Johnson & Johnson Case
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Johnson & Johnson
It should be no surprise that there is developing research suggesting that certain organizations that meet the criteria of being compliant or ethical are inclined to perform better in the financial market on fundamental operational metrics, including shareholder buy in and return. The characteristics found in successful businesses are typically the same as businesses that are also labeled as ethical or compliant. Organizations that focus on being accountable, good communicators, consistent, and controlled, generally outperform their peers financially. This is why most organizations have a code of conduct when it comes to legal or acceptable business behavior. Considering industry standards and government law, and in turn creating a code of ethics within a business, can help the organization understand how to conform to ethical actions. Creating a culture of responsibility and integrity can also serve as a method of achieving exceptional financial performance for that organization. The backbone of sustainability for many organizations is commonly a strong set of standards. In order to accomplish this, the business must make the every day incorporation of these standards a priority. One business that has succeeded in doing so is the New Jersey based Johnson & Johnson. This companys innate sense of placing the needs of those they serve first is certainly key in how they have generated a philosophy of following ethical behavior. By identifying processes as a company that uphold SEC regulations, Johnson & Johnson has secured success and great financial strength.
To help ensure that Johnson & Johnson conducts business ethically, the organization has set forth a number of policies that outline their expectations for their employees throughout the enterprise. Johnson & Johnsons employees are required to adhere to the individual laws where they do business, and clear direction is provided on how they should act rendering their specific business values. These policies especially include compliance with rules and regulations in regards to health care, which is highly subject to government regulation throughout the world. “The approval and sale of pharmaceutical products and medical devices is particularly heavily regulated, and many other aspects of the business are also covered by statutes and regulations, and consistent to the policy of Johnson & Johnson, all employees are to comply with the laws of each country in which our companies do business. It is the responsibility of each companys management and employees to be familiar with the laws and regulations that relate to their business responsibilities and to comply with them” (Johnson & Johnson, 2012). Johnson & Johnson is also committed to conducting business in an environmentally comprehensive manner, and it is the responsibility of each employee to be familiar with and adhere to the regulations set forth by the industry that align with their employment responsibilities and remain compliant. The same value applies to healthcare compliance, labor laws, securities laws, and trade secrets.
Johnson & Johnson has also set forth best practices in terms of the sale and marketing of their product, including the responsible interaction of employees with health care professionals regarding their goods. To ensure this relationship remains compliant, the organization has delineated industry codes of conduct as well as the professional, legal, and regulatory requirements of the territories where they conduct business. Again, each employee is required to be aware of these regulations and adhere to the code of ethics. Johnson & Johnson also defines what type of conduct they consider compliant in terms of how they address the consumer or patient directly. This includes providing education that is not misleading, and that which is supported by evidence of fact.
Above all else, Johnson & Johnsons policies define a process by which they ensure that they conduct business ethically and according to the standards embodied in their culture. These principles safeguard against conflicts of interest, guarantee accurate information, and comply with the requirements of the Securities and Exchange Commission.
There are two main markets in the United States. There is the Capital Market and the Money Market. Both markets are different from each other, the Capital