Examples of Corporate Irresponsibility

Decisions made by businesses have far-reaching effects on society. Generally, most of the companies had made mistakes even though they are big corporation. For example, The Warner-Lambert Company has manufactured and distributed Listerine antiseptic mouthwash since 1879. Its formula has never changed. Ever since Listerine's introduction, the company has represented the products as being beneficial in preventing and curing colds and sore throats. Direct advertising of these claims to consumers began in 1921. Warner-Lambert spent millions of dollars annually advertising these claims in print media and  in television commercials.

After 100 years of Warner- Lambert's making such as claims, the Federal Trade Commission (FTC) filed a complaint against the company, alleging that it had engaged in false advertising violation of federal law. For months of hearings were held before an administrative law judge that produced an evidentiary record of more  than 4,000 pages of documents from 46  witnesses. After examining the evidence, the FTC issued an opinion which held  that the company's representation that Listerine prevented and cured colds and sore throats were false. The U.S court of Appeals affirmed.

Another one is the Johns- Manville Corporation which was a profitable company that made a variety of building and other products. It was a major producer of asbestos, which was used for insulation in buildings and for a variety of other uses. It has been medically proven that excessive exposure to asbestos cause asbestosis, a fatal lung disease. Thousands of employees of the company and consumers who were exposed to asbestos and contracted this fatal disease sued the company for damages. Eventually, the lawsuits were being filed at a rate of more than 400 per week.

In response to the claims, Johns-Manville Corporation filed for reorganization bankruptcy. It argued that if it did not, and otherwise viable company that provided thousand of jobs and served a useful purpose in this country would be destroyed and that without the declaration of bankruptcy , a few of the plaintiffs who first files their lawsuits would win awards of hundreds of millions of dollars, leaving nothing for protection, the company was restructured to survive. As part money to a fund to pay future claimants. the fund was not large enough to pay all injured persons the full amount of their claims.