How Johnson & Johnson bounced back from the tragic cyanide murder scandal in 1982.
At the time Johnson & Johnson owned 37 percent of the market and Tylenol was their most profitable product. Then reports surfaced that seven people had died after taking Tylenol. It was later discovered that these bottles had been tampered with. How should Johnson & Johnson respond?
The question was a complicated one. Was their primary responsibility to ensure the safety of their customers by immediately pulling all Tylenol products off drugstore shelves? Was their first priority to do PR damage control to keep shareholders from dumping their stock? Or was it their duty to console and compensate the families of the victims first and foremost?
Fortunately for them they had the Credo: a statement written in 1943 by then chairman Robert Wood Johnson that is literally carved in stone at Johnson & Johnson headquarters. Unlike most corporate mission statements, the Credo actually lists the constituents of the company in priority order. Customers are first; shareholders are last.
As a result, Johnson & Johnson swiftly decided to recall all Tylenol, even though it would have a massive impact (to the tune of $100 million, according to some reports) on their bottom line. The safety of customers or $100 million? Not an easy decision. But the Credo enabled a clearer sense of what was most essential. It enabled the tough trade-off to be made.
Essentialism: The Disciplined Pursuit of Less by Greg McKeown. Crown/Archetype. 2020. p.53,54
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