In the early 1980's, 7 people in the Chicago area were poisoned by Tylenol capsules laced with cyanide. Although the company's investigation showed that the tainted capsules had not been tampered with at the factories where they were produced, Johnson & Johnson took immediate action through a massive recall and offered a $100,000 reward for information leading to the arrest of the person or people responsible. Industry experts believe that this led to the brand's ability to recover from the negative publicity surrounding the "Tylenol Murders". Johnson & Johnson's actions illustrate:a) The power of the Food and Drug Administrationb) How managing negative publicity is impossiblec) The importance of sacrificing short-term profits for long-term credibilityd) The need to combat negative publicity with facts in order to maintain sales levelse) The importance of sustainability on public perception and the bottom line

Answer: c) The importance of sacrificing short-term profits for long-term credibility.

Explanation:

The Chicago Tylenol Murders of September-October 1982 shocked the United States and claimed the lives of 7 people and was due to a poisoned Tylenol capsules which is produced under a Johnson and Johnson subsidiary.

Johnson & Johnson have been hailed as heroes for their response to the issue because even though the facts showed that they were in the clear, they still not only sacrificed huge short term profits by recalling thousands of tablets but by also offering a massive reward for anyone who would come forward with information that would lead to the arrest of perpetrators.

This act of Corporate Altruism saved the company's brand because people were humbled by the lengths Johnson & Johnson went to.

This endeared the Johnson & Johnson brand in their hearts as a Credible company and proved infinitely beneficial in the long run.

This proves that sacrificing short term profits for long term credibility is quite beneficial.