Case study : johnson & johnson worldwide recall of tylenol (ethical



J&J was identified as one of the most effective crisis response case studies of all time. You are welcome to use this information to comment on what actions the organization took at that time which ultimately became a turning point. This case served as a competitive advantage over time and had positive long-term implications.

Q.1. Should J&J have taken Tylenol off the shelves just in the Chicago area and wait to see if they could correct the problem or should there have been a worldwide recall immediately following the discovery of the problem?  What would have happened to Johnson & Johnson’s reputation had senior executives taken the “preserve corporate cash” route, removed the in-store inventories only within the Chicago area, and then found that random product poisonings had also taken place in many other cities throughout the U.S. and even abroad?

Q.2.  Does J&J fulfill its role as a good corporate citizen – acting socially responsible to meet the needs of its various stakeholders (customers, vendors, suppliers, employees, community)? Who wins? Who losses?

Q.3. What are the economic outcomes associated with this case and how are they driving the behaviors of management?

Q.4. From a moral standpoint, is J&J living up to their corporate values and the mission of the organization based on the behaviors enacted in this case?

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