Business Ethics and Responsible Management Report - Johnson & Johnson

This report provides a comprehensive analysis of Johnson & Johnson's business ethics, focusing on the opioid crisis and its implications. The report begins with an introduction to business ethics and its importance, followed by a short report to a senior manager discussing the issues faced by Johnson & Johnson, including the misuse of opioids, loss of market share, and the need for improved marketing and product transparency. The report also delves into the types of ethical theories, specifically deontology and utilitarianism, and how they apply to the company's decision-making processes. The report examines the impact of these ethical failures on stakeholders, the company's brand image, and financial performance, including the penalty imposed on the company. The report concludes with recommendations for the company to regain customer trust and improve its ethical standing, emphasizing the importance of changing product formulas, transparent communication, and investment in promotions. The report highlights the need for ethical leadership and the adoption of ethical theories to guide business decisions, ultimately aiming to provide a framework for responsible management.

BUSINESS ETHICS AND
RESPONSIBLE
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
A) Short report to senior manager...............................................................................................3
B) Types of ethical theories.........................................................................................................6
PART 2............................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Ethics are the values and beliefs which the employees and customers have and have to be
followed in a business environment so that there is going to be a good functioning. This is going
to make the business environment have a good functioning for them and get a competitive
advantage. Businesses in the market want to have a good reputation and portfolio for themselves
in the market which is going to make the sales and the organization have more market share.
Johnson and Johnson has 134 years of experience so that there is going to be a good functioning
and make the right decisions for themselves so that there is going to be good functioning.
Johnson and Johnson has a very good reputation for themselves in the market so that there is
going to be good functioning and the portfolio of the organization so that there would be better
operations. The report is going to discuss the ethic values and the misuse of those for the
customers. Making the same mistake due to which market share is lost by the organization.
Measures the managers and leaders must focus upon so that there is going to be better operations
and functioning for the future.
PART 1
A) Short report to senior manager
Johnson and Johnson’s which is operating in New Jersey, United States has developed a
platform for themselves in the market amongst the competitors in the market. It is very essential
for the company to be able to operate effectively in the market so that there is going to be a better
functioning. The company has an experience in the medical field since they belong from the
Pharmaceutical medical devices industry. There is a lot of competition in this field as well but
Johnson and Johnson has developed a strong base of market share for them in the market. It is
because the reputation of the organization is so high in this field the company will have to be
sure of the products they are coming up with. The issue with Opioid is that the medicine is very
addictive and giving such medicines to the population is not safe and should only be given at
doctors prescriptions (Camilleri, 2017). Johnson and Johnson did not focus on the formula and
used this medicine for the people to feel relief of any kind of pain they were in which made the
company face this huge damage. The organization will have to pay $572 million to the state

which is a large amount since the organization is suppose to have experience of the market and
this industry as well they should not have made this fault. There are going to be a lot of measures
which are going to be taken by the organization so that they can pay off that amount but the
reputation of the organization is going to reduce. The company focuses on the baby products and
services which are going to make the customers worry for the ingredients which are being used
in those products as well.
The organization will have to market those products and services of babies so that they
can get back their revenues high and the organization will be able to profit from this factor.
There are a lot of information which will have to be shared in detail about the products and
services they are providing and the medicines will also have to be explained to the customers so
that they are comfortable purchasing and they are not worried for the same mistake to repeat.
This formula of Opioid was repeated in India as well which is why the customers are more
worried and reduced purchasing the products of this organization (Dzhengiz and Niesten, 2020).
The company had made a strong grasp on the customers of the organization but because of this
mistake the company is not being able to operate effectively. The organization will have to
market their products better so that they will be able to get better sales which would increase the
productivity as well. The company will have to come up with different innovative ideas for the
organization to be able to operate effectively in the market after this scene has taken place. There
is a lot of responsibility which the stakeholders have and they have to be maintained so that the
company will be able to operate effectively. The owners and shareholders of the company will
have to analyse the market effectively and then make the decisions so that the company does not
have to face such discrimination again in the future.
The company has a lot of branding for themselves in the market but it is because of this
formula which Johnson and Johnson has used in Opioid has made the image of the company fall
in the market rapidly. This is not a good sign of an old organization or a market leader to make
such a mistake (Boda and Zsolnai, 2016). The company has lost a lot of its brand image and
market share because of one small mistake since the company’s focus was not there and this has
impacted the organization majorly. Johnson and Johnson have been in the market from 1886
which has made the organization gain a lot of experience and skill to be able to operate in the
market which other organizations lack. This is not a good factor which the organization has done

on the customers because that creates a lot of doubt in the minds of the customers as well which
is not good for a long run.
Johnson and Johnson have developed a new product which had which is Using Opioid in
their pain killers in the international market which has impacted their stakeholders negatively.
Customers are being addicted of the new product. It has impacted the health of customer and also
increases the risk of other harmful diseases. This product has caused a table. Shoes in the
company as the employees and the customers have. Negatively promoted this product which has
reduced the. Brand image of Johnson and Johnson and also impacted the revenues generation.
The penalty of 572 million dollars was imposed on Johnson and Johnson, which impacted the
cost of production and other assets of the company which resulted in Layoffs of employees. The
supply chain has been Lack of proper information to the government. Painkiller is addictive for
the customers. The management team of company is ineffective to control the issues and also is
affecting the brand image of Johnson and Johnson (Parris and et.al., 2016). This has hit the sales
of other products as well and declined the comparative advantage of the company in the
international market. As Johnson and Johnson is using the same technique in different countries
which has altered the usage of other drugs as well. Suppliers are charging more for the raw
material due to the penalty and ethical issues of the products of Johnson and Johnson. Investors
helped company to provide more funds so that more effective marketing can be adopted and
increase the awareness of the drug to become successful in the market again. Government has
impacted the company’s goodwill by imposing the huge fine which reduced the efficiency of
operations of the company. Johnson and Johnson has powerful customer base and financial
backup which helps to sustain large loses like this. Management also helped company to
maintain the culture values of employees and achieve the objectives effectively.
There are a lot of benefits which are present that the organization got a publicity which is
not good for the present but they got a free promotion for the brand image. The people do not
remember these mistakes for a long run since Johnson and Johnson is the brand leader in the
market which is why the people are going to start purchasing the products of the organization yet
again very soon which is a great advantage for the company (Lämsä and et.al., 2017). The
company was aware of the formula but they continued to make the same mistake in India as well
which is not a good sign of an experienced organization. The organization must not work in the

market just for profit but for the benefit of the customers as well and especially their health
factor.
The recommendation for the company is going to be that they start changing the formula
for the product which has been highlighted and show the people the formula so that they can
trust again. It is very important for the company to promote themselves and give out positive
information about the company in the market so that they will be able to operate effectively
again (Vazquez, 2018). The organization will have to invest in promotions in order to be able to
make the customers change their views on the organization and there is better functioning which
the organization can have for the future. The issues will have to be resolved quickly so that more
customers are not leaving the organization and the economic factor of the organization is well
maintained.
B) Types of ethical theories
Ethical theories help the business to make effective decision which is best for the
business to grow and also motivate employees and other stakeholders to increase their
participation in the business effectively (Sison, Ferrero and Guitián, 2018). It is very essential for
Johnson and Johnson to adopt some ethical theories in the company to improve the working
environment and efficiency to achieve goals effectively. The two types of ethical theories are
discussed below to help understand the importance and usage of each theory in the business to
gain better perspective according to the situation and other factors (Setó-Pamies and
Papaoikonomou, 2020).
Deontology Theory
This theory states that person has to consider their roles and responsibilities to make
decision which involves ethics (Paulraj, Chen and Blome, 2017). It is very essential for the
business to understand their duties which help them to make effective decision as this theory is
based on individual roles and duties. However it is very difficult for person to decide their role
simultaneously as an employee and social person which creates conflict in their duty and impact
the business negatively (Steyn and Sewchurran, 2019). For instance the duty of marketing
managers is to promote the new product of Johnson and Johnson in the market to increase the

sales of the company Painter-Morland and et.al., 2016). However this duty has impacted their
social duty to protect the public from harmful products as the ingredients used in the painkillers
are not effective and harming customer’s health. The drawback of this theory is that a person can
be in ethical dilemma which can impact the decisions and reduce the efficiency to achieve the
objectives effectively. If the company decides to produce medicine which is not harmful
although this will contradict the business objectives which is duty of all the employees to fulfil in
order to be satisfied.
Utilitarianism
This theory is based on the ability of a person to made decision which benefits the most
of the audience and increase the possibility to make effective decision. It is very essential for
individual to analyse their abilities which can be used to attain best benefit according to the
situation. This theory does not focus on the role and duties of a person but only on the quality of
decision which is ethically correct and improves the output to achieve objectives effectively.
Johnson and Johnson company is ethically wrong as it focused on the profit maximization and it
on the health of customers which declined the brand image of the organisation (Lashley, 2016).
For instance marketing manager of company has to provide proper information about the
painkillers to the public in order to sell their products in the market which will be ethically
correct and also protect the company legally. There are two types of utilitarianism theory one is
act and other is rule utilitarianism. First one is unethical for the time being when the decision is
made but there is some possibility to benefit other effectively. Rule theory focuses on legal
aspect as well to protect the interest of business decision from the legal authorities and gain
better perspective in the market. The drawback of this theory is only according to the experience
and ability of an individual which helped them to make decision which is ethically correct or
not (Cullen, 2017). It is very important to analyse the quality of products which Johnson and
Johnson Company is producing and become more customer oriented to increase their satisfaction
and also satisfy government authorities, which will help company earn more profits and compete
in the market effectively.

PART 2
It is very important for the leaders to create a transparent relationship with the customers
so that anything can be shared in the organization which is going to be very beneficial for the
organization. Leaders have to understand the employees as well and only then the changes and
productivity is going to improve for the better in the future. There is a direction in which the
company must work and for that the leaders have to work very hard so that they are able to
communicate what is expected out of the employees as well. The leader will have to make sure
that all the employees are aware of the measures, strategies and their responsibilities towards the
organization so that there is going to be a better functioning for the future (Kish-Gephart and
et.al., 2019). The beliefs and values of the employees have to be followed in the company so that
the internal factors of the organization are going to be maintained. This ethical standard is going
to impact on the customers as well when they purchase the products and services of the
organization which is going to be very helpful for a long run. Customers and employees are the
backbones of the organization and if their needs and demands are not fulfilled then the
organization will not be able to operate effectively in the market.
Managers have the power to supervise and make decision and it is very essential for me
to have proper skills and knowledge to make proper decision and manage all the employees in
the business. Being an ethical manager I need to be more partial and justifies to my employees to
develop high ethical working environment to promote effective working effectively. I have to be
aware of the organisation’s ethical code of conduct and develop effective strategies. I will
develop different methods which will help to train employees in the company and provide better
opportunity for them to develop and grow in their career. Developing ethical environment is very
essential as it provides more effective communication channel between all the departments to
achieve the overall objectives effectively. I have to become role model for my employees to
inspire them and improve their quality of thinking to promote innovation in the organisation.
This will increase the chances of attaining core competency effectively. Being ethical manager I
have to increase the communication level in the company and place employees in the right
departments to increase the level of working to achieve the objectives effectively.

I have to create effective code of conduct for the company which will help my employees
to decide between right and wrong and also improve the performance of the company
effectively. My duty is to learn every employee’s ability in the organisation and create effective
ethics which can be effective integrated with majority of the employees in order to increase the
potential and grow the organisation in the market effectively. There are many unethical instances
in the business sector which I have experienced despite of having effective ethical leadership
skills and knowledge. It is very essential for me to understand situation in which my company is
dealing. I have to analyse all the strengths and weakness of my organisation to setup effective
ethical standards. According to me an ethical leader is that who is having better knowledge and
experience in the particular field to judge what is right and wrong. Ethical leader is also the
person who needs to have proper grasp on the social conventions which helps him to make
proper decision effectively. Effective leader also needs to understand the ethical issues which
employees faces in the organisation and resolve and listen to them very patiently. This will helps
to organisation to increase the potential to achieve the higher ethical standards which includes
the efficiency of the employees. This also increases the morale of employees to become more
effective in making their own decision and improving operations.
CONCLUSION
This report concludes that it is important for business to be ethically efficient to grow its
brand value in the market and improve the quality of customer base faster. It is also been
analysed that company has to develop effective structure for employees to distribute the roles
and responsibilities effectively. This helps employees to be more efficient in making ethical
decision which are beneficial for the business to be more competitive in the market effectively.
Report also discussed different types of ethical theories which could help company to make
effective decision and improve the goodwill in the market. It was analysed that effective
leadership qualities is very essential for the company to promote ethical organisational values
which also encourages more employees to be efficient and achieve organisational objectives
faster. Report also provided information about different types of abilities, skills and traits which
helps company to become ethically efficient and adopt productive strategies to attain core
competency in the market.

REFERENCES
Books and Journals
Boda, Z. and Zsolnai, L., 2016. The failure of business ethics. Society and Business Review.
Camilleri, M.A., 2017. Corporate Sustainability, Social Responsibility and Environmental
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Cullen, J.G., 2017. Educating business students about sustainability: A bibliometric review of
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Dzhengiz, T. and Niesten, E., 2020. Competences for environmental sustainability: A systematic
review on the impact of absorptive capacity and capabilities. Journal of business
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Kish-Gephart, J.J and et.al., 2019. Behavioral business ethics: The journey from foundations to
future. In Business Ethics. Emerald Publishing Limited.
Lämsä, A.M and et.al., 2017. Teaching and learning business ethics in a multicultural
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Lashley, C., 2016. Business ethics and sustainability. Research in Hospitality Management. 6(1).
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Parris, D.L and et.al., 2016. Exploring transparency: a new framework for responsible business
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Framework for Embedding Ethics, CSR, and Sustainability in Management Education.
Sison, A.J.G., Ferrero, I. and Guitián, G. eds., 2018. Business ethics: A virtue ethics and common
good approach. Routledge.
Steyn, F. and Sewchurran, K., 2019. Towards a Grainier Understanding of How to Encourage
Morally Responsible Leadership Through the Development of Phronesis: A Typology
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Vazquez, P., 2018. Family business ethics: At the crossroads of business ethics and family
business. Journal of Business Ethics. 150(3). pp.691-709.