CVS’s plan to remove cigarettes from stores is controversial, which is normal for almost every ethical decision made in the business community. While it seems like the right ethical decision to make. Even though being a pharmacy that provides health services for customers, while also selling customers goods that are detrimental to their health seems unethical, it appears to be good business. Clearly in CVS’s situation, not every stakeholder would be satisfied in the decision to ban the sale of tobacco products in their stores, however, it is ethical for them to put the well-being of their customers first. Especially since CVS is primarily a pharmacy.
Freedman’s Stakeholder Theory and his idea that “the social responsibility of business is to increase profits,” both apply to CVS’s decision as well. While some people that are stakeholders in the business may not be pleased with the decision (e.g. customers that smoke), the majority would be. Since CVS is attempting to follow a strict business model that shows consumers that the company has it’s customers well being in mind, the majority of the company’s stakeholders will be satisfied. The opportunity for new customers using CVS as their pharmacy arises, which in turn, brings them more business, and therefore more revenue, keeping investors satisfied.
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