On Weldons Watch : Recalls

At Johnsons & Johnsons

Aritro Banerjee (201611202)
Amitkumar Chorasiya (201611105)
Ankit Jhawar (201611214)
Shikhar Shrivastava (201611220)
Siddarth Singla (201611208)
Manjul Choudhary (201611123)
Durgesh Kumar Sharma (201611117)

Introduction

Ethical issues faced by Johnsons & Johnsons.

Company looses market value after repeated recalls of medicines.

Many unethical practices used by J&J in order to save face.

Company recalled the medicines repeatedly to gain goodwill.

Was it all justified or it was all an attempt to veil their irresponsibility's?

Problems At Hand

Multiple product recalls due to quality concerns.

Odour detected in many OTC drugs which triggered customer panic.

J&J recalled the products but assured safety and concern of the
consumers.

Successive recalls in short span made customers loose faith in J&J

Reasons for recall

Due to detection of bacteria in raw materials at the firms Fort

Washington facility

Foul odour in medicine packaging

Some consumers reported experiencing nausea, vomiting and diarrhoea

after taking medication

Slackness At J&J

Replacement of senior members in quality control department with less

experienced employee

Standard of the test that were difficult to make where removed from the
process

Lots of shortcut process where taken in production process

Main Ethical Issue

J&J indulged in Phantom Recall

J&J hired independent agency to purchase product from market in bulk

to save company image without informing the FDA

It was quietly recalling the products without informing the public about
the new issues

Later on they tried to save face by telling FDA that they wanted to
conduct a survey, hence wanted to pick up the inventory from the
market

Learning from the case study

Corporations should focus on quality rather than quantity

J&J did take a proactive stand, but I was too little too late

Customer wellness should be the utmost priority of any organization

Unethical and irresponsibility of an organization would lead to dilution of

customer and brand image

THANK YOU