...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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...Tylenol crisis of 1982 John Doe Business Society September 30, 2015 Tylenol crisis of 1982 John Doe Business Society September 30, 2015 Abstract In this paper I talked about the Johnson and Johnson Tylenol case of 1832. I explained the case and defended Johnson and Johnson’s ethical decision. I learned that this case paved the way for companies to start recalling their products if there is something wrong with them. Tylenol crisis of 1982 Johnson and Johnson’s Tylenol product had become one of the most successful over the counter product in the United States. Then mysterious deaths all around the US were being linked to Tylenol. Johnson and Johnson was faced with the ethical decision whether or not they should have a recall on their product or not. Many companies have been put in the ethical decision of right and wrong before. Johnson and Johnson decided that the best decision they could make was to recall their product from the market. Even though this decision may have set Johnson and Johnson back in the short term, eventually they were able to come back even stronger in the long term. Johnson and Johnson’s Tylenol was cashing in 19 percent of its profits. Tylenol was becoming one of the most successful products ever. The fall of 1982 comes around and there are reports of deaths that doctors are relating to Tylenol. Many Tylenol bottles were reported tampered with. Somebody had replaced the pills in a Tylenol bottle with cyanide-laced capsules. These pills...
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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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...CEO in the 1980s made a series of ethical decisions that contributed to the success of the company. During the Tylenol crisis James E. Burke made decisions that cost the company a substantial amount of money in the short term to protect the public’s safety. In the long term Johnson & Johnson’s productivity increased and it is still a profitable company today. A CEO’s decision making skills often have a direct impact on the success or failure of a company. Although there are many examples of unscrupulous business practices across industries this paper will examine a case where a CEO acted ethically. Specifically, it will discuss the impact of former CEO James E. Burke’s leadership decisions on his company Johnson & Johnson in the 1980s. Both the financial impact and the ethical impact of his decisions will be analyzed. James E. Burke’s heroic decision is a classic example of ethical leadership in action. In late September 1982 a twelve year old girl died after taking Tylenol painkillers (Fletcher , 2009) Later that day a postal worker died after taking the same drug (Fletcher, 2009). In less than a week seven people died and the only thing that linked them is that each of them had taken extra strength Tylenol(Fletcher, 2009). Investigators found that the Tylenol had been laced with very high levels of potassium cyanide (Fletcher, 2009). Although Tylenol generated seventeen percent of Johnson & Johnson’s net income in...
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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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...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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...Running header: Johnson & Johnson Johnson & Johnson: The Tylenol Crisis Renita Edwards Virginia College MGT3410 Mike Aday 3/20/2008 Outline I) Brief history of Tylenol crisis II) Recalling the product from points of view a) Economic point of view b) Legal point of view c) Moral point of view III) Benefit from the company’s credo and mission statements a) Johnson & Johnson b) Bristol- Myers Squibb c) Merck Corporation d) Bridgestone Tires IV) Conclusion Johnson & Johnson: The Tylenol Crisis Brief History During the fall of 1982, on September 30, Johnson & Johnson CEO James Burke received the horrible information that several deaths had occurred. The deaths of seven people were a result of them taking cyanide-laced capsules of Extra Strength Tylenol. This information captivated the nation’s attention. Before this happen Johnson& Johnson “had captured over 35 percent of the $ 1 billion analgesic market- over three times the market share of it’s nearest competitor.” (Boatright, 2007) Tylenol was actually dominating the analgesic market; this product was making a lot of money for Johnson & Johnson. The cyanide was placed into the capsules of the Extra Strength Tylenol, the capsules were easy to lace because they could be pulled apart and put back together again and no one not know it. James Burke and staff found out that “the tampering had...
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...A Johnson and Johnson Crisis Amanda Ferri University of Phoenix Darci DelTorto Tuesday, June 5, 2012 In 1955, McNeil Pharmacies introduced the first aspirin-free pain reliever for children and called it Tylenol Elixir. In 1959 when Johnson and Johnson acquired the brand, the medicine’s net sales were $11.4 million and by the following year the prescription only drug was approved for sale over the counter. In 1961, the sales of Tylenol kept rising and options for the drug kept growing and now included an adult regular strength formula. By 1975 Tylenol’s line of products became the 5th best selling brand of any analgesic in the United States. This also helped Johnson and Johnson create the McNeil Consumer Products Division to manage the rapidly expanding over the counter business. A year passes and McNeil launches the next best product of the company’s name, Tylenol Extra Strength tablets, becoming the number 1 branded over the counter analgesic in the U.S. Some say so much success comes at a price, and for Tylenol and Johnson and Johnson, the price became high in 1982. September 29 of 1982 was the start of a major country-wide scare concerning Tylenol Extra Strength. After becoming McNeil’s best selling product, Tylenol was held responsible for killing 7 people in the Chicago area. After investigations and autopsies, authorities found that the pills taken by these 7 people were laced with cyanide. Cyanide is a fast acting, very harmful even chemical. It can be found in...
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...under the influence of alcohol which was the reason why he cannot give proper instructions to the staff. Hazelwood's activities in town and on the ship are the main focuses of the investigation. This also became the basis of widespread media sensation. Indeed, Exxon’s reputation suffered severely. Some Public Relation Practitioners said that Exxon seriously worsened the damage to the public due to its slow and insufficient responses. Exxon also failed to establish itself as a company concerned about the problems it had caused. As a matter of fact Lawrence Rawl, Exxon’s chairman waited about a week before commenting on the crisis and almost three weeks before visiting the location of the spill. B. Johnson and Johnson: Tylenol In 1982, Tylenol, the top selling pain-killer medicine in the United States and Johnson and Johnson’s bestselling product faced a big dilemma when seven people in Chicago were...
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...| 2014 | | Assignment 1 Advanced Marketing | [The Johnson & Johnson Tylenol case study] | | Before the crisis, Tylenol was the most successful over-the-counter product in the United States with over one hundred million users. Tylenol was responsible for 19 percent of Johnson & Johnson's corporate profits during the first 3 quarters of 1982. Tylenol accounted for 13 percent of Johnson & Johnson's year-to-year sales growth and 33 percent of the company's year-to-year profit growth. Tylenol was the absolute leader in the painkiller field accounting for a 37 percent market share, outselling the next four leading painkillers combined, including Anacin, Bayer, Bufferin, and Excedrin. During the fall of 1982, for reasons not known, a malevolent person or persons, presumably unknown, 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. Robert Andrews, assistant director for public relations at Johnson & Johnson recalls how the company reacted in the first days of the crisis: "We got a call from a Chicago...
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...division being located in Skillman, New Jersey. “The corporation includes some 250 subsidiary companies with operations in over 57 countries and products sold in over 175 countries.” Johnson & Johnson had worldwide pharmaceutical sales of $65 billion for the calendar year of 2011.[7] Johnson & Johnson's brands include numerous household names of medications and first aid supplies. Among its well-known consumer products are the Band-Aid Brand lines of bandages, Tylenol medications, Johnson's baby products, Neutrogena skin and beauty products, Clean & Clear facial wash and Acuvue contact lenses. In 2012, Johnson & Johnson announced that they will start to fund the therapeutic device company Clarimedix Inc. to support "proof of concept" study. RECALLS For several decades, Johnson & Johnson has been the exemplar of superb ethical behavior in light of the prompt actions it undertook during the 1982 Tylenol cyanide poisoning incident that left seven dead in the Chicago area. After the 1982 incident, Tylenol quickly returned to category dominance. A few years...
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...In 1982 a consumers products company, Johnson & Johnson's worst nightmare became a deadly reality. seven people in the Chicago area died afte r taking cyanide-spiked pills of Extra- Strength Tylenol. This, with out question hurt the company be ing that the sedative was Johnson & Johnson's best-selling product. Predictions were that the Tyl enol brand, which at the time counted for 17 percent of the company's net income, would n ever salvage their reputation from the damage. But to everyone's amazement, only two months af ter the tragic incident, Tylenol was on its way back on the market. This time reinforced wi th tamper-proof packaging and aided by a comprehensive media campaign. Only after a year Tyleno l's share of the opiate market, climbed back up to 30 percent after plummeting to a mere 7 percent fol lowing the infected tablets. Tylenol proceeded promptly in a constructive fashio n to the crisis. The reasoning behind such a prompt response is because of the company ’ s mission statement. The company ‘ s responsibilities are to the consumers and medical profe ssionals using its products, employees, the communities where its people work and live, and its stockhold ers. Hence, it was crucial to preserve the safety of the public to maintain the company's face. A product recall is the action of reclaiming and replacing damaged products. When a corporation aut horizes a recall, the company or manufacturer swallows the cost of replacing...
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...College of New Jersey ABSTRACT For several decades, Johnson & Johnson has been the exemplar of superb ethical behavior in light of the prompt actions it undertook during the 1982 Tylenol cyanide poisoning incident. Now several decades later, J&J’s Consumer Product Division has put the company and . its reputation in jeopardy by its slow and ineffective response to a series of ongoing problems. ineffective This article provides an ethical analysis of those events and addresses the negative impact on Johnson and Johnson’s once sterling reputation. Business, ethics, recalls, Johnson & Johnson, reputation, FDA J&J: An ethical analysis, Page 1 analysis Journal of Academic and Business Ethics c INTRODUCTION: For several decades, Johnson & Johnson has been the exemplar of superb ethical behavior in light of the prompt actions it undertook during the 1982 Tylenol cyanide poisoning incident that left seven dead in the Chicago area. After the 1982 incident, Tylenol quickly even returned to category dominance. A few years later when yet another cyanide-laced Tylenol laced capsule resulted in the death of a New York woman, Johnson & Johnson and its McNeil subsidiary once again took quick action by only making a compressed and easier-to-detectnce easier tampering version of a Tylenol pill available i the marketplace. The 1986 incident had little in impact on sales or J&J’s corporate reputation (Davidson & Samghab di, 1986). Consumer Samghabadi, safety and...
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...are in a great crisis. Crisis need not strike a company purely as a result of its own negligence or misadventure. Often, a situation is created which cannot be blamed on the company - but the company finds out pretty quickly that it takes a huge amount of blame if it fumbles the ball in its response. One perfect example of this is that of Johnson & Johnson, and their response to the Tylenol poisoning back in the year 1982 when the company’s Tylenol medication commanded 35 per cent of the US over-the-counter analgesic market. Unfortunately, one individual succeeded at lacing the medication with cyanide. This caused the death of seven people which resulted into a nationwide panic about how widespread the said contamination may be. In the end of that certain incident, everyone knew that Tylenol was associated with the scare and J&J’s market value fell by one billion dollars as a result. History repeated for Johnson & Johnson. The incident reenacted itself in 1986, but the company has learned its lesson and is not willing to suffer the same consequences. It acted rapidly and recalled every Tylenol products from every market – not just those which are in the affected state. Not only that, the company also stated that the product would not be re-established on the market until something had been done to provide better product protection. Thus, Johnson & Johnson developed the “tamperproof” packaging that would make it difficult for a similar incident to occur in the future. Another...
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