Risperdal, a Johnson & Johnson antipsychotic medicine, provides significant benefits, but it also can cause strokes among

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Risperdal, a Johnson & Johnson antipsychotic medicine, provides significant benefits, but it also can cause strokes among the elderly and generate large breasts in boys. Johnson & Johnson reportedly knew about these issues, but it manipulated and hid data about the problems and eventually pled guilty to a crime. Johnson & Johnson was expected to pay about $6 billion in penalties for its alleged wrongdoing, but it earned an estimated $18 billion in profits on the drug. The person in charge of marketing Risperdal was subsequently named CEO, a role in which he earned about $25 million in 2014. 

a. Should Johnson & Johnson have been punished in an amount equal to its profits? Explain. 

b. Does corporate crime pay? Explain. 

c. Should managers who participate in serious wrongdoing be denied subsequent promotions? Explain.

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Law Business And Society

ISBN: 9781260247794

13th Edition

Authors: Tony McAdams, Kiren Dosanjh Zucker, Kristofer Neslund, Kari Smoker

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