Summary: The Johnson And Johnson Tylenol Incident

The Johnson & Johnson Tylenol Incident

In 1982 Johnson and Johnson, the pharmaceutical company that makes Tylenol announced a nationwide recall of Tylenol; 31 million bottles and a loss of 100 million dollars. This recall was secondary to the death of seven people in the Chicago area after using Tylenol. An investigation reveled the poisoning were found to be that of an outside source. The Tylenol was contaminated with cyanide from an outside source.

Johnson and Johnson 's response to the poisonings was to face the public, take responsibility, and attempt to regain the marketplace. Johnson and Johnson began a massive campaign, doling out coupons, and redesigning the package to be tamper-resistant. Because Johnson and Johnson took a stance and vowed to not only protect the consumer but also to protect the employees and the shareholders Johnson and Johnson has been able to rebuild their reputation and had regained the majority of the marketplace by the mid-80. (Nelson & Trevino, 2004)

Symptoms of the Problem

Johnson and Johnson took a financial hit when the tainted Tylenol was first discovered,
Their role in this case is largely from the public relations side of the issue. Burke and the other Johnson and Johnson executives were able to limit the damage by willing to be open and honest about the issue with the media and the public. Trevino and Nelson (2004) state, "The background of former Johnson & Johnson CEO James Burke was critical to the company 's behavior during the Tylenol crisis. Burke was a marketing man, who knew and understood the value of timely, accurate communication" (Chap 8). Burke and the other executives did not shy away from TV and newspaper interviews, which allowed the company to remain a trusted corporation in the public 's eyes. This helped keep the door open for the corporation to heal once this incident had been