Case | HBS Case Collection | October 2010

On Weldon's Watch: Recalls at Johnson & Johnson from 2009 to 2010

by Clayton S. Rose, Sandra J. Sucher, Rachel Gordon and Matthew Preble

Abstract

In October of 2010, Johnson & Johnson (J&J) was unable to extricate itself from a year long recall crisis that had subjected the firm to criticism from Congress and regulators, resulted in the resignation of one of the firm's most senior officers, and cost hundreds of millions of dollars from lost sales of J&J brands. This case examines the series of recalls and the strategic and cultural changes at the company that may have led to the recalls. It allows for an exploration of the reality of the iconic J&J "Credo"—its long standing set of corporate values.

Keywords: Decision Choices and Conditions; Values and Beliefs; Leadership; Crisis Management; Corporate Social Responsibility and Impact; Organizational Change and Adaptation; Organizational Culture; Quality; Pharmaceutical Industry;

Citation:

Rose, Clayton S., Sandra J. Sucher, Rachel Gordon, and Matthew Preble. "On Weldon's Watch: Recalls at Johnson & Johnson from 2009 to 2010." Harvard Business School Case 311-029, October 2010.