Ethical Analysis of Johnson & Johnson: A Comprehensive Business Report

This report analyzes the ethical issues surrounding Johnson & Johnson's marketing and sale of opioids, focusing on the company's unethical practices and misleading information provided to stakeholders. It examines the role of business in society, corporate social responsibility, and the impact of these practices on various stakeholders, including owners, employees, government, doctors, and patients. The report presents examples of good and bad ethical behavior, offering recommendations for Johnson & Johnson to improve its CSR activities, transparency, and ethical marketing practices. Furthermore, it applies ethical theories, specifically utilitarianism and the ethics of rights and justice, to the case study, providing a framework for ethical decision-making and highlighting the importance of considering the consequences of actions and the rights of all stakeholders. The report concludes with a reflective essay on the characteristics of ethical leadership and its impact on organizational culture.

Johnson and Johnson Taking
the pain away
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INTRODUCTION...........................................................................................................................3
Part 1-A REPORT............................................................................................................................3
Part 1-B TWO THEORIES..............................................................................................................8
Part 2 Reflective essay...................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Business Ethics plays essential role which is concerned with right and wrong and mainly
emphasise upon best for the stakeholders as well as shareholders. It is essential for an
organisation to effectively consider best for suppliers, customers, employees and society as a
whole in order to have committed and responsible relationship with them (Adiguzel, 2021). This
significantly facilitates company to enhance its productivity in respective industrial segment. By
having social responsibility behaviour towards its stakeholders organisation can not only
enhance its brand image but can also improve its working and society condition. With the help of
code of ethics complete can conduct their business activities in effective manner even during in
tough times. Business Ethics effectively facilitate employee’s growth and improve their
happiness, it also allow organisation to attract more investors and enhance their competitiveness
in market segment. Present report has been conducted on the case study evaluation of Johnson
and Johnson’s in which company undertake unethical practices while offering misleading
information to its stakeholders. This lead towards serious crisis and can cause and overwhelming
scandal in the media. The misleading practices undertaken by this company affected organisation
in number of ways. In this report format a discussion has been conducted on ethical issues that
company faced along with the role of business in society. In addition to this report include
stakeholders along with the impact of company misleading practices upon their rights.
Furthermore this report includes good and bad things along with a certain recommendations. In
addition to this, this report discussion has also been conducted upon to ethical theories and
reflective essay.
Part 1-A REPORT
Ethical issue or issues
The issue that has been identified from the case study analysis of Johnson and Johnson’s is
associated to its unethical practices in context of marketing and selling opioid. Organisation
conducted unethical practices and offer misleading information to its stakeholders. In this
doctors were prescribing more number of opioid that significantly lead towards its addiction
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crisis according to the report (Johnson & Johnson to pay $572m for fueling Oklahoma opioid
crisis, judge rules. 2019). Furthermore it has been identified from the various media sources that
Johnson and Johnson’s also manipulated scientific findings and undertaken unethical medical
and misleading practices and advertised the same over the internet. However this issue affected
reputation of this company in and adverse manner and lead towards loss of loyalty of employees,
customers and other stakeholders towards organisation. The misleading practices undertaken by
company have massive impact upon patients and created number of challenges in front of its
stakeholders. However according to the report, Johnson and Johnson order to pay $572m for
fueling Oklahoma crisis according to the judge rule, this issue significantly affected organisation
brand image in market segment and also decreases loyalty of customers towards services and
product of organisation.
Role of business in society
Corporate social responsibility plays an essential role for every organisation irrespective of its
size, scope and industrial sector. Johnson and Johnson’s is a leading organisation which is
serving the products and services all around the world (Balthazar, 2021). This indicates that
corporate social responsibility is an essential factor for this organisation that formulate company
link between strategic marketing and CSR activities. CSR allows organisation to constantly
improve their responsibility in order to shape their global image. CSR programs facilitate
organisation to boost its community standing. It is essential for Johnson and Johnson’s to have
transparency and sustainability within their operations. Johnsons and Johnsons are required to
undertake interest of their employees and other stakeholders that will further allow organisation
to assure positive outcomes and success in industry. A business plays an important role within a
society thus it makes them to have responsible nature towards consumers and social credibility.
It has been identified from the case elevation of Johnson and Johnson’s that company misleading
campaign affects their fair, right and just policies. It has been identified according to the
guardian report, that the paramedical joint Johnson and Johnson’s dangerous sales campaign cost
addiction and death. Furthermore it has been underlined that Oklahoma becomes the first state to
successfully sue an opioid manufacturer. It has been identified by Oklahoma court that Johnson
and Johnson put more interest in their financial benefit rather than society that further affected
number of individual’s sentiments and loyalty. Business misleading campaign also affected
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politician, researcher and regulator in an adverse manner along with other stakeholders that also
get affected badly.
Five Stakeholders
As per the approach of Freeman it has been identified that organisational stakeholders are termed
as those individuals without whom support the company would cease to exist. As per this
approach stakeholders group mainly involve suppliers, customers, employees, environmental
group, politician group, the media, government group, local communities, politician turned
groups, financial institutions and more. It is essential for an organisation to have positive attitude
towards its stakeholders and conduct ethical practices in order to provide support to stakeholders.
Stakeholders plays most important role within an organisation and have right to transparent
information (Borglund and et. al., 2021). It is essential for an organisation to engage its
stakeholders in decision making process and maintain transparent communication with them.
This will help company to undertake better decision making while having positive welfare for its
entire stakeholders group. However according to the Johnson and Johnson’s case study analysis
it has been identified that the company misleading practice affected each and every stakeholders
in which stakeholders get affected in a number of ways.
Stakeholders Internal/External Impact Influence How
stakeholders
will be affected
by the opioid
addiction crises
Owners of
Johnson and
Johnson
Internal High Impact High Impact This
stakeholders
group made to
lost revenue and
also faced bad
negative image
within market
Employees/ Internal Medium Impact Medium Impact This group of
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Suppliers stakeholder get
affected in terms
of losing their
job of the
company, as they
were badly
affected due to
company ethical
behaviour
towards them
Government and
Regulation
bodies
External High Impact Medium impact Because of the
unethical
behaviour by
company
government has
to make heavy
investment in
order to lower
down opioid
drugs effects
Doctors External High Impact High Impact Developed
conflict of
interest
Patients External High Impact High Impact Due to the
misleading
information by
company this
stakeholder
group get
affected in terms
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of health and
even death
Examples of good and bad ethics
Business ethics is defined as contemporary standards, principles, set of volumes, norms and
organisational standards that govern the behaviour and action of an individual within business
organisation. It has been identified that business ethics is mainly an applied or professional ethics
that duly determine principles of ethics and moral problems that can take place within a business
environment (Collins and Restubog, 2021). It is essential for an organisation to effectively
emphasise upon appropriate business practices and policies while including corporate
governance, corporate social responsibility and other fiduciary responsibilities. This will help
company to conduct their operations under proper ethical standards with the help of effective
business ethics. Business Ethics can be of two types that are good or bad ethics. In context with
bad business ethics it involves violating organisation policies, lying to employees, misusing
company brand image. In addition to this it has also been identified that bad business ethics is
also termed as a situation within which company knowingly ignore the best interest of its society,
employees and customers. According to the case analysis of Johnson and Johnson’s, it has been
identified that this company totally ignore its customers, society and employees interest and
affected their interest by misleading campaign. While on the other hand if it is talked about good
ethics. It involves loyalty, honesty, respect, responsibility and integrity. It is essential for an
organisation to practice good ethical behaviour towards customers, society, employees and other
stakeholders, as bad ethical behaviour with lead company to face bad reputation and dissatisfied
stakeholders. It has been identified that Salesforce.com effectively brings its customers and
companies together at different levels (Delston, 2021). This company awarded for its
philanthropy and good practices for their employees, as they offer 6 six days off per year for
charitable work, best salary and hourly rate. In addition to this, this company also make
donations for social causes that e enhances its reputation within market. While on the other hand
it has been identified that, Deliveroo is offering deliver readymade meals to offices and houses.
This company change its legislation and pay below minimum wage per hour. This bad ethical
practice leads company to face number employment challenges that affect its reputation.
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Recommendations
As per the case analysis of Johnson and Johnson’s it has been recommended to company
to effectively review its CSR activities in context to selling and marketing drugs in market
segment. Johnson and Johnson’s limited is a broad-based and comprehensive manufacturer of
healthcare products and offer a wide range of paramedical consumer and medical devices in
market segment. Corporate social responsibility thus play most important role for this
organisation, in which company is required to have responsible behaviour towards its employees,
community and other stakeholders. It is recommended to Johnsons and Johnsons to review their
reliability, quality and trust according to the international standards and implement best practices
as to enhance their overall business performance. Company board of director is recommended to
formulate CSR policy activities in order gain the trust of stakeholders that company lost due to
its malpractices and misleading marketing program. Company is recommended to have
transparent communication with doctors and demonstrate valid sources as to conduct ethical
marketing programs. In addition to this company is also recommended to maintain a transparent
and closer relationship with patients in order to deliver appropriate advertisements on various
search engines, without making any changes in the perceptions of their own symptoms and
bodies. Company must emphasize upon building strategy that emphasize upon ethical practices
rather than generating profitability while practicing unethical behaviour. It is recommended to
Johnson and Johnson’s to undertake highly ethical standards in order to significantly contribute
in community. It helps company to generate stronger bond with stakeholders that further will
allow company to maintain its social capital along with profitably.
Part 1-B TWO THEORIES
Ethical theories acts as one of the strongest pillar of decision making as it allows
organisation to have positive impact on their strategies and actions while conducting ethical
business practices. Ethical theories are essential as it facilitate company to undertake moral
decisions while justifying professional applications as well as ideas. As per the case study
solution of Johnsons and Johnson’s it has been identified that this company ignored ethical
theories along with its application. Mentioned below Utilitarianism and ethics of rights and
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justice ethical theory is being applied through which organisation can undertake effective
decision making while considering right of all of its stakeholders.
Utilitarianism
Utilitarianism is the theory of morality that advocates actions that significantly foster pleasure
and happiness and further opposes actions that can cause harm or happiness. According to this
ethical theory there are mainly three principles that are happiness of pleasures is the only thing
that truly has fundamental value (Elrayah, 2021). Along with this actions are right and they
effectively promote happiness, while wrong actions produce unhappiness. At last, last principal
of this theory states that each and every individual happiness counts equally. With the
implication of the theory in organisational decision making process company can significantly
reduce personal harm while enhancing happiness while considering every individuals interest. It
allows organisation to undertake moral judgements through which company can effectively
measure positive as well as negative consequences of each of their action. Furthermore it has
been identified from this theory that it is essential for an organisation to emphasize upon the
consequences of an action (Zaim, Demir and Budur, 2021). With the implication of this theory
in the decision-making process Johnson and Johnson’s can measure pain and pleasure while
conducting their operation. In terms of undertaking misleading marketing and promotion
practices of the drug indicates that it offer good pleasure or profit for company and pain can be in
terms of addiction to the opioid, bad reputation and investments of government in order to
mitigate impact of this drug. Furthermore it has been underlined that the pain from the promotion
of drug cost number of adverse impact upon individual health and threaten them at massive
scale. However it has been identified that the actions of Johnson and Johnson’s significantly lead
company to face number of challenges that also caused huge scandal in media, misleading the
doctors, manipulating scientific findings patients and society (Grobler and Grobler, 2021).
However it has been identified that all challenges that company faced affected company in terms
of benefits only. However it is important for Johnsons and Johnsons to effectively understand
and consider interest of each and every individual and make significant changes in their
marketing positioning. Companies are required to effectively consider the pain and pleasure of
their actions.
Ethics of rights and justice
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The right of ethics of right and Justice Theory states that decision makers are required to
emphasise upon actions that are fair to the involved stakeholders. It is essential for an
organisation to undertake ethical decisions while constantly emphasizing upon the right of
individual those who are involved in order facilitate equality and entitlements. Organisation is
required to include right of privacy, life, property and freedom. Along with this they are also
required to protect and respect human rights. By identifying case study of Johnson and Johnson’s
this theory is being applied (Khairani, 2021). It has been identified from this case study that
opioid addiction affected human rights and dignity of patients and doctors that was totally
ignored by company. It is essential for doctors to have correct information before prescribing. In
addition to this patients are also have right to have proper awareness about the consequences of
the drug, scientific findings and misleading information and hiding truth from stakeholders
affected (Trevino and Nelson, 2021). It is essential for company to treat doctors and patients in a
fair manner by providing them information associated to the advantage and disadvantage of the
opioid use. It is essential for Johnson Johnson's to effectively consider right of each and every
stakeholder group before selling opioid. It is essential for company to provide patients with the
access of information about the drug. It has identified that opioid drug promotion and marketing
was misleading as each and every individual thing that it takes away the pain at no cost.
In addition to this regulation and government bodies can effectively tighten their positioning in
context of prescribing medication as to tackle medical findings in effective manner. According to
the above applied theory it has been identified that proper application of ethical practices
investment decision making effectively allow company to conduct business practices in ethical
manner (Michaelson, 2021). According to the case study evaluation of Johnson and Johnson’s it
has been identified that by emphasising upon ethical theory organisation can undertaker better
conclusion.
Part 2 Reflective essay
Ethical leadership is termed as leadership that promote and demonstrate appropriate conduct
through interpersonal relations and personal actions. It has been underlined that ethical
leadership is mainly directed by respect for ethical values and behaviour for others right and
dignity (Singer, 2021). This leadership is mainly associated to the concept such as consideration,
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trust and honesty. It is essential for an individual to effectively embrace ethical leadership. This
provides a strong foundation for positive business environment. It is essential for a leader to
undertake significant decisions and emphasize on other individuals behavioural conduct. Along
with it has been underlined that with the help of emphasizing upon managing relationship with
others in organisational structure with trustworthiness and honesty a better workplace
environment can be created. This will allow company to conduct their business operations under
proper code of ethics through which company can significantly enhance their brand image in
market segment. Ethical leadership is an effective aspect for each and every organisation through
which organisation which company cannot only treat every individual on equal basis but can also
provide them a better workplace environment.
Ethical leader play essential role for an organisation. Being a moral person it is essential to
emphasize upon honesty and trustworthiness and effectively manage relationship with others.
With the help of this behaviour employees can effectively feel more comfortable and can share
information while raising problems that has been faced by them (Reeves and Sinnicks, 2021).
Linking the traits and behaviour of moral person with moral manager effectively fulfil ethical
leadership behaviour. It is essential for a moral manager to embrace moral relationship as it is
associated with behavioural outcome, job satisfaction, commitment and firm performance. It also
allows employees to get treated in equal manner. While on the other hand if it has been identified
that, unethical leadership lead towards destructive behaviour and can affect organisation image
in adverse way. Bad leaders can significantly lead towards unethical and ineffectiveness that can
further effect employee’s motivation level and can also affects their emotional intelligence.
Unethical leadership also causes number of unethical practices that can further effect and impact
psychological and physically. It has been identified that unethical leadership also laid
organisation to face destructive behaviour that can further lead towards developing toxic working
environment. It is essential for an organisation to effectively embrace code of practice and
approaches in order to emphasize upon social responsibility and ethics and sustainability. It will
significantly enhance organisation values and can further allow employees to conduct their roles
and responsibilities in an environment in which they get treated on equal bases.
According to my own work it has been reflected that there is an effective link between moral
manager and a moral person. Positive behaviour, values, traits and rules effectively allow leader
to develop equal leadership that significantly enhance reputation of company. It also facilitates
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leaders to enhance productivity of employees and organisation on simultaneous basis. This will
help in creating positive working environment. It is essential for a good leader to emphasize
upon standard and value of company and effectively motivate and inspire workers towards the
same. It is essential for a manager to effectively understand to be a moral person as it is the
significant aspect that allows them to communicate ethical conduct and practices. This will help
company to overcome any challenges in effective manner that will significantly facilitate
organisation to ensure long-term productivity and profitability in respective industrial segment.
CONCLUSION
According to the above mentioned report it has been concluded that business ethics plays
important role for any organisation that not only allow company to conduct their roles and
responsibilities in proper ethical standard but also facilitate them to have a positive working
environment. Business ethics enhance transparency between business and stakeholders that
significantly enhance organisation decision-making process. It facilitates company to enhance
the brand image and profitability in market segment.
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REFERENCES
Books and Journals
Adiguzel, Z., 2021. The Historical Importance of the Concept of Business Ethics and Evaluation
in Terms of Employees in Human Resources. In Multidisciplinary Approaches to Ethics
in the Digital Era (pp. 220-247). IGI Global.
Balthazar, A.C., 2021. Ethics and Nationalist Populism at the British Seaside: Negotiating
Character. Routledge.
Borglund, T and et. al., 2021. CSR and sustainable business. Sanoma Utbildning.
Collins, M.D. and Restubog, S.L.D., 2021. The effect of trait anger and impulsiveness on ethical
leadership and support for organizational change. Journal of Research in Personality, 91,
p.104072.
Delston, J.B., 2021. The Ethics and Politics of Microaffirmations. Philosophy of Management,
pp.1-19.
Elrayah, M., 2021. Can business ethics-based education improve HR graduates’ employability,
knowledge, skills, and competence?. Journal of Education for Business, pp.1-12.
Grobler, S. and Grobler, A., 2021. Ethical leadership, person-organizational fit, and productive
energy: a South African sectoral comparative study. Ethics & Behavior, 31(1), pp.21-37.
Jiménez, D.L., Dittmar, E.C. and Portillo, J.P.V., 2021. New Directions in Corporate Social
Responsibility and Ethics: Codes of Conduct in the Digital Environment. Journal of
Business Ethics, pp.1-11.
Khairani, M., 2021. Officials Ethics for the Transportation Ministry to Serve Community and
State. KnE Social Sciences, pp.541-555.
Michaelson, C., 2021. Leadership and Character (s): Behavioral Business Ethics in ‘War and
Peace’. Journal of Business Ethics, pp.1-17.
Reeves, C. and Sinnicks, M., 2021. Business Ethics from the Standpoint of Redemption: Adorno
on the Possibility of Good Work. Business Ethics Quarterly, pp.1-24.
Singer, A.E., 2021. Ethics and entrepreneurship. In World Encyclopedia of Entrepreneurship.
Edward Elgar Publishing.
Trevino, L.K. and Nelson, K.A., 2021. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Webster, R.J., Morrone, N. and Saucier, D.A., 2021. The effects of belief in pure good and belief
in pure evil on consumer ethics. Personality and Individual Differences, 177, p.110768.
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Zaim, H., Demir, A. and Budur, T., 2021. Ethical leadership, effectiveness and team
performance: An Islamic perspective. Middle East Journal of Management, 8(1), pp.42-
66.
Online
Johnson & Johnson to pay $572m for fueling Oklahoma opioid crisis, judge rules. 2019.
[Online]. Available throughhttps://www.theguardian.com/us-news/2019/aug/26/johnson-
and-johnson-opioid-crisis-ruling-responsibility-oklahoma-latest
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