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.
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