I read the article on CBC about Costco made the decision to end the 15-year relationship with the American Express.

This decision has both positive and negative aspects.

By cutting off a choice customers could choose while paying could cause dissatisfaction to customers. This may create inconvenience for them because they may not have other credit cards. This would mean that they might have to go through all the trouble of creating new accounts just for grocery shopping. If I were a customer and I had to go through all the steps, if I am a lazy person I would go for another substitute company instead.

On the other hand, the good side is that the internal stakeholders may benefit from this decision. As being said that “Our relationship with Costco and the new Capital One Costco MasterCard represent that philosophy perfectly and aligns with our vision to continue growing our credit card portfolio in Canada.” Having to work with the market-leading cards would also fit with the corporation’s objective.

Since Costco has a very good brand image and have loyal customers, the risk of decreasing in customers may not be as risky. They are also very successful in both UK and the US. Hence, the firm may not be affected as much if the decision was a bad one.

Sources:
http://www.cbc.ca/news/canada/nova-scotia/costco-canada-to-stop-accepting-american-express-cards-1.2770732

This article was about a company called CVS, which is a very large drugstore, who has decided to stop selling all products related to tobacco. The downside on this decision may cause loss of loyal customers, hence, this will decrease a significant about of sales and it is estimated to lose $2 billion each year. However, on the ethics perspective, the company will create a good brand image. Having an impression that the company has a good CSR may attract more customers. This huge news may also bring brand awareness and being an unique drugstore comparing with the competitors.

The company may lose profits from not selling tobacco related products as well as having a new smoking cessation program may take some time to run in the company. This may seem to be a bad decision in the short-term, but in the long-term effect, external holders may  feel trusted by the company’s products. Therefore, I think that the company is making a good choice that separates themselves from other drugstores where they only focus on the demand in the market instead of considering the ethic aspects, as well as thinking long-term instead of short-term.

Sources:

http://www.onenewspage.com/video/20140205/1607667/CVS-Quits-Smoking-Pharmacies-Will-Stop-Selling-Tobacco.htm