SOCIAL RESPONSIBILITY OF BUSINESS

The 1982 Tylenol Crisis: From Tragedy to Tamper-Proof Seals

With over 100 million users, Tylenol was one of the most successful over the counter painkillers in the United States. With over 35% market share, it surpassed other leading brands. However, things would take a turn in the fall of 1982 when for unclear reasons, a person with nefarious intentions, replaced the Tylenol capsules with cyanide-laced capsules. They were sold in various pharmacies and stores in the Chicago metropolitan area. As a result, 7 people died after ingesting these poisoned capsules.

Once a trusted product, Johnson & Johnson (J&J), the parent company that owned the product had to tell their consumers that their product might be killing people, they didnt know who the culprit was, or why he or she did it. J&Js Chairman, James Burke had 3 choices:

1-Do nothing and wait for it to blow over. After all, the company was not directly responsible

2-Recall products all over the Chicago metropolitan area; then destroy them

3-Recall and destroy the products all over the United States

James Burke tackled the negative media head on by forming a strategy team; and using the media to his advantage to alert the consumers and save the product. And even though was no way in telling how many poisoned capsules there were out there, J&J did not want to gamble with the publics safety and well-being. It should be noted that tampering was not common knowledge or the norm in the 80s, thus the image associated with J&Js Tylenol was a PR catastrophe.

J&J spent $100 million [approx. $268m today] to recall 31 million bottles of Tylenol and re-launched the product 2 months later in tamper-proof packaging. The same tamper proof packaging we see in so many products today! James Burkes actions are considered to be a renowned example of good crisis management. Not only did he save the reputation of the company, and the brand; by mid-1983 Tylenols share of the market had climbed to 30%; reaching 35% by the end of the year.

questions:

1- Please explain the problem from the point of view of the companys social responsibility. What are the concerns or interests of the company and the public?

2- Please explain James Burkes decision under the moral minimum theory of social responsibility. Would you react the same as him?