Johnson & Johnson founded in 1992, is the leading provider of health, pharmaceuticals and consumer products. The company has more than 250 operating companies in 60 countries out of which the Pharmaceuticals and Medical operating companies account for 45% and 35% of sales, respectively, while the consumer product companies account for 20% of annual revenue.
Alex Gorsky, the Chairman and CEO of Johnson & Johnson says, “Our Company’s global reach is a testament to the high quality that our customers have come to expect from Johnson & Johnson, but also speaks to the tremendous amount of trust customers have in each of our businesses.” In recent years, however, this statement has lost its meaning and worth, the customers have lost their trust due to large-scale consumer product recalls, health fraud and most recent reason, covering up cancer risk of using talcum powder to women. Currently, there are more than 1000 women suing the company for covering up the ovarian cancer risk associated with using talcum powder in the genital area.
There are three well-known cases against the company. One of …show more content…
Their lawsuits will warn women from all around the world of the danger of using J&J’s talc based product. This warning will save lives of many women. However, the company has most to lose because of women’s’ decision; sales will fall, reputation is ruined, heavy fine of more than $70 million must be paid and if in future other women who have filed lawsuits win, company will be asked to pay even more compensations all of which is and will continue to cause financial constraints. The financial constraints could affect company’s ability to pay employees’ salaries and dividends which in return will affect its ability to attract investors and
Alex Gorsky, the Chairman and CEO of Johnson & Johnson says, “Our Company’s global reach is a testament to the high quality that our customers have come to expect from Johnson & Johnson, but also speaks to the tremendous amount of trust customers have in each of our businesses.” In recent years, however, this statement has lost its meaning and worth, the customers have lost their trust due to large-scale consumer product recalls, health fraud and most recent reason, covering up cancer risk of using talcum powder to women. Currently, there are more than 1000 women suing the company for covering up the ovarian cancer risk associated with using talcum powder in the genital area.
There are three well-known cases against the company. One of …show more content…
Their lawsuits will warn women from all around the world of the danger of using J&J’s talc based product. This warning will save lives of many women. However, the company has most to lose because of women’s’ decision; sales will fall, reputation is ruined, heavy fine of more than $70 million must be paid and if in future other women who have filed lawsuits win, company will be asked to pay even more compensations all of which is and will continue to cause financial constraints. The financial constraints could affect company’s ability to pay employees’ salaries and dividends which in return will affect its ability to attract investors and