Monthly Archives: September 2015

reflection of first class

The intervention of government price can meet the necessary needs of individuals, such as oil (necessities)  and medicine, requiring fee of an ambulance and so on. In addition, government’s  higher price setting may efficiently reduce the danger and harmfulness to some extent(for instance,cigarettes and volca alcohol).However, this action must be taken properly and moderately  in case of monopoly of  some certain state-owned enterprises.

Sacrifice of CVS to stop producing tobacco products

It was published on Business dayCVS Vows to Quit Selling Tobacco Products on February 4th, 2014 that CVS Caremark (the largest drugstore chain in America) decided to stop producing tobacco products, even its embedded product e-cigarettes. Clearly, they insisted their rules and ethic standard. The reason they give up this market field regardless of the 2 billion dent is that they thought it is hypocritical to sell tobacco product as a medical care company. The product may make a huge number of juveniles get addicted to cigarettes after their first attempt.

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Furthermore, they decided to focus more on developing some efficient healthy alternatives for tobacco products, which are more reliable and convinced as well as boosts its own profits. In this case, they have gained a long-term good reputation and provided a positive impact on society through the short-term sacrifice. The ethics of shouldering the responsibility to bring positive impact on the industry and caring more about the consumers rather than the only profit for themselves are really inspiring.

Stakeholder’s theory demonstrates that each part of stakeholder is highly associated with the other ones. For instance, CVS Caremark cares about consumers’ health also many tobacco products’ cover advertisement appears to be unattractive so as to lower the motivation of pursuing. Without any stakeholder’s well participation and thorough consideration, the business won’t success or benefit to the society eventually. As a consequence, although the main purpose of one company is to gain profit, it won’t success at last without the ethic behavior of selling products. Meanwhile, the company can contributes to its sustainability and development as well.