Analyzing Johnson & Johnson's Bankruptcy Claim: Good Strategy or Bad Ethics?

Abstract

Pharma giant Johnson & Johnson announced plans in November 2021 to split its pharmaceutical and medical devices divisions and its consumer products division into two publicly traded companies. The month prior, Johnson & Johnson also created a spin-off company which immediately filed for bankruptcy, a savvy but ethically dubious way of sidestepping the growing number of lawsuits against the company over its role in the opioid crisis and the alleged cancer-causing agents contained in its baby powder. This case covers J&J’s latest strategic maneuvers and asks students to discuss them through the lens of strategic management and ethics.