Say It Ain't So Johnson And Johnson

Tiger Woods is in sex rehab, Jay Leno is returning to Tonight, Curt Schilling loves the Yankees, and Johnson and Johnson is charged with kickbacks and failure to address product safety issues. I would have thought these are nonsensical babbles, stuff I’d never hear or read about , pure gibberish. And surely, least possible is that claim about Johnson and Johnson, long the model of corporate integrity and courage. Then I saw the headline forwarded to me by a colleague who could not believe that what she read could be true: J&J has been charged with paying millions in kickbacks to boost nursing home sales of Risperdal, a psychotropic medicine, while also ignoring product problems. My friend expressed her disappointment and disbelief – exactly my sentiments.

How could this be? In 1982, seven people died in Chicago, victims of a still unsolved crime. They had taken Extra Strength Tylenol laced with a deadly poison and died quick, agonizing deaths. J&J launched a massive product recall, took responsibility for what happened, and redesigned its packaging to make it tamper-resistant. I still remember the shock of the event and my respect for J&J for its quick, decisive, and responsible action. Those feelings have stayed with me and, I’ll bet, millions others over the past three decades. I’m sure I’m not the only one who has trusted their products, research, and word because of how they handled that crisis. I’ll look for a J&J product because I know the brand has stood for something other than strong earnings over the next quarter.

It’s too early to tell whether this lawsuit and the other problems noted are valid. Let’s hope and believe it’s all a big mistake. But for a moment, let’s just hypothetically assume that some of it is on the mark. If so, then J&J’s agents engaged in unethical, deceptive, non-responsive, and potentially illegal practices, presumably to boost sales and profits. Whatever they gained from their actions will be surrendered back in fines, penalties, legal fees, and all the other actions typically taken to recover from a corporate catastrophe.

My friend’s e-mail asked if there aren’t solid corporate citizens around. Having to even ask that awful question in the context of J&J is a harm which will long endure and can’t be corrected by clever ad campaigns, marketing initiatives, or brilliantly produced commercials. Doubts that never existed about J&J will linger and erode that trust that drove people like me to choose their products reflexively. Apart from the morality and legality of such conduct, that’s a hard, tangible business cost and risk that should have been factored in at the front end of their actions and inactions.