Even in a Crisis--Put People FIRST!

Johnson & Johnson Succeeded; Ford and Firestone Failed--Why? It's About Ethics!

This short excerpt from Shel Horowitz's book, Principled Profit: Marketing That Puts People First, explains why:

Johnson & Johnson: A Lesson in Ethical Crisis PR

In 1982, seven people died after consuming tampered-with, cyanide laced packages of Extra-Strength Tylenol—a popular seller for Johnson & Johnson. The company’s response was immediate—and consumer focused. Although the poisonings were localized and specific to one product, the company took no chances. It recalled all Tylenol products, nationwide—31 million bottles, worth over $100 million—and offered a $100,000 reward. [30]

The company clearly put consumer safety ahead of its own profits. Though the loss was substantial, the resulting gain in consumer confidence allowed the company to recover quickly, and gain wide respect. Clearly, the company actually follows its own credo, which orders its responsibilities: consumers first, then employees, then local and world communities, and lastly, stockholders. [31]

Contrast this firm commitment to ethics with some of the slippery tactics of other companies recenly facing a safety scare—such as Ford and Bridgestone/Firestone, which created PR and sales disasters for themselves by attempting to duck responsibility for SUV rollover accidents. [32]

30. As chronicled on Oh No News, a fascinating website of “Images and News that make company executives go OH NO!” http://www.ohnonews.com/tylenol.html.

31. The full credo can be found at http://www.jnj.com/our_company/our_credo/index.htm.

32. Ford officials discussed the problem even as far back as May 1, 1987, while the Explorer was still in the design phase. The story reached the US press in a report by CBS affiliate KHOU, of Houston--long after Ford had already recalled tires in Malaysia, Saudi Arabia, and elsewhere. Public Citizen, a watchdog group founded by Ralph Nader, offers a detailed chronology at http://www.citizen.org/autosafety/firestone/articles.cfm?ID=5336 (downloaded January 16, 2003).

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