Corporate Social Responsibility is truly the new buzzword. Well, isn’t it? Ever since the Government has mandated companies to dedicate a section of their profits for CSR activities, companies have voluntarily or involuntarily gone out of their way to come up with new and interesting initiatives, for becoming both socially relevant and to enhance their brand image. In such times, a very interesting case in point comes not from the present, but from a quarter of a century back. It is a beautiful tale of how Johnson & Johnson, the consumer giant, made a lasting impression on the minds of people through a document which was one of the earliest examples of CSR before it become mainstream and which would become their guiding principle in the years to come.
This document in question was named ‘Our Credo’ and was drafted by the then Chairman of J&J- General Robert Wood Johnson II- who was an institution in himself. He entailed the responsibilities of the company at large and did not treat CSR as something separate. He laid down four tenets, ordered according to their importance, for the company and examples over the years have suggested that they have been religiously followed.
Tenet 1: Responsibility towards customers and consumers
J&J pioneered the first commercial first aid kit which was intended for railroad workers, maternity kits to make childbirth safer for mothers and babies among many other such groundbreaking actions. They published and gave out first aid manuals with the kits and introduced band aids which did not require doctors’ supervision. This was because of their foremost concern about the people who trusted and used their products, including doctors and nurses.
Tenet 2: Responsibility towards employees
J&J was ahead of its times in providing its employees benefits before it was standard practice. These included on-site medical care, free hot meals for night shift workers, free educational classes, on-site exercise facilities and classes and comprehensive safety measures.
Tenet 3: Responsibility towards community as a whole
They have a tradition of providing disaster relief since 1900 when they donated money and products to the hurricane-struck people of Texas. They also were among the largest contributors to victims of San Francisco earthquake of 1906. In 1936, General Johnson used his own money to help the people of New Brunswick who were suffering from the Great Depression.
Tenet 4: Responsibility towards stakeholders
This occupied the lowest position of importance amongst others in the list. Profits for the stakeholders, despite being important for General Johnson, never took centre stage. However, under his leadership, the company went public and recorded profits because he believed in giving a fair return to people who trusted in the company. However, he reiterated that despite moving towards a new era, the philosophy would remain the same.
Small wonder that despite being in existence for over 125 years, J&J is as respected and profitable as it was back in the good ol’ times. With such a strong guiding philosophy relating to responsibilities of the company and individuals associated with it, the company could successfully weather all the storms of the past century.
This presents a very important lesson for companies today, who often see CSR as either a burden or some sort of a vehicle that could be abused and misused. The Credo is a great example of how a strong moral and ethical compass can help any company in any age to be both relevant to the society through its offerings and its initiatives, but also be profitable through these very measures. To end this, this legend about Robert Wood Johnson I, the founder of J&J would be apt:
When once convinced that an article which he could manufacture would save life and prevent suffering, he caused it to be manufactured and placed before the medical profession irrespective of any consideration of profit.
Management Canvas 