Business Ethics - Johnson & Johnson's Troubled Times - Case Study Example

Business Ethics: - Johnson & Johnson's Troubled Times Name: Professor: Institution: Course: Date: INTRODUCTION The idea of business activities enabling a company to get hold on to in its daily dealings with the humanity is well explained in the Johnson and Johnson’s troubled times, and this is a case where a Company can intentionally or not intentionally do things that are against the business ethics defining it. The ethics vary with the type of business that is being undertaken. They are appropriate not only to how the business relates with the globe at large, but also to their one-on-one transactions with a single customer (Jennings, 2008). To most people, businesses are meant to generate money, and that has always been a bottom line to most business that fails. In the case of Johnson and Johnson Company, the core business is to offer services to people by ensuring that the required medical products are made available, something that the company’s management fails to provide after it withdraws some of its products without notifying the involved parties. Case study: Johnson and Johnson’s Troubled Times Johnson and Johnson Company has always been considered to be a pillar in the American Industry, particularly in the health sector, until the criminal investigations on the “phantom" recalls and the company’s executive oustings were factors used to reveal the dark side of the Company. This paper is going to look into the case study of Johnson & Johnson's troubled times in relation to several business ethics, how the odds in business can be corrected. It is also going to give recommendations on what should have been done and be done in the future to avoid the same problems affecting the different businesses. Discrimination In the case of Johnson and Johnson, the aspect of direct discrimination did not show up, but the Company’s executives are believed to have opted to move on with decisions that would see the company in a mess secretly without involving other business partners and related health bodies. The fact the Company’s management did not involve the supposed individuals, such as consumers and other health regulatory bodies; upon taking of that bold decision of withdrawing a number of medical products from the shelves had discriminatory aspects in it. It is against the law for such step to be taken if a bold reason as to why the products are withdrawn is clearly established. Honesty Honest and fairness is one of the key business ethics that affects the well progress of a business. For a business to flourish and make more profit there must be honesty and trust between the employer and the employee. Employee should give correct and accurate results to the employer especially in a business. For this case, the management of Johnson and Johnson showed dishonest when they lied to the investigating team about the issue at hand. They had been requested to give an account on what had happened about the case. Johnson and Johnson stood to its stand that no one from the executive team had authorized the broad based recall of Motrin. This is confirmed as act of dishonesty when the e-mails that had been released indicated the approval to the recall of Motrin by the president of McNeil division that was under trouble. A true record should always be given to the management board for purposes of proper management of the business. Fraud Fraud is one of the most commit crimes without the knowledge of the person doing it. It entails dishonesty and misrepresentation of figures to make money. Johns and Johns showed degree of defrauding consumers and other stakeholders of the company. The recurring cases of recalls without notifying the product consumer about the reasons as to why such items are being withdrawn from the shelves shows defrauding scenes. This indicates that consumers are deprived of their right of accessing to various medication services. Conflict of Common Interest In a business both the employer and the employee should have the same objective which is to succeed in all the transaction they undertake. Employee should also set their mind frame in working in unity and harmony as a group. In businesses that fail because of lack of chore sharing, each member of the business whether the employer or the employer usually have a different objective to accomplish (Jennings, 2008). There is a conflict of common interest between the company and the overall consumers, as the management team decided to follow an objective that was not in line with the health standards and aspect of serving the market. Solutions 1 Discrimination should be avoided between the staff members of the company for it to prosper to high limits. The workers and the management team of Johnson and Johnson should not discriminate each other because of their differences in standing and approach to decisions. They should work hard in both cases with the same mind frame without a prejudice. When there is no discrimination in a business and the workers work with the same respect for one another, then the business will be more profitable and productive. Solution 2 In any given kind of business, honesty is an attribute that matters most. In this case employee should always be honest to the employer, while the company should be honest with what they will be offering to its product consumers. To enhance honesty in the John and John Company, there must be trust and understanding among all the members of a business. Solution 3 Fraud is another factor that should be reduced in a business so that the business can make more profitable and become more competitive in the business market. Fraud can be reduced by the introduction of auditor who will make sure that money in a business is well used (Jennings, 2008). The auditors will also provide a weekly module to show how the money has been has been used and the balance remaining in the account. Clear contractual dealings should be done officially through the rightful and legal means. Solution 4 Common interests among the involved parties should be achieved among all the workers working in the same business. The employees should always forget their differences when it comes to work. They should come together and be one, and work jointly so that the success is for the whole team and not just individuals. When a common objective is achieved among the workers and the management of a business, they will reinforce their different abilities. This will improve the business economy. Recommendation In general, for Johnson and Johnson Company to regain its reputation and become competitive and more efficient in the market it requires good business ethics. In case of discrimination, it can be eliminated from the members by taking legal actions to the person who shows it in the business. This will reduce discrimination among the members. Honesty can also be enhanced by the sacking of employee who practices dishonest in the business. Employees who practice fraud should also be sacked and legal action taken against them. Common interests can only be achieved if there is respect and a mutual understanding amongst the involving parties. The workers who show competence in there work should be awarded so that to the rest can emulate their characters to get the same reward (Jennings, 2008). This will make the workers to work with a common objective thus making the business to prosper. Read More