Page 134 - Harnessing the Strengths

Dilemma 5: Specifi c Versus Diffuse ■ 117

A good example is Johnson & Johnson, which is one of
the companies that Jim Collins looks at in his book Good to
2
Great. For decades, this company made abnormally high

profits for its shareholders. Its returns were exceptionally
striking considering that its credo, written as early as 1943,
prioritizes shareholders last, after doctors, nurses, and
patients, suppliers and distributors, management, the local
and global community, and the environment. 3

Our Credo

We believe our fi rst responsibility is to the doctors,
nurses, and patients, to mothers and fathers and all others
who use our products and services . . .

Customers’ orders must be serviced promptly and
accurately. Our suppliers and distributors must have an
opportunity to make a fair profi t. We are responsible to
our employees, the men and women who work with us
throughout the world . . .

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 maintain in good order the property we are
privileged to use, protecting the environment and natural
resources . . .

Our fi nal responsibility is to our stockholders. When we
operate according to these principles, the stockholders
should realize a fair return.

(Shortened and adapted version)