CVS Caremark, a drug store chain, had announced that it planed to stop selling tobacco and tobacco related products by October. This is motivated by a desire to shift away from being strictly a large retail business to becoming a health care provider as well. Although the company forecast that this move would reduce revenue by two billion, they feel that it is necessary to be able make the transition into health care.

Friedman would call this a purely socialist move, and one which strays from his notion of a “social responsibility” of a business. It is, however, a reality of capitalism. In order for a company to retain a positive public image, it must make decisions which agree with the moral direction of the general public. A strong public image can be as important to a company as a strong product. This can be connected with Freeman’s Stakeholder Theory, where every stakeholder is considered for the benefit of the company. For CVS Caremark, gaining this public support is worth the profits that are lost in transition. Although this is a gamble, it is a calculated gamble that can potentially pay off with more than just profits.