How Has CVS Handled Its Ethical Challenges?

How has CVS handled its ethical challenges?
Despite the ethical challenges CVS has experienced, it is trying to reposition itself as a
socially responsible organization that places priority on consumer health.
CVS initiated innovative programs such as a service which allows the company to inform
patients about the benefits and risks of medication non-adherence and non-adherence of
physician’s recommendation, through education and awareness. This prevent also more
costly medical procedures which occurs when patients skip or incorrectly take their dosage
requirements.
Additionally, the company has established its presence on social media and mobile devices in
order to help people keep up with changes in health care with a mobile application allowing
customers to conveniently refill prescriptions, while its Facebook and Twitter pages provide
helpful health tips and other digital tools enabling costumers digitally visiting the store.
Through MinuteClinics, which are standardized and certified by ACA, they provide smoking
cessation and weight loss programs that contribute positively to people’s health. These
clinics are also the first retail clinic provider to launch a partnership with the National Patient
Safety Foundation for its health literacy program to help improve patient education and
community health. By purchasing Target’s 1,672 in-store pharmacies which will be
rebranded as MinuteClinics, CVS’s reach has been significantly increased and offered an
alternative to the customers to benefit from CVS through Target stores. Target pharmacies
are known for their customer-centric culture from which CVS learns and develops its weak
customer orientation side.
With all these steps, CVS has directed its orientation toward social responsibility and
rebranded itself as a health care company rather than a pharmacy.
Evaluate CVS’s decision to no longer sell tobacco products.
In order to be consistent with its transition from pharmacy to health care company, CVS has
made some landmark decisions aimed toward helping individuals lead healthier lives. As a
health care company, it would be confusing both sell tobaccos and give health care
consultancy which would have made a revolving trade within the company. However, by
giving up all the profits to be generated from selling tobacco, the company started to gain
trust from customers because with smoking rates on a steady decline, and cigarettes sales
slumping, CVS also saw that future profits lie not with tobacco but in health and wellness.
Furthermore, I think as being formerly a part of accusations related to overdistribution of
oxycodone, the company also shows that they think that addiction is important and they
would not support addiction. Even though, in the short run it seems like the company’s profit
has been significantly decreasing, in the long run this brave but innovative initiative would
have success. Also, by complying ACA’s developing health care landscape, listed as a
preferred pharmacy would help CVS to be preferred by doctors and hospitals. Thus, they
could even gain new customers because of giving up selling tobaccos in the long run, as they
would prove that caring and collaboration is really among the company’s value as they
declare.
What is the future of CVS in positioning itself as a health care company based on its
decision to be socially responsible?
By positioning itself as a health care company based on its decision to be socially

responsible, CVS gains a better reputation as well as trust of the customers. Value given to
the employees and directing their employees to care about their customer via new award
programs, allocating a comprehensive code of conduct to be abided by, an executive
compensation program based on the performance demonstrate us how CVS attach
importance to comply within its own values. All these steps not only grant integrity and
accountability to the company but also help CVS to remain sustainable. We see that after
many failure and ethical crises, CVS is now more visionary and they understood that the
future is all about caring and being accountable about it, not only in terms of customers but
also inside stakeholders such as employees and also the common life that the world tries to
adapt to. The company has already started to set new goals to reduce its environmental
footprint. As the world develop and change, these preventions and social responsibility
issues would gain more importance to be stable and sustainable. In order to remain
reputable, the company always needs to seek innovative initiatives and values in relation to
future social issues, consumer protections and corporate governance without which a
company’s honesty and trustworthiness about its values would be questioned..

How Has CVS Handled Its Ethical Challenges?

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How has CVS handled its ethical challenges?

Evaluate CVS’s decision to no longer sell tobacco products.

By positioning itself as a health care company based on its decision to be socially

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