In September 1982, seven people died in the Cityplace Chicago area after swallowing Tylenol capsules that had been tainted with cyanide, replaced in their packaging, and put on store shelves for sale. Johnson & Johnson maintained that the tampering could not have been foreseen, and was therefore not its fault, but still recalled all Tylenol capsules and cancelled advertising at a pre-tax loss estimated at $100 million. It also developed a capsule-shaped tablet that would be more difficult to tamper with. In doing this, Johnson & Johnson

Question

Quizplus · Accepted Answer

Johnson & Johnson's decision to recall all Tylenol capsules, cancel advertising at a pre-tax loss estimated at $100 million, and develop a capsule-shaped tablet that would be more difficult to tamper with was a socially responsible way to handle the situation. They prioritized the safety of their customers and took steps to prevent future incidents, which is commendable. They did not necessarily admit product liability, but they still took responsibility for addressing the issue.

In September 1982, Seven People Died in the Cityplace Chicago