Why does Johnson & Johnson consistently make the Fortune magazine list of "Most Admired Companies?"
It is in large part due to how they handled a very large crisis in 1982 when Tylenol capsules were
tampered with, causing 36 cases of cyanide poisoning. Johnson & Johnson's credo puts customers,
employees, and the communities they serve all before stockholder responsibility. Their adherence to their credo in a time of crisis led them to handle the situation so well
that this case is taught today in many business ethics and marketing courses as a best practice. As
a result of their exemplary action, it took almost no time for Tylenol to resume its position as the
top selling over-the-counter medicine once it was back on shelves.
By Aviel Selkovits, Business Development Coordinator
Roy Disney once said, "When your values are clear to you, making decisions becomes easier." While
he was speaking specifically about personal values, the same can be said of the corporate decision
making process. Most companies have vision and mission statements - clear statements developed with
the idea of guiding their organization's direction and portraying their future goals. With the recent
increase in corporate wrongdoing, it is duly important that companies develop and communicate a value
statement as well.
The values system of any organization is critical in defining the organization's vision and
character, both internally with its employees and externally with its customers and/or shareholders.
Many companies allocate time and resources to develop and articulate cohesive values statements. Other
companies maintain strong and consistent values structures without codifying or formalizing their
values statement. Some organizations refuse to acknowledge the impact of organizational values on
performance and success. Reluctance to embrace values initiatives is largely due to the fact that
measuring the impact of a values-based culture on performance indicators is a difficult and imprecise
science. This article argues in favor of strong values systems, with supporting research in three
areas: Work Environment, Employee Loyalty and Retention, and Organizational Reputation.
In our last issue
we highlighted our client, The Pennsylvania Workforce
Investment Board and the newly formed Pennsylvania Center for Health Careers and
their role in developing a strategy to address the nursing education system
capacity issues in the Commonwealth of Pennsylvania.
We are pleased to share that as of the release of this newsletter, the
recommendations from the strategy have been forwarded to the Pennsylvania
Governor's Office. As a result of these recommendations, the
Pennsylvania Higher Education Assistance Agency (PHEAA) Foundation
has made a $40 million commitment to address the state's critical health care
needs over the next four years. Specifically, $10 million will be allocated
during FY 2005 - 06 to support recommendations from the Pennsylvania Center for
Health Careers to increase the number of qualified nurse educators, expand the
number of clinical training opportunities for student nurses and implement a
plan to improve the pass rate for RN and LPN candidates.
For more information, the official press release is available at:
These materials have been prepared for educational and information purposes only. They are not consulting
or legal advice or opinions on any specific matters. Transmission of the information is not intended to create, and receipt does not constitute, a consultant-client
or attorney-client relationship between The Hill Group, Inc. and any recipient of this material. Readers should not act upon this information without seeking professional advice.
