Blog post #3: CVS Valuing Health more than Profit- Is this the right decision?
First of all I agree with Harpreet‘s point of view that the result of CVS quit selling cigarettes would boost it’s public image in a positive manner, but on the other hand it would perhaps cost CVS to loose profit in the long run. From my point of view, CVS would not only perhaps loose money from quitting selling cigarettes but also goods that cigarette buyers usually buy as a complement with the cigarettes; for instance, mints, and gums. This idea was mentioned from our class discussion on business ethics, and if I remember correctly it was Jeff who had mentioned about how cigarette buyers usually buy mints/gums along with cigarettes.
Therefore, I do believe that CVS is making an ethical choice and as a consumer it is “the right thing to do”, which would help boost its image as a pharmaceutical company compared to other drug stores that continue to sell cigarettes. But CVS has to also perhaps consider the long-term costs such as loosing “two-billion of sales annually” from making this decision, thus the company has to find another way to sell other types of products that would help cover the costs of moving the cigarettes off the shelves.
Article Used: http://www.cvshealth.com/research-insights/health-topics/this-is-the-right-thing-to-do (“This is the right thing to do”)