Johnson & Johnson (William C. Weldon, CEO) is the most valuable healthcare “Drugs and Biotechnology” company in the world, according to Forbes recent list of the largest 2000 public companies. Pfizer’s sales are higher ($213 billion vs J&J’s $95 billion), but J&J makes more money ($12.3 billion vs $8.6 billion) and is worth more in the market ($174.9 billion vs $ 143.2 billion). Perhaps that’s partly because J&J’s business includes over-the-counter consumer health products and medical devices and diagnostics as well as prescription drugs.
I like to think that it is also partly because of culture. J&J is famous for its Credo, first drafted by Robert Wood Johnson, chairman and member of the founding family, in 1943. It’s been modestly updated since, but I love its energy. From everything I’ve ever heard about them, I believe J&J takes it very seriously. I hope they would not mind my quoting it here in full.
Our Credo
We believe our first responsibility is to the doctors, nurses, and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs, in order to maintain reasonable prices. Customers’ orders must be services promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit.
We are responsible to our employees, the men and women who work with us throughout the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and safe. We must be mindful of ways to help our employees fulfill their family responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide competent management and their actions must be just and ethical.
We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens – support good works and charities and pay our fair share of taxes. We must encourage civic improvements and better health and education. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources.
Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed, and mistakes paid for. New equipment must be purchased, new facilities provided, and new products launched. Reserves must be created to provide for adverse times. When we operate according to these principles, the stockholders should realize a fair return.
Johnson & Johnson.
I noticed in looking at J&J’s website that out of 11 directors on its board, three are women. They include the former CEO of Xerox and two Ph.D academics: the president of the University of Michigan and an MIT professor. I would like to see more women directors on major boards, but my sense is that 3 out of 11 is a better-than-average ratio for a large company, and these directors seem highly qualified.
J&J’s business comes roughly half from the United States ($31 billion in sales out of $62 billion total), 26% from Europe. Eight percent ($5.2 billion) comes from the Americas outside the U.S.; my inference is that much of this will come from Canada. Sixteen percent ($9.9 billion) comes from Asia and Africa. I conclude from this that, like many health care companies, J&J still has ground to cover to make itself truly global, and to fully engage a strategy for dealing with developing markets. I look forward to watching its progress. Given its Credo, I wish it great success.
The growing list of Interesting Communities of Leadership is athttp://lovingwork.org/interesting-communities-of-leadership
Scott is scott@lovingwork.org and @scottdowns3 on Twitter.
community · culture · customers · engagement · excellence · innovation · Johnson & Johnson · leadership · people · service · sustainability · values
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