World's Most Admired Companies

4 of 50

Johnson & Johnson

MOST ADMIRED

Top 50 rank: 4
Rank in Pharmaceuticals: 2
(Previous rank: 1)
Overall score: 6.67

Why it's admired

Survey respondents cheered J&J's banner year in 2008, which made it one of the most profitable companies in the Fortune 500 (earnings grew 22%, while the Fortune 500's profits dropped 85%). They also celebrated its stock performance the past few years, when the health-care giant consistently beat the S&P.

But the troubled economy brought sluggish sales last year, and J&J was forced to lay off 7,000 employees in November.

Even so, thanks to continued innovation and an overhaul of its pharmaceutical business, the company continued to win admiration. It also rewarded shareholders, increasing dividends as its stock climbed nearly 32% in the past 12 months. --C.T.

Should Johnson & Johnson be admired, or what?

Johnson & Johnson stats

Nine key attributes of reputation	Industry rank
Innovation	8
People management	1
Use of corporate assets	2
Social responsibility	1
Quality of management	2
Financial soundness	1
Long-term investment	1
Quality of products/services	5
Global competitiveness	2