The 'Tylenol incident' involving Johnson & Johnson was an event that demonstrated how Business ethics is an important aspect of company competitiveness. In 1982, an incident occurred in Chicago causing the death of 7
CS Professional · Ethics, Governance and Sustainability · PYQS · December 2016
The 'Tylenol incident' involving Johnson & Johnson was an event that demonstrated how Business ethics is an important aspect of company competitiveness. In 1982, an incident occurred in Chicago causing the death of 7 people who had taken Johnson & Johnson's product, Tylenol. It was later revealed that the cause of the deaths had to do with deadly cyanide put in the capsules by an unknown suspect. But, Johnson & Johnson took immediate and forceful actions, not only conducting a product recall from the entire country and sending their staff to the areas where the deaths occurred, but also openly informing the public about the incident through press release. They went on a large-scale informational promotion asking the public not to use the product until the cause of the deaths are fully determined. At the time, the executive managers spent an enormous amount of one hundred million dollars to carry out the product recall, but they managed to maintain the image of an exemplary company of business ethics as they demonstrated their belief of 'people first' to the public. In terms of the above case study explain the scope of Business Ethics in the following functional area: Compliance.
Answer & Explanation:
Ethics in Compliance Ethics in compliance is about obeying and adhering to rules and authority. The motivation for being compliant could be to do the right thing out of the fear of being caught rather than a desire to abide by the law. Organisations that have high ethical values comply with the laws not only in letter but go beyond what is stipulated or expected of them. In the given case, Johnson and Johnson have shown a high level of compliance and did beyond what was expected to protect their image. The company issued warnings using the media and advised the consumers not to consume any type of Tylenol product. It withdrew all forms of Tylenol capsules from the market. The company thus put customer safety first before worrying about the profits.
Topics: Business Ethics
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