Contemporary Business 14th Edition by Louis Boone, David Kurtz

Exercise 17

Johnson & Johnson: Caring for the World In its company statement of values, Johnson & Johnson promises that "We must maintain in good order the property we are privileged to use, protecting the environment and natural resources." That's a simple statement, but a complex pledge to fulfill. Johnson & Johnson makes a wide range of consumer products such as Band-Aids, Listerine, and Johnson's Baby Lotion. It also produces medical devices and prescription drugs. Doing so can result in a giant carbon footprint made by manufacturing emissions, chemicals in products and processes, and a tremendous use of energy. Yet Johnson & Johnson is committed to reaching its environmental goals and has put the management in place to do so.The firm sets new long-term goals every five years, under its "Healthy Planet" program. Some of these have included using direct purchase of low-impact hydro and wind power, on-site solar power and landfill gas, and purchasing renewable energy certificates from wind power and biomass facilities. Johnson & Johnson believes these practices not only benefit the environment, but also the company because it provides the firm with reliable, affordable sources of energy. In addition, Johnson & Johnson operates the largest fleet of hybrid vehicles owned by a corporation in the world.Part of the "Healthy Planet" program also involves being truthful about green advertising-avoiding so-called greenwashing. Company management believes in transparency-informing employees, suppliers, consumers, and shareholders of what's green and what's not. This also means being specific about sustainability measures. "Provide your consumers with real numbers that inform and empower them," says the Web site. And while Johnson & Johnson refuses to overstate its accomplishments, the firm is beginning to publicize its efforts so that consumers can share in them. For example, the company is the second-largest producer of solar panels in the United States, and was recently ranked number three on Newsweek's Green Ranking List. None of these goals could be achieved without support from Johnson & Johnson's leadership. Chairman and CEO William Weldon is committed to his company's sustainability initiatives as they relate to people and the planet. He writes, "More than ever, we know that caring for the health and well-being of people is not only an outstanding business but a mission that truly touches lives."
-What role does the CEO's leadership play in accomplishing Johnson & Johnson's green goals?