Johnson & Johnson Opioid Crisis: Ethical Theories Case Study Analysis

This case study examines the ethical implications of Johnson & Johnson's marketing and sales of opioids. It delves into the approaches the company used for selling and advertising these drugs, the ethical challenges associated with transparency and counterfeit drugs, and the impact on the company's brand image. The assignment applies utilitarianism and rights-based ethical theories to analyze the situation, considering the perspectives of various stakeholders, including management, consumers, and the government. It discusses the company's role in society, the ethical considerations of advertising drugs, and suggests how Johnson & Johnson could have acted more responsibly. The study also explores how individuals can become ethical leaders and managers in the context of the opioid crisis. The case study emphasizes the importance of ethical business practices, corporate social responsibility, and the need for companies to prioritize consumer health and well-being while marketing their products.

CASE STUDY

Table of Contents
INTRODUCTION.....................................................................................................................................2
PART 1.......................................................................................................................................................2
A- Approaches of company use for selling and marketing opioids..........................................................2
B- Application of two ethical theories in context of Johnson & Johnson case study...............................5
PART 2.......................................................................................................................................................7
What makes an ethical leader and how person will as an ethical manager..............................................7
CONCLUSION..........................................................................................................................................9
REFERENCES........................................................................................................................................10

INTRODUCTION
Business ethics can define as form of professional or apply ethics that could examine
ethical moral and principles or ethical issues that can arise in a venture environment and impact
overall performance in negative manner. It is a set of right practices and policies follow by any
company in context of potentially controversial topics including insider trading, corporate
governance, CSR, discrimination & fiduciary accountabilities. The current assignment will be
based on Johnson and Johnson case study. This study will explain number of factors including
ethical challenges of marketing drugs, problems from perspective of ethics and its influence upon
brand image in market. Furthermore, this report will justify alternatives options in regard to think
about venture role in society. It will define the impact of ethical issues on stakeholders and
would also clarify possible suggestions in context of chosen firm. Moreover, this assignment
will explain two ethical theories and ways through which a person would become an ethical
leader.
PART 1
A- Approaches of company use for selling and marketing opioids
Johnson & Johnson is one of the leading medical devices manufacturer and
pharmaceutical companies in the US (Havers and et.al., 2020). It sales products in health care
sector and operates via different segments such as consumer and above two. This organization is
facing several issues or challenges in context of selling and marketing opioids. Below some
elements relate to case study has been mentioned-
Number of factors mentioned below-
Johnson and Johnson look at problem from perfectives of ethics-
Opioid is type of drugs that include illegal drug heroin, synthetics opioids such as pain
relievers manufacture by chosen company and accessible legally by prescription such as codeine,
hydrocodone and many others. Due to selling and advertising opioid, firm is facing legal
problem and has penalized of $572 Million (Compton, Valentino and DuPont, 2020). They
should look at this issues from perspectives of business ethics as it affects health of many people
and make them addicted. According to venture ethics, companies must manufacture products that

could not put negative impact upon health of their consumers and above act do not included in it.
Many people in the whole world are addicted of opioids or medicines in which this drug is
include. In addition to above case, company must consider selling and promoting opioid from
ethical perspectives because in America 128 people has died after taking overdose of medicine
that firm has sells to customers in form of pain relief. By looking opioid crisis from perspective
of ethics firm could get excellent success and sustain for longer period of time through
contributing in context of eliminating it’s all negative effects.
Ethical challenges of advertising drugs-
Transparency-
The major challenge that pharmaceutical companies such as Johnson and Johnson can
face due to conduct drug marketing activities is transparency in manner it conducts genetics
investigation and on implications that this kind of act can and alleviate threats about potential
misuse of genetics data or info (Harper, 2019). It is one of the biggest challenges that firms in
recent time has faced that impact current marketing tactics and approaches in negative manner.
Marketing and sales activities in sector are areas of potential ethical issues.
Open to investigate into all areas of promotion-
This issue relates to marketing drugs such as opioid that strives companies to encourage
more scientific investigation on typically avoid or under researched ethical implication of
advertising activities & customers’ behavior regard to pharmaceuticals in different of global
contexts like US (Farjadian and et.al., 2019). It is another ethical challenge that could face while
promoting or selling drugs.
Counterfeit drugs-
It is emerging concern impacting develop and developing universe. In form of challenge
incurred by firms, fake drugs distribution under name of a brand could have major impact on
business position or reputation (Yadav and et.al., 2018).
Issues influencing public image of Johnson & Johnson-
Overall problem is relating to marketing and selling drugs such as opioid that put
negative impact on brand image. For example, unethical practices conduct by business could

affect market reputation and position. According to US government, advertising opioid is illegal
act because it drives attention of more people who are being addicted of it. Dangerous or false
marketing of drugs could consider as way fueling opioid crisis as it influences negatively on
company image.
Business role in society-
There are ranges of alternatives available in business world that help to define role of
companies in society. Friedman and Freeman introduce concept in 1970 for New York time
named A Friedman Doctrine, according to that business role & accountability is to increase their
profits in context of social responsibility. Its role in society is to increase focus of economic
activity and contribute in their development, by manufacturing and selling products or services in
ethical manner.
Stakeholders affected in chosen case study-
Management, workers, government and consumers are the different stakeholders who are
impacted in above scenario base on Johnson & Johnson company. They all are affected in
several manners, for example management, business owner, CEO and other who are included in
category of top authority, impacted in selected case study when government claim penalty for
conducting marketing activities relate to opioid. In form of penalty, Oklahoma judge ordered
firm to pay $572 Million in reimbursement. It affects in negative manner upon above
stakeholders and reputation of their venture.
Customers or opioid users are included in list of key stakeholders of chosen organization
who are affected in term of losing his or her life after taking overdose of this drug. Government
is another stakeholder who impacted in form of passing rules and penalty upon pharmaceutical
companies in US for selling and marketing opioid.
Organization consider relevant stakeholders and their needs in form of making changes
within its production procedure by reducing amount of opioid which could recognize as ethical
business practices.
Examples of venture-

The world of business, it filled up with number of examples that define how many
companies are acts responsibility and those who are not conducting any corporate social
responsibility practices. For instance, Johnson and Johnson is one of the firms that take major
steps towards improving global health, local communities and assuring sustainability of nature or
plant. It highly concentrates on two important attempts that restore & preserve sight. It benefits
company in form of increasing its sales, gaining attention of consumers and driving growth of
venture.
On the other hand, those companies who are not acting responsibility could face several
challenges while managing and operating ventures within specific sector. Their bad choices or
selection put negative impact upon brand image, reputation and position which in return decrease
sales, profitability and productivity level. Trump organization, Sears etc. are the examples of
American organizations that has worst reputation in business world because of not acting
responsibly.
As discussed above there are number of organizations who are not conducting any CSR
activities, which puts negative impacts upon its reputation and good will. In order to build strong
and influencing market image firms should conduct corporate social responsibilities. For
example, Johnson and Johnson must produce medicines by using right chemical or elements
which would not harm the health of human and make people addicted. It should reduce usage of
opioid in amount, as it makes pain killer users less addict. Firm must conduct ethical business
practices by promoting painkillers after making changes within it without conducting any
unethical acts as it helps to play vital role in society. Organization before marketing and selling
opioid must conduct a test and prepare report that would submit to health and social ministry for
approval as it saves firm from legal issues.
B- Application of two ethical theories in context of Johnson & Johnson case study
There are four different forms of ethical concepts are accessible that has been in context
of several companies. Utilitarianism is one of the ethical theories that define moral philosophy
base on norms that a practice is morally right when it is conducted and produce a wider quantity
of happiness or good more than other possible act (Marseille and Kahn, 2019). This concept is
based on individual competence to assume consequences of an action. Choices that holds
benefits and advantages to most people is an ethical activity, as it relates to chosen case study,

for instance when Johnson and Johnson company take action to promote its products, their
management need to predict its consequences, affects or influence upon people who are addicted
of opioid. It is really a very nice idea that help to improve brand image in market which has been
affected due to allegation by Judge because of fueling opioid addiction crisis within Oklahoma
by advertising and selling this drug in market, where people are seek to purchase it from longer
period of time as they are addicted which is the cause of death. This theory could successfully
lead to a view on ethical of select case as it defines two forms of utilitarianism such as rule and
act utilitarianism. According to first form, company needs to act or perform activity that benefits
consumers and other stakeholders which is really very important (Aliman and Kester, 2019).
Furthermore, rule utilitarianism is second element of chosen ethical theory that takes into
account regulation and is relate to fairness. It indicates that organization should respect laws,
policies and rules which are beneficial for success and allow to leading growth opportunities
which in return increase sales, profitability and productivity as well.
Johnson and Johnson according to Utilitarianism theory must conduct ethical practices by
considering all elements before marketing opioid, it should follow rules and acts relate to
marketing govern by local and national authority. This concept defines that firm needs to value
principles and moral of business which allow them to think about consumers’ health before
producing and selling any item. Moreover, it also has some drawback for example, prediction is
not always right as it might wrong in some cases that impact negatively upon current
management and business practices. The disadvantage of above views is that it drives firm
attention towards predicting good things which were not always appropriate as it leads to
decrease sales. Rule and act utilitarianism affect negatively along with positive impact, such as
when firm and its management could use experience to attempt to predict result of marketing
opioid, they cannot make predictions accurately in many situations.
Ethical theories or concepts are the important parts of decision making procedure as it
considers as key foundation of this act that help to growth venture and allow them to get success
within chosen marketplace for longer period of time. Just like above ethical theory, rights base
ethics establish by community is secured and given biggest priority. All the rights of company
and its consumers are recognized to be ethically appropriate and correct since a wide population
endorses them. This theory integrates humanitarian norms, law, principles and standards into
policies, plans and procedures such as manufacturing medicines that help prevent people from

pain. According to chosen concept, in the world some rights are positive and few are negative
that all individual has base only on fact that they are human (Sundaram, Voo and Tam, 2020).
Organization also have right to promote and advertise its venture and products as well in market
which permit management to obtain competitive advantages and increase its profitability even
better than last few months or years. Furthermore, company has right to sell their items by
considering health consequences of consumers without conducting any unethical act that could
put negative impact on entire business. The fundamental of this concept is that it aware firm
about its rights along with considering society well-being which is actually very important to do
as it help to bring a lot of benefits and provide chance to gain competitive edges. This theory
says about chosen case study is that without conducting unethical act, company need to sell and
advertise their medicines. Furthermore, it also takes care of its impact upon people who use
painkillers for reducing pains few of them are addicted of it, which is not firm fault as they only
attempt to relief the pain nothing more than it.
All the stakeholders can get benefits of above acts in varied forms such as consumers as it
depends on how they act and consider marketing of opioid. Johnson and Johnson is not
accountable for death of many people as it only does its duty and work according to actual rights.
The main complication of this concept on wide degree is that one need decipher what traits of
right are in society. It can determine what rights and legal act is wants to uphold to people.
Relate to case study, company has to identify its right and then match with society aims as it
assists business to sustain for longer period of time. By manufacturing medicines organization
reach to society goal and that is to improve health of citizen and make his or her life longer and
wealthy. Working and performing within pharmaceutical sector, firm can hold all its rights and
protect business from obligations.
PART 2
What makes an ethical leader and how person will as an ethical manager
Ethics of company are dependent over how each individual from the employees to CEO
communicate and behave. Their actions influence the customers and public preference about the
company. Negative perceptions can drive the stock and revenues downward significantly. Ethical
values also affect the interaction between employees and the management. Employees who like
the organisation they are working with and feel respect, it makes them return the favour by doing

the best work. Negative environment having no value for the accountability, value, honesty and
the trust could engender the high employee turnover, risks of bad publicity and lower
productivity.
Ethical leadership includes the business leaders that demonstrate the appropriate conduct
outside and inside the organisation. The ethical leader demonstrates good values through the
actions and words. Such leaders do not overlook the wrongdoings and the unethical practices
even if such practices are benefiting the business (Hargett and et.al., 2017). They are expected to
show full integrity and do what is right and ethical which are core for becoming ethical leader.
They set examples for rest of their teams and company.
Ethical leadership is management styles which works for the organisation. Becoming
ethical leaders involve creating positive work culture which improves the morale of employees
working behind the ethical leaders. Staff would not involve in any unethical practice even it
benefits them or the organisation. Leaders have to encourage the capacity of their employees
working with them for performing at the peak. They create positive and supportable work
environment where everyone is ready to help each other for overall productivity of organisation.
Leaders have to ensure what they offer to the customer is best. Also they have to ensure that they
do not create the bad PR for company. The scandals going in the company could affect the
organisation significantly. The scandals affect the organisational image and can cause the people
to turn to other competitors.
Ethical leader is known for being equal and respectful of employees and other people
who are working with them at same place. He or she known for being highly committed and
honest to develop sense of team spirit and boost morale of workers even better than last few
months. In my point of views, a person could become an ethical leader when they conduct all
ethical practices for example, take suggestion from staff members and encourage all of them to
take part in decision making procedure which in return increase his or her motivational as well as
productivity level even better. While ethical manager is known for being manageable, it
embodies set of traits that divided them as manager as it goes beyond merely obeying rules and
following policy. The relationship between ethical leader and manager is based on his or her
activities conduct in ethical manner, which is beneficial for both of them in term of influencing
workers for doing the same.

I would perform professional role as ethical manager which also allow me to manage
overall venture and its operations within sector successfully. I will be so by defining and aligning
values, hire workers with similar values who would help in spreading similar thing around
people who are working from longer. Furthermore, by promoting open communication I would
be an ethical manager as it strengthens my ability to motivate workers and solving his or her
issues in ethical manner. I would bring about the best environment for ethical practice by taking
opinions from staff which is valuable and useful approach in today’s time.
CONCLUSION
By summing up above discussion, it has been concluded that Johnson and Johnson by
taking right actions and developing effective marketing content by following principles and rules
has built its strong and positive brand image. It has been identified that by paying attention in
context of opioid crisis within Oklahoma, firm has taken essential actions in form of reducing
dose of above drug within it items as it help to prevent people from being addicted and allow to
conduct marketing efforts in ethical and systematic manner. From above analysis, it has been
summarized that by following suggestions and implementing into its management practices
company has sustained for longer term period, as it provide a lot of benefits to all stakeholders
such as CEO in form of increase sales and building influencing image in market where it has
been operated from longer period of time. Moreover, by conducting ethical practices and taking
part in CSR a person has become an ethical leader. Utilitarianism and rights base ethics are
providing a lot of benefits to company in form of permitting to sustain in sector.

REFERENCES
Book and Journals
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Compton, W.M., Valentino, R.J. and DuPont, R.L., 2020. Polysubstance use in the US opioid
crisis. Molecular psychiatry. pp.1-10.
Farjadian, F and et.al., 2019. Nano-pharmaceuticals and nano-medicines currently on the market:
challenges and opportunities. Nano-medicine. 14(1). pp.93-126.
Hargett, C.W., and et.al., 2017. Developing a model for effective leadership in healthcare: a
concept mapping approach. Journal of healthcare leadership. 9. p.69.
Harper, S., 2019. A future for observational epidemiology: clarity, credibility, transparency.
American journal of epidemiology. 188(5). pp.840-845.
Havers, F.P and et.al., 2020. Seroprevalence of antibodies to SARS-CoV-2 in 10 sites in the
United States, March 23-May 12, 2020. JAMA internal medicine. 180(12). pp.1576-
1586.
Marseille, E. and Kahn, J.G., 2019. Utilitarianism and the ethical foundations of cost-
effectiveness analysis in resource allocation for global health. Philosophy, Ethics, and
Humanities in Medicine. 14(1). p.5.
Sundaram, N., Voo, T.C. and Tam, C.C., 2020. Adolescent HPV vaccination: empowerment,
equity and ethics. Human vaccines & immunotherapeutics. 16(8). pp.1835-1840.
Yadav, V and et.al., 2018. A questionnaire-based study on knowledge and attitude towards
counterfeit medication among the doctors in tertiary care hospital. International Journal
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Online
Johnson & Johnson to pay $572m for fueling Oklahoma opioid crisis, judge rules. 2019.
[Online]. Available Through: <
https://www.theguardian.com/us-news/2019/aug/26/johnson-and-johnson-opioid-crisis-
ruling-responsibility-oklahoma-latest>