Johnson & Johnson's response to the 1982 Tylenol tampering crisis

Tylenol Crisis Management

One of the most famous business-related crises ever to strike modern industry was that of the Tylenol scandal of 1982. It changed the way over-the-counter painkillers were packaged in America for all time, ushering in the creation of tamper-proof seals. It also has become a paradigmatic way for companies to respond to crises. The crisis occurred when it was revealed that "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" (Analysis case study, n.d., DoD).

Stakeholders

The most obvious stakeholders were that of Johnson & Johnson, who sold Tylenol, and investors and employees with a strong personal interest in maintaining the health of the company. "Tylenol was responsible for 19% of Johnson & Johnson's corporate profits during the first 3 quarters of 1982" (Analysis case study, n.d., DoD). Consumers also had an interest in ensuring that Tylenol was a safe product. At the time, it was an extremely popular drug: it was the most successful OTC pill on the market and more than one million people used Tylenol. For people who were allergic to aspirin, being able to use Tylenol was particularly useful.

Evaluation

Rather than attempt to shirk their responsibility and say it was the actions of a third party who caused the poisoning, Johnson & Johnson attempted to first protect consumers and then addressed the root cause of the problem. Even though they were technically not responsible for the tampering, they offered financial assistance to the victims and were willing to accept millions of dollars of losses voluntarily. They also made concrete gestures to prevent the problem from reoccurring in the future. "J&J was careful to point out that, based on the evidence, the tampering must have occurred at the retail stores. However, they did not attempt to shift blame. They were extremely candid" (Blankenbeckler 2012). They also worked closely with all investigating authorities such as the FBI and local police as well as widely distributed coupons to compensate consumers who had to throw away bottles of Tylenol during the crisis.