NAME: JANE THERESE TAN LIBOR DATE: Nov.

27, 2021

SUBJECT: Bus- Core 4: Good Governance and Social Responsibility

II. Case Studies

Good Governance and Social Responsibility

Case Study 1: Prudence Comes With Fortitude

I. Facts of the Case

 
 CPC Company manufactured a pain reliever medicine called Analgesia-T, which is a well-

known analgesic believed to provide relief from pain and serves as a palliative to people

worldwide.

 Unfortunately in the early 1980s, several persons died after taking capsules of the well-

known medicine, and in addition, it was found out, that the medicines contained cyanide, a

highly poisonous, while crystalline element accidentally mixed with the medicines because of

factory defect.

 The Jackson Company, the sister company of CPC, took the initiative and without delay,

made steps to resolve the problem. It readily ordered the retrieval of the product from the

market.

 The company lost about $100 Million dollars by recalling more than 31 million bottles of

Analgesia- T. The Jackson Company made all efforts to launch an information campaign in

order to allay the fears of the consumers. They ran a continuous media campaign and a toll-

free customer care hotline.

  Millions of capsules were tested by reliable agencies, and the company offered to reimburse

the amount of the medicines thrown away by the customers.

 The company president made an appearance on television in an effort to assure customers

that the company has taken several steps to ensure that the medicines reach them safe and

free of poison.

 CPC Company pioneered in introducing the tamper-proof medicine seal that has become the

standard in the pharmaceutical industry, most of which now has “tamper-resistant for your

protection” printed on its blister packs.

 Despite the loss of millions of dollars, its consumers and employees internationally saw how

the company upholds its doctrine “that they are primarily responsible for their customers.” It

is this credo that made them believe that they had taken the best actions necessary.

 After only two months since the crisis happened, the company was able to recover 80

percent sales of the medicine.

II. The Problem/s of Action

CPC Company suffered a huge crisis when several people died after taking capsules of

Analgesia-T. It was found to contain highly poisonous cyanide accidentally mixed into the

medicine due to a factory defect. With all the damages this incident has done to the company,

in terms of profit and public trust, the problem is as to how the company is able to recover.

III. Alternative Courses of Action

Jackson Company, a sister company of CPC, readily ordered the retrieval of the products from

the market. This is to avoid further damage to the general public specifically if more and more
 people will be able to consume the medicine. Product retrieval is the fastest way of preventing

the problem to spread and cause more loss of lives to people.

Jackson Company also made all efforts to launch an information campaign in order to allay

the fears of the consumers. It is a really big help on the part of the customers to hear

assurance from the company so they feel safe and secure despite the crisis being faced upon.

Jackson Company also ran a continuous media campaign and a toll-free customer care

hotline. In this way, the general public is able to reach out and contact the company in case

they have concerns with regard to the ongoing issue. At least everyone can have easy access

to communication with the company in cases emergency situations are experienced by

immediate families and friends who might have taken and consumed the medication.

The company pioneered in introducing the tamper-proof medicine seal which has now become

the standard of safety in the pharmaceutical industry. This is a great step to further develop

and maximize the safety measures of all products in the pharmaceutical industry. Safety is the

utmost priority of every company, and sealing those bottles of medicines can assure of quality

and safety of the product for public consumption.

IV. Best Alternative Course of Action

The best alternative course of action is when Jackson Company readily ordered the retrieval

of the products from the market. This is to avoid further damage to the general public

specifically if more and more people will be able to consume the medicine. Product retrieval is

the fastest way of preventing the problem to spread and cause more loss of lives to people.

Just like any other company, CPC and Jackson Company have to consider consumer welfare

as their greatest priority. When lives are at stake, in this case, no one can afford to lose more
 people, and thus regardless if it means a loss of company profit, the business will still have to

do and consider what is right. From their actions, the company never failed to communicate

the organization’s convictions, responsibilities, and philosophies, which really helped to instill

pride and purpose within their organization despite how tragic the incident has become.

Furthermore, what the company never failed to do was hold on to its philosophical and ethical

conduct that they are simply responsible for what happened, and are therefore accountable for

it.

V. Conclusion

Jackson Company really holds their doctrine “that they are primarily responsible for their

customers.” Despite the problem that it cause, they really showed that they are an

empowered and strong company. It sets boundaries and defines what they are willing to do

and what they are not willing to do. This is very important part of the company’s culture

because it shows how they are able to manage the challenges that they are facing. They

also have a clear vision of what they want with their employees and make sure that they are

doing their job well.

This is a great example of how they can be successful on the business line that they are in.

they are also able to communicate effectively with their customers. In the end, their success

has so much to do with their clear credo. This is another key aspect of the company’s

culture.