Business Ethics and Corporate Codes: Johnson & Johnson's Approach

Introduction to Business Ethics

Business ethics are the norms and practices designed to make the overall corporate image of a business appealing to the public (Hartman & DesJardins, 2014). Through these efforts, management directs its attention toward ensuring that all stakeholders view the business positively. The measures employed by business managers to enhance the company's image include corporate social responsibility, charitable activities, positive advertising, and the provision of high-quality goods and services. This study focuses on the measures that Johnson & Johnson Company has employed in pursuing business ethics to build a strong corporate image.

The Company Credo is a document formulated by the founding director of Johnson & Johnson Company. It articulates the company's core values and commitments in its pursuit of a strong corporate image. In this foundational document, the company chose to prioritize customers above other stakeholders. This prioritization has generated positive recognition for the company in the industry. The founding director's vision was to make company customers feel valued and, consequently, to retain them (Hartman & DesJardins, 2014).

Johnson & Johnson's Company Credo

The credo also documents the significant success Johnson & Johnson achieved during its transformation process. The company attained improved performance after implementing comprehensive promotion and customer relations strategies. This success testifies to the outcomes that sound corporate management practices can produce. It is evident that maintaining customer happiness and satisfaction is critical to business success. The managers at Johnson & Johnson have demonstrated a commitment to total employee and customer satisfaction, which has contributed to the company's success (Hartman & DesJardins, 2014).

The credo was intentionally designed to address managers and organizational leaders at the decision-making level. The founding director sought to educate organizational leaders on how best to manage enterprises—a responsibility held only by those in leadership positions. The Johnson & Johnson case illustrates that managers must recognize the importance of customers to the business at all times; profits are optimized when customers are satisfied (Hartman & DesJardins, 2014).

The credo successfully articulates the concept of business ethics. The evidence demonstrates that organizational goals and aspirations must be anchored in good customer service and treatment. The use of a real-world example—Johnson & Johnson, a company known to many—enhances the effectiveness of this communication. However, the credo's emphasis on customer service comes at the expense of other sound management policies, such as financial proficiency and robust human resource management. Despite this limitation, the document effectively defines business ethics and underscores its importance in corporate governance.

While the Johnson & Johnson credo establishes a customer-focused ethical framework, business ethics in modern organizations must extend beyond customer relations. Ethical standards are equally critical in financial management and human resource management—two functions most vulnerable to malpractice. Currently, in most organizations worldwide, corruption primarily occurs through finance and human resource departments. Therefore, comprehensive ethical codes must intensify focus on these areas to prevent fraud, embezzlement, discriminatory practices, and other violations that undermine organizational integrity and public trust.

Ethics Code Implementation and Impact

The topic of business ethics touches on knowledge every business leader must possess. However, this topic requires expansion to encompass financial management and human resource management, two critical areas prone to malpractice. Organizational leaders must develop and enforce ethical standards across all functions to build comprehensive compliance frameworks. The success of initiatives like Johnson & Johnson's credo demonstrates that articulated values drive positive outcomes, yet future ethics codes must address systemic vulnerabilities in financial and personnel management to fully protect organizational and public interests.

Broader Ethical Considerations in Management

Reference
Hartman, L. P., & DesJardins, J. R. (2014). Business ethics: Decision-making for personal integrity and social responsibility. McGraw-Hill Education. Chapter 4, The Corporate Culture—Impact and Implications, pp. 165–166.

Conclusion