For this assignment, I have chosen to evaluate the performance of Johnson & Johnson with respect to its stated values.
Johnson & Johnson is a Fortune 500 company that is primarily known for its consumer products, pharmaceuticals, and medical devices. The company has a strong focus on corporate social responsibility and has a set of core values that include “caring, respect, and responsibility.”
Three ways in which the primary stakeholders can influence the organization’s financial performance include:
- Shareholder activism. Shareholders have the power to exert pressure upon the company, voting on proposed projects and engaging management in issues related to sustainability and responsible behavior.
- Consumer demand: Consumers can influence the company’s financial performance by choosing to purchase products that align with their values and expectations of social responsibility. Nielsen’s report shows 66% global consumers will pay more for environmentally-friendly products.
- Regulation: Government regulations can also influence the company’s financial performance by setting standards for environmental and social responsibility. For example, the European Union’s recent regulations on the use of certain chemicals in cosmetics products affects the company’s production process and cost.
Two critical factors in the organization’s external environment that can affect its success include:
- Technological advancements: Technological advancements can have a significant impact on the company’s ability to innovate and stay competitive in the market. Johnson & Johnson is constantly investing in research and development to stay ahead of new technology trends, and to create new products and services.
- Global economic environment: The global economy can greatly affect Johnson & Johnson’s ability to sell its products in different countries. The fluctuation in the global economy can affect the purchasing power of consumers in different countries, which can lead to changes in demand for the company’s products.
Johnson & Johnson’s biggest success in recent years in terms of responding to a social issue is its commitment to sustainability. The company set high environmental targets and was recognized by many organizations for their sustainability efforts. One example is the company’s commitment to reduce its greenhouse gas emissions by 35% by 2020 as reported by the Environmental Protection Agency. This commitment not only contribute to the company’s reputation as a socially responsible company, but also help it to reduce its operational cost.
In conclusion, Johnson & Johnson has a strong set of values and commitment to corporate social responsibility, which is evident in its focus on sustainability. Stakeholders such as shareholders, consumers, and regulatory bodies have the power to influence the company’s financial performance and the company is aware of the impact that external factors such as technology and the global economy have on its success. Johnson & Johnson’s commitment to sustainability has been a notable success, which has helped to enhance its reputation as a responsible and sustainable company.