Johnson & Johnson: The Tale of Today’s Company

Johnson & Johnson (J&J) recently announced that it is going to stop selling talcum-based powder in the U.S. J&J has been ordered to pay out billions of dollars related to lost legal battles over claims that the product causes cancer.

Records show that J&J knew of small amounts of asbestos in its talc product and hid the fact from regulators and the public. They have consistently denied any responsibility for health problems associated with the product and has appealed the verdicts.

This is the same J&J that, through its Jensen Pharma division, markets opioid-based drugs. J&J was convicted of being a “public nuisance” in an Oklahoma court for its marketing tactics (i.e., downplaying the risks of opioids and aggressive selling to high-prescribing physicians), contributing to many opioid deaths in the state. Of course, J&J denied any responsibility for the deaths blaming doctors who wrote the prescriptions and patients that took the drugs.

Lawyers will continue to argue in the courts whether J&J is legally responsible for its actions relative to the talc and opioid products but I believe there is little doubt about the ethical actions of J&J.

J&J decided to pursue profits from selling the talcum products even when questions were raised about the connection between talc and cancer. J&J continues to aggressively market opioid based products even though there is little doubt about the connection between overprescribing and misinformation about the use of synthetic opioids.

J&J ultimately may or may not be found legally responsible for its actions but, were its actions ethical?

Let’s apply the “Golden Rule” ethics test. (Thank you, John C. Maxwell, There’s No Such Thing as “Business” Ethics: There’s Only One Rule For Making Decisions.)

If you were a J&J sales rep, would you be proud to market the talc products to your friends and neighbors when you knew that the company hid the fact that there were traces of asbestos (whether there is any scientific evidence of a cancer connection or not)?

Would you recommend a physician to your friends and neighbors that you knew was open to aggressive marketing tactics (and the potential bias introduced) of pharmaceutical reps?

If this makes you at all uncomfortable and it’s not how YOU would want to be treated, why is J&J not uncomfortable with its actions as well?

Johnson & Johnson: The Tale From 40 Years Ago

Okay, then, there is the other “tale” about J&J as a company.

In 1982, an unknown person took Tylenol bottles, substituted Tylenol capsules with cyanide-laced capsules, resealed the bottles, and re-placed them on shelves in Chicago area stores and pharmacies. The products were purchased and seven unsuspecting people died as a result.

The J&J of the 1980s immediately alerted customers to not take the product, pulled all products from all stores, stopped production and advertising, redesigned the packaging with a new triple safety seal used to this day.

So, the real question is…

Which J&J do YOU want to work for, buy products from, or invest in?

The one that hides behind “it is legal” arguments, or the one that believes in “doing the right thing” – looking out for the interests of its ultimate consumers?

This is the tale of two, very different, J&J companies.

Need Ethics CPE? Book your virtual 1-hour, 2-hour, or 4-hour Ethics training with Jo today! Email Jo@AuditConsultingEducation.com.

Amanda “Jo” Erven, CPA, CIA, CFE, is the President and Founder of Audit. Consulting. Education. LLC. After a successful career in external/internal audit and accounting, Jo is now an active Internal Audit Strategist, Management Consultant, Higher Education Professor, Author, and Trainer/Speaker, providing Continuing Professional Education (CPE) hours, live and virtually, to organizations across the globe. Jo’s motto says the most about her personal and professional outlook: “Good things come to those who wait… but don’t. You deserve better than good.” Every one of her books and presentations focuses on that proactive stance, and how we can immediately connect our actions to our values.