Corporate Responsibility Johnson and Johnson

Johnson and Johnson Corporate Responsibility

Within the rubric of the modern business organization, decision-making is fundamental to survival, particularly now with globalism and the reduction of boundaries between countries. Decisions become more complex since one now deals with a variety of cultures, morals, and ethical viewpoints. This requires innovation and improvement on a regular basis, and also the ability to understand that moral and ethical decisions, in a dynamic and uncertain environment, now concern a long list of stakeholders -- customers, stockholders, employees, managers, the community, and governments. The outcome of many of these ethical decisions will be used as the benchmark to gauge the success of failure of the management team as well as the company as a whole (Carroll, 2000; Drucker, 2001). Because ethics and morality are so closely linked under the rubric of International business, most countries believe that they are part of the social "requirement" of both national and international business. The standard view holds that the sole responsibility of management is to generate the greatest possible financial return for shareholders. This view focuses on fiscal responsibilities and expertise and argues that manager are neither equipped nor assigned to managing a global project morally -- social goals are outside the purview of the business model and clearly outside their own person responsibilities to their stakeholders. Additionally, focusing too farm on moral issues and too little on profit (Cruver, 1999; Savage, 2005). Changes in the media, changes in social attitudes, and above all, changes in the perceived use of utilitarian ethnics have caused many multinational companies to revise their views on their responsibility to the planet as well as stakeholders. While it remains difficult to look at situations that occur, especially those during a crisis, in a logical framework, the modern business and social climate require that more than just profit and loss be figured into business equations.

Johnson and Johnson- Johnson & Johnson Corporation is an international pharmaceutical, medical device, and consumer package goods manufacturer founded in 1886. In 2010, the company posted revenues of almost $62 billion, and it is listed as one of the Fortune 500 companies, and consistently ranks at the top of the Harris Interactive National Corporate Reputation Survey. The company has a history of strong ethical behavior, of taking the proactive "high-road" when dealing with crises, and of funding international educational programs that benefit global society (Johnson & Johnson Ranks No. 1, 2005; Santoli, 2008; jnj.com).

Before the term "corporate social responsibility" even arose, however, Robert Wood Johnson, Chairman of Johnson & Johnson from 1932 to 1963, formed a Credo that has guided the company since 1943. The company's view is that this Credo forms not just the philosophy of the company, but the backbone of its strategic plan and very nature of being. In brief, the Credo reads, "We believe our first responsibility is to doctors, nurses, and patients, to mothers and fathers and all others who use our products and services" (See Appendix A) (jnj.com).

Based on this model, throughout Johnson & Johnson's history, the idea of social responsibility has been an essential part of the business. Broadly speaking, this takes many forms: manufacturing and distributing only the highest quality, safe products; protecting the environment and acting in a sustainable manner; promoting good health and safety at work and at home; and addressing not only the needs of the global community at large, but those micro-communities in which J&J employees live and work. Philanthropy is part of that goal, and J&J typically allocates about $500m per annum to reach people on six continents. This takes the form of six essential targets: Women's and Children's Health, Community responsibility, Access to healthcare for all; Advancing healthcare knowledge, and Global Public Health concerns (focusing on the global HIV / AIDS epidemic). The company works to partner with organizations based on sustainable growth and environmental responsibility and within its organization aims to reduce consumption of resources, reduce waste, reduce the carbon footprint and recycle as much as possible. Among other current programs, the company established the Next Generation Goals, which are proactive pollution prevention programs that will improve environmental performance and the integration of sound environmental management into both strategic and tactical business decisions (Johnson & Johnson, Company Profile, 2002).

What is impressive about the Johnson & Johnson credo is first, that it has been in place long before it was fashionable, almost 70 years. Second, that instead of it being a document that is placed inside corporate reports, it is a living, breathing, and evolving set of paradigms that move towards the four major precepts of modern corporate ethics and social responsibility (See Corporate Ethics Oath, 2010):

Positive Brand Value -- The commitment to brand value means that the organization is investing in the long-term brand -- and intends this brand to be available to help the public for more than just a short life cycle. When situations change, the company commits to evolve with those changes and make whatever necessary adjustments are needed to ensure both the life and health of the brand. This can be illustrated with J&J in not only their commitment to the public after the 1982 cyanide laced Tylenol recall, but the complete leadership role in changing packaging standards for greater safety (Broom, 1982).

Increase in Commitment from Employees -- When employees work for an organization that has strong brand value, they take pride in that brand and not only endorse it but tend to do everything possible to commit to the level of excellence expected by the organization. Johnson & Johnson engages its employees to become part of the brand and to believe in it so much that they recommend it, and the highest compliment of all -- use it for their family (Johnson and Phillips, 2003).