BUSINESS

COMMUNICATION

PRESENTATION
NAVIGATING
THE
JOHNSON
& JOHNSON
CRISIS
Johnson`s talc –having asbestos

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 Overview of the Crisis..

In 2021, Johnson & Johnson faced a major crisis when it was

discovered that their popular baby powder product contained
asbestos, a known carcinogen. This led to a widespread recall of
the product and numerous lawsuits from affected consumers.
 Impact on Consumers
The Johnson & Johnson crisis had significant impact on consumers who had used
the company’s products, particularly their talc based baby powder. Many
consumers were concerned about the potential health risk associated with using
these products.
Concerns about talc based products

Talc is a mineral that has been linked

to a cancer when used in the genital
area. Johnson & Johnson faced
numerous lawsuits from consumers
who claimed that using the company’s
talc based products had caused their
cancer.
 Legal And Financial Implications
Legal Implications
1. Potential lawsuits from affected
consumers
2. Investigations by regulatory agencies.
3. Possible criminal charges for executive
involved.
Financial Implications
1. Loss of revenue form recalled products.
2. Costs of recalls and legal fees.
3. Damage to the company’s reputation and
stock value.
THEIR WAY OF CRISIS MANAGEMENT
 Product Recalls

To address consumer concerns,

Johnson & Johnson issued product
recalls and made changes to their
labeling and marketing. However,
many consumers have already lost trust
in the company and switched to
alternative products.
 Public Relations Campaign

Johnson & Johnson also launched a massive public relations

campaign to reassure consumers of the safety of their
products. They took out full page ads in major newspapers,
offered refunds to customers who had purchased Tylenol
capsules and created a toll free hotline for concerned
consumers to call. This campaign helped to restore consumer
trust in the brand but it also came at a significant cost to the
company.
 Recall Of Tylenol

Johnson & Johnson’s first response was to issue a Nationwide recall of all
Tylenol capsules which totaled 31 million bottles and cost the company an
estimated $ 100 million. This was a bold move at the time as there was no
legal requirement for a recall and it was seen as a significant financial risk.

• Company’s Response
Johnson & Johnson responded to the crisis by recalling millions of bottles
of Tylenol and launching a massive public relations campaign to reassure
consumers of the safety of their products. They also introduced temper –
evident packaging to prevent similar incidents from occurring in the future.
 Tamper Evident Packaging
In response to the crisis Johnson & Johnson introduced
tamper evident packaging to prevent similar incidents from
occurring in the future. This packaging included a plastic
seal over the mouth of the bottle and the warning label that
would be broken if the seal was tampered with. This
innovation helped to set a new standard for the
pharmaceutical industry and has since been adopted by
many other companies.
 Legal And Financial Consequence

. Despite their swift and decisive response to the crisis, Johnson & Johnson still
faced legal and financial consequences. They were sued by victims and families of
victims of the poisoning, and ultimately settled for an undisclosed amount. The
company also suffered a significant loss of market share and reputation, which will
take years to fully recover from.
 What`s New to this crisis

Johnson & Johnson is to stop selling and making talc-based baby powder
globally, two years after it ended sales in the US and Canada.
The healthcare firm has faced tens of thousands of lawsuits from
consumers who allege its talc products, including the instantly
recognisable brand of Johnson’s baby powder, caused them to develop
cancer.
“As part of a worldwide portfolio assessment, we have made the
commercial decision to transition to an all cornstarch-based baby powder
portfolio,” the company said in a statement. “As a result of this transition,
talc-based Johnson’s baby powder will be discontinued globally in 2023.”
 Lessons Learned
The Johnson & Johnson crisis serves as a
cautionary tales for companies across all
industries. Here are some key takeaways :
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• Transparency is a key when dealing with a
crisis. Companies must be open and honest
about the situation.
• Companies must prioritize customer safety
above all else. Cutting corners or ignoring
warning signs can have serious consequences.
• A crisis management plan is essential.
Companies must have a plan t o respond
quickly and effectively to a crisis, including
clear communications protocols and
designated spokespeople.
• The legal and financial implications of a crisis
can be significant. Companies must be
prepared to navigate these challenges and
take steps to mitigate the damage.
THANK
YOU