Business Ethics
CVS vows to stop selling tobacco products. This is a very ethical thing to do in consideration of many of their stakeholders. For example, it will help promote a smoke free environment in their workplace and the community in which they work. In addition, they believe this will have such a positive effect on their customers health and well being that they are willing to overlook the probable negative effect on the company’s future profitability. However, in making this decision they’re not being ethical towards all of their stakeholders. The majority of shareholders are looking to maximise their return on their investment, which this plan of action does not appear to support. It could also negatively effect the employees dealing with this product as their services may no longer be needed. Furthermore, this could have a trickle down effect on the chain of supply, possibly hurting their relationship with their own suppliers. I think the positive effect on the customers health and the community at large is going to outweigh the negative effect on shareholders and possibly employees and suppliers making this plan of action an overall ethical one.