Case Study on "Tylenol Cyanide"

Quoted Instructions for "Tylenol Cyanide" Assignment:

This is a team assignment and I believe we are about 60% to 70% done with the assignment but we have had two people on our team not contribute. Now we are in a fix, because our paper and PPT is due on Monday at noon. I would like to send you what we have thus far and see if you can help us with a little more research to fill in the case study steps that our team mates did not complete. Also, I noticed alot of redundancy as I edited the document today and I have been working to eliminate. I am also concerned that the some of the team members have placed the correct content under the correct steps. Good news is that we have been given an example of a case study that we are to follow *****"professor loverde*****'s case study*****" (which I am attaching) and so I would like to attach this as well as a template reference that we need to align with.

Also, the document that we have put together thus far *****"tylenol cyanide case*****" has alot of color highlights, and this is really just my way of communicating with my other team mates. I used grey in the text when I felt that the content in grey actually matched the steps or appeared to align in some way. Problem I see is that my team mates are not really working through the case study front to back and they are duplicating content every time they submit something - - and not necessarily answering the steps properly. Could you please look at what we have, and help me to make sure the content under each step is correct, and the steps where content is missing / including the Summary or Conclusion is filled in? (also, when we are done, the school will run this through plagerism software so please cite properly) - I left a few great extra references - that we can go to for more content if we need to.

When I get this back, I still have to put a PPT together - so I am in a little rush to get this back. I will make one slide for every PPT - so I hope the case study will easily allow me to see this.

Is there a way to get this by Sunday evening? - time isn*****'t important - it can be late, but just Sunday so that I have time to work on the ppt.

Johnson and Johnson Tylenol Case Analysis

Team C

PHL 323

March 1, 2010

*****ƒ

Abstract

Taking responsibility and immediate action in the face of a huge crisis is a requirement for any U.S. corporation if they are to survive and maintain their market position and reputation. These types of organizations are expected to be socially responsible to their employees and the public not only if they are directly involved in a crisis involving their products or services, but also if there is an indirect association. In 1982 Johnson and Johnson was faced with this challenge. They were indirectly involved in a catastrophe which killed seven people because their leading pain killer Tylenol was tampered with and unassuming consumers became the victim of such an atrocity. The way in which Johnson and Jonson dealt with the situation is the basis or our case study. In fact, their response was remarkable and commendable. The outcome of this catastrophe created a new standard in *****crisis management*****. The company was applauded for how they responded while prioritizing the consumer over their monetary losses. As a result, Johnson and Johnson recovered and within months after the crisis their markets share exceeded all expectations.

This paper will discuss the entire case; dissect the elements of the case, symptoms, goals of the organization, management theory, diagnosis the barriers Johnson and Johnson, the media and the public viewed during the crisis, solutions proposed, action plans they used to overcome barriers, consequences to the plan, action plan to the larger context, external forces, implications for two directions of corporate integrity, and it will interpret the original case elements in light of the larger horizons of the era. Johnson and Johnson was seriously affected by the chain of events caused by this crisis, but how they handle this challenge, and how they moved through the process is the very reason they not only survived but are thriving today.

Step 1; Elements of the Case

Company Facts

Johnson and Johnson firm incorporated in 1887. The firm provided sealed surgical dressing which was germ-free, wrapped and ready to be used. In the late 1880*****s this was considered modern medicine and for antiseptic treatment of wounds. Johnson and Johnson had subsidiaries in more than fifty countries worldwide. McNeil Consumer Products is a subsidiary of Johnson & Johnson developed the painkiller called Tylenol. As an oath to the public, Johnson and Johnson created a Credo statement, written in Robert Johnson in 1943, conveying and prioritizing their responsibility to their consumers. This statement is posted on their website today as *****Our Credo Value***** and demonstrates the emphasis on being socially responsible to everyone who uses their products http://www.jnj.com/connect/about-jnj/jnj-credo/?flash=true).

Actual Crisis

On September 30, 1982 CEO, James Burke of McNeil was notified that seven people died from the Chicago area from cyanide laced Tylenol after ingesting the capsules. People died within minutes of taking the capsules. The perpetrator placed deadly cyanide into the Tylenol bottles. The nation was warned that there might be a connection between the deaths and Tylenol. Suddenly Johnson and Johnson was faced with explaining to the world how a well know product was suddenly killing people. In response to the information at hand, the Police in Chicago proactively led the charge to notify their communities. Three national television networks reported details on the evening news and they focused on 24 hour coverage, which was new at the time. The next day the Food and Drug Administration advised consumers to avoid the Tylenol capsules, *****"until the association with deaths had been be clarified*****" (Tifft, 18). Johnson and Johnson issued a public relations response immediately naming their number one priority, to protect the consumers using their products.

Step 2; Symptoms of the Problem ��*****" (VIC)

The crisis created a nationwide panic and because of the new twenty four hour media the news reached the public quickly. One hospital in Chicago received 700 calls in one day. Johnson and Johnson received 1411 calls over 10 days. Across the country people were admitted on suspicion of cyanide poisoning in to hospitals for observation (Tifft, 18). Johnson and Johnson worked with the media to distribute information about the poisonings to the public as quickly as possible. When the news spread copycat criminals began to tamper with the products and add to the crisis. FDA confirmed more tampering had taken place, but this did not actually reach the public. The total number of actual tampering was 36 (Church, 27).The Food and Drug Administration counted 270 incidences of possible product tampering (Kaplan, 1998).

Additional symptoms to the problem were that Tylenols market share plummeted after the crisis. Since Tylenols name was tied to the tampered goods, they were held indirectly responsible for the deaths of seven people, and possibly more as view by the public. J & J needed to figure out how to deal with the crisis, protect the public and lastly not destroy the reputation of their products or their company. The decision was made by the company to first take responsibility and action to address the patients affected. Next, the protection of the potential consumers at risk recognizing that not everyone may have heard the news once this crisis was made public. With the onslaught of death, and potentially more death to result, the public and experts felt that Tylenol could not recover from horrible atrocity. The public also felt that the Tylenol product wasn*****t safe anymore ��*****" market share dropped from double digits to single digits within weeks (Mitchell, 1989).

Step 3; Identification of Goals ��*****" (Vic)

In 1982, Tylenol controlled 37% of the pain killer market, approx $1.2M and became the leading painkiller outselling Anacin, Bayer, Bufferin, and Excedrin. Seventeen to eighteen percent net earnings of Johnson and Johnson were from Tylenol sales. Profits placed Johnson and Johnson in the top half of the Fortune 500 (Berg, 1998). The company had been doing well for years and was on track to grow market share by at least 15% over the next year. Tylenol was to the product that would lead this company to further success. That is until the Tylenol laced cyanide crisis came to be. This calamity changed the strategic plan, management goals, parent to subsidiary goal across the organization ��*****" within a 24 hour period. Instantly, an immediate crisis mode was assumed and a reassessment and reprioritization of their goals and immediate actions required jolted every executive, manager and employee in the organization.

Immediate Goals once Crisis was Revealed

Reacting to the news, when Johnson and Johnson was faced with the initial situation; it had to make some tough decisions that would severely impact the future of the company. Rather than think in financial terms only, CEO James Burke immediately turned to the company*****'s Credo. Written by Robert Johnson, back in 1943, the document defined the focus of the company as its customers. With this as its inspiration, Tylenol used the media to promptly begin alerting people of the potential dangers of the product.

James Burke, CEO developed a strategy team of seven key members. Prioritizing goals to protect consumers first, save the product next and company reputation would follow. They realized that they needed to be socially responsible, alerting the nation through the media and work closely with the Chicago Police, FBI and the FDA. Strategy plans were to prevent more deaths, additionally this kind of tampering in the future. First they needed to remove all Tylenol products from Chicago shelves and immediate surrounding areas as quickly as possible. And although there was a slim chance that there was more contamination in other areas of the country, they didn*****t want to take the chance. Therefore, they recalled all Tylenol products from every shelf across the U.S. (Atkinson, 2) (Broom, Center, Cutlip, 381). Working with the FDA they dispatched scientists to determine the source of the tampering. http://iml.jou.ufl.edu/projects/Spring01/Hogue/tylenol.html. They also used 1800 ��*****" hotlines to disseminate information about the situation.

The next set of goals was to re-release a new product that would restore consumer confidence. This was a critical step and only if this happened would the public view the product as safe.

Step 4; Management Theory ��*****" LANCE)

When Johnson and Johnson were faced with the Tylenol poising scandal they needed to find a way to protect the public and uphold their name. Negative media would only hurt their company*****s reputation; Johnson and Johnson adopted the Contingency Management Theory. The Contingency theory is a *****behavioral theory that claims there is no best way to organize a cooperation, to lead a company, or make decisions***** (12 Manage, ¶. 1, 2010). It also states, *****When managers make a decision, they must take into account all aspects of the current situation and act on those aspects that are key to the situation at hand***** (McNamara, ¶. 2, 2010). Johnson and Johnson decided on a two-phase plan, which consisted of customer safety first before profits and themselves (Kaplan, 1998). This was a strategy to win back public trust. Johnson and Johnson protected the public by ordering a massive nation-wide recall of Tylenol and stopped production of Tylenol capsules. This recall accounted for about 31 million bottles or about 100 million dollars in lost revenue (Effective Crisis Management, n.d.). They also were proactive about warning the nation about their product by using the media. They worked with Chicago police, Federal Bureau of Investigation, and Food and Drug Administration to help catch the culprit who tampered with their product (Kaplan, 1998) {wasn*****t this already stated? lets decide if it goes here or there?).

Primary Essentials

Assistant Director, Robert Andrews, who is in charge of public relations receives and reacts to the first days of the crisis. Robert Andrews accepts a phone call from a Chicago new reporter. A medical examiner had given a press conference because people were dying from poisoned Tylenol. The news reporter wanted the comments and position taken by Johnson and Johnson, specifically surrounding their plan to remedy this crisis. Robert Andrews was hearing this information for the first time and did not know the particulars to the sudden death of customers by taking the Tylenol product. {so what did he say publically? Was it a press conference?}

Portion # 5 Diagnosis and Barriers (Lance)

Two off duty firemen originally discovered the Tylenol poisonings while at home listening to their police radios (Kaplan, 1998). The Tylenol capsules were found to have 10,000 times the appropriate dose of cyanide for killing a person (Kaplan, 1998). During this time there were no tamper resistant precautions on over the counter medications. All bottles of Tylenol were from four different lots of production, two different Tylenol manufactures, and the poisonings only happened in the Chicago area. (Kaplan, 1998). McNeil Consumer Products confirmed that tampering did not take place at their plants. A spokesperson for McNeil confirmed their level of strict quality control. Authorities concluded that any tampering must have occurred once the Tylenol had reached Illinois (Beck, 33). Process was as follows: Bottles reached department stores and were placed on the shelves. Suspect took bottles off of the shelf, placed Cyanide in the bottles and then they were placed back on the shelves at five different stores in Chicago (Mitchell, 1989). Quickly they discovered that the capsules came from four different plants and lots. They were then taken from different pharmacies and believed to be distributed within one week, to one month. The problem remained that there could still be more contaminated Tylenol on shelves or in consumers medicine cabinets, there was simply no way to clarify this exposure.

The barriers that Johnson and Johnson faced were extensive. They had to figure out how to protect the public while upholding their reputation of Tylenol as a safe effective pain reliever. Time (to reach the public?) was the main barrier in protecting the public. This would prevent more people from ingesting the tampered Tylenol and also put a stop to the copycat criminals (what would?). The second large barrier was to uphold Tylenol*****s reputation. In 1982 Tylenol controlled the largest market share for over the counter pain medication (Effective Crisis Management, n.d.), although, it was clear that both the media and their competitors did not believe they could hold on to this market position for long. Advertising geniuses told the NY Times *****"There may be an advertising person who thinks he can solve this and if they find him, I want to hire him, because then I want him to turn our water cooler into a wine cooler*****" (Knight, 2). Never the less, Johnson and Johnson moved forward and did not want to be viewed as disregarding public safety like other companies in similar crisis mode *****Perrier***** (Broom, Center Cutlip, 59). They realized that they would focus on regaining market share AFTER patient safety issues were addressed ��*****" and only if they were successful here would they be able to improve public relations and restore consumer confidence in their products.

Portion #6 Diagnosis and Solutions (Lance)

The solutions of the two major problems that Johnson and Johnson faced were massive. With 31 million bottles sold, Johnson and Johnson had to spread the word quickly on the nation- wide recall. They had Chicago police on loud speakers driving through neighborhoods warning citizens of the poisonings and the connection with Tylenol (Kaplan, 1998) . Media was contacted to help distribute the information about the tampered Tylenol recall. They worked with Chicago police, Federal Bureau of Investigation, and Food and Drug Administration to offer information and to be in direct involvement with catching the criminal (Kaplan, 1998). Johnson and Johnson offered a $100,000 reward for the capture of the killer (Kaplan, 1998).

STOP HERE Johnson and Johnson offered to exchange all Tylenol capsules for Tylenol tabs that were already purchased (Kaplan, 1998). This would have the public still using their brand as the pain reliever of choice. Johnson and Johnson improved the safety of their product by introducing the first triple seal tamper proof packaging (Kaplan, 1998). This was a major help in restoring the public*****s confidence that Johnson and Johnson was trying to fix this unfortunate problem. They also decreased the price by 25% and offered another $2.50 coupon for those who purchased Tylenol. Johnson and Johnson also sent 2250 representatives to talk with the medical community to regain their trust and support (Kaplan, 1998). This helped regain the trust of the medical community. The medical community would help by prescribing the drug to their patients which would help restore public confidence about Tylenol.

Other alternatives, which Johnson and Johnson could have leveraged publically through the media, could have been to have the President of the company provide a sincere apology. Also explain the facts about the incident and what the company was presently doing to fix the problem. This could have helped the public to regain the trust in Johnson and Johnson.

They offered a $100,000 reward for the capture of the killer (Kaplan, 1998). Finally they offered to exchange for all Tylenol capsules for Tylenol tabs that were already purchased (Kaplan, 1998). They introduced the first triple seal tamper proof packaging that was up to the Food and Drug new regulations (Kaplan, 1998). Along with this they discontinued the capsule (bead) form and developed a solid tablet *****tab*****. Reduced the price for Tylenol and provided coupons for $2.50 off any bottle of Tylenol (Kaplan, 1998). Finally 2250 people were sent from Johnson and Johnson to talk with the medical community to regain their trust and support (Kaplan, 1998). Their main goal was now was to restore the public*****s trust and confidence in their product - although they realized that this could only be accomplished if the public viewed the product as safe.

Step 7: Action plans to overcome barriers

A. Over the past decade, consumer groups, health care providers and others have shown an increasing interest in supplying consumers with more and better information about medicines. The hope is that consumers, armed with greater knowledge about the medicines taken will empower consumers to make educated decisions about their health care.

B. This action plans seeks to improve the quality and availability of information that will be provided to consumers. The rationale for the plan is providing consumers with useful information during a crisis which shall reduce the risk of panic, distrust, and reduce injury, and improve health outcomes. Action plan tools are:

*****¢ Dealing with negative media

*****¢ Open Communications

*****¢ Public Safety

*****¢ Establish a hot line

*****¢ Establish a new triple safety seal capsule

*****¢ Implement a tamper resistant product including packaging

*****¢ Terrorism

*****¢ Rectification Program to consumers

*****¢ Encourage activities to increase consumer understanding and awareness

*****¢ Promote consistency with federal regulations

*****¢ Establish criteria for the development and distribution of product

*****¢ Establish an emergency plan to recall tampered and contaminated product

*****¢ Develop a mechanism for the workplace and employees

C. The Tylenol case is an example of a company that overcame many negative barriers. Developed crisis communications during a public out cry. Johnson and Johnson responded to the Tylenol poisonings by disseminating risk information which included enough detail for the consumer to understand. Outlined the hazards and pre-cautions. Public information allowed consumers to distinguish between warnings about improper use. Warned about life-threatening symptoms, and explained specific directions, and cautions to seek medical attention immediately. Information is important to inform, and warn consumers to protect them from harm.

D. Johnson and Johnson designed a remediation and rectification program that would win forgiveness from the public. The forgiveness and sympathy program offered compensation to help the victims of the crisis, and their families. Counseling and financial assistance programs were available. The programs lessened the negative publicity, and targeted advertising to gain the trust of consumers to use the Tylenol product again. This was a positive action.

E. Johnson and Johnson developed a program which confronted and addressed the issue of terrorism. The strategies and approaches that are implemented involved:

*****¢ Re-structured the production process.

*****¢ Re-designed the packaging of the product by initiating the first every new tamper resistant packaging.

*****¢ Training and education programs on hostage taking, sabotage, and workplace violence.

*****¢ Organizational policies that mandate the prevention, and recurrence of tampering in the future.

*****¢ Implemented new random inspections procedures prior to product shipment to retailers.

*****¢ Re-defined the mission statement

*****¢ Re-defined the goals statement

*****¢ Restructured and added a new department called Public Affairs.

A. The Public Affairs department established a positive relationship with the new media.

F. Johnson and Johnson realized that the costs to assume the responsibility of corporate obligation would be expensive in the beginning but, in the end it would win back the trust of the consumer. Johnson and Johnson knew that lawsuits for loss of life, and negative press coverage would damage the reputation of the company. This will cause long term effects. Johnson and Johnson developed a nation wide education process to give necessary tools to consumers. The first education process is to raise the awareness of consumers about the importance of the new tamper resistant packaging. Information about signs of a broken seal, opened package, and opened containers. The second education process involved the 1-800 hot lines for consumers to call. The third education process established a 1-800 line for news organizations to receive pre-taped messages with updated statements about the crisis with accurate and correct information on national television.

Step 8: Consider probable consequences to the action plan

Johnson and Johnson did not presume a crisis would hit the organization. This is shown in how the situation was handled the first 24 hours. Johnson and Johnson was in denial, and did not phantom that people died from taking the Tylenol product. The organization realized the need for an emergency action plan prior to a crisis. Johnson and Johnson established standards the incorporated responsibility to the consumers, stakeholders, and families. Johnson and Johnson adopted the attribution theory. This theory states that people make judgments based upon control, internal, and external.

As a result of the Tylenol crisis, Johnson and Johnson realized that public and private initiatives and advances must be made. Useful information to consumers. Written information shall be specific. Efforts to increase the cultural competency of oral and written communications shall reach underserved populations.

Johnson and Johnson are committed to experiencing open communications will all the news media, consumers, and health care providers. Johnson and Johnson shall work with all media outlets to help maintain the organizations reputation, trust, and make good on the mission and goal statement. Johnson and Johnson will honor all offers for free replacements of caplets in the new triple resistant package. A monitoring system shall be developed in quality control for a period of safety surveillance, drug distributions, and inventory management, lot number labeling for safety assurance. Johnson and Johnson implemented guidelines on the bar-coding system for drugs to prevent mix ups, and secure product traceability.

Johnson and Johnson have incorporated a plan for drug distributions, and corrections of inappropriate trade practices such as pending settlements, global pricing, which could undermine the trust.

Drugs supplied by the Johnson and Johnson company have a major impact on the life, and health of consumers globally. To maintain corporate responsibility Johnson and Johnson have a high level of ethics, reliability, and transparency. Johnson and Johnson have the responsibility for greater political and corporate behavior, an open business structure, compliance with the code of practices.

Johnson and Johnson realized this action plan is a working document, and must be updated regularly. This can be updated by role playing, exercises, and seminars. Johnson and Johnson realized that first impressions count, and almost impossible to change, the company needs to show that safety to the consumer is the number one goal and mission. Positive steps are taken to ensure the future of the corporation.

The only negative consequence that might affect Johnson and Johnson does not possess an action plan for the new drug industry visions. The new drug industry vision is to ensure the safe supply of drugs, impose duties on production and marketers. (Berge, 1998)

Johnson and Johnson pharmaceutical company is primarily responsible for supplying the medical frontline with the necessary information on drugs through package insert warnings.

Step 9: Action plan to other companies

Johnson and Johnson took positive action to stop competitors from expounding on the negative media by doing the right thing. Johnson and Johnson care about employees, shareholders, customer safety, and the quality of the Tylenol product. Johnson and Johnson have a vision or producing products with indications, and effects beyond those required for conventional non-prescription drugs, and respond to public trends. Johnson and Johnson are developing a plan that will concentrate on efforts to maintain the trust of the public. Johnson and Johnson is the leading company in public-focused policies that promote global competitiveness of the industry.

Step 10; Consider the external factors - TEREK

Step 11; Assess the implications for the two directions of corporate integrity - TEREK

The training and changes outlined above should have a positive impact within the company for the overall synergy of the employees while at the same time improving reputation and value for internal and external stakeholders alike. It is highly probable that the employees that are guilty of discrimination in this case may find it difficult to change the way they interact with their fellow employees. Even though this will be a difficult transition period for them the end result should prove to be a better work environment for everyone concerned. If these changes do not take place the company will certainly be involved in additional lawsuits which have already proven to be much more costly than implementing these changes across the company. XXalso has to consider its reputation in this day and age when corporate image is a very real and tangible asset. Consumers and stockholders alike have become very fickle about which companies they back or buy from based on public opinion of how a company fits in to our overall society today.

Step 12; Interpret the original case elements in light of the larger horizons of the era - TEREK

Language here is simply an example of how this section is presented ��*****" what is written here has nothing to do with our case study.

The elements of this case are somewhat surprising considering that it happened in the not too distant past. American society has condemned ethnic and sexual discrimination for decades even though there are still pockets of resistance to these shifts in thinking throughout the country. With as much cultural diversity as there is at a global company like XXit seems almost impossible that this kind of treatment was prevalent at the corporate level for so long. In this case it is assumed that the company must act within the guidelines set by the society in which it resides. The outcome could be very different if we moved the company headquarters to a Middle Eastern country where traditions and ethical standards are very different than they are in the United States. If this company was in a country where women are considered inferior to men and people with different religious ideas would be ostracized our action plans would not even be considered. In fact there probably would not even be any cause for concern at all. The practices that brought about the lawsuits would have been considered both acceptable and expected.

Conclusion (LANCE) AND I WILL HELP HERE TOO (VIC)

I am adding this in because we can pull these concepts into our conclusion (Vic)

The features that made Johnson & Johnson*****'s handling of the crisis a success included the following:

*****¢ They acted quickly, with complete openness about what had happened, and immediately sought to remove any source of danger based on the worst case scenario - not waiting for evidence to see whether the contamination might be more widespread

*****¢ Having acted quickly, they then sought to ensure that measures were taken which would prevent as far as possible a recurrence of the problem

*****¢ They showed themselves to be prepared to bear the short term cost in the name of consumer safety. That more than anything else established a basis for trust with their customers.

http://www.mallenbaker.net/csr/crisis02.html (keep reference here for now ��*****" vics note)

References (not in order or edited yet ��*****" still needs to be done and double checked with content)

12 manage. (2010). Contingency Theory. Retrieved February 22, 2010, from http://www.12manage.com/methods_contingency_theory.html

Effective Crisis Management. (n.d.). The Tylenol Crisis, 1982. Retrieved February 22, 2010, from http://iml.jou.ufl.edu/projects/Fall02/Susi/tylenol.htm

Kaplan, T. (1998). The Tylenol Crisis: How Effective Public Relations Saved Johnson & Johnson. Retrieved February 22, 2010, from http://www.aerobiologicalengineering.com/wxk116/TylenolMurders/crisis.html

Kaplan, T. (1998). The Tylenol Crisis: How Effective Public Relations Saved Johnson & Johnson. Retrieved February 22, 2010, from http://www.aerobiologicalengineering.com/wxk116/TylenolMurders/crisis.html

McNamara, C. (2010). Brief Overview of Contemporary Theories in Management. Retrieved February 22, 2010, from http://managementhelp.org/mgmnt/cntmpory.htm

Berge, D (1990) Department of Defense Crisis Communication Strategies

Retrieved from http://americanfraud.com February 25, 2010

Broom,G (1982) The Tylenol Scare, Newsweek October 11 Retrieved from

www.ou.edu/deptcomm/dodjcc/groups/02C2/Johnson%20&%20Johnson.htm

February 25, 2010-02-25

Beck, Melinda, Mary Hagar, Ron LaBreque, Sylvester Monroe, Linda Prout. *****"The Tylenol Scare.*****" Newsweek. October 11, 1982.

Tifft, Susan. *****"Poison Madness in the Midwest.*****" Time. October 11, 1982.

Church, George J. *****"Copycats are on the Prowl.*****" Time. November 8, 1982.

Knight, Jerry. *****"Tylenol*****'s Maker Shows How to Respond to Crisis.*****" The Washington Post. October 11, 1982.

Broom, Glen M., Allen H. Center, Scott M. Cutlip. Effective Public Relations, Seventh Edition. Prentice-Hall Inc. 1994.

Mitchell, Mark L., Economic Association International 1989: The impact of external parties on brand name capital: the 1982 Tylenol poisonings and subsequent cases.

(Our Credo Value, http://www.jnj.com/connect/about-jnj/jnj-credo/?flash=true) (J & J web site) Reference

References below here

may be good reference to look into in order to complete this paper ��*****" although they have not been cited in the paper thus far.

12. *****"Tylenol Murders.*****" http://www.aerobiologicalengineering.com/wxk116/TyelenolMurders/

Beck, Melinda and Agrest, Susan (February 24, 1986). Again, a Tylenol Killer. Newsweek. National Affaires, page 25. United States Edition.

Beck, Melinda and Foote, Donna (November 8, 1982). The Tylenol Letter. Newsweek. National Affaires, page 32. United States Edition.

Beck, Melinda; Monroe, Sylvester; Buckley, Jerry (October 25, 1982). Tylenol: Many Leads, No Arrests. Newsweek. National Affaires, page 30. United States edition.

Beck, Melinda; Monroe, Sylvester; Prout, Linda; Hager, Mary; LaBreque, Ron (October 11, 1982). The Tylenol Scare. Newsweek. National Affaires, page 32. United States edition.

CBSnews.com (July 25, 2002). Bitter Pill: A Wife on Trial.

Viacom Internet Services, Inc.

Cooke, Jeremy R. (October 18, 2002). PSU Alumnus Recalls 1982 Tylenol Murders.Collegian .

Dietz, Park (February 14, 2000). Product Tampering: The Proliferation of Product Tampering.

Douglas, John and Olshaker, M. (1997). Journey into Darkness. Mass Market Paperback.

Fink, Steven (2002). Crisis Management: Planning for the Inevitable. Published by iUniverse, Inc. Lincoln, NE. U.S.A.

Hobbs, Dawn. Ask John Douglas, who wrote the book on how to profile killers.

Kaplan, Tamara (1998). The Tylenol Crisis: How Effective Public Relations Saved Johnson and Johnson

Kowalski, Wally. The Tylenol Murders.

Manning, ***** (2000). The Tylenol Murders.

Mikkelson, ***** P. and Barbara (January 15, 1999). Horrors: Tylenol Murders.

Newsweek (December 27, 1982). A Librarian Ends A Tylenol Manhunt. National Affaires, page 19. United States Edition.

Tifft, Susan (October 11, 1982). Poison Madness in the Midwest. Time.

Time Magazine (December 21, 1987). The Widow is the Suspect.

*****¢ J & J received positive press for how they handled the crisis

o Was viewed as responsible and swift

*****¢ Public relations must support new charter, *****responsible to the people that use the product*****

Here is the teachers example of a case study format we are supposed to follow:

Sample of W5 paper

Posted: Tue 02/09/2010 10:57 AM , by: Lorin Loverde ( lorinl00@email.phoenix.edu ) Previous | Next

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Loverde Case Analysis ��*****"

PHL 323

University of Phoenix ��*****" Lorin Loverde

May 18, 2009



Abstract

Diversity in the workplace should be commonplace in today*****s world. But, there are still companies that have outdated ideas when dealing with diversity in today*****s culture. In 1994 several lawsuits brought attention to the world that XXwas a company with misplaced ideas and ethical standards. Using the Loverde Case Model, this paper breaks down what the elements of this case are, some of the symptoms that caused the problems, goals of the company, management theory used, diagnosis and barriers the company faced, new solutions the company must take, action plans that must be used to overcome barriers, discuses the consequences to the action plan, compares the action plan in regard to the company*****s larger context, considers external factors, assess the implications for the two directions of corporate integrity, and interprets the original case elements in light of the larger horizons of the era. XXunfortunately failed to grow with society in regards to equality within the workplace.



Step 1; Elements of the Case ��*****"

There are several elements of this case, some of which are sub-elements. In other words, some elements are parts of a larger, more general element. These sub-elements must be listed as separate entities from the larger element because they have dual roles, one role as themselves and the other role as part of the larger element. The following is the list of elements in the case.

· XXCorporation (now Chevron XXCorporation as of 2001)

· XXs corporate image

· XXs corporate culture (before, during, and after the legal case)

· The Executives and the management team of XX

· The specific executives who made the racist/sexist remarks

· Minority employees of XX

· All employees of XX

· Minority Americans

· The general American public

· Stockholders and other stakeholders in and of XX(both American and international)

· Consumers and the business community

· XXs Human Resources Department

· Racial and gender discrimination laws and American societal norms

· XXs company policies (specifically their anti-discriminatory policies)

· Racism/sexism in America

· Racism/sexism in workplace environments (especially where it involves promotions from subordinate to management level positions or pay scales and raises)

· XXs public and internal (to the company) response to the allegations and the court case

· Corporate integrity

· Diversity





Step 2; Symptoms of the Problem ��*****"

XXs problems caused many symptoms. The company and its employees mostly experienced these symptoms. The symptoms themselves were also problems. Thus, XXs problems resulted in even more problems that the following symptoms caused.

· Racist and sexist management

· Dictatorial management

· Cultural and gender gaps

· Lack of ethical conduct (on the part of the company, and the racist/sexist executives)

· Loss of employee pride in company

· Loss of employee morale in company

· Loss of good employee relations and interactions between subordinates and management

· Ignorance of diversity

· Loss of the value that diversity gives to a company

· Loss of opportunity for minorities (higher positions in company)

· Loss of money for minorities (higher pay)

· Loss of respect (for each other as co-workers and for management by subordinates)

· Loss of control over employees (the executives were clearly out of control)

· Loss of good corporate image

· Loss of company revenue (from customer boycotts and stock price drops)

· Loss of revenue from businesses buying from and selling to XX

· Loss of prospective employees who could add value to the company

· Loss of company and personal money (payment of fines and legal fees)

Step 3; Identification of Goals ��*****"

Initially, XXs goals were those of most every other company ��*****" the general, company-wide goal was to maximize profitability; the individual, personal goals of each employee were to make good money and to move up in the company. These goals were easily attainable had the executives maintained proper personal ethics and had the company kept up with its human resources responsibilities. Once XXs problems became public, their goals not only changed, but also increased. The existing goals now had challenges to them and new goals were added. Listed below are all of the goals, in general chronological order, from the initial goals through to the revised and additional goals. Keep revenue incoming and increasing

· Keep competitive in the market

· Cultivate and maintain a good corporate image

· Hire, retain, and maintain productive employees

· Subordinate respect of superiors

· Control of employees

· Maintain the *****good ol***** boy***** executive club

· Corporate image damage containment and repair

· Regain market share and trust from stakeholders

· Eliminate racist and sexist management attitudes

· Improve diversity awareness and appreciation

· Revise and improve corporate policies

· Revise and improve management styles

· Control of executives

· Executives earning respect

· Executives respecting subordinates

· Equal employee opportunity for promotions and good pay

· Eliminate cultural and gender-gaps

· Restore ethical conduct

· Restore employee pride in company

· Restore employee morale in company

· Improve employee relations and interactions between subordinates and management



Step 4; Management Theory -

In the former Soviet Union, *****"Jewish people could not complain, could not voice their opinions,*****" he said. *****"XXreminded me of the former Soviet Union.*****" (

In the mid 90*****s, prior to the discrimination lawsuit, XXmanagement was perceived by their employees as a militant dictatorship, running a vertical, top down management model with low ethical standards and a race discriminatory approach to hiring employees. Their leadership styles not only discriminated against race, but also gender, which lead to resentment among employees that were not in managerial positions. *****I*****'ve seen too many managers remain in their positions or even promoted despite a track record of bad business decisions***** (Vault.com, 2000)

Founded in xx the company was shortly thereafter renamed *****XX*****. Problems first began in xxxx when a lawsuit was brought against XX for contaminating water within the country of xx. That lawsuit was then followed in 1994 when management officials were secretly caught on tape making racially biased, discriminatory remarks. Finally in 1999 a gender-biased lawsuit was posed against XX and cost the company more than an additional 3 million dollars. Call it a curse, call it a bad publicity, call it bad management.

The anti-discriminatory wrongdoings were exposed as extending outside people of color. In xx chemists raised a lawsuit against their supervisors claiming anti-racism. Both scientists had been XXfor many years and been part of productive teams. When they were both fired on the same day in January, they raised claim to anti-racism. The claims were met with this response from XX spokesmen, *****We regard charges of widespread anti-Racismin the company as unsubstantiated.*****"

Step 5; Diagnosis & Barriers -

The 1994 discrimination case that was eventually settled in 1999 resulted in a 175 million dollar payout. The lawsuit case was based on statements made in meetings behind closed doors amongst company officials, which were secretly caught on tape. With statements such as, *****"All the `jellybeans*****' are going to stay at the bottom of the bag,*****" and in another statement *****"I*****'m still having trouble with x. Now we have y.

As discussed within this class, management plays a strong part in the ethical foundation of a company. With senior management portraying such poor ethical behavior it becomes understandable how such prejudicial behavior and statements led to these lawsuits and negative media.

Step 6; Diagnosis & Solutions -

XXmanagement failed to realize that the behavior that goes on behind closed doors in the boardroom would continue downward through the management chain. Failing to live up to proper ethical standards they drove a car on the wrong side of the road for too long and eventually were involved in a multi-car accident.

XXmust take a new approach. Managers should be trained in cultural diversity and a new zero tolerance policy towards discrimination must be established. The corporate culture of the company should be refreshed with ideas on how to unify the company. Finally a more diverse workforce must be created with the opportunity for people of different race, and religion and that all employees be allowed the equal opportunity to be promoted. In summation this plan should *****[seek] input from our employees, numerous organizations and individuals, and we looked at the best practices in industry.*****

Step 7; Action plans to overcome barriers -

a.XXis in dire need of a company wide diversity-training program. Starting with top-level management and filtering down to the lowest level employee. XXmust have a program that covers all employees equally. As the workforce becomes more diverse, XXmust have a program that encompasses a diversity of cultures, ideas, experiences, perspectives and people. b.There are several alternative types of programs from which to chose: 1.Mentoring programs that help employees grow and learn from other employees with increased focus on gender and race.2.Manager specific training that helps improve manager awareness of cultural differences and provides the skills necessary to deal with these cultural differences.3.Outreach programs that let employees meet and talk to outside agencies about problems within the company.4.Diversity training and education programs that help managers and employees alike learn the specific differences they should be aware of like race, color, gender, age, national origin, and sexual orientation.c. XXbeing a global company with branches all over the world would benefit more from a diversity-training program that reflects the overall values of the company and shows that they want a workforce that reflects the race, gender and ethnicity of the communities where the company operates.

d. XXneeds to design a diversity program that uses a variety of tools, strategies and approaches to help attract, retain, develop and support a diverse, world-class workforce. These tools are:

1. Training and education programs that teach diversity.

2. Organizational policies that mandate fairness and equality for all employees.

3. Mentoring programs.

4. Performance appraisal systems that is nondiscriminatory.

5. Career development programs.

6. New employee orientation program that is broken down into three major components.

a. Vision and values of the company pertaining to the company culture.

b. Team building that helps new employees start building strong working relationships focusing on diversity.

c. Buddy System that helps build work relationships and navigate the company diversity program with experienced peers.

7. Manager training programs that educate managers on how to better treat and communicate with employees from a diversity point

e. XXmust learn how employees***** diversity can shape their work habits, work style, interpersonal communications and interaction in the workplace. To manage diversity effectively, it is important that each supervisor and employee be aware of his or her own diversity and understands how different cultures influence each other within the company framework. The initial cost of this program will be prohibitive in the beginning, but is nothing compared to the lawsuits the company faces if these problems continue.

Step 8; Consider probable consequences to your action plan -

a. The only negative consequence of putting a diversity program into place at XXis the resulting changes themselves. Employees that have worked at XXin the years before now will have to accept change. The result may lead to distraction, and possible loss of key members of the workforce that can*****t adapt to the new ethical standards and cultural changes. Racist language and behavior on the part of employees and managers in the past was normal behavior at XX. Changing the culture within the company along with changing the employees***** views will be a challenge.

b. The positive consequences of a diversity program are having all employees know and understand that discrimination at any level is wrong. Having a system of checks and balances allows the company to move forward into the future. Diversity efforts can substantially increase the company*****s productivity and profits over the long run.

c. Another positive consequence will occur as the company culture changes. Companies that do business with XXwill see that change in other ways; including improvement in employee work habits and attitude. They are likely to see a more diverse group of employees working and an overall improvement in employee attitude toward their jobs. These internal signals will indicate that XXis moving forward within the company keeping pace with the world in general. XXmay witness in an increase in profits while direct competitors may see a profits decrease as companies that refused to do business with XXin the past because of concerns about company culture and ethical practices begin to feel more comfortable doing business with them as these changes take place.

Step 9; Compare your action plan to your larger contexts -

a. Respect for diversity should be one of XXs core mission values. This means that appreciating the uniqueness of individuals and their varied perspectives and fostering an inclusive environment where every person can fully participate. XXwants to be known as a diverse company so diversity must fit into the corporate mission.

b. For the diversity program to work it must start at the top of the company and work its way down. The culture at XXis outdated. Culture refers to a companies values, beliefs, and behaviors. As the diversity program is implemented into the company structure the culture will slowly start to change. As the culture starts to change the mission of the company will also start to change. When the diversity program starts to take effect the company will begin attracting the best workforce encompassing a diversity of cultures, ideas, experiences, perspectives and people.

c. The company*****s sustainable competitive advantage allows for the maintenance and improvement of the companies competitive position in the oil market. It is an advantage that enables the company to survive against its competition over a long period of time. The strength of the company*****s culture is one of the most fundamental competitive advantages. When a diversity program affects and changes the culture from within the company, employees will passionately pursue the company*****s cause and mission, which will put the company in a better position for success.

Step 10; Consider the external factors -

Some socially responsible investors include evaluations of companies***** workplace policies and practices in their investment decisions. Among the factors they consider are a company*****s progress on such issues as diversity and workplace culture. Consumers are taking a company*****s corporate social responsibility reputation like workplace issues into account when making purchasing decisions. Customers, potential employees, investors and the community are increasingly paying increased attention to diversity as part of a company*****s overall corporate social responsibility.

Step 11; Assess the implications for the two directions of corporate integrity -

The training and changes outlined above should have a positive impact within the company for the overall synergy of the employees while at the same time improving reputation and value for internal and external stakeholders alike. It is highly probable that the employees that are guilty of discrimination in this case may find it difficult to change the way they interact with their fellow employees. Even though this will be a difficult transition period for them the end result should prove to be a better work environment for everyone concerned. If these changes do not take place the company will certainly be involved in additional lawsuits which have already proven to be much more costly than implementing these changes across the company. XXalso has to consider its reputation in this day and age when corporate image is a very real and tangible asset. Consumers and stockholders alike have become very fickle about which companies they back or buy from based on public opinion of how a company fits in to our overall society today.

Step 12; Interpret the original case elements in light of the larger horizons of the era -

The elements of this case are somewhat surprising considering that it happened in the not too distant past. American society has condemned ethnic and sexual discrimination for decades even though there are still pockets of resistance to these shifts in thinking throughout the country. With as much cultural diversity as there is at a global company like XXit seems almost impossible that this kind of treatment was prevalent at the corporate level for so long. In this case it is assumed that the company must act within the guidelines set by the society in which it resides. The outcome could be very different if we moved the company headquarters to a Middle Eastern country where traditions and ethical standards are very different than they are in the United States. If this company was in a country where women are considered inferior to men and people with different religious ideas would be ostracized our action plans would not even be considered. In fact there probably would not even be any cause for concern at all. The practices that brought about the lawsuits would have been considered both acceptable and expected.

Summary

The lack of commitment by XXmanagement in areas of corporate cultural and ethical practices cost the company millions of dollars in lawsuit settlements. The company must implement effective change in a number of areas: management training, changes in company culture, hiring practices, and providing opportunity for employee growth and opportunity within the organization.

Team A believes that with these changes, XXwill become a more culturally diverse company, provide itself with new business opportunities with companies that may have balked at doing business with XXprior to these changes, and also increase employee morale and job satisfaction.













References



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Best wishes,

Lorin Loverde, Faculty

--------------------------------------------------------------------------------

University of Phoenix

lorinl00@email.phoenix.edu

lorinloverde@hotmail.com

Central Time

1-956-377-4210 (email preferred)

*****