Chapter 4: Johnson & Johnson and Mattel
Johnson & Johnson
Issue: Recall Response
After several years of continuous recalls, Johnson & Johnson has been roundly criticized for its lack of communication and ability to take control of the situation.
An Associated Press (AP) story reported that J&J had roughly two dozen recalls of “prescription and nonprescription medicines, replacement hips, contact lenses and diabetes test strips, including tens of millions of bottles of children’s and adult Tylenol and Motrin” since September 2009. The continuous safety failures put three J&J manufacturing facilities under federal scrutiny.
- During the tainted Tylenol scandal in the 1980s, the company’s chairman communicated regularly with the media and, in a press conference, gave a tremendously transparent overview of every detail related to the recall.
- Timely crisis communication
- J&J’s quick and bold reaction to the 80s Tylenol recall has gone down as one of the best in history, setting the bar for crisis management. Its more recent behavior has fallen short.
Johnson & Johnson set the standard for handling product recalls in the 80s, but is now criticized for the way incidents have been handled.
Issue: Supply Chain Quality Control
In 2007, Mattel launched four separate product recalls. The recalls were the result of large quantities of lead found in the paint used in a number of its products. Mattel, like many other companies, uses contractors inChinato manufacture products.
This case raises supply chain concerns, bringing to light the importance of quality control and keeping an eye on the actions of your overseas operations and partners.
- Keep an eye on your supply chain
- Chinese contractors had subcontracted the painting of the toys to another company that used inferior and unauthorized products. Third parties need to be held to the same standards to which you hold your own company. If your third party contracts out to another company, make sure to do your due diligence on them as well.