The case of Johnson & Johnson serves as a timely reminder that broadly speaking compliance cannot be given short shrift. The company's McNeil Consumer Healthcare unit, which makes over-the-counter drugs, was forced into no fewer than eight drug recalls. Those were followed by recalls in other units, for contact lenses and hip implants. This is nothing short of a disaster for the firm.

So, embattled CEO Bill Weldon has moved to install a new quality czar, reports Fortune. But that has rankled some "who say he is resurrecting a concept that was dismantled under his watch." Apparently, in 2007, J&J cut back its corporate compliance group, which conducted tough audits of J&J's operating companies and helped set up "management action plans" for improving quality control, notes Fortune.

In the wake of the string of recalls, the company seems to have realized its error. It has begun reconstituting a more aggressive and empowered corporate compliance team. But the damage has been done. Congress has looked into the company's operations, excoriating executives. And the company's brand has been tarnished. More importantly, families have been put at risk. And there's talk of replacing the CEO.

For more:
- here's the Fortune article
- here's some background

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