Assignment:
Summary Video: Alex Gorsky on corporate social responsibility
Alex Gorsky, CEO of Johnson & Johnson, is passionate about the company he leads and what it does. Johnson & Johnson is one of the top ten pharmaceutical companies in the world. Many people are familiar with at least some products in Johnson & Johnson's line like Johnson & Johnson Baby Shampoo, Band-Aids, and Aveeno skin lotion, but some people may not realize that the company has also developed treatments for cancer and cardiovascular disease as well as treatments for various infectious diseases.
Everything Johnson & Johnson does is guided by a credo that was developed in 1943 by company founder and first Chairman, Robert Wood Johnson. According to current CEO Alex Gorsky, this credo is a living, breathing ethos within the organization. It is an important element in every meeting the company holds, helping managers determine which actions make sense for the company and the achievement of its goals.
The healthcare industry today is a highly demanding and competitive industry. Alex Gorsky believes that the success that Johnson & Johnson has achieved in this environment is a reflection of the commitment of the company to do what is right for parents, for communities, and for patients.
Questions
1. How does Johnson & Johnson's credo of corporate social responsibility benefit the company? Why does the company use it to guide its decision making?
2. Discuss the importance of corporate social responsibility to an organization. What are the implications of being a good corporate citizen for shareholders?
3. Johnson & Johnson CEO Alex Gorsky describes the organization's credo as a living, breathing ethos. What does he mean by this?
4. How would you characterize Johnson & Johnson's policy on ethics? Is it proactive or reactive?
5. Reflect on the importance of organizational integrity and transparency in the pharmaceutical industry. Why is it so important to "do the right thing"? Consider your response from different perspectives including research and development issues, testing issues, and pricing concerns.