Memo – Enhancing Ethical and Legal Compliance: Johnson & Johnson

Memo – Enhancing Ethical and Legal Compliance: Johnson & Johnson

Memo To: Dirk Brinckman

Memo From: [Student’s name]

Re: Johnson & Johnson

Date: 10/05/2021

This memo seeks to highlight areas of improvement that Johnson & Johnson should consider in enhancing its ethical and legal compliance. These areas will be identified after a review of the company’s culture, ethical codes, and past crises. Three recommendations will be provided based on actions taken in past crises. Our assignment writing services will allow you to attend to more important tasks as our experts handle your task.

Name and description of the organization

Johnson & Johnson is a publicly traded organization that commands immense recognition in the pharmaceutical industry. Johnson & Johnson changes the lives of its consumers through the products that it provides. The company offers products that enable maintenance or improvement of personal health, allowing consumers to achieve healthy lives. Johnson & Johnson relies on its expertise to improve care standards through the production of medical devices. Through Janssen Pharmaceutical Companies, Johnson & Johnson’s affiliate, the company is able to produce medicine for various conditions. Each of the product categories makes a significant impact in healthcare by enabling access to care, delivery of the same, and personal efforts toward individuals’ well-being (Johnson & Johnson Services, Inc., 2020).

Description of the organizational culture

Johnson & Johnson boasts of a diverse yet inclusive organizational culture. The current culture is motivated by different conditions within its environment. First, the diversity of stakeholders motivates the company to align its products to their varying needs. Secondly, Johnson & Johnson is sensitive to the concept of gender. As other entities struggle to achieve gender balance, Jonson & Johnson seek to ensure that the gender identity of the current workforce is respected and addressed. Designing facilities that are appropriate for serving the needs of the workforce now and accommodating those who wish to transition in the future is critical to the company’s culture of inclusivity. Thirdly, the company currently accommodates all individuals regardless of their unique characteristics. The Open & Out LGBTQ+ is one of the Employee Resource Groups that ensures those with varying sexual orientations are embraced fully. As stated in the company’s Credo, the employees and other stakeholders are critical. The diversity of its workforce and fair treatment of all enables the employees to extend ethical treatment to other stakeholders (Johnson & Johnson Services, Inc., 2021).

The mission, code of ethics, and core values of the organization

Johnson & Johnson’s reason for existence is to “blend heart, science, and ingenuity to profoundly change the trajectory of health for humanity” (Johnson & Johnson Services, Inc., 2020). This mission is achieved daily by adherence to the values that the credo outlines as well as the code of ethics. The company requires its employees to observe all the ethical requirements when acting on its behalf. The existence of Our Credo Integrity Line allows any stakeholder to provide information regarding the violation. Whistleblowers are protected from any threats or retaliation from colleagues. In addition, the company’s ethical stance prohibits corruption, bribery, and other activities that violate the laws (Johnson & Johnson Services, Inc., 2020).

Leadership strategies to promote legal and ethical compliance

The company’s culture is visible through its leaders. During the Tylenol crisis that occurred in 1982, the then CEO James Burke recalled the product from the market. The team that was formed to handle the issue prioritized the consumers, who were the most affected stakeholders (Stewart & Paine, 2011). The action, which cost the company millions of dollars, consistently inspires employees to uphold public health safety and other ethical or legal requirements at all costs (Paine, 1994).

Legal and ethical issues

Besides the Tylenol Crisis, Johnson & Johnson has encountered other crises that have revealed unethical practices’ tolerance. The company’s biliary stents have caused discomfort in the sector due to the promotion and marketing activities. Cancer patients use stents to enable drainage in the bile duct.  However, the company was accused of funding studies which would enable off-label use of the stents. Doctors were also receiving literature intended for promotion and marketing to facilitate the unauthorized use of the stents. Sales representatives also received bonuses and mandatory quotas for selling these stents. In addition, doctors received manuals that showed them the process of filing for reimbursement after using the device (Stewart & Paine, 2011). This unethical practice is one of the few that the company has taken part in knowingly. It shows a lack of consistency in culture, compliance with its Credo, and legal practices that protect the public’s health.

Recommendations to strengthen legal and ethical compliance

Prioritize public health genuinely

Public health should be the company’s initial priority. To prioritize and safeguard it, the company should avoid off-label practices that are forbidden by the FDA. It should also heed the agency’s advice, regulations, requirements, and warnings. Failure to abide by the legal aspects that govern healthcare demonstrates a lack of care and concern for consumers.

Punish all actions that violate public health

Employees carry out the activities that have led to scandals that involve the company consciously. Failure to call out these actions, and punish the perpetrators confirms the company’s lack of regard for consumers and agreement. The action of calling out the perpetrators is important in reinforcing the culture of ethical practices.

Improve quality assurance

Some of the issues that have led to scandals are related to the poor quality of products. The company should invest in a quality assurance system that ensures all products meet the FDA requirements and are sold only for the approved purpose (Stewart & Paine, 2011). This should avoid unnecessary scandals that can lead to litigations and loss of revenue.

References

Johnson & Johnson Services, Inc. (2020). About Johnson & Johnson. Retrieved from Johnson & Johnson : https://healthforhumanityreport.jnj.com/about-johnson-johnson/johnson-johnson-at-a-glance

Johnson & Johnson Services, Inc. (2021). 4 Insights Into Our Culture of Inclusiveness. Retrieved from Johnson & Johnson: https://www.careers.jnj.com/careers/four-insights-into-johnson-johnsons-culture-of-inclusiveness

Paine, L. S. (1994). Managing for Organizational Integrity. Harvard Business Review.

Stewart, K. L., & Paine, W. S. (2011). Johnson & Johnson: A Preliminary Ethical Analysis of broken Trust. Journal of Academics and Business Ethics.

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Imagine you’ve been assigned to an organizational committee that has been asked to evaluate the organization and make recommendations to the compliance officer on ways to strengthen legal and ethical compliance.

Memo – Enhancing Ethical and Legal Compliance

In this assignment, you will use the Organizational Research Memo Template to research organizations, not agencies. Remember that an organization is a company or business – such as a hospital, clinic, or insurance company – and an agency is a part of the government at the federal, state, or local level, such as the Food and Drug Administration (FDA), Department of Labor (DOL), or a state health department.

Select 1 of the organizations listed below. Research the organization’s compliance information. Review the Organizational Research Memo Template to ensure you can obtain all information for the organization you have selected.

American Red Cross
American Heart Association
United Healthcare
Johnson & Johnson
Stryker Corp.
Verizon Healthcare
GE Healthcare
A hospital
A clinic
An insurance company
A nonprofit healthcare organization
An organization of your choice – the organization should not be a federal, state, or local agency and must include information that is publicly available.

Write a 700- to 1,050-word memo to the corporate compliance officer. Use the Organizational Research Memo Template to complete the assignment.

Cite at least 2 reputable references (even though the template states one). Reputable references include trade or industry publications, government or agency websites, scholarly works, textbooks, or other sources of similar quality. (1 source must be scholarly)