What happened to J & J?

Attorney General Eric Holder, describing the $2.2 billion fine on Johnson and Johnson, was recently quoted as saying: “J&J displayed a reckless indifference to the safety of the American people.” This case follows over a decade of other accusation, indictments and fines on the company once revered as the gold standard for ethical business behavior. How can a company that had operated on such high standards for ethical behavior become so blatantly irresponsible, dishonest, unethical and even criminal in the space of forty years? I think it’s all a matter of effective executive stewardship. Click here to read more.

No law prohibits private organizations from selling proprietary information that may have the power to move financial markets to certain parties earlier than to other parties, even though such a sale might give one investor and advantage over another. Recently the Conference Board decided not to actually sell such early access to their consumer sentiment and leading indicator indices to paying clients. They believed that although there was no law prohibiting such a sale, it would give differential advantage to certain investors, intrude on the market, and therefore it would be wrong. They got it right! Read James Stewart’s New York Times article on this decision here.