The Business of Pain: Johnson & Johnson and the Promise of Opioids

This case is designed to provide an engrossing overview of stakeholder capitalism through a vigorous discussion of the conflicts that can arise when trying to serve multiple stakeholders. In 2007, Johnson & Johnson’s (J&J) subsidiary Janssen has to decide whether or not to launch a new opioid painkiller—the first such launch in 25 years—amidst growing concerns about opioid abuse in the U.S. The (A) case starts with the history of human interaction with opioids, the most effective painkillers known, from the Sumarians through the innovation of controlled release opioids, lead by Purdue Pharma’s OxyContin. By the time J&J is ready to launch a new opioid, this innovation has lead to increased opioid addiction, complicating the launch decision. Benefits to customers are now murky, employees may no longer feel the company is living up to its Credo, and society as a whole may be harmed. The (B) case summarizes the fallout of the opioid crisis, and how J&J’s participation in that crisis has affected their brand, and society.