Executive Summary

The aim of this report is to critically analysis the two companies’ business operation and social report in a best possible manner.  It may include the firms such as Johnsons & Johnsons and Reckitt Benckiser.

However, these both brands are well established in their respective and huge social acceptances. In regards to this, the differences between the two companies are identified in term to dealt with situation, sustainable development goals, social accounting approach and social reports which provided by these companies.

These finding are presented based on conclusion which stated that both Johnson & Johnson and Reckitt Benckiser is contributing towards the society and environment equally through undertake various initiatives and programmes.

Identify the company’s core business activities and countries where they operate

There are two selected firm of same industry but different home country. These are Johnsons and Johnsons and Reckitt Benckiser. However, Johnsons and Johnsons is an American medical firm which is multiple product line such as pharmaceutical and consumer packaged goods etc.

It operates its business from it’s headquarter which is in New Brunswick, New jersey, USA. However, Johnsons and Johnsons have approx. 250 subsidiary firms which operate in 60 countries in over 175 countries (Johson-Johnson, 2018). However, the firm core business objective is to offer quality in its product through enhances the customer services.

Other than that, Johnson & Johnson offers the world largest range of consumers healthcare products such baby skin care, oral care, wound care and over-the-counter and women’s health products feature brands etc. the firm is also involved in its own manufacturing units and having an eight innovation centre. This way firm able to get high market share in global market.

On the other hand, Reckitt Benckiser is British multinational consumer goods which have a headquartered in Slough at England. It also deals in the segment of health and hygiene or home products. It also involved its operation in nearly 200 countries (Reckitt Benckiser, 2019).

Besides its core products, it also engaged in the further food categories such as food, pharmaceutical and portfolio brands. In regards to this, it follows the strategy based on highly focused on portfolio investment. However, diversification business model helps it to generate revenue up to 70%.

However, Reckitt has 19 sub brands which hold powerful position in market. Thus, this firm also listed on the London stock exchange and is a constituent of the FTSE 100 index. Therefore, this firm mark its unique position in the British market which results in value addition in the form of high competitive advantage.

Both the given firms have mark good position in its respective country like USA and UK and serve the quality product portfolio and enhance the customer loyalty.

Analyse the range of issues deal in their social reports in context to both countries

There are different range of issues that faced by both the firm while performing its operations. Both the firm uses different processes and methods to deal with such limitation. Likewise, Johnson & Johnson faced the problem in safety concern in its talc Powder.

The sustainability report of Johnson & Johnson stated that Johnson & Johnson management team have familiar about the safety issues in its powder for much longer than previously revealed. This result in fallen of share by more than 10% and it directly impact the profitability of firm.

In respect to such controversy, J&J address such situation through release an article in newspaper by mentioning that J&J has conducted the safety test over the years and the test clearly shows that talc is free from asbestos and completely safe for children’s as well as adults (Mazumdar, 2016).

Besides that, firm is also stated that it ready to pay the venality if the test reporting proved that Talc powder includes any toxic substances. Thus, such practice allows the firm to regain its investors or customer loyalty.

However, the another area that influences the J&J operation is the reduction of stock and Drug pricing as USA government investigates the reason of high drugs prices and wants to reduce them. Thus, such areas affect the firm ability to gain profitability. In regards to such issue, J&J develop different plans for overcoming this situation through use of outsourcing and partnership strategy.

In context to Reckitt Benckiser, it is identified that firm has a involvement in Palm oil procurement from Wilmar International and it is found that Wilmar achieves the palm oil from profits of child labour and forced labour towards working on toxic banned chemicals.

This create lots of problem among the children’s and workers related to skill allergy and asthma etc. such areas raised question on Reckitt profitability and business operation. In respect to such situation, it stopped its partnership with Wilmar International for procuring the palm oil refineries (McGreal, 2016).

Besides that, Reckitt is also accused in the healthcare sector as it uses the unlawful, multi-pronged scheme using patent laws and false safety concerns to dominate the market and maintain an artificially high price of Suboxone. In regards to this, firm is accused for increasing the price of its tablets which is 50% more expensive than the film in order to encourage the patients and doctors to switch.

In concern to such issue, Rickitt expressed its concern for the Food and Drug administration about children getting access to Suboxone tablets in order to delay approval of generic versions of drug. It also present the drug reports to improve its goodwill in UK market.

Hence, such issues both firm faced and same way it used different process to dealt given issues.

Discuss the sustainable development goals in context to the companies CSR/sustainability reports

As both the companies Johnson and Johnson and Reckitt Benckise are pharmaceutical and medical device companies so their responsibility towards sustainable development goals is greater than other industries.

In regards to this, improved health services, decent work & economic growth and women and children health is relevant SDG for both the companies to focus and making efforts towards achieving them. As their products and services are directly impact the consumer’s health and these are well established products (Sachs, 2012).

It is also very important to achieve their goals in its business region of United Sates as recently it found that Johnson and Johnson’s products used the mineral talc includes the asbestos cause the skin and ovarian cancer.

Similarly with Reckitt Benckise as it identified that company has used the unlawful safety concerns to dominate the market and increased the price of medicines.

In order to achieve the SDG goals Johnson and Johnson companies has started the various CSR programmes like MomConnect, mMitntra, Grameen Foundation and War on Worms etc. Under which 60 Million are targeted to provide the support and support tools for good health and 15.5 Million (26.6%) women and children are benefitted and progressing towards in this direction.

It is continuously aiming at producing the asbestos less pharmaceutical products. Apart from this, 218 Million school children around 30 countries received VERMOX treatments and approximately 38,500 people and 630 receive the HIV prevention therapy (Le Blanc, 2015).

Similarly, it is also doing well in terms of decent work and economic growth as it has generated 30% Net revenue through DvM area (Reverte, 2012). It has also double up the number of females in senior staff and improved the health services by maintaining the transparency in ingredient used by 63% in 2016. At the same time the most important goal achievement is zero % waste to landfill.

Thus it can be said that both the companies have partially achieved the SDG goals and moving further in this direction.

Discuss the social accounting approach in context to both the companies as per the zadek et al., (1997) criteria

According to Zadek et al. (1997), it is analysed that social accounting approach is considered as an action related to business ethics. In the social accounting, different social disclosures documents are addressed such as organisation goal action towards achieving the sustainable performances where sustainability reflects organisation capability to retain the environment and community status quo.

In regards to estimate the firm social accounting approach, CSR reporting has been process of communication the internal and external social and environmental impacts of organisation economic actions to particular interest group in society (Johnson & Johnson, 2016).

This allows to measuring the firm social accountability towards the society. Other than that, this approach also includes the Workplace practice, human right and community practice etc. based on this approach, it becomes easy to analyse the firm social accountability.

In respect to the study, it is identified that Johnson & Johnson released its sustainability report in every year. In this, it presents the areas which firm has done for society and environment.

However, the sustainability approaches which firm tend to focus are the people, places and practices. It offers the healthier product to people so that these help the people to free from any type of health problems. However, it also involves in innovation for developing healthier culture (Asif et al., 2013).

At the same time, it focuses more key SDG goals such as impact positively of women and children health, workforce’s health and environmental health etc. at the same time, J&J also involved to address the problem related to environment which is growing rapidly and it includes minimum carbon emission from the manufacturing unit of J&J.

Besides that, firm also promotes lots of plantation of trees. It discloses its sustainability report every year by mentioning new areas which it explored.

On the other hand, Reckitt Benckiser is also undertakes the social accountable approach as it also discloses it’s the sustainability report by defining its key areas. It includes the better business, better society and environment (Reckitt Benckise, 2017).

In regards to sustainability report of Reckitt, it involved in protecting the environment through include the SDG goals which underline the clean water and sanitation, zero hunger and gender equality.

Moreover, the firm report also stated that it follows the global product lifecycle footprint as it reduces the additional department which incurred expenses. Furthermore, it also use advanced technology to control the emission of carbon from its manufacturing units. But still Reckitt come into the controversy like palm oil procurement which it takes from Wilmar through making deforestation.

This practice impact the company image in a negative manner. Otherwise, firm is properly follows the social accountable approach through timely releasing of firm actions towards society and environment (Kemp et al., 2012).

Discuss the social report of firm in regards to reflect the values

In respect to this topic, the values of both the firm are analysed based on its mission, vision and value statement. Likewise, Johnson & Johnson vision is to provide unique experiences to customers through offer that solution which create better and healthier world. Similarly, its missions are to make diversity and inclusion for doing the business in a best manner.

In regards to brilliant mix of people are achieved for providing best quality to customers. The focus on high quality is the value which offers to customers (Milne & Gray, 2013). In respect to such areas, J&J fulfil its vision & mission through taking several steps such as it invest in new low carbon plan for protecting the environment.

Furthermore, it introduces the formal energy management program to reduce CO2 emission (Ali et al., 2017). Other than that, it concentrates on the recycle, reuse method for providing the best quality product to customers. It also build healthcare program through trained underprivileged girls as healthcare assistants.

In a similar manner, Reckitt Benckiser vision is become the global leader in consumer health, hygiene and home segment through provide better solution. Its mission is to retain the position and improves the sales by serving each market and promotes the welfare of society (Cho et al., 2015).

In respect to this statement, firm performed various actions such as promote good health & wellbeing through develop gender equality and create the clean water & sanitation at workplace. Thus, the firm social report presents that business is moving as per its value statement.

Reflection of group discussion

On the basis of group discussion, major finding are occurred. It includes both firm Johnson & Johnson and Reckitt Benckiser are performing its business operation properly in global platform. Both firms also dealt the problems in an appropriate way due to which it’s still have high competitive advantages in its respective market like USA and UK.

However, majority of people in group believed that Johnson & Johnson has more expertise and fulfil sustainability approach due to which it serves the society and environment in more proper way. But few members in group found Reckitt more suitable in regards to fulfilling the society needs but due to attachment of high controversies with the firm impact its goodwill (Thijssens et al., 2015).

Overall, the group members concluded that both firm is showing its responsibility towards the society and increasing environmental issue. These firms also follow the social accountable to a large extent through timely disclosure of sustainability report.


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