What are the arguments for and against Johnson & Johnson’s corporate philanthropy?
In what ways do the company’s donations help or harm the company and its shareholders and other stakeholders?
Specifically, what are the arguments for and against Johnson & Johnson’s contribution to Planned Parenthood?
Do you think Johnson & Johnson has an obligation to disclose fully all information regarding its corporate donations?
Why or why not?
Do you think the activists should use the shareholder’s resolutions to promote their views on social or ethical issues?
In general, under what circumstances are shareholder resolutions appropriate?
Johnson & Johnson has a long history of philanthropic contributions and donations to organizations that they feel are operating and benefiting these five areas:
women’s and children’s health,
community responsibility,
access to care,
advancing health care knowledge, and
global public health
4. What are the arguments for and against Johnson & Johnson’s
corporate philanthropy?
In what ways do the company’s donations help or harm the
company and its shareholders and other stakeholders?
Business Environment
QUESTION 1
5. ARGUMENTS IN FAVOROF JOHNSON & JOHNSON’S CORPORATE PHILANTHROPY
Corporate citizens to
take responsibility for
acting to facilitate social
progress
Because they are
from the health care
field
1 2
Corporate contributions
program was essential to
its mission and values
3
Assumed that many
stakeholders are
supportive of this
commitment
4
6. ARGUMENTS AGAINSTOF JOHNSON & JOHNSON’S CORPORATE PHILANTHROPY
Money donated
belongs to Johnson &
Johnson’s diverse
stockholders
Investors invests
through mutual funds
and therefore will not
be aware
1 2
Johnson & Johnson is a
consumer products
company
3
It is vulnerable to
boycotts by groups
that disagree with its
choices
4
7. Specifically, what are the arguments for and against Johnson &
Johnson’s contribution to Planned Parenthood?
Business Environment
QUESTION 2
8. ARGUMENTS IN FAVOROF JOHNSON & JOHNSON’S CONTRIBUTION TO PLANNED PARENTHOOD
1 2 3 4
Majority of Planned
Parenthood’s programs
fulfill the company’s
goals
Support women’s health,
access to care and advancing
health care knowledge
Planned Parenthood
clinic is the only
resource for certain
essential health
services
Some stakeholders
support a woman’s
right to choose
abortion
9. ARGUMENTS AGAINSTOF JOHNSON & JOHNSON’S CONTRIBUTION TO PLANNED PARENTHOOD
1 2 3 4
Stakeholders believe
that abortion is murder
and immoral
Pro-life organizations
promoted a boycott of
Johnson & Johnson’s
products
Mutual funds decided
against buying Johnson
& Johnson
In protest of these
corporate donations
11. Do you think Johnson & Johnson has an obligation to disclose fully
all information regarding its corporate donations?
Why or why not?
Business Environment
QUESTION 3
12. OBLIGATION TO DISCLOSEALL INFORMATION REGARDING ITS CORPORATE DONATIONS
because they have to consider what their shareholders are proposing while at the same time
keeping the company’s best interest as the top priority
13. IMPLEMENTING POLICYALL THE CHARITABLE CONTRIBUTION ON TO THE COMPANY WEBSITE
Johnson & Johnson should issue a statement to their shareholders, as well as to the public on to
why they invested in Planned Parenthood.
14. INCLUDE THE BENEFITSEXPLAIN THE PURPOSE OF PLANNED PARENTHOOD SO THAT SHAREHOLDERS
CAN UNDERSTAND THE ORGANIZATION
This will enlighten the shareholders and way their votes to agree with Johnson & Johnson instead of
going against them.
15. MAY LOSE CONSUMERSEXPLAIN THE PURPOSE OF PLANNED PARENTHOOD SO THAT SHAREHOLDERS
CAN UNDERSTAND THE ORGANIZATION
in the short run but they will have done what the shareholders wanted and they may possibly gain
future consumers because of that choice
17. Do you think the activists should use the shareholder’s
resolutions to promote their views on social or ethical issues?
In general, under what circumstances are shareholder resolutions
appropriate?
Business Environment
QUESTION 4
18. ACTIVISTS SHOULD NOT USESHAREHOLDER’S RESOLUTION TO PROMOTE THEIR SOCIAL OR ETHICAL VIEW
19. ACTIVISTS SHOULD NOT USESHAREHOLDER’S RESOLUTION TO PROMOTE THEIR SOCIAL OR ETHICAL
Tracking shareholders will
bring extra burden for the
company and not feasible
A business primarily
focus on its customer’s
value and try to align
itself
1 2
Anyone can be a
shareholder with the
company
3
Company may have to
follow its own path or
course to maximize its
profit
4
20. USE OF SHAREHOLDER’S RESOLUTIONCAN BE USED IN CASES WHERE THE COMPANY DIRECTLY OPPOSE
21. USE OF SHAREHOLDER’S RESOLUTIONCAN BE USED IN CASES WHERE THE COMPANY DIRECTLY OPPOSE
Directly oppose the general
social belief and welfare of
the society
If the company continues
to spoil the social
harmony
1 2
If company does
something that goes
against all shareholders
3
In such cases,
resolution may come in
handy
4
24. Johnson & Johnson has a long history of philanthropic contributions
and donations to organizations that they feel are operating and
benefiting these five areas:
• women’s and children’s health,
• community responsibility,
• access to care,
• advancing health care knowledge, and
• global public health
25. How do you think Mc Cafferty should vote on this shareholder
proposal, and why do you think so?
Business Environment
QUESTION 5
26. MCCAFFERTY SHOULD THINK ABOUT JOHNSON
& JOHNSON AND HOW IT WOULD RECOVER
ITS MARKET SHARE LOST
31. THE SHAREHOLDERS SIMPLY REQUESTED THAT
THE BOARD OF DIRECTORS IMPLEMENT A
POLICY LISTING ALL THE CHARITABLE
CONTRIBUTIONS ONTO THE
COMPANY’S WEBSITE
32. IF JOHNSON & JOHNSON DOES NOT POST THE
CONTRIBUTORS IT BECOMES AN ISSUE OF WHY
THEY FELT THE NEED TO HAVE TO HIDE THAT
INFORMATION FROM CONSUMERS
33. IF JOHNSON & JOHNSON WERE TO STICK BY
THEIR CREDO, THEN THEY NEED TO PROTECT
THEIR STOCKHOLDERS FROM ANYTHING THAT
COULD THREATEN THEIR BUSINESS AND TAKE
AWAY FROM GROWTH