Business Ethics

Class Test (Weightage 20 %)

Division “C” and Division “D”

Name: Deeptanshu K Kashyap

Roll No: 201414

Section D

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Solution A

For this case in particular, Johnson & Johnson has set the best precedent for any organization to
follow.
When the Tylenol crisis happened in 1982, Johnson & Johnson decided to call an entire batch of
Tylenol back. The cost of the call back and the relaunch of Tylenol is estimated to be $100
million. But they took the loss nonetheless. In the long run, this instilled in people the belief
that Johnson & Johnson can be trusted to do the right thing. What made Johnson & Johnson take
this particular decision was that is written in their credo. They kept their values above any
monetary losses.
It was a deontological approach and I would also, as the CEO of the pharmaceutical company,
call back the batch and take a loss of Rs. 1,00,000. The short term loss of face and monetary
value is small compared to the possible death of even a single individual. Being a
pharmaceutical company the value of the above mentioned point cannot be stressed enough.

Solution B
As the new Director- Personnel, I would continue the system my predecessor had come up
with. I think it of it as a three pronged approach where everyone benefits:

 Firstly, the union militancy is contained.

 Secondly the union leaders benefit from it as well.
 Lastly there is tranquility on the shop floor.
The ultimate result of this three pronged approach can be seen in the continued rise in
production. Going by the consequentialism theory this is a win for all.