Business Ethics

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The stakeholders play an important role for the progress of a company. They together can figure which way the company should head towards. Business ethics help in providing the head of a company a framework of his authority. The stakeholders of a company would be its customers, suppliers, employees and the financiers. A company which can create value for its stakeholders can have a positive environment in and around the company. In February of 2014 CVS Caremark, the largest drugstore chain in terms of overall sales and pharmacy sales announced that it planned on stopping the sale of cigarettes and tobacco products. This would have been a gigantic move into becoming largely focused on providing health care rather than being a retail business. This move would approximately incur them a loss of $2 billion from a staggering overall sales of $123 billion but would send a strong message to its stakeholders of them taking the initiative of doing good for the society. The stockholders of the company will definitely be affected as according to estimates, the policy would cause 17 cents in earnings per share of stock to fall in share. This single move by them would make other retailer and health care providers like Walmart and Walgreen to take the same steps. This would ensure that over time cigarettes will be less available and in turn there will be less people who will smoke.