...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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...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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...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 and f ixing defective products. Johnson & Johnson ’ s responsibility to its community proved to be its most ef ficient public relations tool after the recall. It was crucial...
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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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...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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...Tylenol Murder Case Your name University Class Instructor Date Introduction This paper will discuss the effectiveness of the communication between organization and its intended publics in the Tylenol Murder Case. Communication starts with us. When we set out to communicate with others, we first have to address that we, too, are human beings, with thoughts, feelings, beliefs, attitudes, prejudices and preferences. Tylenol Murder The Johnson and Johnson Company had a number of publics to satisfy in the Tylenol case, external and internal. The internals were the employees, management, shareholders/stakeholders, and suppliers and distributors as well as the retailers. Externally the media, public buyers, watchdog groups, law enforcement agencies and government agencies all had to be informed and kept apprised of the steps taken to alleviate the problems and concerns. The company was very successful in keeping all informed and moving at the fastest speed possible to help resolve the situation and the dangers involved. It was not only the internal workers that made their living and profits from the Tylenol products, but the external groups that bought the product, approved the product, or investigated the criminal activities associated with the product that needed ongoing information as each different crime was committed. For the company, the swift actions and varied actions helped to maintain and even enhance the reputation of the company. The company used the media...
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...strike any company at any time. Microsoft, ValuJet, Chrysler, Pepsi and the tobacco industry are some of the most recent companies that can attest to this fact, but they are not the only ones. Crises do not discriminate based on a company’s size or notoriety, and they can hit when a company least expects them. They come in many forms – strikes, layoffs, product recalls or 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...
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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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...felt pressured and fell apart. According to Rick Amme, who heads the crisis and media relations firm Amme & Associates, Inc., there are five stages of scandal. The Triad Group went through all five stages until the United States Marshals, arrived at the door to seize the products and shut them down (Amme, 2004). Could have The Triad Group avoided such a big scandal? Maybe not as the problems had started awhile back but what if the company had followed protocols. The first stage was no comment. Throughout the recalls and seizing of the products the Triad executives and spokesperson would decline to comment on the situation. Although the FDA (Food and Drug Administration) commented that the seizing of the products was to prevent the company from distributing any more products, Triad did not come forward. The best thing that the company could have done was to communicate throughout the crisis. Johnson and Johnson is 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. Time usually plays a crucial part in the investigations but not during the crisis. Even though there are things that can’t be said or that are pending, communicate what you do know and as...
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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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...Johnson & Johnson Quality Analysis BSOP588 Quality Management Aug 2013 Introduction Johnson & Johnson manufactures health care products and pharmaceuticals along with providing related health services for consumers. The company sells products such as hair, skin care and acetaminophen products, surgical and diagnostic equipment worldwide. Johnson & Johnson's brands include numerous household names of medications and first aid supplies. Some of the company’s better known consumer products are Tylenol medications, Johnson's baby products, the Band-Aid line, Neutrogena beauty products and Acuvue contact lenses. Three brothers, Robert, James and Edward Johnson, found Johnson & Johnson in New Brunswick, New Jersey in 1886 (jnj.com). The brother’s company published "Modern Methods of Antiseptic Wound Treatment," in 1886; the book became one of the standard teaching texts for antiseptic surgery (jnj.com). Two years later Johnson & Johnson pioneered the first commercial first aid kits, the kits were designed to help railroad workers, but soon branched out to treating all forms of standard injuries (jnj.com). Johnson & Johnson later launches maternity kits to make childbirth safer for mothers and babies. The attention to new mothers and their babies lead Johnson & Johnson to the Company's successful baby care business. Johnson & Johnson is headquartered at New Brunswick, New Jersey and has more than 275 operating companies...
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...picture of a company that is deceptive, dishonest, and has risked the health of many of our children." That's a damning indictment for any business, but an especially shocking one for Johnson & Johnson (JNJ, Fortune 500), one of America's most iconic and trusted brands -- the one whose products you give your children. For more than a century J&J has built a sterling reputation as the maker of such products as Band-Aids, Baby Shampoo, and Tylenol. It considers its business a mission -- at least according to its credo, which pledges responsibility first "to the doctors, nurses, and patients, to mothers and fathers and all others who use our products and services." But serious questions have been raised about the quality of numerous J&J products. Since September 2009, McNeil Consumer Healthcare, the J&J division that makes over-the-counter (OTC) drugs, has announced eight recalls, including one for an estimated 136 million bottles of children's Tylenol, Motrin, Benadryl, and Zyrtec -- the biggest children's drug recall of all time -- that were potentially contaminated with dark particles. J&J has been excoriated by the Food and Drug Administration for failing to catch McNeil's quality problems. In April the agency slapped McNeil's plant in Fort Washington, Pa., with a scalding inspection report, causing...
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...What happened In OCTOBER 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. Cost and benefit The cost was a high one. In addition to the impact on the company's share price when the crisis first hit, the lost production and destroyed goods as a result of the recall were considerable. However, the company won praise for its quick and appropriate action. Having sidestepped the position others have found themselves in - of having been slow to act in the face of consumer concern - they...
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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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...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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