Johnson " Johnson is a pharmaceutical company that is committed to providing medical care since its establishment in 1886. In 1943, the guiding manual of the company or the founding values “Our Credo” were draft on a paper (Johnson, 1956). Since drafting guidelines to paper, they have been revised many times to account for evolution in growth and development of the firm as well as changes in language. In the analysis of J"J Credo, the critical point arising is that great companies do not set profit motive as their focus or driving value. Contrary to the economic mythology, companies which focus on providing value to customers, community and employees perform best over time. This paper presents the likes and dislikes from the credo.
The Credo provide many good core values of the business. First, the elements of Our Credo stand out in today’s sterile economic discussion. The credo originated from CEO Robert Johnson, a longtime J"J CEO and therefore inoculating it from any suggestion that it came from some nefarious source and this authenticity is one good thing of the credo.
Second, the credo is far ahead of time, ensure equality of opportunity, recognize both men and women, facilitates care for employees’ families, promote environmental sustainability and responsibility to the community. Furthermore, the company recognizes that their employees’ work with them not for them and this creates a sense of belonging. Regarding this, the credo states that it must keep the costs low to provide affordable products to the consumers while giving an opportunity to the suppliers and distributors to make profits. The credo offers for environmental sustainability. This influence the use of the available natural resource, and resource are utilized in a manner to avoid exploitation of the environment.
The third thing I like about the values of the company is that the credo provides its responsibilities to the customers, the shareholders, the environment, its employees and the community. The shareholders of the firm are entitled to a fair profit. The credo does not advocate tax evasion or lack of support for other responsibilities like social work to maximize profit. Moreover, the credo is very detailed on the role of the company to the employees such as safe workplace and environment, care for their families, fair compensation, and treated with a lot of respect.
Fourth, the credo considers ethical management in company’s success and excellent performance. It provides that the administration must be competent, and their activities must be just and noble. Moral actions motivate employees’ participation, increase their morale, built up their confidence and feel free to offer their suggestions or convey their grievances and hence creating employee satisfaction. Employee satisfaction enhances the use of full potential by the workers, and this can firmly relate to improved performance.
The credo depicts the company as a future-oriented firm. It states that the company keeps reserves for use during the adverse times. Reserves show how prepared the company is ready to deliver its value to the shareholders despite the prevailing conditions. It is this commitment to provide value to its target customers or the shareholders that have created its value in its industry.
Lastly, the principles of the credo are useful tools in crisis management. When the company faces challenges, the statutes of the credo are necessary for providing direction for the best alternative to handle crisis inherent.
The utilization of the credo by J"J company has shown that the modern companies can be successful in their respective industries without disregarding workers, despoiling the environment, avoiding taxes and cheating its suppliers. It’s this fairness that sets this company as a reputable company in the world and more so in the pharmaceutical industry.
While the credo poses a lot of admirations, there is some dislike that is clear from the credo. First, the credo stipulates provision of quality products and services to the customers. However, it does not show any plans for keeping their machines, and plants in sound quality. It provides a general statement for the purchase of new equipment, but the question is, after how long? From my analysis, J"J has been in operation using old machinery, and this led to the production of low-quality drugs that were harmful.
Second, the credo states that the company must adhere to the tax rules but does not indicate its adherence to the other regulations. FDA inspections show the company sold faulty devices and harmful drugs in the market and the FDA warned the company and cautioned it to recall its devices (Malloch, n.d.). However, the company did not heed, and this violation is an example of unethical action.
Form the analysis of the J"J credo; I can be able to design my credo. The credo provides an insight of what a company should focus. Unlike many other companies, J"J focuses on building reputation and trust rather than profit maximization. In my credo, I can focus on satisfying my customers, shareholders, suppliers, distributors, the community, preserving the environment and legal observation. As portrayed by the J"J credo, a focus on satisfying these stakeholders goes beyond profitability to creating a brand name.
In conclusion, the credo has played a significant role in the growth and development of this company by providing its code of conduct. Besides this, the company has built a profound reputation and trust among the customers. Also, it provides the basis for resolutions in case of business crises.
References
Johnson, G. D. (1956). Credo. Phylon (1940-1956), 17(4), 316. doi:10.2307/272909
Malloch, T. R. (n.d.). Johnson " Johnson: Product recalls and the J"J Credo. Practical Wisdom in Management: Business Across Spiritual Traditions, 63-81. doi:10.9774/gleaf.9781783531325_8
