government
and local communities. it has been evaluated that while an organization enclosed with the
unethical practices it directly influence on their work and practices. The consumers major
stakeholder infected as it hurts their faith and loyalty that is one of most important assets
of organization. the another stakeholders is employees as the loyalty of consumers
towards organization largely rely on their career development and growth. government
also influenced by the unethical activities as it not provide funds and other kind of

assistance that is very much necessary for organization to develop oneself (Ferrell and
et.al., 2019). The last one is local communities as all individuals concerned for their
health while organization involved in unethical practices it harms their self interest while
purchasing products and services.
4. Examples of good and bad ethics – The examples of the unethical companies includes the
Amazon that never seem out of the spotlight whether it is tax avoidance as they boycotted
for respective task. They also use unethical practices to treat workers not in proper
manner at their fulfillment centers. The another example of unethical practice that
adopted by the ASDA Walmart that monumentally failed to embrace the corporate
responsibility in their operations and supply chain around the whole world.
Now the example of organizations that adopted the ethical practices that are
Patagonia is an American outdoor clothing company that organically grow the cotton for
producing products by switching the pesticide heavy cotton crops (Harris and et.al.,
2019). The another example of ethical practices which is Starbucks that is committed for
the 100% sustainable sourced coffee for optimizing the sustainable sourcing.
5. Recommendations – for an organization to remain always profitable and sustainable
required to embrace the ethical practices as it is very much important in today’s business
environment. For an organization earning profitability is first priority but by using the
ethical practices they can achieve the desirable goals and objectives. As it helps in
gaining loyalty of consumers by considering their self interest in potential manner.
Part 1-B TWO THEORIES
1. Describe the theories – It has been evaluated that to overcome from the problems or
issues organization needed to understand and embrace the various kinds of theories and
practices. with the help of theories organization can be able to pace in the right direction
to achieve the potential outcomes. To build the right solution of unethical practice that
embrace by Johnson & Johnson is theories of ethics that are as follows:
Utilitarian ethics: Respective theory of ethics is depicted the concept of “ the greatest
good for the greatest number” the main idea behind respective theory based on the major
consequences of the action. The most important aspect related to the respective theory
that it appears the method to way out the influence of behavior by examining greatest

good for greatest number (Johnson and Hinton, 2019)..
Deontological ethics: The another important theory is deontological ethics that based on
the transcendent principles that apply to the all human being. The idea behind respective
theory that human should be treated with respect and dignity because they have the right
to get it. The core concept behind is that there are objective obligations or responsibilities
that is very much potential for all people. While an organization faces the ethical
situation, then need to apply or identify the own duty and make the best decision. It is
very much effective for that organization to have the potential knowledge about own
duties so that every individual can give one of their best efforts to refrain from unethical
practices.
2. Apply the theories – It is very much potential for an organization to evaluate each and
every aspect in potential manner to improve the organisational performance in positive
manner (Khan and Naguib, 2019). after evaluating the ethical practices and theories
organization need to apply respective theories as per the business situation or
circumstance to remain always competitive in market place that are as follows:
Utilitarian ethics: Respective theory states about the providing the greatest good for
greatest people for providing one of the best experience to the end users. To apply
respective theory organization need to take decision that proved beneficial for the
majority of people. In context of Johnson & Johnson, to eliminate the unethical practices
organization need to take decision by considering welfare of large no. of individuals that
are very important part of organization.
Deontological ethics: Respective theory is very much important in today’s business
world to compete in positive manner with the unethical practices (Liu, Mai and
MacDonald, 2019). Respective theory states that organization and its members have to
recognize their responsibilities to pay one of their best efforts in organisational
development and enhancement in potential manner. in context of Johnson & Johnson
need to give one of their best efforts by accessing the role of oneself in situation of
prevailing unethical practices in organization for competing in business environment in
potential manner.
3. Critique: It is very much effective for an organization to evaluate the both positive and
negative aspect related to the theory and practice for achieving desirable outcomes. in

context of Utilitarian ethics theory the positive aspect of respective approach that it is a
universal concept that is understand by all the people (Magumise and Sefotho, 2020). The
major goal is to reducing the personal harm while increasing happiness. Respective
process uses an objective process for deciding what is right or wrong as per the situation.
It has been analyzed that for an organization always there are consequences for their
actions. The outcome may be sometime positive, negative or mixture of both the
attributes.
The negative aspect of respective theory that society that society does not only focus on
the item of intrinsic worth of happiness but there are no. of factors that organization need
to be consider (Walters and et.al., 2019). The another negative aspect that outcomes are
unpredictable while dealing with the future. By looking into the future organization
predict the future but it is not realistic in nature.
Deontological ethics: The positive aspect of respective theory that it is one of most
strong model for applying the strongest model for applied the public relations ethics that
is very much important for organization to gain the desirable goals and objectives. The
negative aspect of respective theory that there are disagreement regarding the principles
involved in the decision making (Werhane, 2019). It is very much difficult for
organization to make best choice out of the negative consequences or results.
4. Recommendations – for an organization ethical practices is very much important as it
contributes in developing the distinctive image in the market place by providing of best
products and services that are ethical in nature. So usage of various kinds of theories and
practices is very much important to build distinctive image in the marketplace. it is very
useful to critically evaluate the aspect of theory in order to gain potential outcomes out of
it in order to remain competitive in marketplace.
Part 2 Reflective essay
1. What is an ethical leadership management is in an un/ethical organisational culture.
Ethical leadership refers to the setting the high level of standards for behaving in ethical
manner and establish the corporate culture that helps in assisting values that is very much
potential for organization such as honesty, trustworthiness and responsibility. For an
organization is very much important to build a distinctive image in the marketplace by
establishing the ethical corporate culture. In the unethical leadership the ethical leader

work with the courage, as they not only know the way to pursue things in differ way but
practically apply it. Creating the ethical environment is one of the best organization while
top management paid attention to values by setting the ethical behavior of employees. In
context of Johnson & Johnson for building the best environment in which every
individual can contribute one of their best efforts. It is very much potential for
organization to build ethical practices that helps to overcome from the unethical practices
prevail with in the organization in order to achieve the desirable goals and objectives.
Ethical leader helps to organization in dealing in effective manner within the situation
unethical practices (Douglas, 2019). To create the ethical culture that is very much
important for organization to deal or resolve the adverse consequences. By defining the
personal and organisational values that helps in dealing in effective manner to deal with
unethical practices in potential manner.
2. How to maintain integrity and compliance in an un/ethical business environment.
It is very much potential for organization to deal with integrity and compliance
in the unethical business environment (DeMarco and Fox, 2020). the organisational
brand name and trust of stakeholders are one of most important assets for organisation to
deal in effective manner. To protect the organisational reputation and increase the rate of
engagement by creating the workplace where the ethical practices is the norm. it is very
important for organization to reduce the risk by using the five effective kind of steps
while organization surround with the unethical practices that are honestly access the
organisational needs and resources. Establish the strong foundation and create the culture
of integrity from the top down to deal in effective manner to remain competitive in
marketplace. further organization need to evaluate and revise the needs so that
organization can behave in ethical manner as it is very much important to remain
competitive in marketplace. in context of Johnson & Johnson to refrain from the
unethical practices organization need to behave in ethical manner by maintaining ethical
business environment. To maintain the integrity and compliance organization by building
the strong foundation in which every one contribute in building ethical culture. With the
help of ethical culture organization can be able to deal with adverse environment in
positive manner.
3. Reflect: it has been analyze that for an individual as well as for organization ethical

practices plays very much important role. While acknowledging about ethics and related
practices it proved very much beneficial for me in taking effective kind of decisions
regarding what is right or wrong for the business. as it is crucial to divide for taking
effective decision to deal in situation of unethical practices. it proved very much
beneficial for me in future while working with the corporate world in which it provides
accessibility for taking decision by judging ethical or unethical practices. it has been also
analyze that ethical practices not only important for organization but it proved very much
beneficial for individual to build a distinctive image in the marketplace. it not only
proved in creating distinctive image out of crowd but also provides career opportunities
that is very important for individual. In that regards it has been stated that ethics is very
much important for an individual and it also proved very much beneficial for me in
command over the concepts related to it.
4. Conclusion: From respective section it has been concluded that leadership is very much
important for an organization. As on the basis of leader and its leadership style
organisational sustainability and practices relies. For an organization integrity and
compliance plays very much significant role while organization suffer from the unethical/
ethical business environment. In that regards ethics is very significant for organization to
build consumer loyalty and sustainability into market.
Conclusion
From the above report it has been concluded that ethical practices is very much important
for an organization as it contributes in building the distinctive image in the marketplace. while an
organization not obliged the ethical practices it proved harmful as they lose their loyal consumers
and sustainability in business. In that regards it is very much potential for organization to pursue
the ethical practices that is symbol of prosperity and consumer welfare.

REFERENCES
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