Part 1A

Introduction

The purpose of this report is to highlight the ethical aspects of selling and marketing opioids by the Johnsons and Johnson Company and causes the opioid crisis in Oklahoma. Judge Thad Balkman Norman Oklahoma revealed the impact of over dosage of opioids usage putting healthhazardous on the society at large and put a lawsuit of $572 million to the Johnson’s and Johnson’s like a penalty for breaking the rule of usage of opioid in extra dosage as a pain killer. According to the higher authorities of food and medicine compliances, the usage of opioids of more than 1 % is restricted (MaiorescuMurphy, 2020).

The detailed report is the expressed views of the employees towards their senior manager to improve the working criteria as well as marketing strategies of the company for future goals and success.

Role of business in society 

The business is an integral part of running the economy of any society and the responsibility of providing goods and services to the endusers. The giant pharmaceutical Johnson and Johnson is producing and selling narcotic painkillers for the long run. According to the New York TIME News, the revenue of the company reached up to $81 billion in 2018 by using unethical ways for selling life hazardous products in the market and creating danger for the people living in the society. The usage of drugs as additives in medicine by Johnson and Johnson created a large number of ethical issues in society which include honesty, integrity, conflict of interest, health, and nepotism. The company is reluctant on saying that scientifically the usage of opium is in favor of the consumer since it makes the performance of cardiovascular better. No, such evidence is confirming by any food and health controlling and governing bodies. According to the health control sector of US, the 215,000 people died in 1999 to 2017 due to the usage of opium. The mortality rate increased five times in 2017 and about 50,000 people died in a year. The authorities governing the health sector are highly concerned regarding the adverse effect of opioids in society and banned their usage as much as possible for the wellbeing of people (Bernstein, 2020).

 

Five Stalk holders

According to Freeman, the stalk holders of the company are those without whom the working of the company will be ceased. It has a list of stalk holders who are playing a prominent role in the company operations and proceedings such as consumers, the medical community, the FDA, shareholders, company employees, company management, and its Board of Directors. Five Stakeholders related to the Johnson and Johnson’s customers, employees, suppliers, government agencies, and owners are expressed briefly below:

  1. The owner of the company might be earning a lot of profit using opium in medicine as a pain killer and playing with the life of people at large and creating problems in the society in terms of health concerns. On the other side when the narcotic over dosage picture is revealed in 2018. The owner, as well as the company image, is affected badly.
  2. Customers are the target of opium suffering from the unethical act of the company and many families lost their near ones due to the fraud and dangerous sales campaign of the company to attract more consumers of opium to generate a huge amount of revenue and profitability. About 400,000 people died due to the narcotic pain killer in the US in the last two decades and the company is extending the hazardous opioid medicines in other countries and presently targeting India. There are indirect customers also of the company such as hospital, pharmacy, and doctors, who are also subjected to the adverse and unethical act of the Johnson and Johnson Company.
  3. Employees are also suffering from the unethical way of working of the company. Apart from the company image employee’s honesty, integrity and morale are also affected.
  4. Suppliers are also key members along with Johnson and Johnson Company in expanding this unethical act of health hazard in the society by the manufacturing of opium.
  5. Johnson and Johnson are one of the renowned companies of pharmaceutical as well as dealing with infant’s items enlarge. The government agencies got pressure when the law put a penalty charge on the company due to unethical supplying and marketing of the narcotics in the pain killer in large quantity than the limit defined by the drugscontrolled authorities.

According to the freeman, it is the social responsibility of the company to use its resources and opportunities, to achieve company goals instead of using wrong ways and by doing fraud with the society in gather success is useless. A similar thing is followed by Johnson and Johnson for becoming rich overnight but uncertainly their image falls and brings crises for the companys longterm survival (André, 2020).

Examples of good ethical practices

According to one research, it is come to know 92 % of the millennial people wanted to purchase from the companies following ethical values in their workplaces. The companies are most successful for the long run who works with fair means and authenticity. Ethical marketing also plays an important role in any companys progress, it not only concern about providing a good product to the consumer but also try to benefit social responses and environmental causes.

Everlane

The clothing manufacturing sector is always considered controversial all over the world. Huge changes have been seen in the last 20 years in this sector. Everlane is one of the renowned garment retailers in America founded in 2010 by Michael Preysman and the company boldly believes in ethical manufacturing and delivery of goods to their enduser. It has been using its supply chain of garment manufacturing from the factors that are not only ethical sounding in manufacturing the garments but also treating ethical to the workers welfare needs in an effective manner. The marketing strategy of Everlane is no doubt supporting the ethical transparency of each manufacturing element cost with their valuable customers for gaining their trust and loyalty factor (Lalwani, 2021).

Dr.Bronner’s

Now day’s consumers are more conscious of using ethical cleansing products. Hundreds of soaps are available in the market but cannot beat the ethical sounding brand Dr.Bronner’s, which is considered one of the topselling organic soap brands in America. David Bronner’s is associated with many social and environmental justice activities. The renowned brand of Dr.Bronner’s using USDAcertified fairtrade ingredients and providing good wages to its workers. Approximately $15 per hour although itself just earning $4889 per hour (Rodriguez, 2021)

Examples of bad ethical practices

Nestle           

The Nestle Company is facing a longrunning boycott throughout the world due to unethical marketing of formula milk as a replacement element with breastfeeding in the developing world. The company is also violating various defined food and manufacturing rules and regulations and using unsustainable palm oil and genetically modified ingredients in the manufacturing of various products. Further company has been criticized for employing child labor and not labeling general manufacturing ingredients in the product labeling (Pulapa, 2020).

Coca Cola

The brand has a long history of workers’ rights violations at its bottling plants. It has been also subjected to poor environmental safety since using the water from rural communities for manufacturing plants and least concerned about through waste of the manufacturing plant and its impacts on the society at large(Bwakea, 2020).

Recommendations

Following are the recommendations would like to suggest Johnson and Johnson for future improvement in business are:

  1. The higher management should become a role model for employees and consumers for offering ethically profound products and services.
  2. The company should promote the right things in the right way to accomplish its mission and objectives.
  3. Monitoring and quality controlling of products and services must be kept on priority. Since highquality products are greatly attracted by the customers  
  4. One of the important things Johnson and Johnson must put on top is the quality of the product is competitive.
  5. The controlling of the quality from beginning to the end of the processing cycle till delivery is necessary for maintaining customer satisfaction and loyalty towards the brand.
  6. Adequate response must be given to the consumers or patients complaints arising from product problems.

References:

André, G., 2020. Johnson & Johnson equity report–J&J fundamentally underappreciated. s.l.:s.n.

Bernstein, A., 2020. NearTotal Products Liability Immunity for Pharmaceuticals Explained. Wash. & Lee L. Rev., 77, p.3.. s.l.:s.n.

Bwakea, E., 2020. A case of Coca Cola Kwanza Ltd Dar es Salaam. s.l.:s.n.

Jain, H., 2020. Mandatory Corporate Social Responsibility: A Utilitarian and Deontological Perspective. Open Journal of Business and Management, 8(5), pp.22782284..

Lalwani, A. W. J. a. S. D., 2021. . Price Promotion (In) frequency and Consumers’ Brand Quality Evaluations. Journal of the Association for Consumer Research, 6(1), pp.91101..

Lee, D., 2020. Impact of organizational culture and capabilities on employee commitment to ethical behavior in the healthcare sector. Service Business, 14(1), pp.4772.. s.l.:s.n.

MaiorescuMurphy, R., 2020. Online Corporate Diversity at Johnson & Johnson. In Corporate Diversity Communication. s.l.:s.n

http://www.aabri.com/manuscripts/11921.pdf

https://www.ethicalconsumer.org/retailers/fiveunethicalcompanies

https://www.wordstream.com/blog/ws/2017/09/20/ethicalmarketing

Part 1B TWO THEORIES

 Deontological Theory

The theory is represented by the German Philosopher Kant and according to this theory all human beings are treated equally and respect each other. This theory brings the sense of the legal system and the sense of moral law. Each member of the society has equal rights and freedom to choose whatever he desires. Being a member of a community each member shares equal moral life and equal moral responsibilities. According to this theory, good intentions come from goodwill present in a person. This theory has certain conflicts that include the implication of making the right choice when the outcomes are bad. Similarly, what decision should be made? When duties conflict. This theory determines the strongest model for public relation ethics. It is needed to demonstrate a model to the professionals to correlate with their public dealings (Mazeikiene, 2020).

Utilitarian Theory

It is considered the powerful approach towards normative ethics in the history of philosophy. This theory deals with mortality and supports action that gives happiness and good will to the affected person and opposes the wrong actions creating bad or adverse effects towards people and society enlarge. Utilitarianism would consider action as right if it is in the great interest of the people and creating peace and harmony in the society. The utilitarian idea relates to public wellbeing and it does not have any framework for decision making. There are two types of Utilitarianism are as Act Utilitarianism and Rule Utilitarianism. Act Utilitarianism involves the maximum utilization of actions towards good deeds whereas Rule utilitarianism involves the maximum utilization of actions towards positive ruling activities (Jain, 2020).

Application of Ethical Theories to the Case Study

The Johnson and Johnson Company are selling and marketing illegal medication such as Risperdal and Topamax as the main killer for increasing its sales for earning a huge number of benefits and revenue. According to the Utilitarian theory, the company should stop the marketing and promotion of such hazardous products that are illegal and causing harm to a large number of people. Millions of people suffered from cardiovascular disease as well as many down syndromes associated with it. The theories further emphasizing the usage of good things such as in this case medication and devices that are free from chronic substances and are of goodwill to a large extent for the community. A vulnerable group such as children and old citizens are highly affected by the unethical act of the company in providing hazardous medicine in the market just for earning huge revenue. The company should put efforts along with FDA to avoid usage of drugs as a painkiller so that large society can benefit from this act of the company and these proceedings of the Johnson and Johnson bring happiness in the society to enlarge.

According to the Kant theory of Deontological Ethics determine that companies should work on a legal basis in maintaining and raising the moral values of the people. Since Johnson and Johnson indulge in wrongdoing by faulty acts of selling and marketing drugs in the market without any scientific investigation of safe usage. The intentions of the higher management are not positive therefore the image of the company as well as the key stalk holders is ruined. The immoral act of the company does not support the Kant theory of Deontological Ethics. Since this theory focuses on positive intentions and does not rely on the outcomes, whether positive or negative.

Critique

Advantages of Deontological Theory

  1. It deals with universality.
  2. It deals with the right intention and motives irrespective of outputs.
  3. It focuses highly on human dignity.
  4. Justify treatment with all.

Disadvantages of Deontological Theory

  1. People are not generally accountable.
  2. The thinking approach of the people is not the same.
  3. It has a conflict of rules and acts.
  4. No doubt, it is legalistic and mechanistic.

Advantages of Utilitarian Theory

  1. It provides a commonsense view on the morality of research and survey.
  2. It focuses on the promotion of happiness and utility.
  3. It is unified and simple.
  4. It is believed to have some reasoning have correct assumptions.

Disadvantages of Utilitarian Theory

  1. It encourages people to judge moral issues based on results.
  2. It is considered too demanding and requires the sacrifice of people to get the benefits for a large number of people.
  3. It only focuses on the outputs and sometimes requires violating personal beliefs.
  4. It does not provide defense for minorities.
  5. It is difficult to predict the consequences of the situation.

Recommendations

In the light of ethical theories, the Johnson and Johnson Company should address the quality control issues in a timely fashion. The decisionmaking should be spontaneous and benefit society at Large. The senior management is accountable for quality controlling and time to time monitoring of the company activities for future improvement which were done in the best. The usage of drugs in the pain killer must be avoided in the large interest of the whole society according to utilitarianism. Further, the companys intentions should be towards morality and towards social benefits for gaining the trust and loyalty of the valuable customers enlarge.

References:

Jain, H., 2020. Mandatory Corporate Social Responsibility: A Utilitarian and Deontological Perspective. Open Journal of Business and Management, 8(5), pp.22782284..

Mazeikiene, S. S. J. V. D. L. S. C. S. F. D. S. R. a. J. A., 2020. Deontological examination as a criterion for the assessment of personal healthcare professional quality. s.l.:s.n.

https://substanceabusepolicy.biomedcentral.com/articles/10.1186/s13011020002728.


Part 2 Reflective Essay

Ethical Leader

An ethical leader should have leadership skills incorporation with respect for ethical beliefs and values. The leader also gives importance to the dignity and rights of others. The main factors to be considered in ethical leadership are fairness, justice, honesty, consideration, charisma, and trust (Ren, 2020)

Fundamentals of Ethical Leader

It is requiring that ethical leaders define and align their values. He tends to hire people who value and understand the needs of ethics in an organization as well as personal life. Must also provide open communication and respect for all with equality without biasing. Motivate the team and become a role model for others to do justice in an open environment without any need for personnel interest.

Role of Ethical Leader in an Unethical Organizational Culture

The main key elements of making the environment of the business ethical by defining the employees their roles and correct target approach under the supervision of the ethical leader. Human resource management also play important role in hiring the correct person and maintain an ethical environment in the internal organization as well as external dealing of the company with suppliers, customers, and investors in broad perspectives. The ethical leader plays an important role in creating a positive ethical culture in business by promoting social and moral values enlarge. The capability and versatility of handling situations help in attracting investors to the company. The investor feels satisfied and good towards longterm investment with the company. Customers also feel loyalty factor by visualizing the leader in its place during organizational activities the employees who are working unethically are highly impressed by the ethical leader’s way of working and tends to incorporate these leadership skills in them for achieving their own motivates along with organizational motivates for long term success. Fair and equal treatment with employees irrespective of their caste, color, and creed generate motivation and determine organization. Such a leader gives incentives based on performance to raise the morale of the employees for better performance. Ethical and determined leaders change unethical organizational practices by implementing compliances towards the different departmental activities. Every member of the organization is responsible for understanding and following the code of conduct with punctuality. In case any violation and misleading are seen towards the performance criteria of an employee’s penalties must be subjected to avoid such irrelevant projections in the future for better practices for company success and profitability (Lee, 2020).

Personal Vision about Ethics in an organization

According to my vision ethics plays an important role in the success of any company. In one study I came across the role of a marketing executive who is highly ethically sounding and doing his duties with determination in one of the multifirms but not finding adjusting and to be a part of the culture of the organization. Since the management is not punctual and responsible towards their duties and traits and a similar trend is going on from upper management to lower employees working conditions. The company shares are highly affected and decreasing day by day and the situation comes across great crises. At this point, my friend played the role of ethical leader and discusses the whole scenario with top management and some crucial steps have been taken towards the implementation of strict compliance in favor of the companys success. Slowly and gradually the shares of the company started rising and the environment of the company changed and revolves around the ethical elements of fairness, justice, motivation, and trustful actions of employees and the management team.

Conclusion

According to the present scenario of various companies who are showing unethical diverse culture in their organizations like in Nestle, Tesco, Asda, CocaCola, Amazon, and many others. In such a situation companies should require higher staff that understand the ethical values and try to communicate their importance at the workplace. At some point companies prefers ethical means more important than profitability. One wrong action of any member of the organization leads the company image down and slowly and gradually customer loses their trust, loyalty, and attention from such organization. In a nutshell, I want to say that a company should ethically perform all activities, not in a favor of the individual but in favor and interest of the community enlarge. Further ethical behavior can be promoted by providing the monthly incentives and rewards to the employees on performing and implementing best ethical practices and similarly guiding others for creating the awareness regarding the ethical norms designed by the higher management towards the company interest and each member of the company is liable to follow it otherwise penalties will be charged to the employees based on their performance.

References

Pulapa, S., 2020. Directions of the Dharmatman for Ethical Leadership.. s.l.:s.n.

Ren, S. T. G. a. J. S., 2020. Effects of Green HRM and CEO ethical leadership on organizations environmental performance.. International Journal of Manpower..

Rodriguez, A., 2021. Engineering Your Own Liquid Soap. Science and Children, 58(4).. s.l.:s.n.

https://www.wordstream.com/blog/ws/2017/09/20/ethicalmarketing

https://substanceabusepolicy.biomedcentral.com/articles/10.1186/s13011020002728.

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