Problem Solving for Johnson&Johnson (Proposal) - Assignment Example

Only recently, the U.S. Department of Justice has allegedly imposed a significant amount of penalties, amounting to $2.2 billion against Johnson & Johnson, for violations of the False Claims Act (U.S. Department of Justice). According to DOJ’s official website, a penalty of as much as $2.2 billion has been imposed by the DOJ to Johnson & Johnson (J&J) to resolve allegations that related to misbranding, off-label promotions, as well as off-label uses for the following prescription drugs: Natrecor, Risperdal, and Invega.

Likewise, J&J was also reported to have tolerated payment of kickbacks to medical professionals (U.S. Department of Justice). These serious allegations compromise the corporate image of the organization; as well as endanger the safety and health of the consumers. In this regard, the current discourse aims to define the root cause of the problem and to propose corrective action to solve it. The problem currently faced by Johnson & Johnson is a weak control and risk management system that should proactively evaluate risks in product, as well as research and development; in conjunction with ineffective managerial oversight due to the failure of the executive management team to effectively govern the large global organization including subsidiaries and affiliates who are tasked to specialize on some products and functions.

From the recent problems that emerged, an analysis of the potential causes of these problems include the inefficient product outcomes emerging from the research and development efforts for the organization’s varied products which are undertaken by groups such as the Johnson & Johnson Pharmaceutical Research & Development (Johnson & Johnson), as well as Janssen Research & Development, an affiliate of the Johnson & Johnson family of companies (Janssen Research & Development). A brief review of Johnson &