...Running Head: TYLENOL MURDERS Johnson & Johnson: The Tylenol Crisis of 1982 Since 1887 Johnson and Johnson had been a respected member of the health care industry providing millions of customers with a diverse line of products from surgical dressings and band aids to baby powder. It had built its reputation on providing surgeons with sterile dressing to use after surgery because infection was a major cause of death after surgical procedures. The company was also a pioneer in the corporate idea of decentralizing the structure of their business so each set of products were directed by their own subsidiary and each had autonomy from the main corporate center. A family run, publicly traded business, the company had always had been aware of its responsibility towards the public and its employees as well as its shareholders. In 1959 Johnson and Johnson acquired McNeil laboratories, maker of the prescription-only drug Tylenol. By 1980, Tylenol was responsible for 37 percent of the pain reliever market and was responsible for 33 percent of the company’s profit growth (Tifft, Griggs, 1982). That type of share of the market illustrates the presence Tylenol had in the industry and there was no end in sight. On the morning of September 29th Mary Kellerman was seen by her parents as having flu symptoms so they gave her Extra Strength Tylenol to combat her fever. She became sick within hours and died later that day. On...
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...The Tylenol case represents perhaps the worst sort of dilemma a company can face. Through no fault of its own, Johnson & Johnson was faced with the destruction of one of its most important brand names. An unknown assailant used the product to murder a number of people at random, and the story was one of the most widely covered events in media history. Within the first week it is estimated that more than 90 percent of the American public were aware of what had happened. This situation left the product in a very bad position - no one wanted to use Tylenol in case there had been some tampering with the product. Johnson & Johnson had done nothing to betray the public's trust in the company, or its products; yet that trust, a great deal of revenue, and a large market share segment were gone. One horrible event and the excessive media coverage that followed, put Johnson & Johnson in a position where it needed to salvage its image and revenues even though the company had done nothing wrong. Americans were bombarded with information about the Tylenol incident. The volume of information pertaining to the cyanide-induced deaths was incredible. The fact that the story received so much attention probably saved the lives of people who would have otherwise unwittingly taken cyanide-laced Tylenol and died. Consumer response immediately after the tragedies showed what the makers of Tylenol were up against as demand for all brands of pain relievers and sleeping aids dropped by 16...
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...A History of Tylenol Tylenol: the early years Tylenol was developed by McNeil Laboratories. It has as its active ingredient a generic compound that can be manufactured by most pharmaceutical companies: acetaminophen. After Johnson & Johnson acquired McNeil in 1959, it began aggressively to advertise the product—to health professionals—as an analgesic that was as effective as aspirin but easier on the stomach. By 1970, sales of Tylenol were growing about 20 to 30 percent annually, with projected sales to reach about $60 million by 1975. With the release of a number of studies in the early 1970s which questioned the wisdom of widespread dependency on aspirin as a pain-killer, the use of acetaminophen accelerated with Tylenol accounting for 90 percent of acetaminophen sales. Two-thirds of Tylenol users were introduced to the product by physicians. Others became familiar with it through hospitals, where it was used extensively—not necessarily because it was the medication of choice, but because it was generally less expensive than other analgesics and less interactive than aspirin. When a 1976 survey showed that consumers were generally aware that Tylenol was easier on their digestive system than other analgesics but felt that this benefit was achieved at a loss of efficacy to reduce pain, Johnson & Johnson introduced Extra-Strength Tylenol. Extra-Strength Tylenol became the first nonprescription analgesic to contain 500 mg of pain-killer per unit—the established industry...
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...GM588 FINAL PROJECT PROPOSAL OUTLINE Annette M Daniels 1. THE PAINFUL TRUTH OF A COMPANY’S PURSUIT OF QUALITY 2. Johnson and Johnson 3. Johnson & Johnson was organized in the State of New Jersey in 1886. Today they employee approximately 115,000 people worldwide. Johnson & Johnson has more than 250 companies located in 57 countries around the world. From these 250 companies they Manufacture and sell health care products. The Family of Companies is organized into several business segments comprised of franchises and therapeutic categories. * Consumer Health Care The Consumer segment includes a broad range of consumer health and personal care products in the beauty, baby, oral care and women’s health categories, as well as nutritional products and over-the-counter medicines and wellness and prevention platforms. * Medical Devices & Diagnostics The Medical Devices & Diagnostics segment focuses on technologies, solutions and services in the fields of cardiovascular disease, diabetes care, orthopedics, vision care, wound care, aesthetics, sports medicine, infection prevention, minimally invasive surgery, and diagnostics. * Pharmaceuticals It includes products in the anti-infective, antipsychotic, cardiovascular, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, and urology and virology fields. * Many of Johnson and Johnson’s businesses and facilities have been certified to meet International...
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...Ethics: Tylenol Recall Case of 1982 Developing high-quality business ethics is a crucial step in avoiding, resolving and preventing ethical problems. If companies focus on exceeding the standard expectations for ethical situations, they will be more likely to hold on to their current customers and might even attract new clientele. The Chicago Tylenol Recall is the perfect example of how the corrective actions a company takes may be able to save the reputation and restore the image it has worked hard to create. Johnson & Johnson was faced with a situation that was not necessarily theirs to blame. Someone, that was not associated with the company, had been tampering with the over-the-counter medicine. However, Tylenol took certain measures to illustrate to their consumers they were a trustworthy company that cares about their customers’ safety. The methods Johnson & Johnson used to handle the crisis had both positives and negatives, but overall, the company was able to regain the company’s image and become one of the most popular medications. 1. History and Background of Case In 1982, Chicago was hit by a string of deaths caused by tainted cyanide-filled capsules of Tylenol. Someone had been filling Extra-Strength Tylenol capsules with cyanide and returning them to drug-store shelves (Tift and Griggs). By October of 1982, seven people had been killed by the poison-laced capsules (Meadows). This caused a wave of panic in the city, state, and country as it involved...
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...Search the Internet for the phrase "Chicago Tylenol murders". Then, after you are familiar with this disaster, discuss the impact of the Tylenol recall of 1982. ◦How did the maker of Tylenol, Johnson & Johnson, manage the relationship with its customers in the aftermath of the event? ◦How does a recall affect an organization? In 1982 deaths of seven individuals, living in the area of Chicago, Illinois were caused by potassium cyanide filled, Extra-Strength Tylenol capsules. The impact of the recall was significant, but Johnson & Johnson recovered. In Ethics and the Conduct of Business, 6 the ed., Boat right states that “although economic and legal considerations played a role in Johnson & Johnson’s response to the Tylenol crisis, the credo served too, and the clear statements of responsibility that it contained enabled the company to make some really tough, but ultimately right, decisions” (Boat right, 2008). “We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers’ orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit. We are responsible to our employees, the men and women who work with us throughout...
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...even behavior on the part of its targeted publics”. The public relations decisions made as a result of the Tylenol crisis arrived in two phases. The first phase was the actual handling of the crisis. The comeback of both Johnson & Johnson and Tylenol was the second phase in the public relations plan. The planning for phase two began almost as soon as phase one was being implemented. The sabotage of the Tylenol capsules spurred an extreme panic about the safety of over-the-counter medications. In fact, the Tylenol crisis was so prominent that a survey at the time shows more Americans were aware of the tragedy than could identify the president of the United States (Murray & Shohen, 1992). It even threatened the very survival of Johnson & Johnson as a company because at the time, Tylenol products made up a very large portion of their revenue. Johnson & Johnson chairman and CEO, James Burke, reacted to the negative media coverage by forming a seven-member strategy team. The team's strategy guidance from Burke was first, "How do we protect the people?" and second "How do we save this product?" The company's first actions were to immediately alerted consumers across the nation, via the media, not to consume any type of Tylenol product. They told consumers not to resume using the product until the extent of the tampering could be determined (Broom, 1994). Tylenol was very careful to point out that the tampering must have occurred at the retail stores. However, they did...
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...The “Tylenol Murders “: The Devastating Recall That Started a Revolution within the Pharmaceutical Industry By: Angela Thorne Everest University Online: Student/ MAN3554 Author Note Onlinecci.com; Everest.edu; Abstract Abstract According to a case study conducted by the US Department of Defense, “Tylenol was the most successful over-the-counter product in the United States. There were over 100 million users of the product. Tylenol, outselling 4 other leading painkillers, was responsible for 19% of Johnson & Johnson’s corporate profits during the first 3 quarters of 1982”, which is the very year that they almost lost its reputable view and success over a senseless act that left 6 adults and 1 12-year-old child dead of cyanide poisoning after all had taken capsules of Extra strength Tylenol, a well-known and used over-the-counter medication taken for minor headaches and pain associated with the common cold and other minor symptoms. This is the examination of the way Johnson and Johnson handled this incident that brought about a change and a revolution in the pharmaceutical industry. Keywords: Recall; Tylenol; murders; 1982; tamper The “Tylenol Murders “: The Devastating Recall That Started a Revolution within the Pharmaceutical Industry In the fall of 1982, Johnson and Johnson, the parent company of McNeil Consumer Products Company, which manufactures Tylenol, had to recall its Tylenol Extra Strength capsules, after an investigation into the cyanide- poisoning...
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...solvents like methanol and ethanol Not very soluble in water and ethene Acetaminophen (Tylenol) C8H9NO2 Chemical Properties IUPAC: N-(4-hydroxyphenyl)acetamide Common Names: Paracetamol, Tylenol, Panadol, Tempera, APAP Organic Family/ Functional Group Biological Importance Primary organic family: aromatics Functional groups: alcohols (OOH) and amide (OCONHO) Taking too much acetaminophen can lead to liver damage/failure or death FDA recommends daily maximum of 4,000 mg for adults; overdoses of this painkiller are some of most common poisonings Sources and Abundance Manufactured by Ortho McNeil Pharmaceuticals Inc., G and W Laboratories Inc., etc. Packaged by McNeil Laboratories, CVS Pharmacy, Walgreen Co., Interesting Facts Acetaminophen is the most popular pain relief medication used in the U.S. and around the world Accounts for over 100,000 calls to poison centers, 60,000 ER visits, hundreds of deaths annually in the U.S. In 1982, seven deaths occurred, known as Chicago Tylenol Murders, as result of taking Extra-Strength Tylenol caplets laced with cyanide Origin/Discovery In 1899, Karl Morner of Germany, discovered Acetanilide became Acetaminophen when the body metabolizes it 10 years later, German physician Joseph Friener van Mering, first synthesized the drug Acetaminophen. Acetaminophen was lab synthesized First sold in 1955 as Tylenol Elixir for Children from the company McNeil Laboratories Stable under ordinary conditions ...
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...Colby Joe Carver 10/16/15 PR Case Study 1. Tylenol is a elite corporate company that had a couple issues with its products of pain medication with people tampering with its products. This caused people to die in the first case and the second case of these events. The first case someone was putting cyanide in the capsules in the Chicago distribution center and it wasn’t found to be at where they make the medicine. With the public then very skeptical on Tylenol and its products they had to make something to gain the customers trust back. They came out with a new packaging bottle. It featured the triple safety seal on its packages so no one could tamper with them. If one was unbroken then it was urged to not use the product. The second case was about another woman dying in New York after taking Tylenol. The company then sprang into action again by halting all production. They then decided to come out with the caplets instead of capsules because it was easier for people to tamper with the capsules vs. the caplets. 2. This case study is the primary story that has helped many businesses around the world deal with similar problems within their own companies. The way Tylenol and Johnson & Johnson handled these issues is paramount to how they should’ve been handled. Even President Reagan said that they have their deepest appreciation for living up to the highest ideals of corporate responsibility and grace under pressure. Today this case study is the threshold of how to...
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...Johnson & Johnson Tylenol Case In 1982, Johnson & Johnson's Tylenol medication commanded 35 per cent of the US over-the-counter analgesic market - representing something like 15 per cent of the company's profits. Unfortunately, at that point one individual succeeded in lacing the drug with cyanide. Seven people died as a result, and a widespread panic ensued about how widespread the contamination might be. By the end of the episode, everyone knew that Tylenol was associated with the scare. The company's market value fell by $1bn as a result. When the same situation happened in 1986, the company had learned its lessons well. It acted quickly - ordering that Tylenol should be recalled from every outlet - not just those in the state where it had been tampered with. Not only that, but the company decided the product would not be re-established on the shelves until something had been done to provide better product protection.As a result, Johnson & Johnson developed the tamperproof packaging that would make it much more difficult for a similar incident to occur in future. How Did Johnson & Johnson Make These Decisions? The public relations decisions made in light of the Tylenol crisis had to have come from somewhere. This basis for decision making became a bit more clear in 1983, when the New Jersey Bell Journal published article written by Lawrence G. Foster. Foster, Corporate Vice President of Johnson & Johnson, at the time of the Tylenol poisonings, joined...
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...Tylenol The background In 1982, Johnson & Johnson (J&J) faced a major crisis that had the potential to send the company into financial ruin. Tylenol, the country’s most successful over-the-counter product, with over one hundred million users, was under attack. The crisis Sealed bottles were tampered with and extra-strength Tylenol capsules were replaced with cyanide-laced capsules. These bottles were then resealed and placed on shelves of pharmacies in the Chicago area. Seven people died as a result. Tylenol was called upon to explain why its product was killing people. The solutions The company first learned of the deaths from a local news reporter. A medical examiner had just given a press conference saying people were dying from poisoned Tylenol. Tylenol had to act fast. What did Tylenol do right? It is difficult to imagine how else should have Johnson and Johnson reacted at the time of the crisis except the following ways: • Recalling all the products whether contaminated or not. • Alerting all the customers by all available media including toll-free hotlines. • Appearance of the chairman of the company on the television to publicize the company’s response and action taken by it to combat the emergency. • Making public relations programmes to address the issues and concerns all the internal and external stakeholders. • J&J put customer safety first. – Company Chairman James Burke immediately formed a seven-member strategy...
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...Alicia Mosby BA 311 Johnson's and Johnson's Dirty Secret Summary: Johnson and Johnson have created a product called Tylenol. It is used to treat headaches, aches, and pains. Many people use this product as an alternative to aspirin. Tylenol does not upset the stomach lining like aspirin does. However there are a few cases where people overdose on this over the counter drug. This has caused people to become sick or even die from the overdose. It is apparently really easy to accidentally take too much and in the end hurt yourself or others. For parents giving out medicine to kids poses a threat because they could accidentally dish out too much medicine without knowing better. Tylenol has two very different kids medicine that gets easily confused because the two products look very similar. Parents purchase one for kids for their infants and then give them the “proper” dosage which is actually a lot for a newborn. This causes health risks such as liver damage, coma and death. This is not properly labeled on the container of medicine because Johnson and Johnson fear that proper labeling will drive down costs and that they will lose money in the long run. Over 100 law suits have been filed against Johnson and Johnson because of their Tylenol medicine poisoning. For Johnson and Johnson would rather pay settlements than have to lose profits from having a proper labeling system. Therefore consumers do not know the risks involved with the medicine that they are taking and that hurts...
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...Tylenol Ethics Paper MGT/498 Tylenol Ethics Paper Johnson & Johnson companies reside in over 57 countries all across the world. This company consists of 250 sister companies. “Our Family of Companies is organized into several business segments comprised of franchises and therapeutic categories (Johnson & Johnson Services, Inc., 2013)”. Johnson & Johnson is broke up into three main segments which include healthcare consumer, pharmaceuticals, and medical device and diagnostics. During 1982 Johnson & Johnson accidently “replaced Tylenol Extra-Strength capsules with cyanide-laced capsules, resealed the packages, and deposited them on the shelves of at least a half-dozen or so pharmacies and food stores in the Chicago area. The poison capsules were purchased, and seven unsuspecting people died a horrible death. Johnson & Johnson, parent company of McNeil Consumer Products Company which makes Tylenol, suddenly, and with no warning, had to explain to the world why its trusted product was suddenly killing people (Johnson & Johnson Services, Inc., 2013)”. Johnson & Johnson was informed of this mistake by a Chicago news reporter. The news reporter told Johnson & Johnson that the medical examiner in Chicago “had just given a press conference people were dying from poisoned Tylenol (Johnson & Johnson Services, Inc., 2013)”. Johnson & Johnson remedially formed a seven-member strategy team to figure out how they...
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...allegations of misconduct, but while some of these may seem small, every crisis has the potential to damage the reputation of a company. Regardless of the severity of the situation, crises pose a serious threat to companies – not only to their reputation but their fiscal health as well. When Odwalla’s apple juice was thought to be the cause of an outbreak of E. coli bacteria, the company lost a third of its market value. The same allegation against Jack in the Box restaurant in 1993 caused the hamburger chain’s stock price to fall from $14 a share to nearly $3 a share. On the other hand, some companies emerge from crises unscathed in the eyes of consumers and investors. Johnson and Johnson is one such company. After it was discovered that its Tylenol capsules had been laced with cyanide, Johnson and Johnson reacted in such an effective way that the case is now well-documented as an example of successful crisis management. The factor that determines how a company will withstand a crisis is its ability to respond to the crisis. “The public forgives accidents, but it doesn’t forgive a corporation if its response to the public is inadequate.” Once a crisis occurs, the company is suddenly a target for the media, who are acting on behalf of the public to find out the answers to the important questions...
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