Johnson & Johnson Company Shareholders and Stakeholders

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Johnson & Johnson Company: Shareholders and Stakeholders
Johnson & Johnson Company: Shareholders and Stakeholders Essay
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Updated: Jul 15th, 2022
Shareholders involvement
Stakeholders-Shareholders financial conflict
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Johnson & Johnson is one of the world renowned pharmaceutical manufactures. The company is widely known for its role in manufacturing and selling healthcare products. In this regard, the company manufactures and sells medical and diagnostic devices. However, the devices are medically ascertained through relevant public health authorities. Johnson & Johnson role in selling prescription drugs is considered one of its core services. Services offered by the company include research activities for its own benefit and on behalf of other medical institutions. The companys role in providing consultancy services to patients has been impeccable for years. The company provides laboratory services to business partners like medical facilities and research institutions. In addition, the companys role in providing humanitarian aid during emergencies is renowned.

Shareholders involvement
Patients are considered end consumers in the companys supply chain. In this case, consumer interest in buying quality and safety health care products is unrivaled. In addition, patients buy the products for personal use and not for resale. Therefore, patients require understanding how products are made and especially on clinical trials. On the other hand, doctors and nurses form an important group that uses the companys products. In this regard, doctors and nurses interest is to ensure products used are safe and consistent with medical standards. In addition, doctors and nurses are interested in clinical research and findings associated with the companys products. It is in the interest of doctors and nurses to know how the products work. This is to ensure that health and safety issues are addressed as required during drug manufacturing.

Employees are an important group of individuals to Johnson & Johnson Company. Employees range from doctors, nurses, engineers, marketers, accountants, managers and support staff. It is through employees that all functions of the company are made possible. In this respect, employees satisfaction, as well as performance is critical and affects the company. Employees interest in the companys operations and safety measures are well founded. Moreover, employees are interested in how the company pays salaries and compensation. It is recommendable that the employee diversity in terms of skills, competency, race, gender and age be addressed. Johnson & Johnson company has an employee diversity policy that addresses such concerns. Employee training and development in the company is regarded as a company policy. In other instances, employees are updated on the companys business progress especially in marketing, research and development.

The government is a stakeholder concerned with legislation and regulations in the pharmaceutical industry. It is the governments role to ensure pharmaceutical companies engage in activities that conform to clinical standards. In this regard, the government should establish policies and laws on marketing, safety and health standards. The government involvement in matters related to research and development of medical products and services is critical. It is in the domain of the government to partner with pharmaceutical manufacturers in providing the public with health care products and services. In this regard, government involvement in innovating new health care strategies and interventions is critical for the industry. The government should facilitate pharmaceutical companies through subsidies in delivering health care services and products to the masses. On-site manufacturing evaluations and reporting is the role of the government.

Stakeholders-Shareholders financial conflict
There is a likelihood that patients will engage into a conflict with shareholders if products availed do not . In this regard, patients will feel shortchanged and would disregard the manufacturer as a fraud. On the other hand, value-for-money products exert pressure on shareholders who want to derive profits from the pharmaceutical business. Eventually, manufacturers will be forced to make high quality products that are expensive. It is natural for patients to prefer cheap and affordable products and services. On the other hand, conflicts between shareholders and doctors, nurses and the hospital emanate from various dimensions. For example, conflict based on budget allocation and control in activities such as product development, marketing and clinical trials is inevitable. In addition, conflicts between doctors, nurses and shareholders become rife when control over budget and finance is critical.

It is in the interest of all employees to benefit from good salaries and compensation. In this regard, constant conflicts between employees and shareholders who do not want to compensate and pay reasonably escalate and affect business performance. In other instances, conflicts on how to establish a safe working environment are evidenced between employees and shareholders. Governments conflict with shareholders in matters related to paying taxes is inevitable. Conflicts on how taxes should be remitted to the government is a global issue. Shareholders want a tax rate that considers the nature of business and market related forces. Public health standards and issues related to the same are contentious. In this regard, the government is in constant conflict with pharmaceutical companies for not following procedures. Sometimes, court suits are inevitable in such cases.

Improving on quality and safety concerns requires necessary technology and personnel. In this regard, extra caution always causes pharmaceutical manufacturers, additional costs. Therefore, as patients and customers benefit from this decision, manufacturers bear the loss on extra expenditures. A decision to use short distribution channels attracts wholesalers and retailers who facilitate distribution of products in the market. However, consumers suffer from increased product prices. On the other hand, the manufacturer and affiliate shareholders benefit from reduced marketing and selling cost. In addition, increased regulation and standard policies improve on public health service delivery. However, the same has a negative impact on finance required by shareholders to improve on health care products and services. For example, additional expenses on new manufacturing technology and machinery are required when conforming to new regulations and public health policies.

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A decision to outsource functions renders stakeholders such as employees redundant, as they face possible retrenchment. On the other hand, outsourcing can reduce shareholders expenditure on excess personnel and non-value adding services. Through outsourcing, shareholders in this case the manufacturer benefits from quality products and services offered by other professionals. A decision to reduce employees salaries can result to constant management-employee conflicts and possible workers strike. As problems persists in a company, the presence of a business leader is required. Normally, a business leader is to establish the dialogue between conflicting parties. Using legal channels as the last resort in solving problems is advised when saving on time and cost becomes paramount. On the other hand, a business leader is required to establish a change management policy. A change management policy is necessary when dealing with multiple change-based controversies.

Belcourt, M. (2006). OutsourcingThe benefits and the risks. Human resource management review, 16(2), 269-279.

Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of management journal, 38(3), 635-672.

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Reading time 4 min
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