After reading the assigned prep work for the business ethics class I came away with a new understanding of the reasons business make certain decisions. Friedman’s article was enlightening to the fact that business executives making decisions solely based on the well-being of society can sometimes have undesired and unforeseen consequences. He also argues that decisions based for the success of society and the general population should be reserved for government, which is elected by due political process, and is therefore accurate representation of its people (in an ideal environment). This electoral process or style of organization is very similar to the structure of a board of directors appointing a CEO. The CEO is placed there to serve the board of directors much in the same way the government is put in place to serve its people. The concept is very similar to what Freeman describes as the “stakeholder theory”. While the structures may be similar, the objectives are very different. Each institution seeks to serve their respective stakeholders.
An article by the New York Times describes the decision made by CVS to stop carrying tobacco products. While the decision might seem, on the surface, to have been made to help society, it has a very different objective. Ceasing to sell tobacco products is a part of a company-wide transition CVS is making to become a more health-orientated. On pure speculation, this is probably being done to make CVS a more attractive place for the growing pool of retired Americans who will presumably need health care. This ulterior motive may seem furtive, but I believe it is a great example of how businesses working to do their job can help society out as well.