CVS Making Ethical Business Decisions

In many situations, the social responsibility of a business encompasses more than the maximization of profit.  Often times, personal values and ethics can generate a more superior result in a business than incessant profit-making.

An impeccable example is demonstrated by the executives of CVS, who are removing tobacco products from their shelf in order to “truly reduce tobacco use in America.” (Dainfo,2014)  By doing so, CVS inevitably loses profit that cigarettes engender. However in my opinion, this is no short of a strategic move since a positive brand reputation can offer more auspicious future prospects than the 2 billion dollars that CVS generates yearly from tobacco sales. (CNN, 2014) In fact, I believe that CVS may be able to compensate for the revenue lost from tobacco through the publicity and customer favoritism it receives from the moral decision. Furthermore, this decision allows CVS to receive support from their essential stakeholders, such as the customers and the community, which formulates business success according to Freeman’s Stakeholder theory. For these reasons, CVS is able to challenge the relentless money-making drive of businesses and pursue moral decisions to aid their success.

no smoking

The link to the article mentioned above: http://www.cnn.com/2014/02/05/health/cvs-cigarettes/ and http://www.dnainfo.com/chicago/20140904/auburn-gresham/walgreen-should-copy-cvs-halt-tobacco-sales-rev-pfleger-says

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