TMA 01
Cut-off date: This tutor-marked-assignment (TMA) must be submitted by 12 noon (UK local time) on the date shown
on the study planner on the module website.
Word count: The total word limit for this TMA is 2500 words.
This TMA accounts for 15% of your total assessment for the module.
Your TMA will be marked by your tutor.
You will find everything you need to answer this TMA in the ‘Materials’ section of this document.
Learning outcomes
The module learning outcomes that will be assessed in this TMA are:
1.1 Develop knowledge and critical understanding of the theories and frameworks underpinning the strategy
process at the different levels where strategies are developed in organisations, including the international context.
1.2 Develop knowledge and understanding of the appropriate theories and frameworks to use to systematically
analyse the external and internal environments of organisations as well as their stakeholders
2.1 Work with the appropriate data to generate information relevant to the development of strategy.
2.2 Critically analyse relevant information using suitable conceptual tools
2.4 Argue coherently and justify a point of view using appropriate information and theoretical concepts.
3.1 Appropriately engage with quantitative and qualitative data to perform strategic analysis.
4.3 Identify the ethical aspects involved in the strategy process and their practical implications.
4.4 Reflect on how strategic management can inform practice and next steps of career progression and
development.
Assignment tasks
TMA 01 is made up of four parts. You need to complete all of the parts.
Part 1
Read the information provided on the company in ‘Materials’, ‘Part 1’.
Introduce the company and briefly say what it does. Summarise the main milestones of its history. Then discuss how
the company’s vision, mission, values and goals might orient its strategy.
Your answer to this part should be no more than 900 words. (35 marks)
Part 2
Look at the performance data provided in ‘Materials’, ‘Part 2’. Following the guidance given in Week 3, analyse and
discuss the company’s performance and its ability to create and capture value.
Your answer to this part should be no more than 400 words. (20 marks)
Part 3
Read the documents and materials provided in ‘Materials’, ‘Part 3’.
Critically analyse the company’s corporate social responsibility strategy and how it relates to its stakeholders.
Your answer to this part should be no more than 900 words. (30 marks)
Part 4
Building on your work in Block 1, reflect on the skills you have developed so far and how the activities you have carried out in Block 1 have enhanced those skills.
Your answer to this part should be no more than 300 words. (15 marks)
Guidance notes
Part 1
In this part you are initially asked to introduce the company. First you need to identify the business of the company and then look at its history and summarise the company’s main milestones. In Week 2 you performed similar activities on Lamborghini (Section 7) and on Starling Bank (Section 8).
You are then asked to address the central topics of Week 2: vision, mission, values and goals. You are provided with
several examples during the week (see Sections 2 to 6) and you may look at how the different concepts are analysed
in the examples and in the activities provided.
The analyses proposed on Lamborghini (Section 7) and on Starling Bank (Section 8) exemplify how you can frame
your discussion. It is important that you devise a clear structure for your answer, and you show how the different topics are connected.
Your answer should be focused on the case found in TMA 01 Part 1 materials: while you may want to refer to
theoretical concepts in the text of your answer, it is important that you centre the discussion on the case provided.
Part 2
Performance analysis is the core theme of this question. You have developed performance analysis skills in Week 3.
You can take different angles in your analysis: you may look at how revenues and profits changed through the years, at the information provided by performance ratios such as ROE, ROCE, ROS and AUR, and/or at the dynamic of the
market value of the company.
First you need to look at the documents provided and read them selecting the relevant information to answer this
question. Then you need to build your argument around the relevant point(s) you want to make following the approach you learnt in Day School 1. Do not present just a list of numbers but focus on their interpretation and what they actually mean.
An answer that discusses the extent to which the company creates and captures value attracts more marks. You can
refer to the contents of Week 3 to refresh your understanding of the different measures of performance (see Sections 4
to 7). The analysis of Lamborghini’s performance that you conducted in Section 6 could constitute a good reference on how to analyse performance.
Part 3
This question requires you to use concepts in Block 1 to analyse the CSR strategy and how it relates to stakeholders,
based upon the evidence you have selected. There are many concepts in Week 4 that you can use in answering this
question. You may begin by first identifying who the stakeholders are. Does the company prioritise how it addresses
their demands and needs? How does the company use its CSR strategy to address their demands and needs? These
are important questions that we would expect you to address in your answer. You have already completed a number of activities related to this TMA during the last week of Block 1.
In writing this part of the TMA you need to demonstrate an understanding of the concepts you choose and your ability to apply these concepts to a real case. You should use the evidence provided to support your answer. Long
descriptions of concepts related to stakeholder management and CSR will not attract many marks. In contrast, bringing up debates around stakeholder prioritisation and the meaningfulness of CSR strategy will gain marks. You will therefore need to demonstrate critical thinking when writing your answer.
Part 4
This final question asks you to reflect on the skills you have developed so far in the module. Here, you need to take a
step back from the content and think about what you have learnt to do. Again, it is not important that you explain the meaning of the different frameworks and concepts that you have studied, but to focus on how your work on them has helped you in developing your skills.
A good answer to this question will present two core skills that you developed in these first weeks of B302 and provide examples of how you have developed those skills, making reference to the different weeks of Block 1 and to the related activities. You may also want to discuss the difficulties you encountered and how you approached them.
Submitting your TMA
You need to submit a single file for your assessment, including all parts of the assignment in one document. More
information about preparing and submitting your assignment can be found in the Assessment guide.
Materials
This section contains documents from different sources. Read them before answering the questions.
Part 1
You should use the materials in this section to help you complete Part 1 of the TMA.
1.1 Johnson & Johnson: who we are
Source: Johnson & Johnson (2019) Who we are [Online]. Available at http://www.jnj.ch/en/about-us/who-weare.html (Accessed 27 June 2019).
The Family of Companies is focused on three business areas: Pharmaceuticals, Medical Devices and Consumer
Health Care.
Pharmaceuticals
Janssen, the pharmaceuticals division of Johnson & Johnson, is one of the leading company in its sector. Switzerland
is an important location for this segment.
Medicines from Johnson & Johnson Pharmaceuticals help patients all over the world. Pharmaceutical research here is
focused on six therapeutic areas:
Cardiovascular and metabolic diseases
Immunology
Infectious diseases and vaccines
Neurology
Oncology
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Pulmonary arterial hypertension
By developing new products and innovative processes, the company has made significant contributions to the
advancement of the treatment of many diseases. Five of its medicines have been included in the World Health
Organization’s list of the most important medications in the world.
Medical Devices
DePuy Synthes is part of the Johnson & Johnson Family of Companies. This business area is responsible for the
world’s most extensive portfolio of orthopedic products and services in the following areas:
Joint reconstruction
Traumatology
Spinal surgery
Sports medicine
Neurosurgery
Facial and cranial surgery
Power tools
Biomaterials
Consumer Health Care
Johnson & Johnson Consumer Health Care reaches people with consumer products and over-the-counter medicines –
from birth until old age. As part of one of the largest health care companies in the world, and due to first-class scientific procedures, our baby and beauty brands provide consumers around the globe with innovative solutions for skin, mouth, baby care and feminine hygiene.
Johnson & Johnson worldwide
Locations
60 countries
265 manufacturing facilities
Medical devices
The world’s most comprehensive medical devices business
Net earnings
USD 16.540 billion
Economic impact
6th largest consumer health company worldwide
6th largest biologics company worldwide
5th largest pharmaceuticals company worldwide
Philantropy
USD 1.194 billion charitable contributions
Employees
126,500 jobs
History
Founded in 1886 with 14 employees
1.2 A history of Johnson & Johnson
Source: Blake, H. (2013) A History of Johnson & Johnson [Online]. Available at
https://pharmaphorum.com/articles/a-history-of-johnson-johnson/ (Accessed 27 June 2019).
Set up by three brothers back in 1886, Johnson & Johnson continues to keep evolving
Johnson & Johnson was founded over 125 years ago in the year 1886. However, it wasn’t until 1959 – 73 years and 2
major acquisitions later – that J&J developed its significant presence in the pharmaceutical industry.
Where it all began
In 1886, three brothers – Robert Wood Johnson, James Wood Johnson and Edward Mead Johnson – began the
company, Johnson & Johnson, in New Brunswick, New Jersey in the United States. It’s said that the Johnson brothers
were inspired to start the business in order to create a line of ready-to-use surgical dressings, after hearing a speech
by antiseptic advocate Joseph Lister, in 1885. Robert Wood Johnson served as the first president – the company
became incorporated in 1887 and throughout the nineteenth century, Robert worked to improve sanitation practices.
“It’s said that the Johnson brothers were inspired to start the business in order to create a line of ready-to-use
surgical dressings…”
A year later, J&J pioneered the first commercial first aid kits, which were initially designed to help railroad workers, but soon became the standard practise in treating injuries. In 1894, J&J’s heritage baby business began, by the launch of maternity kits. These kits had the aim of making childbirth safer for mother and babies. Johnson’s Baby Powder also went on sale during this year and was extremely successful. Robert Wood’s granddaughter, Mary Lea, was the first baby to be used on the baby powder label.
Between 1896 and 1897, J&J enabled a huge step forward for women’s health when it manufactured the first massproduced sanitary protection products.
When Robert Wood died in 1910, his brother James Wood became president, before James’ son, Robert Wood
Johnson II became president in 1932.
One of J&J’s subsidiaries is Ethicon, which is a manufacturer of surgical sutures and wound closure devices. It was
incorporated as a separate company in 1949 so as to expand and diversify the J&J product line. Following World War
II, Ethicon’s market share in surgical sutures rose from 15% to 70% worldwide.
In 1959, J&J acquired McNeil Laboratories in the US and also Cilag Chemie, AG in Europe. These two acquisitions
enabled the company to gain a significant presence in the field of pharmaceutical medicines for the first time. One
McNeil product was the first prescription aspirin-free pain reliever, Tylenol (acetaminophen) elixir for children. Under
J&J’s acquisition, the product became available without a prescription a year later and earned the status as the pain
reliever doctors and paediatricians recommend the most, according to the company’s history.
The joining of Janssen
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It was in 1961 that Belgium’s Janssen Pharmaceutica N.V. joined the J&J Family of Companies. Its founder, Dr Paul
Janssen, is recognised as one of the “most innovative and prolific pharmaceutical researchers of the 20th century”.
Today, Janssen is one of the world’s leading research-based pharma companies and markets prescription medicines in the areas of gastroenterology, women’s health, mental health, neurology and HIV / AIDS, to name a few.
“Dr Paul Janssen is recognised as one of the “most innovative and prolific pharmaceutical researchers of the
20th century”.”
United under the common name of J&J, Janssen is now split into three different businesses – Janssen Research &
Development, Janssen Healthcare Innovation and Janssen Diagnostics. Some of the most well-known Janssen
products include diarrhoea treatment, Immodium (loperamide), antipsychotic Risperdal (risperidone) and Alzheimer’s
disease drug, Reminyl (galantamine).
Risperdal is well-known due to the controversy in the US following its product launch in 1994. Juries in several US
states found J&J guilty of hiding information about adverse effects of the antipsychotic medication. In 2012, J&J agreed to pay US $181 million to 26 states in order to settle these claims.
J&J in the 70s and beyond Between 1976 and 1989, James E. Burke was Chairman and CEO of J&J. During this tenure, J&J entered into the areas of vision care, mechanical wound closure and diabetes management. It was also during this time that J&J opened the first operating companies in China and Egypt.
During the 1990s, Ethicon’s Endo-Surgery pioneered minimally invasive surgery, which uses very small incisions and
helps patients recover faster than with traditional surgery.
In 1994, the first coronary stent was created by J&J and was called the Palmaz-Schatz stent. This move revolutionized
cardiology – coronary stents keep vessels open so blood can flow to the heart. Later, another of J&J’s companies,
Cordis Corporation, introduced the first drug-eluting stent, which helped prevent the arteries from re-clogging. Cordis was founded in Miami in 1959 and develops and produces medical equipment to treat patients who suffer from cardiovascular disease.
Beginning in 2003, J&J became involved in a series of litigations with Boston Scientific involving patents covering heart stent medical devices. Both parties claimed that the other had infringed upon their patents. The litigation was settled in 2009, when Boston Scientific agreed to pay $716 million in September and an additional $1.73 billion the following February.
William C. Weldon became the Chairman and CEO of J&J in 2002. Under his leadership, the company entered new
therapeutic areas. One of these new areas was HIV / AIDSs, which came about through the acquisition of TibotecVirco BVBA, to help address the vast unmet needs of patients with HIV / AIDS and other infectious diseases like tuberculosis.
In 2006, J&J acquired Pfizer Consumer Healthcare for $16.6 billion in cash. The acquisition included worldwide leading brands such as Listerine oral care products and the Nicorette line of smoking cessation treatments.
J&J in 2012 and beyond
Today, the J&J Corporation includes over 250 subsidiary companies, with operations in over 57 countries and products sold in over 175 countries around the world. The company focuses on three main areas: Consumer, Medical devices and diagnostics and Pharmaceuticals.
In 2012, worldwide sales were $67.2 billion, while the total investment in research and development was approximately $7.7 billion.
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While no one can predict the future for J&J and its subsidiaries, the company’s pharmaceutical segment has an idea of where it wants to be after it announced plans to submit 10 new product filings for regulatory approval over the next four years. These products are aimed at addressing serious unmet medical needs, such as Hepatitis C, schizophrenia and influenza.
“Our investment in transformational innovation has enabled strong growth that has allowed us to continue
investing in our future portfolio. With a steadfast focus on the most serious unmet medical needs, our approach is
to identify the best science — internal and external — to deliver new options and solutions to patients. Today, we
have an industry-leading pipeline of truly differentiated products and a track record of success resulting in more
new molecular entity (NME) approvals per year at a lower development cost than the industry average.”
According to IMS Health, the total global pharma market is expected to grow approximately 4.5% annually and reach a market size of around US $1.2 trillion by 2017. J&J’s pharmaceuticals segment was the fastest growing pharma
business in the US, Europe and Japan in 2012.
Paul Stoffels, M.D., Chief Scientific Officer, Johnson & Johnson, and Worldwide Chairman, Pharmaceuticals Group.
1.3 Johnson & Johnson: Our Credo
Source: Johnson & Johnson (2019) Our Credo [Online]. Available at https://www.jnj.com/credo/ (Accessed 27
June 2019).
The values that guide our decision-making are spelled out in Our Credo. Put simply, Our Credo challenges us to put
the needs and well-being of the people we serve first.
Robert Wood Johnson, former chairman from 1932 to 1963 and a member of the Company’s founding family, crafted
Our Credo himself in 1943, just before Johnson & Johnson became a publicly traded company. This was long before
anyone ever heard the term “corporate social responsibility.” Our Credo is more than just a moral compass. We believe it’s a recipe for business success. The fact that Johnson & Johnson is one of only a handful of companies that have flourished through more than a century of change is proof of that.
Our Credo
We believe our first responsibility is to the patients, doctors and nurses, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to provide value, reduce our costs and maintain reasonable prices. Customers’ orders must be serviced promptly and accurately. Our business partners must have an opportunity to make a fair profit.
We are responsible to our employees who work with us throughout the world. We must provide an inclusive work
environment where each person must be considered as an individual. We must respect their diversity and dignity and
recognize their merit. They must have a sense of security, fulfillment and purpose in their jobs. Compensation must be fair and adequate and working conditions clean, orderly and safe. We must support the health and well-being of our employees and help them fulfill their family and other personal responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide highly capable leaders and their actions must be just and ethical.
We are responsible to the communities in which we live and work and to the world community as well. We must help
people be healthier by supporting better access and care in more places around the world. We must be good citizens
— support good works and charities, better health and education, and bear our fair share of taxes. We must maintain
in good order the property we are privileged to use, protecting the environment and natural resources.
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Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas.
Research must be carried on, innovative programs developed, investments made for the future and mistakes paid for.
New equipment must be purchased, new facilities provided and new products launched. Reserves must be created to
provide for adverse times. When we operate according to these principles, the stockholders should realize a fair return.
1.4 Vison and mission of J&J
Source: Johnson & Johnson (2019) Diversity & Inclusion [Online]. Available at https://www.jnj.com/aboutjnj/diversity (Accessed 20 August 2019).
Diversity at Johnson & Johnson is about your unique perspective. It’s about you, your colleagues and the world we
care for—all backgrounds, beliefs and the entire range of human experience—coming together. You view the world
from a unique vantage point; a perspective that gives you problem-solving potential ideas, solutions & strategies that,
when mobilized, can bring health to billions.
Inclusion at Johnson & Johnson is about creating a deep sense of belonging. It’s about a culture where you are valued,
your ideas are heard and you advance this culture for everyone.
Diversity & Inclusion at Johnson & Johnson means – You Belong.
Our Vision
Be yourself, change the world.
Our vision at Johnson & Johnson, is for every person to use their unique experiences and backgrounds, together – to
spark solutions that create a better, healthier world.
Our Mission
Make diversity and inclusion how we work every day.
Our mission is to make diversity & inclusion our way of doing business. We will advance our culture of belonging where
open hearts and minds combine to unleash the potential of the brilliant mix of people, in every corner of Johnson &
Johnson.
1.5 Johnson & Johnson: Our values and caring
Source: Johnson & Johnson ( 2017) Our Values and Caring [Online]. Available at http://www-careers-jnjcom.jnjnab25.jnj.com/our-values-and-caring (Accessed 27 June 2019).
A Strong Foundation
Our Credo and our Aspiration express shared values that continue to guide us every day. Together, they form the
foundation of our Strategic Framework.
The priorities and direction these documents offer help set our culture apart. More importantly, they help us each play a vital role in caring for the world, together.
As employees, we’re compelled to ensure a positive impact on people, planet, and business. That means going
beyond service to customers by serving the health and well-being of people everywhere… being responsible stewards
of the resources we’re privileged to share… and ensuring business viability and vitality wherever we work.
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Outside of work, employees are supported as they volunteer their time and resources to activities that support their
local or global communities.
Giving
Our Corporate Contributions Report provides the latest information on how the programs we support and the
assistance we provide help:
Save and improve the lives of women and children
Prevent disease in vulnerable populations
Strengthen the health care workforce
Sustainability
Our citizenship and support for sustainable business practices are an extension of our caring. We are committed to:
Helping to solve the world’s major healthcare challenges
Protecting the environment and conserving resources
Conducting business in ways that contribute positively to society
Our 2014 Citizenship & Sustainability Report provides more information on our “Healthy Future 2015” vision and
related sustainability activities.
1.6 Johnson & Johnson: Our strategies to deliver value
Source: Johnson & Johnson (2019) Our Strategies to Deliver Value [Online]. Available at
https://www.jnj.com/partners/supplier-principles (Accessed 27 June 2019).
Johnson & Johnson is committed to developing procurement relationships based on trust. We drive growth while
maintaining the highest standards through industry-leading supplier innovation, quality and reliability.
Growth & Innovation
We aim to own and shape a diverse supplier base that delivers high quality, compliant and reliable products and
services.
Our suppliers are encouraged to source innovative solutions, and deliver new business models that contribute to our
mutual objectives for growth and streamlined processes. We embrace new technology whenever it may help us meet
the needs of our patients and consumers.
Investing in Our Future
We track new market developments and seek suppliers who understand emerging trends and plan their business
accordingly. We forge long-term relationships with organizations that collaborate with us to successfully bring their
innovations to the marketplace.
We follow a procurement approach that is rooted in Our Credo. We strive to obtain the highest-quality products and
services at a fair cost, representing the best overall value for our companies.
Global Diversity, Citizenship and Sustainability
Embracing our role as an industry leader, Johnson & Johnson shapes and upholds the highest standards for
responsible sourcing and corporate citizenship.
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We further differentiate Johnson & Johnson by working with suppliers to accelerate environmental and social
improvements across the value chain. We anticipate and manage risk, and ensure compliance with all procurement
policies and processes.
Develop Our Diverse, Global Supply Base
We build and develop a global group of suppliers that reflects the diversity of our patients and customers, and our
commitment to inclusion. The Supplier Diversity Program is designed to ensure that businesses of diverse
backgrounds and ownership have the opportunity to become valued suppliers.
Since starting our Supplier Diversity Program in 1998, our total spending with small businesses and diverse-owned
suppliers has been over one billion dollars annually.
1.7 Health for Humanity 2020 Goals
Source: Johnson & Johnson (2016) Health for Humanity: 2020 Goals [Online]. Available at
https://www.jnj.com/_document/johnson-johnson-health-for-humanity-2020-goals?id=0000015c-adde-d4cb-a5fdefdef8110000 (Accessed 27 June 2019).
Health for Humanity: 2020 Goals
Part 2
You should use the materials in this section to help you complete Part 2 of the TMA.
2.1 Johnson and Johnson performance report
Source: Osiris, Bureau van Dijk (2019) Company report: Johnson & Johnson [Online]. Available at
https://osiris.bvdinfo.com (Accessed 8 August 2019).
Johnson and Johnson performance report (Excel file)
2.2 Market value of Johnson and Johnson
You can find the current market value of Johnson & Johnson on the Macrotrends website.
Part 3
You should use the materials in this section to help you complete Part 3 of the TMA.
3.1 Stakeholder engagement
Source: Johnson & Johnson (2018) Engaging with Our Stakeholders [Online]. Available at
http://healthforhumanityreport.jnj.com/our-approach/engaging-with-our-stakeholders (Accessed 20 August 2019).
As a global healthcare company, we interact with numerous stakeholder groups at the global, national and local levels.
Our Credo, written 75 years ago, acknowledges the diversity of stakeholders to whom we are responsible, and serves
as our guide. Such engagement helps us learn about emerging sustainability topics while supporting Johnson &
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Johnson in creating long-term value for our Company and society.
The deep and longstanding relationships we cultivate with our stakeholders are vital to both our Credo-driven business strategies and our citizenship and sustainability approach. Our broad and consistent stakeholder engagement is essential to building successful business strategies and achieving our goal to deliver the best products and services possible.
Stakeholder engagement occurs at all levels of the Company, and information gained through these interactions is
communicated through line management and, as appropriate, to senior management, including the Johnson &
Johnson Executive Committee and Board of Directors. The goal of our decentralized approach is to connect our
stakeholders with the most appropriate internal resources to address their needs and concerns, which benefits both
our business and our stakeholders. As necessary to ensure consistency of approach, for broad-based stakeholder
engagements we leverage a customer relationship management system to provide visibility and management across
the Enterprise.
In determining with whom to engage with respect to environment, social and governance topics, we take into
consideration a variety of factors, including:
Alignment of our goals and values with those of the stakeholder group;
Ability to improve human health, social, environmental and other outcomes because of this engagement;
Opportunity for mutual learning.
Throughout 2018, members of our management team met with a significant number of our shareholders to discuss our Health for Humanity sustainability approach. This includes our Health for Humanity 2020 Goals and other citizenship and sustainability commitments, as well as transparency around key environmental, social and governance measures.
We hosted our first Health for Humanity Report webinar with investors to accompany the release of our annual Health for Humanity Report, providing shareholders the opportunity to engage and ask questions of leaders in Investor Relations, Product Quality & Compliance, Medical Safety, Global Public Health and Environmental Health, Safety and Sustainability.
To ensure we’re always investing for the future, we’re participating in important initiatives like the Embankment Project for Inclusive Capitalism, CECP’s Strategic Investor Initiative and the Business Roundtable. With these expert partners, we’re helping to shift the conversation in the financial markets toward a long-term view and measurement of the value to society that a business like ours creates.
We also partnered with Business for Social Responsibility (BSR), a global nonprofit organization focused on corporate
sustainability, on a formalized stakeholder feedback initiative. BSR solicited reactions and insights on the 2017 Health
for Humanity Report content from a broad base of stakeholders reflecting global public health institutions, investors,
NGOs, and environmental leaders. Their guidance and feedback have been integrated into the 2018 Health for
Humanity Report. In addition, this stakeholder feedback has been integrated into business and functional group
strategies across the Enterprise, and the important insights will inform our 2019 Priority Topics Assessment and Health for Humanity 2025 goal setting.
Stakeholder Engagement on This Report
Various internal stakeholders across Johnson & Johnson’s global teams provided their input into this Report. The final content has been reviewed by the members of the Executive Committee.
Our Stakeholders
Advocacy Groups / Trade Associations
Methods of Engagement: Organizational memberships, direct engagement, dialogue, sponsorships, conferences,
research efforts
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Issues: Product quality, safety and reliability, ethical business practices and performance, access to and affordability of medicines, global public health, community engagement and impact, product innovation, diversity, responsible
sourcing, ingredient issues, workplace safety
Consumers
Methods of Engagement: Dedicated 24-hour, 7-days-a-week toll-free hotline in 23 languages, Johnson & Johnson
website, brand websites, social media, focus groups, clinical trials
Issues: Product quality, safety and reliability, proper product use, access to our products, materials/ingredients in our
products, data protection and privacy, socially beneficial products, proper disposal of products, ethical behavior and
performance
Customers
Methods of Engagement: Direct contact through sales, customer relationship managers, customer call centers,
customer meetings, industry trade groups/meetings
Issues: Product quality, safety and reliability, sales and distributions, supply and demand for products, ethical business practices, data protection and privacy, issues related to products, packaging, product end of life, pricing, manufacturing processes
Employees
Methods of Engagement: Our Credo survey, intranets, newsletters, company webcasts, town hall meetings, quarterly
business updates, training sessions, anonymous 24-hour, 7-days-a-week tollfree hotline in 23 languages
Issues: Ethical business practices, business performance, sustainable innovation, workplace health and safety, human
capital development, diversity and inclusion, human rights, access to and affordability of medicines, data protection
and privacy Government / Policy Makers
Methods of Engagement: Governmental affairs liaisons, direct engagement, Johnson & Johnson Political Action
Committee, meetings, advocacy
Issues Compliance with regulations, ethical business practices, research and development activities, innovation in
healthcare, pricing, access, policy positions, marketing practices
Healthcare Providers
Methods of Engagement: Sales representatives, continuing medical education liaisons, education initiatives, clinical
researchers, advisory boards, support and education programs for caregivers
Issues: Product quality, safety and reliability, workplace health and safety, human rights, ethical business practices,
product pricing and availability, access to and affordability of medicines, employee health and wellness, human capital development
Socially Responsible Investors
Methods of Engagement: Annual report, annual sustainability report, annual shareholders meeting, investor releases,
quarterly earnings, road shows, completion of surveys, Johnson & Johnson website, conferences, dialogue, direct
engagement
Issues: Product quality, safety and reliability, workplace health and safety, human rights, ethical business practices,
product pricing and availability, access to and affordability of medicines, employee health and wellness, human capital development
Local Communities
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Methods of Engagement: Direct local engagement, philanthropic efforts, employee volunteers, sponsorships,
collaborative partnerships
Issues: Environmental issues, site expansions or closures, employment, transportation, safety and health issues,
emergency planning, local community issues, volunteer efforts
NGOs
Methods of Engagement: Direct engagement, dialogue, collaborative partnerships, sponsorships, organizational
memberships, conferences, social media
Issues: Diverse organizations with interests across all areas of our business
Quasi-Governmental Organizations / Academic Institutions
Methods of Engagement: Direct engagement, collaborative partnerships, face-to-face meetings, research, academic
studies
Issues: Product quality, safety and reliability, studying/addressing health issues, ethical business practices
Suppliers
Methods of Engagement: Direct engagement, collaborative partnerships, Responsibility Standards for Suppliers,
outreach by category leaders, supplier scorecards, face-to-face meetings, trainings and workshops, supplier diversity
initiatives, surveys, assessments and audits
Issues: Product quality, safety and reliability, ethical business practices, procurement practices, workplace health and
safety, environmental and sustainability practices, human rights in the workplace, data protection and privacy, product innovation, diversity and inclusion
Memberships
We participate in many non-governmental and advocacy organizations and industry associations on topics of interest and priority to the Company. Select memberships and associations include:
Advanced Medical Technology Association
Asia Pacific Medical Technology Association
Association for the Advancement of Medical Instrumentation
Bill & Melinda Gates Foundation
Biotechnology Industry Organization
BIO Ventures for Global Health
Business Roundtable
California Healthcare Institute
CDP (formerly titled Carbon Disclosure Project)
Chief Executives for Corporate Purpose (CECP) Strategic Investor Initiative
Children Without Worms
Climate Leadership Council
Closed Loop Fund
Consumer Goods Forum
Consumer Healthcare Products Association
Corporate Eco Forum
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Cosmetics Europe
Council of Supply Chain Manufacturing Professionals
Embankment Project for Inclusive Capitalism
European Federation of Pharmaceutical Industries and Associations
GS1
Harvard Medical School
Healthcare Businesswomen’s Association
HealthCare Institute of New Jersey
Healthcare Leadership Council
Medtech Europe
National Health Council
New Horizons Collaborative
New York University School of Medicine
Personal Care Products Council
Pharmaceutical Research and Manufacturers of America
Pharmaceutical Supply Chain Initiative
The Conference Board
The Sustainability Consortium
United Nations
United Nations Global Compact
United States Agency for International Development
U.S. Chamber of Commerce
United Way – local chapters
World Health Organization
3.2 Johnson & Johnson: Our Credo
Source: Johnson & Johnson (2019) Our Credo [Online]. Available at https://www.jnj.com/credo/ (Accessed 27
June 2019).
The values that guide our decision-making are spelled out in Our Credo. Put simply, Our Credo challenges us to put
the needs and well-being of the people we serve first.
Robert Wood Johnson, former chairman from 1932 to 1963 and a member of the Company’s founding family, crafted
Our Credo himself in 1943, just before Johnson & Johnson became a publicly traded company. This was long before
anyone ever heard the term “corporate social responsibility.” Our Credo is more than just a moral compass. We believe
it’s a recipe for business success. The fact that Johnson & Johnson is one of only a handful of companies that have
flourished through more than a century of change is proof of that.
Our Credo
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We believe our first responsibility is to the patients, doctors and nurses, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to provide value, reduce our costs and maintain reasonable prices. Customers’ orders must be serviced promptly and accurately. Our business partners must have an opportunity to make a fair profit.
We are responsible to our employees who work with us throughout the world. We must provide an inclusive work
environment where each person must be considered as an individual. We must respect their diversity and dignity and
recognize their merit. They must have a sense of security, fulfillment and purpose in their jobs. Compensation must be fair and adequate and working conditions clean, orderly and safe. We must support the health and well-being of our employees and help them fulfill their family and other personal responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide highly capable leaders and their actions must be just and ethical.
We are responsible to the communities in which we live and work and to the world community as well. We must help
people be healthier by supporting better access and care in more places around the world. We must be good citizens — support good works and charities, better health and education, and bear our fair share of taxes. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources.
Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed, investments made for the future and mistakes paid for.
New equipment must be purchased, new facilities provided and new products launched. Reserves must be created to
provide for adverse times. When we operate according to these principles, the stockholders should realize a fair return.
3.3 Sustainable development goals
Source: Johnson & Johnson (2019) Our SDG Commitment [Online]. Available at https://www.jnj.com/sustainabledevelopment-goals (Accessed 3 May 2019).
Johnson & Johnson was among the first private sector companies to announce a commitment toward achieving
the 2030 Sustainable Development Goals (SDGs). We commit to galvanizing partners, mobilizing employees, and
engaging communities to profoundly improve the course of human health through 2030.
At Johnson & Johnson, we believe that health is at the heart of all human development—it enables children to thrive,
women to succeed, communities to prosper and countries to rise from poverty. For more than a century, we have been guided by our founding principles of citizenship and Our Credo, which compel us to put people first, be good stewards of the natural resources we share and lead with strong values as a vital member of the communities we live and work in, as well as the world community.
Working alongside our partners on the front lines of care, we exceeded our previous commitment to the UN Millennium Development Goals (MDGs), improving the lives of more than 400 million women and children over the five-year time frame. The MDGs significantly improved health outcomes and demonstrated the value of an integrated approach to address inequality.
Building on these achievements and addressing the problems yet to be solved, the United Nations set a new agenda in 2016 through 17 goals for human progress and social impact: The 2030 Sustainable Development Goals (SDGs).
Johnson & Johnson was among the first private sector companies to announce a commitment toward achieving the
SDGs.
We are dedicating our expertise, ideas and ingenuity to catalyze efforts toward achieving SDG 3, Good Health and
Well-being, which is at the heart of the Sustainable Development Goals and the core of our business. Our efforts will
demonstrate the importance of Goal 5, Gender Equality, and will be founded in the principles of Goal 17, Partnerships for the Goals.
Our Five Focus Areas
The Johnson & Johnson SDG commitment focuses on five areas in which the Company is uniquely positioned to
create sustainable and scalable impact:
Health Workforce
Source: Johnson & Johnson (2019) Health Workforce [Online]. Available at https://www.jnj.com/sustainabledevelopment-goals/health-workforce (Accessed 3 May 2019).
Every health worker trained and supported helps to build a stronger community, and every enhanced community brings the world one step closer toward achieving good health and well-being for all. A robust, trained and motivated healthcare workforce is critical to saving and improving the lives of women, children and their families while also improving national health outcomes. For decades, Johnson & Johnson has worked to strengthen the people at the front lines of delivering care. From getting young people interested in healthcare as a career, to supporting their clinical training as future front-line health workers and caregivers, we help to ensure they have the skills they need to improve and save lives.
Our Aspiration: A world where the current and future health care workforce has the necessary competencies to
deliver high quality health care. 5-Year Target: 650,000 health workers will have received training to better deliver quality health care
Women’s and Children’s Health:
Source: Johnson & Johnson (2019) Women’s and Children’s Health [Online]. Available at
https://www.jnj.com/sustainable-development-goals/women-children-health (Accessed 3 May 2019).
Improving the lives of women, children, adolescents and newborns is one of the most important investments in global health. Healthy, empowered women and youth are at the center of strong families and the core of thriving communities with more productive economies and fewer people living in poverty. At Johnson & Johnson, we strive to provide an equal opportunity for women and their children to access quality care, information and education to ensure continued health, happiness and prosperity throughout the course of their lives.
Our Aspiration: A world where every woman and child survives and has the opportunity for a healthy future.
5-Year Target: 60 million women and children will have received support and tools to enable a healthy future.
Essential Surgery
Source: Johnson & Johnson (2019) Essential Surgery [Online]. Available at https://www.jnj.com/sustainabledevelopment-goals/essential-surgery (Accessed 3 May 2019).
Strong surgical ecosystems are created by building the surgical capacity of communities, and are critical to improving the health and well-being of individuals in resource-limited settings. Johnson & Johnson is taking collaborative action to provide training, supplies and increased advocacy to build surgical capacity, enhancing the lives of millions of people across the globe who lack access to essential surgery.
Our Aspiration: A world where safe, essential and timely surgical care can be accessed by all to save lives, prevent
disability, promote economic growth, and reduce social marginalization.
5-Year Target: 50 million people will have had access to safe, essential, and timely surgical care.
Global Disease Challenges
Source: Johnson & Johnson (2019) Global Disease Challenges [Online]. Available at
https://www.jnj.com/sustainable-development-goals/global-disease-challenges (Accessed 3 May 2019).
While the world continues to face ongoing challenges with HIV and tuberculosis, and many unknown and emerging
threats, there is also an increasing shift in burden of disease toward noncommunicable diseases (NCDs) and mental
health. At Johnson & Johnson, we are passionate about our work to save and improve people’s lives. We forge
partnerships and identify new ways to pioneer human ingenuity to accelerate the development of new drug regimens, support the strengthening of healthcare systems and break down barriers to access in resource-limited settings. Our Aspiration: A world where innovations and holistic health solutions prevent, control and eliminate global disease challenges and epidemics.
5-Year Target: 175 million individuals will have benefited from J&J solutions that prevent, control and eliminate global diseases.
Environmental Health
Source: Johnson & Johnson (2019) Environmental Health [Online]. Available at https://www.jnj.com/sustainabledevelopment-goals/global-disease-challenges (Accessed 3 May 2019).
As a company, we believe that the health of people is inextricably linked to the health of the planet. At Johnson &
Johnson, we have been setting public environmental performance goals for decades. In addition, to unlock change at
the rate and scale needed to make better health a reality for more people, in more places, we need to drive actions and impact beyond our own operations. That is why we are committed to leveraging our resources and work with our partners to help cities implement climate actions that improve air quality and public health.
Our Aspiration: A world where all people have healthy places to live, work and play.
5-Year Target: 100 million citizens living across 30 cities will have benefited from climate and air quality actions that
have the potential to positively impact public health.
