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2. Burke could order a nationwide recallof all bottles of Extra-Strength Tylenol. This option would reverse the priority of the stakeholders, putting the safety of

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2. Burke could order a nationwide recallof all bottles of Extra-Strength Tylenol. This option would reverse the priority of the stakeholders, putting the safety of the public above stakeholders' financial interests. Burke opted to recall all 31 million bottles of Extra-Strength Tylenol on the market. The cost to J&J was $100 million, but public reaction was quite positive. Less than six weeks after the crisis began, Tylenol capsules were reintroduced in new tamper-resistant bottles, and by responding quickly and appropriately, J&J was eventually able to restore the Tylenol brand to its previous market position. When Burke was applauded for moral courage, he replied that he'd simply adhered to the long-standing J&J credo that put the interests of customers above those of other stakeholders. His only regret was that the perpetrator was never caught. investors have had little to complain about since then. if you had invested $1,000 in Johnson & Johnson shares on September 28, 1982, just before the first Tylenol episode, you would have $22, 062 today, after four stock splits. The company has paid out increasing dividends for 39 years. Johnson & Johnson is a very different company today Once known for consumer products such as baby shampoo and Band-Aid bandages, it has become a pharmaceutical powerhouse. Last year, 45 percent of sales came from prescription drugs, up from just 18 percent in 1980. its medical devices division is also generating excitement for its new drug-coated arterial stent, which is considered a medical breakthrough

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