Home Library Translate
A A A
Share »
Follow us on Facebook Follow us on Twitter Follow us on LinkedIn
Connect »

Blog: Business Ethics, Culture and Performance

Menu

  • This Blog's Home
  • Guest Writer Submissions
  • Policies
  • To Subscribe to a Blog
  • About
  • Feedback

J&J Accused of Ignoring Red Flags

By David Gebler on December 22, 2010

Today’s business press reports that a lawsuit filed last week on behalf of  Johnson & Johnson shareholders accused the company’s directors of ignoring “red flags” foreshadowing product recalls and government probes of manufacturing defects and marketing practices.

The lawsuit alleges that while J&J once set “the gold standard for integrity and excellence,” the directors’ “utter disregard for their fiduciary duties, including permitting and fostering a culture of systemic, calculated and widespread legal violations has destroyed J&J’s hard-earned reputation.”

Bloomberg Business reports that the board received “years of red flag warnings of systemic misconduct,” according to the complaint. “These red flags came in the form of federal and state regulatory investigations, subpoenas and requests for documents, FDA Warning Letters, news articles and the recall of products accounting for hundreds of millions of dollars in corporate losses.”

It will be very important to watch the progress of this lawsuit on several levels:

  1. Will Directors be held liable for failing to adequately monitor the culture of the company?
  2. How important is the fall of the company’s reputation (in terms of news articles being a “red flag”) in determining directors’ liability.

Stay tuned…

—————————————————————————————–

David Gebler is the President of Skout Group, an advisory firm helping global companies use their values to clear the roadblocks to performance.  Send your thoughts and feedback to dgebler@skoutgroup.com.

« Previous Next »

Search Our Site

Meet this Blog’s Host

Carter McNamara of Authenticity Consulting, LLC, provides organizational development, consultant training and Action Learning services, and is developer of the Free Management Library. [Read more ...]

Recent Blog Posts

  • Can there ever be too much transparency?
  • Different “Schools” of Ethics
  • Combating the Hero Worship Culture at Penn State: the NCAA Got It Exactly Right
  • Get to the Start of the Slippery Slope
  • Cost of a Culture of Fear? $500 million for starters
  • The Power Values that Drive Sustained Profitability
  • What are your organization’s “Broken Windows”?
  • Ethics 2012 – The Forecast is Cloudy
  • What are Values, Morals, and Ethics?
  • Is News Corp Past the Tipping Point?

Categories of Posts

  • Basics and Overviews
  • Codes of Conduct
  • Culture Risks
  • Ethical Behavior
  • Ethical Dilemmas (Resolving)
  • Ethical Dilemmas (Resolving)
  • Ethics Training
  • General Resources
  • Governance
  • Uncategorized
  • Values
    • Commitment
    • Integrity
    • Transparency

Related Library Topics

  • Benefits of Strong Ethics
  • Business Ethics (Overview)
  • Business Ethics Basics
  • Codes of Conduct
  • Codes of Ethics
  • Cultural Change
  • Ethical Dillemas (Resolving)
  • Ethics Programs
  • Ethics Training
  • Roles in Ethics Management
  • Social Responsibility

Library's Blogs

  • Boards of Directors
  • Building a Business
  • Business Communications
  • Business Ethics, Culture and Performance
  • Business Planning
  • Career Management
  • Coaching and Action Learning
  • Consulting and Organizational Development
  • Crisis Management
  • Customer Service
  • Facilitation
  • Free Management Library Blogs
  • Fundraising for Nonprofits
  • Human Resources
  • Leadership
  • Marketing and Social Media
  • Nonprofit Capacity Building
  • Project Management
  • Quality Management
  • Social Enterprise
  • Spirituality
  • Strategic Planning
  • Supervision
  • Team Building and Performance
  • Training and Development
About Feedback Legal Privacy Policy Contact Us
Free Management Library, © Copyright Authenticity Consulting, LLC ®; All rights reserved.
  • Graphics by Wylde Hare LLC
  • Website maintained by Caitlin Cahill

By continuing to use this site, you agree to our Privacy Policy.X