Johnson & JohnsonGroup 8: Sophie Mascari, Josue Munoz, Dom Pascale, Andrea Ratz, Stephanie

Schmieder, Tom Serf

Background

Johnson & Johnson- Global Office of Diversity and Inclusion

The Credo Values● The Credo is more than just a big cement wall, Robert Wood Johnson, former chairman

from 1932 to 1963 crafted the credo himself as a form of commitment to the organization

and its more than a moral compass, but more like a recipe to business success.

● Every employee in the organization knows the credo and applies it to their daily lives.

● The Credo consists of:

Put the needs and well-being of customers first“Corporate social responsibility”; moral compassBlueprint for long-term growth and sustainability Commitment to diversity and inclusion

People & Diversity ● Differences in values

○ “People and values are the greatest assets”○ Diverse opinions○ Attract the most talented and values-driven people

● Employee Resource Groups○ Employee driven○ Focus on experiences and shared interests○ Offer support and networking skills

● Mentoring Programs○ Formal and informal○ Cultural differences ○ 2010 Mentoring Works!○ Increase development and communication

People & Diversity ● Diversity University: dynamic online program designed to help employees learn and

understand different cultures (formal & informal) ○ Helps build valuable skills for understanding and valuing differences ○ Teaches benefits of collaborating to meet Johnson & Johnson’s “Our Credo” values and

business goals ○ Provides guides, toolkits, and resources for self-learning ○ Curriculum includes:

■ Diversity & Inclusion Fundamentals, Building Trusting Relationships in a Global and Diverse Environment, and Leveraging Diverse Thinking Styles: The Whole Brain Advantage

■ private links to interactive portals (skill building exercises & cultural education)

International Management

Reasons to go International ● Lowers the cost of raw materials● Diversifies the customers and market● Enjoy prefered economic and political conditions

Johnson and Johnson has made an announcement in the Wall Street about their research to expand into Asia. The CEO, Alex Gorsky, foresees this expansion as a benefit to his investment in the biotechnology market. Gorsky admires the innovation that is emerging in Japan and needs the collaboration to expand Johnson and Johnson clinics to a larger scale. As a group we were intrigued by Johnson and Johnson’s opportunity to expand into Japan to benefit health care around the world. The corporation has around 250 subsidiary companies giving them the diversity that goes hand in hand with international management. The risk the corporation has taken with the subsidiaries has turned into a beneficial reward for the company and consumers. Johnson and Johnson builds relationships all around the world to provide quality products to all nations.

Export and Import This organization provides several export plants to allow a quick turnaround when shipping to other countries. Johnson and Johnson’s export department is spread out amongst more than 20 countries around the globe and it is continually growing. Their pharmaceutical products are sold in 175 countries bringing in a revenue of approximately $65.1 billion.

Johnson and Johnson shows great collaboration with their exports and imports. They believe in these strong partnerships to create the best quality of health care globally. Along with the quality of the products the company strives on environmentally friendly transportation for these products. Johnson and Johnson has made improvements by changing as much of their transportation as possible to hybrid vehicles so that they are reducing the emissions they put into the air.

Management Approach Strategic Principles

The Johnson & Johnson approach is focused on managing for the long term. The company operates under a decentralized management approach. They do this through a unique culture that values and fosters the development of their people.

Shape and define health and well-being in everyday live“In serving those who sell our products, we serve ourselves.”Individual and corporate behavior coincideTrust Mark: success and healthy relationships are built on trust

Growth DriversEnsure innovation, research, and executionLeadership is imperative: Connect, Shape, Lead, DeliverCreate value through innovation

Fun FactsEmployees

275 Operating companies in over 60 countriesApproximately 130,000 employees , 30,000 of which are from the US

RankingsThe world’s sixth-largest consumer health company

The world’s largest and most diverse medical devices and diagnostics company

The world’s sixth-largest biologics company

And the world’s sixth-largest pharmaceuticals company

J&J is fifth for recruiting

They are 9th for global diversity

Reasons for InterestHigh rankings for diversity

● J&J believes and encourages diversity, therefore they are full of innovation and creativity while being highly effective

Care for customers and company’s success● J&J believes every stockholder, that includes doctors, pharmacists, and product users are their

highest priorityClear morals and values

● J&J believes the only way to grow is if the morals and values are followed by all levels of management

Successful and respected ● with over 100 years of brand reputation, J&J is one of the most respected companies globally

Strong Culture in changing environment● Diversity makes this culture very rich due to every associate employee having a dynamic

innovative spirit

External Environment AnalysisPfizer and Roche are Johnson & Johnson’s 2 largest competitors

Pfizer has $20 billion less in annual revenue than J&JTheir consumer focus is on Hospitals, Doctors, Communities,and Employees

They produce a wide variety of consumer productsJ&J faces many challenges in an uncertain environment that is the healthcare industry

Obamacare has revolutionized the industry in recent years and has forced health care companies to make many changes

2014● Johnson & Johnson’s ethicon unit had to recall power morcellators (surgical devices)

○ believed products may be causing cancer in women being treated for uterine growths called fibroids

○ worldwide market withdrawal

2013 - Products Liability ● Campaign for Safe Cosmetics filed report called No More Toxic Tub

○ this reported said that Johnson & Johnson used chemicals (dioxane & quaternium) in baby products like baby shampoo

○ asked the company to reformulate products○ argued that the company had access to alternatives but deliberately chose to make

products with unsafe chemicals ○ accused company of misleading consumers by claiming products were safe, gentle,

and natural Tylenol

What are any Controversies