Comment on CVS Caremark pharmacies to halt tobacco salesparentComments−colinbartlett12yPublic companies do not have a "fiduciary duty" to put profits ahead of morals. Whatever made you think that was the case?Executives are beholden to the board who is beholden to the shareholders. If the shareholders don't want this, they can force change at any level.−wbrendel12y Whatever made you think that was the case? Probably because public companies frequently use this as an excuse for their immoral business practices. Examples? Basically any health insurance company in the US.−MBCook12yThere are a couple of benefits to doing this:1) They look better2) They get extra shelf space back3) They don't have to secure all those high-dollar cigarettes or worry about their theft4) As smoking declines, they'll probably eventually have to do this anyway, so why not get some positive spin out of it?I'm willing to guess they've run the number and know this isn't going to be a huge hit to their business.
Comments
Public companies do not have a "fiduciary duty" to put profits ahead of morals. Whatever made you think that was the case?
Executives are beholden to the board who is beholden to the shareholders. If the shareholders don't want this, they can force change at any level.
There are a couple of benefits to doing this:
1) They look better
2) They get extra shelf space back
3) They don't have to secure all those high-dollar cigarettes or worry about their theft
4) As smoking declines, they'll probably eventually have to do this anyway, so why not get some positive spin out of it?
I'm willing to guess they've run the number and know this isn't going to be a huge hit to their business.