Johnson & Johnson’s McNeil and the 2010 Tylenol Recall

The conduct is different from McNeil’s 1982 recall when the 8 cyanide poisoning deaths occurred in Chicago. In that situation, McNeil earned the praise of the president, the loyalty of customers, and a get-out-of-jail free pass on everything since that critical decision to recall without hesitation $150 million in Tylenol.  How the mighty art fallen! In 2010, the FDA found metal particles in the company’s liquid Children’s Tylenol.  That can happen in production, but they key is to stop production, issue a recall, and ‘fess up.  Instead, however, the FDA is poised for criminal penalties against McNeil over the company’s lack of cooperation, mishandling of materials, lax documentation, and failure to follow up on customer complaints.[1]  An April FDA site visit to one plant found 20 violations of the agency’s good manufacturing processes. One violation was releasing 7 batches of cherry-flavored Infants’ Tylenol after employees had found metal from processing pistons in the product.

Perhaps the most troubling McNeil conduct came to light in a congressional hearing.  Documents seem to indicate that the company hired contractors to go out and purchase all the Tylenol products affected by production problems so that a recall did not have to be issued.[2] Oh, but the truth does percolate.  Now the contractor scheme shows intent.  Bad news concealed does not get better with time.  Now McNeil is facing both the recall and the loss of credibility with its regulator and its customers.  One good action in 1982 is not a free pass for missteps in the future.  This ethics thing is an ongoing challenge.


[1] Jonathan D. Rockoff, “J&J Lapses Are Cited In Drugs for kids,” Wall Street Journal, May 27, 2010, p. B1.

[2] Natasha Singer, “Johnson & Johnson Seen as Uncooperative on Recall Inquiry,” New York Times, June 11, 2010, p. B1.

About mmjdiary

Professor Marianne Jennings is an emeritus professor of legal and ethical studies from the W.P. Carey School of Business at Arizona State University, retiring in 2011 after 35 years of teaching undergraduate and graduate courses in ethics and the legal environment of business. During her tenure at ASU, she served as director of the Joan and David Lincoln Center for Applied Ethics from 1995-1999. In 2006, she was appointed faculty director for the W.P. Carey Executive MBA Program. She has done consulting work for businesses and professional groups including AICPA, Boeing, Dial Corporation, Edward Jones, Mattel, Motorola, CFA Institute, Southern California Edison, the Institute of Internal Auditors, AIMR, DuPont, AES, Blue Cross Blue Shield, Motorola, Hy-Vee Foods, IBM, Bell Helicopter, Amgen, Raytheon, and VIAD. The sixth edition of her textbook, Case Studies in Business Ethics, was published in February 2011. The ninth edition of her textbook, Business: lts Legal, Ethical and Global Environment was published in January 2011. The 23rd edition of her book, Business Law: Principles and Cases, will be published in January 2013. The tenth edition of her book, Real Estate Law, will also be published in January 2013. Her book, A Business Tale: A Story of Ethics, Choices, Success, and a Very Large Rabbit, a fable about business ethics, was chosen by Library Journal in 2004 as its business book of the year. A Business Tale was also a finalist for two other literary awards for 2004. In 2000 her book on corporate governance was published by the New York Times MBA Pocket Series. Her book on long-term success, Building a Business Through Good Times and Bad: Lessons from Fifteen Companies, Each With a Century of Dividends, was published in October 2002 and has been used by Booz, Allen, Hamilton for its work on business longevity. Her latest book, The Seven Signs of Ethical Collapse was published by St. Martin’s Press in July 2006 and has been a finalist for two book awards. Her weekly columns are syndicated around the country, and her work has appeared in the Wall Street Journal, the Chicago Tribune, the New York Times, Washington Post, and the Reader's Digest. A collection of her essays, Nobody Fixes Real Carrot Sticks Anymore, first published in 1994 is still being published. She has been a commentator on business issues on All Things Considered for National Public Radio. She has served on four boards of directors, including Arizona Public Service (1987-2000), Zealous Capital Corporation, and the Center for Children with Chronic Illness and Disability at the University of Minnesota. She was appointed to the board of advisors for the Institute of Nuclear Power Operators in 2004 and served on the board of trustees for Think Arizona, a public policy think tank. She has appeared on CNBC, CBS This Morning, the Today Show, and CBS Evening News. In 2010 she was named one of the Top 100 Thought Leaders in Business Ethics by Trust Across America. Her books have been translated into four different languages. She received the British Emerald award for authoring one of their top 50 articles in management publications, chosen from over 15,000 articles. Personal: Married since 1976 to Terry H. Jennings, Maricopa County Attorney’s Office Deputy County Attorney; five children: Sarah, Sam, and John, and the late Claire and Hannah Jennings.
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