|The Ethical Company|
|Topic||Ethics and Social Responsibility|
|Key Words||Ethics codes, ethics training, ethics and employee loyalty|
In 1982 when Johnson & Johnson faced the tragic discovery of cyanide-laced Tylenol capsules in the Chicago area that caused several deaths, vice chairman David Collins didn't hesitate to act. He decided to recall the entire product line. When Johnson & Johnson was found to be blameless in the situation, the company's reputation was bolstered. When faced with a crisis, they had done the right thing, even though their company was not at fault. In contrast, when the Ford/Firestone tire tragedy occurred, the company tried to cover up the problem and remove themselves from blame. As a result, they took a public relations hit from which they will probably never be able to recover.
|Source||"The Ethical Company," Wall Street Journal, Nov.10, 2004, pp.D1, D5.|
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