Scribd
Upload
58 views16 pages

Business Ethics I: Dr. Madhuri Malhotra Loyola Institute of Business Administration

Johnson & Johnson faced over 1,200 lawsuits alleging it knew talcum powder was linked to cancer but failed to inform customers. As Chairman and CEO, Alex Gorsky had to decide whether to protect the iconic Johnson's Baby Powder brand or the overall Johnson & Johnson reputation as a trusted family company, as lawsuits mounted in a climate concerned about the product's safety issues and the company's responsiveness. Analysts questioned if Johnson & Johnson could maintain its family-friendly image amid the talcum powder controversy and other product crises.

Uploaded by

antroid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
58 views16 pages

Business Ethics I: Dr. Madhuri Malhotra Loyola Institute of Business Administration

Johnson & Johnson faced over 1,200 lawsuits alleging it knew talcum powder was linked to cancer but failed to inform customers. As Chairman and CEO, Alex Gorsky had to decide whether to protect the iconic Johnson's Baby Powder brand or the overall Johnson & Johnson reputation as a trusted family company, as lawsuits mounted in a climate concerned about the product's safety issues and the company's responsiveness. Analysts questioned if Johnson & Johnson could maintain its family-friendly image amid the talcum powder controversy and other product crises.

Uploaded by

antroid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 16

BUSINESS ETHICS I

Dr. Madhuri Malhotra


Loyola Institute of Business
Administration
2
Major scams in the corporate world
https://www.youtube.com/watch?v=i-IKVOYEcPQ
Satyam case
https://drive.google.com/file/d/1DSVSxkr23lx1zbE4DB2heLS_lJxSNoyf/view

https://drive.google.com/file/d/1I41g2-RJMRI4AYRvBWBew89xbWtjYrGI/view

3
i c s i n
o n e t h
ou r se
y a c l ?? ?
 Wh s sc h o o
s i ne s
bu

4
Course Road Map
Answering questions such as …

WHY ? Ethics ?
Why Business Ethics?
Are the terms “ethics”, “morals”, “law”, religion”,
“values” same ?
Why do we have ethical dilemmas ?
How to solve ethical dilemmas
What are the tools available to solve ethical
dilemmas
Areas of business – ethical dilemmas
5
Question no 1

What is ethics ?

6
ETHICS
Derived from a Greek Word
“ETHIKA” or Ethos which means
character.

Values Morals

7
VALUES, MORAL,
ETHICS

8
Values are the rules The word Morals is
by which we make derived from a Greek
decisions about right word “Mos” which means
and wrong custom.
• Broad Acceptance
• Morals are far more about good
Eg. beliefs of a person or and bad than other values.
social group in which they • We judge others more strongly
have an emotional on morals than values.
investment

ETHICS is derived from


a Greek word “Ethikos”
which means character.
9
Ethics codified into a formal system or
set of rules which are explicitly adopted
by a group of people.

We have medical ethics, teaching ethics


etc.

Ethics are clearly defined and adopted


by a group of people.

10
Morality and Ethics
Both have something to do with right or
wrong
MORALITY: execution of right or wrong is
between society and the individual
ETHICS: Execution of right or wrong is
between professional bodies
Professional associations have “CODE OF ETHICS”
Society: MODE OF MORALITY

11
Examples
If the son of a big politician has committed a
crime and he uses his powers to free his son from
legal consequences. -------This act is immoral
because the politician is trying to save a culprit.

A very close friend or relative of an interviewer


comes for an interview and without asking a
single question he selects him. --------This act is
unethical because the selection process must be
transparent and unbiased.
Ethics Morals
What are they? The rules of conduct Principles or habits with
recognized in respect to a respect to right or wrong
particular class of human conduct.
actions or a particular group or
culture.
ETHICS Morals
Where do they Social system - External Individual - Internal
come from?

Why we do it? Because society says it is the Because we believe in


right thing to do. something being right or
wrong.

14
Ethics Morals
Flexibility Ethics are dependent on Usually consistent, although
others for definition. can change if an individual’s
beliefs change.

Origin Greek word "ethos" meaning Latin word "mos" meaning


"character" "custom"

Acceptability Ethics are governed by Morality transcends cultural


professional and legal guidelines norms
within a particular time and place
Johnson & Johnson (J&J), Talcum Powder case

In 2016, Johnson & Johnson (J&J), a leading multinational medical devices,


pharmaceutical, and consumer packaged goods manufacturer, was faced with
about 1,200 lawsuits related to its talcum powder products – Johnson’s Baby
Powder. Johnson’s Baby powder was an iconic brand, which J&J had been
promoting to adults, particularly women. For a long time, talcum powder
when used for hygiene, had been linked to cancer. The lawsuits alleged that
J&J had known about this association but had failed to inform its customers
about it. Alex Gorsky (Gorsky), Chairman & CEO of J&J, had also been toeing
the management’s line that the criticism of its talcum powder was
inconsistent with a hundred years of experience with the product. Analysts
were concerned whether J&J, which had faced a number of product-related
crises, would be able to maintain its reputation as a trusted family company
in a climate of mounting lawsuits. Can J&J afford to jeopardize the whole J&J
16
brand while trying to protect its talcum powder? 

You might also like