week 3 compliance
docx
keyboard_arrow_up
School
Northeastern University *
*We aren’t endorsed by this school
Course
6000
Subject
Information Systems
Date
Dec 6, 2023
Type
docx
Pages
3
Uploaded by DeaconTeam12693
The case study of
Johnson & Johnson and talcum powder
centres around allegations of
noncompliance with safety regulations and stresses about the potential health dangers
associated with its talc-based goods. Johnson & Johnson, an internationally recognized
pharmaceutical and consumer goods corporation, was subjected to legal action and public
scrutiny over the safety of their talcum powder products, including Baby Powder. The issue
erupted in light of allegations that Johnson & Johnson's talcum powder products contained
asbestos, a known carcinogen, and that long-term use could increase the risk of ovarian
cancer and mesothelioma. Plaintiffs in several instances claimed that the firm was aware of
these risks but failed to appropriately warn consumers or recall the products in question.
The case drew a lot of attention because of its possible influence on public health and the
reputation of the pharmaceutical sector. Johnson & Johnson insisted that its talcum powder
products were asbestos-free and safe, citing decades of testing and regulatory approvals.
Several lawsuits, however, resulted in large settlements and damage awards against the
corporation. In the pharmaceutical and consumer goods businesses, the Johnson & Johnson
talcum powder case emphasizes the necessity of rigorous safety testing, open
communication with consumers, and regulatory compliance. (Wood, n.d.) It also emphasizes
the legal and financial consequences of charges of noncompliance with safety standards and
openness, which can harm both corporate reputation and consumer trust. This case
demonstrates the complicated issues that businesses confront in assuring the safety and
integrity of their products while navigating changing regulatory landscapes and consumer
expectations.
Coming to the Do’s and Don’ts of compliance in this case study, a lot could be done to
prevent this from happening and damaging the reputation of one of the most well known
multinational pharmaceutical and consumer goods company and costing them millions of
dollars in damages and compensation. Here are some:
Do’s of Compliance:
Stringent Product Testing:
An essential compliance practice is rigorous and ongoing
product testing. Companies must test raw materials and final products on a regular
basis to discover potential contaminants or deviations from quality requirements.
Many problems may have been averted if Johnson & Johnson had continuously
applied extensive quality control techniques for its talcum powder products.
Transparency in Communication:
Transparency is essential in compliance efforts.
Transparent communication is a crucial compliance practice in the Johnson &
Johnson case. When concerns or possible dangers occur, businesses must swiftly
notify the public, regulators, and stakeholders. Even in challenging situations, clear
and honest communication, combined with corrective actions, can help retain
confidence.
Proactive Regulatory Compliance:
Companies must remain vigilant in meeting
regulatory standards. One of the key takeaways from this case is the value of
proactive regulatory compliance. It is critical to keep up with changing legislation and
invest in comprehensive compliance programs. Johnson & Johnson was sued for
suspected violations of product safety rules, underscoring the importance of
proactive compliance activities.
Don’ts of compliance:
Downplaying Risks:
One important compliance "don't" is to minimize or ignore
potential risks linked with products or processes. In the Johnson & Johnson case, the
business was chastised for failing to act quickly when evidence of asbestos
contamination arose. Underestimating risks can have serious legal and reputational
consequences.(Rabin & Hsu, 2018)
Lack of Accountability:
Businesses should avoid a lack of accountability in
compliance matters. A crucial compliance "don't" in the case study is neglecting to
accept responsibility for potential compliance failings. It is critical to identify and hold
accountable relevant parties within the organization for compliance supervision and
corrective measures.
Neglecting Product Lifecycle Monitoring:
Another bad compliance practice
emphasized by this instance is neglecting product lifecycle monitoring. Johnson &
Johnson was accused of knowing about possible asbestos pollution for decades but
failing to take sufficient precautions. Companies should not disregard continued
product monitoring throughout their lifecycle, including post-market surveillance and
risk assessments.(Hurst et al., n.d.)
In conclusion, the Johnson & Johnson talcum powder case serves as a stark reminder to
businesses of the necessity of compliance. Companies can avoid possible compliance
problems by prioritizing strict product testing, open communication, and proactive
regulatory compliance. Downplaying risks, failing to hold people accountable, and failing to
manage product lifecycles, on the other hand, can have serious implications. Businesses
should take these lessons very seriously in order to retain their legal and ethical integrity and
defend their reputation. This case demonstrates that compliance is more than just a
checklist; it is an ongoing commitment to safety, transparency, and regulatory obedience.
REFERENCES:
Hurst, B., Blood, T. G., Hurst, L. E., Ii, T. J. O., & Roach, P. M. (n.d.).
BLOOD HURST &
O’REARDON, LLP
.
13
.
Maloney, C. B., Norton, E. H., Gosar, P. A., Carolina, N., Massie, T., Carolina, N., Hice, J. B.,
Grothman, G., Comer, J., Cloud, M., Gibbs, B., Carolina, S., Higgins, C., Roy, C., Miller, C. D.,
Virginia, W., Green, M. E., Armstrong, K., & Steube, W. G. (n.d.).
COMMITTEE ON OVERSIGHT
AND REFORM
.
Rabin, R. C., & Hsu, T. (2018, December 15). Johnson & Johnson Feared Baby Powder’s
Possible Asbestos Link for Years.
The New York Times
.
https://www.nytimes.com/2018/12/14/business/baby-powder-asbestos-johnson-
johnson.html
Wood, M. (n.d.).
Facing thousands of lawsuits alleging that its talc caused cancer, J&J insists
on the safety and purity of its iconic product. But internal documents examined by Reuters
show that the company’s powder was sometimes tainted with carcinogenic asbestos and
that J&J kept that information from regulators and the public.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help