Johnson & Johnson Scandal: Recalling of baby powder bottles and lawsuits from customers.
Hello everyone!!I am here with my another
blog on the topic that is corporate scandals.
What is meant by scandal?
Any action, a situation that shocks people because of doing any bad or wrong thing.
Now, when people within or on behalf of a corporation acts in unethical manner which leads to shock the customers is called corporate scandal.
Such type of corporate scandal is also done by one of the most trusted brands that is Johnson & Johnson
Johnson & Johnson company has been a household name for more than 100 years with a reassuringly cozy image as the quintessential family brand of baby powder, baby shampoo and the maker of Band Aids. But it also the name behind a huge range of drugs and devices.
On October 2019, Johnson & Johnson recalled 33,000 bottles of baby powder. The recall comes after decades of concern from both the public and within the company that the baby powder could contain the cancer causing mineral.
At the time of the recall, J&J faced more than 15,000 lawsuits from customers who alleged the baby powder cause them to develop cancer.
This affects the reputation of the company terribly. Its reputation drop steadily from 9th place to 57th out of 58th leading pharmaceutical companies since 2014.
At that time, all experts are concerned that how one of the world's most valuble companies is caught in no less than an existential crisis and the public was asking: what happened to Johnson and Johnson?
The company was so trustworthy and valuable that this question was expected from the public. The company could become trustworthy only because of the public trust on company's products. But their one unethical behaviour leads to make them suffer in the market. This means, no matter how much reputated the company is from decades ,but their one scandal can leads to affect the reputation drasticly.
So, this means if the company is reputated and valuble, it has to maintain that level of reputation and dignity in the market. However, later on J&J declared their products completely safe but after paying lawsuits upto $10 billion. But if they initially maintain that ethical practices then this day would never be faced by them.
It means in the market if you have top level position than you have to maintain that position.
Thank you!!
