For Paper two I was interested in doing a case with a company that showed good ethics, as my last paper was much more on the negative decisions and ethical choices company’s make. I am interested in learning more about the Tylenol recall by Johnson and Johnson that occurred in 1982. The case involved the deaths of 7 people in the Chicago area after they took Tylenol tablets laced with cyanide poison. Johnson and Johnson acted quickly in the crisis by launching a massive recall of its products and offered $100,000 reward for information to help in the arrest of the people responsible. It was soon discovered that the tampered capsules were not in fact from the factory, but had been produced; meaning someone had taken the bottles from the store, laced them with the cyanide, and then returned them to the shelves.
Regardless of Johnson and Johnson’s involvement in the poisoning, the company started a massive public relations campaign informing the public not to use Tylenol until the matter was resolved. When Johnson and Johnson returned Tylenol to the shelves they added a new feature to their bottles in response to the prior crisis. The company added a plastic seal which would prevent medicine from being tampered with. The company also allowed free replacement of the old Tylenol product with the safer form. In all, Johnson and Johnson lost almost $100 million on the recall, however their good ethics was not unnoticed and Tylenol remains a high selling product for the company today. I believe the way the company handled the issue showed its responsibility and value for the customer. In the end, the decision only briefly effected the stockholders as the companies stock quickly rebounded and then continued to rise. This can tie into the readings on stockholder and shareholder ethics, as the company’s reaction was clearly a stakeholder approach. However, the impact on longer term stockholders was also beneficial.