Johnson & Johnson and the Human Life internationalS h a r e h o l d e r P r o p o s a l

Business EnvironmentPRESENTATION

Business EnvironmentPRESENTATION

UMME HAFSA MOSAMMAT SHEFA – 41531051ASIF MAHMOOD ABBAS - 41531047KAZI TANVIR AHMED – 41531001

NANI GOPAL KAR – 41531029

KAZI TANVIR AHMED – 41531001

PRESENTER

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 EnvironmentQUESTION 1

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 2Corporate

contributions program was essential to its mission and values

3Assumed that many

stakeholders are supportive of this

commitment

4

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 2Johnson & Johnson is a consumer products

company

3It is vulnerable to

boycotts by groups that disagree with its

choices

4

Specifically, what are the arguments for and against Johnson & Johnson’s contribution to Planned Parenthood?

Business EnvironmentQUESTION 2

ARGUMENTS IN FAVOROF JOHNSON & JOHNSON’S CONTRIBUTION TO PLANNED PARENTHOOD

1 2 3 4Majority 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

ARGUMENTS AGAINSTOF JOHNSON & JOHNSON’S CONTRIBUTION TO PLANNED PARENTHOOD

1 2 3 4Stakeholders 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

NANI GOPAL KAR – 41531029

PRESENTER

Do you think Johnson & Johnson has an obligation to disclose fully all information regarding its corporate

donations?Why or why not?

Business EnvironmentQUESTION 3

OBLIGATION TO DISCLOSE ALL 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

IMPLEMENTING POLICY ALL 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.

INCLUDE THE BENEFITS EXPLAIN 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.

MAY LOSE CONSUMERS EXPLAIN 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

UMME HAFSA MOSAMMAT SHEFA – 41531051

PRESENTER

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 EnvironmentQUESTION 4

ACTIVISTS SHOULD NOT USESHAREHOLDER’S RESOLUTION TO PROMOTE THEIR SOCIAL OR ETHICAL VIEW

ACTIVISTS SHOULD NOT USESHAREHOLDER’S RESOLUTION TO PROMOTE THEIR SOCIAL OR ETHICAL VIEW

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 2Anyone can be a

shareholder with the company

3Company may have

to follow its own path or course to

maximize its profit

4

USE OF SHAREHOLDER’S RESOLUTIONCAN BE USED IN CASES WHERE THE COMPANY DIRECTLY OPPOSE

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 2If company does

something that goes against all

shareholders

3In such cases,

resolution may come in handy

4

ASIF MAHMOOD ABBAS – 41531047

PRESENTER

McCafferty

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

How do you think Mc Cafferty should vote on this shareholder proposal, and why do you think so?

Business EnvironmentQUESTION 5

MCCAFFERTY SHOULD THINK ABOUT JOHNSON & JOHNSON AND HOW IT

WOULD RECOVER ITS MARKET SHARE LOST

MCCAFFERTY SHOULD CONSIDER ON WHAT COMPANIES THEY GIVE

CHARITABLE CONTRIBUTIONS TO

MCCAFFERTY SHOULD UNDERSTAND THAT A COMPANY HAS OBLIGATIONS TO

ITS CONSUMERS, COMMUNITY, AND SHAREHOLDERS

CONSIDERING ALL THE ABOVE FACTS, I THINK MCCAFFERTY SHOULD VOTE TO

THIS SHAREHOLDER PROPOSAL

CONCLUSION

Business Environment

THE SHAREHOLDERS SIMPLY REQUESTED THAT THE BOARD OF DIRECTORS IMPLEMENT A POLICY

LISTING ALL THE CHARITABLE CONTRIBUTIONS ONTO THE

COMPANY’S WEBSITE

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

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

PLANNED PARENTHOOD SHOULD STILL BE DONATED TO AND SUPPORTED BY

JOHNSON & JOHNSON

THANK YOUW E A R E O P E N F O R Q U E S T I O N S