Investor Relations

Johnson & Johnson’s Investor Relations

The Investor Relations part of a company is very important. It is usually a company’s goal to make sure that investors understand the value of the company’s stocks and bonds and that the prices reflect the company’s performance and potential.

Johnson & Johnson knows that this past year was a challenging one and on the opening page of their annual report they wrote the following:

"In one of our most challenging years, the people of Johnson & Johnson delivered results that were as impressive as any we have ever achieved. We are stronger today than a year ago, with outstanding new products, robust pipelines and talented people—people who remain inspired and united by a common purpose . . . caring for others."

I thought this was an awesome way for J&J to open up their annual report. Annual reports are supposed to reflect upon the past year, and by writing this they are crediting those who they value most before getting into the actual numbers and statistics of their earnings. I think this is very important because J&J doesn't want to be perceived as a company who cares strictly about numbers, because they are not. They are driven by the gratification of helping others. The first half of J&J's annual report is personal stories, pictures and introducing to the public what the company stands for. Therefore, the annual report is more of a marketing piece. J&J utilized their annual report to their full advantage. They used it as an opportunity to tell their story and showcase their achievements. I honestly don't see anything wrong with that. J&J is an awesome company and they are proud if it. J&J are saving many lives and providing opportunity to many people around the world. That is huge! A thumbs up to Johnson & Johnson.




The letter to the Shareholders from J&J’s CEO, William C. Weldon is a great PR vehicle. The main messages have to deal with the fact that although J&J had a rough year due to the economy, they were still able to prevail and they always kept in mind their mail goal which is to serve their publics and keep them healthy. I think investors will feel reassured when they read this letter. Weldon uses words such as “we” “our” “strength” “promise”, etc. He uses these words so show his investors that they are important to him and that we are all in it together. He wants his investors to know that J&J is going to keep fighting, even when they run into a roadblock. Weldon is showing his investors that they will succeed in the long run. He also constantly reminds his investors of their credo values which is also reassuring. The tone of the letter is “business like.” Weldon wants his investors to know that he is serious about the success of the company, yet the letter also has a friendly and welcoming feel. The letter is easy to follow. It is very informative and not apologetic at all. He is not focusing on any negatives but really stressing the positive aspects of the year. I think the letter is very credible and believable. If I had stock invested in J&J I would be pleased after reading this letter. Weldon has high expectations for the future of the company, and I believe that he and the company will triumph. He is very determined to make a difference in the lives of people around the world.

William C. Weldon

Johnson & Johnson CEO

Johnson & Johnson’s most recent news release regarding its earnings is from January 26, 2009. This article displays J&J’s 2009 Fourth-Quarter and Full-Year Results. I would say that the letter is written more in technical language. I honestly don’t understand a word of it. I am not an investor relations genius, but if someone can’t even get through the first paragraph then that’s not good because it may turn people away from it. In the press release the CEO wrote the following:

“In a year of tremendous challenge, we maintained our long-term focus while delivering solid results – a great tribute to the employees of Johnson & Johnson. We made important investments in acquisitions, strategic partnerships and launches of recently-approved innovative products while preserving our financial flexibility to continue to invest in innovation. This positions us well for continued leadership and growth in global health care as we enter 2010.”

This quote is very well written, most likely by a PR professional. It is very believable. J&J must have a really talented PR department because everything from the CEO is always very well written and credible. I feel as though this quote instills a lot of confidence in investors. The CEO started out again by referencing the tough year they had, yet also mentioned how they still prevailed and plan on making even bigger advancements in the future. J&J also stresses the importance of their employees and I think that is really important. This shows their publics that J&J considers their company a family and they want to extend that to their investors. J&J wants to instill trust in their publics. The news release explains the meeting that they were going to have with the members of the investment community and also gives the readers a website where they could go for a replay and podcast. This information is really helpful for investors who want to see the status of J&J. The only suggestion I can make is that J&J make their news releases regarding their earnings a little more reader friendly.

Giving back to the community

Johnson & Johnson support community-based programs that improve health and well-being. They work with their community partners to figure out where their giving can help the most. A strength that Johnson & Johnson posses is that they make sure that they listen and learn from their partners so that the programs they support make a meaningful difference in people’s lives. With their partners they are supporting doctors, nurses and local leaders as they work to provide the best medical care to their people. And they are also educating communities on how to reduce their risk of infection from preventable diseases.

Johnson & Johnson has many key partners that they work with but a few are:

HIV South Africa International Aid Mothers2Mothers

CARE International Firelight foundation March of Dimes

Project Hope Save the Children World Wildlife Fund

Johnson & Johnson has also been working with their partners to help save lives and rebuild health care capacity in Chile and Haiti. Their efforts in Haiti include cash and product donations coming from our Consumer, Pharmaceuticals, and Medical Devices & Diagnostics businesses in the U.S. and several countries throughout Latin America and the Caribbean. Several Johnson & Johnson companies in Asia-Pacific, Middle East and Europe are also contributing. Beyond supporting immediate needs, Johnson & Johnson is working with their partners to determine how they can assist in the long-term recovery and rebuilding efforts in Chile and Haiti.

They also consider their employees an important part of their community, therefore they provide support programs and services to help their employees live healthier and safer lives. They also extend this to their employees family's as well. They feel that to prosper as a company, they need their employees onboard healthy & ready to work.

In 2008, which is Johnson & Johnsons most recent Contributions Report, it is stated that they contributed $510.3 million in cash and products toward 650 philanthropic programs in more than 50 countries. That is unbelievable!

Lastly, on Johnson & Johnsons website they have a link to “Our Giving Around the World Photo Exhibition 2009”, which allows us to see pictures and read stories about Johnson & Johnson’s community involvement. It is really touching and allows us to see how dedicated they really are.

Johnson & Johnson is such a great company that they don’t just focus on one main aspect when it comes to their community relations involvement. The Company’s philanthropy mission focuses on making life-changing, long-term differences in human health by targeting the world’s major health-related issues.The exhibition is organized around the three focus areas that define the Company’s philanthropic efforts:

·Saving and improving the lives of women and children

·Building the skills of people who serve community health needs, primarily through education

·Preventing diseases and reducing stigma and disability in underserved communities where Johnson & Johnson has a high potential for impact

Johnson & Johnson’s community relations program supports the mission of the company because they are striving to make people healthier and safer. They want to put the people they serve first.

I believe this is good public relations for Johnson & Johnson. Their community relations program allows them to show their publics that they are in it for them. What’s really important is how much they value their employees. They feel without them, they can’t grow and prosper. This shows that Johnson & Johnson is putting others first. Also, with them being involved with disaster relief in Haiti, this shows that they willing to step forward today and that they are not scared. They are strong. Their program is definitely a reputation booster and builder. They are building relationships with people worldwide. These relationships foster trust which in the end gives Johnson & Johnson a great reputation.

I feel as though Johnson & Johnson has a great community relations program. I don’t know if they really could do anything else to improve it. They provide all the assistance that they have available to aid in the health of the world. They take pride in their disaster relief program which show their publics that they live for today and that when a crisis strikes they will lend a helping hand.

To become even more reputable, Johnson & Johnson could hold more awareness events displaying all the problems that the world is facing. Thus, they can hold fundraising events. Through this, they will allow their consumers and publics to feel as though they are a part of Johnson & Johnsons’ community relations program as well. Their publics will then feel more connected to them and that they are making a difference as well; that their contributions are going directly to those in need it. It’s strictly an idea, but a good one if I say so myself.