| Home > Resources > Leadership > Executive Summary > Case Studies Case Study 1982, Executives Put Public Safety First In the fall of 1982, Johnson & Johnson executives faced a terrifying scenario: 7 people in the Chicago area had died after taking Extra-Strength Tylenol capsules that an extortionist had laced with cyanide. Setting consumer safety as the company's priority, managers promptly halted Tylenol manufacture, withdrew the product from shelves worldwide, and invited customers to return their product for refund or replacement. The company destroyed $100 million in inventory, saw an 87% drop in market share of painkillers, and faced expert predictions of the brand's demise. After a brief period and with an advertising and media "blitz," Johnson & Johnson reintroduced Tylenol products with tamper-resistant packaging. In response to the company's civic-minded behavior, consumer confidence rebounded, quickly returning market share to pre-crisis levels.
Reference Lanska DJ. The mad cow problem in the UK: Risk perceptions, risk management, and health policy development. J Public Health Policy 1998: 19(2): 160-83. |
