CVS, one of the largest pharmacies in the United States, has planned to stop selling tobacco products due to the conflict it has made with CVS’s main objective. As LingYun Zhang has mentioned in her blog, this action would definitely influence the market since CVS is one of the market leaders. I totally agree with her, and I believe that other companies may agree with CVS’s decision and start to follow, which means the supply of tobacco goods would fall, which can improve people’s health status and can lead the market to concern about social issues in business activities. By making this change, CVS can also be able to reach one of its objective-being socially responsible and to bolster its image as a health care company, which may help it to attract more consumers and gain advantages from pressure groups (health-care).

However, as a private business, another main objective for CVS is to earn profits. If CVS decides to give up its revenues on selling tobacco goods, then there will be more pressure adding on other products’ sales. In addition, people get addicted to tobacco goods such cigarettes; this would reduce the supply but not really the demand, consumers will buy the products from CVS’s competitors.

In conclusion, CVS can gain good reputation by making such decision, but as the opportunity cost of it being an ethical company is, losing revenues and giving its rivals competitive advantages.

References: 

• Classmate’s blog: [URL: https://blogs.ubc.ca/lyzhang/2014/09/11/business-ethics/] Zhang, LingYun, “business ethics”, last accessed: 2014-10-04
• Online news article: [URL: http://www.usatoday.com/story/news/nation/2014/09/03/cvs-steps-selling-tobacco-changes-name/14967821/] Jayne O’Donnell and Laura Ungar, USA Today, last accessed: 2014-10-04