Think about the last large retail chain store you were in. What were deciding factors as to why you chose to shop in or enter the premises? The answers may fall in a range from “it was the closest store nearby” to “it has everything I need”. Focusing on the latter, it is prevalent by the success of large retail chain stores such as CVS that carrying a variety of appealing products to consumers will increase the number of shoppers. One of the many products that bring in customers and contribute to CVS’ annual sales are cigarettes and tobacco. Unfortunately, these prominent items have negative contributions to the community of cigarette users who have a growing mortality rate caused by smoking. CVS is no stranger to the hypocritical case that is the store providing pharmaceutical care whilst selling cigarettes and tobacco (causes of the many diseases and illnesses they offer to treat), and has declared to end the sale of cigarettes and tobacco after October 2014.
A problem faced by many companies today is the balance between social responsibilities while keeping the company’s best interest, commonly found to be creating the most profit. By ending the sales of cigarettes and tobacco after October not only is CVS making a bold step in the direction of painting a better picture of themselves in the eyes of healthy living advocates, but risking an estimated drop of $2 billion in sales. One particular statement that stands out from the excerpt in “The Social Responsibility of Business is to Increase Profits” is how a business can do good but at their own expense, which proves to be true in this scenario. Fortunately, this $2 billion loss in sales does not seem to be detrimental in the grand overview of CVS’ overall sales. CVS’ decision does not only help them overcome their previous ethical problem as their standing can be understood by majority of the public, but additionally it makes a loud statement as they are one of the few large retail chain stores that has done something against the sale of cigarettes and tobacco to reduce the staggering numbers of new smokers. CVS is a leading example to other large retail chain stores to take notice of their contribution to the rising problem of deaths caused per year by smoking and second hand smoke. CVS is not targeting one single audience with this decision but in fact is trying to appease several. In the article it states this decision will have an impact on the “share of stock annually” which may not be stockholders favourite words to hear. Luckily, the company has given much consideration on methods to “offset the impact on profits ” which is why the drop this year will not be a full 17 cents but “6-9 cents” as they will continue to sell their “remaining inventory of tobacco products”. By consciously planning out the direction CVS intends to go in, plans of opening up over more than “700 MinuteClinics” are sound preparations for the growth projected in the future and satisfies financiers. It is fortunate that the case CVS argues is so understandable that suppliers and even the portion of communities who may be smokers can understand why they have gone this direction. At the same time, this has had positive responses from consumers.
As someone who often shops at CVS while in the states I can personally say this decision is neither encouraging or discouraging in regards to shopping there, though it is pleasing to know the direction they are heading in is healthy. There needs to be more of that.