W4 Video case study

Chapter 19: CVS: “Fired Up” about Social Responsibility: 19-6 Stakeholder Orientation Book Title: Business Ethics: Ethical Decision Making and Cases Printed By: Kennisha Holloman ([email protected]) © 2019 Cengage Learning, Cengage Learning

19-6 Stakeholder Orientation

CVS’s mission to be a pharmacy innovation company is guided by five values: innovation,

collaboration, caring, integrity, and accountability. CVS uses these values to determine its

actions and decisions, which offer a glimpse into its ethical culture. The company’s goal is to

use its assets to reinvent the pharmacy experience and offer innovative solutions that help

people follow a better path toward health. This goal relays to stakeholders that the company

cares about health care. CVS’s business is committed to fostering a culture that encourages

creativity and innovation, recognizing that contributions from all members are a high priority.

This commitment highlights the value placed on collaboration with partners and

stakeholders, which also serves to hold the company accountable for its operating

activities—thus strengthening its integrity. Another important factor in its ethical culture is to

address enhanced access to care while also lowering its cost.

CEO Larry J. Merlo emphasizes the long-term perspective the company is committed to

with each decision and how it will affect each stakeholder group. He states that CVS’s

priorities remain in customer health, the sustainability of health care systems, good

stewardship, positive contributions to communities, and a meaningful workplace for

employees. Such a statement from the top leader of the company sets the tone that fosters

the ethical culture behind CVS. The company’s Code of Conduct includes ethical behavior

expectations—CVS is proud to have good relationships with employee unions who

represent approximately 6 percent of its workforce. CVS employs a chief compliance officer,

offers regular compliance education and training, provides an ethics hotline for confidential

reporting, and has developed a response and prevention guideline for addressing violations

of CVS’s policies or federal, state, or local laws. CVS’s corporate governance includes a

privacy program, information security, and a corporate framework that focuses on the

company’s values.

So far we have addressed how CVS meets the needs of its customer stakeholders.

However, CVS tries to maintain a stakeholder orientation in which all stakeholder needs are

addressed. The following sections will describe how the company meets the needs of other

stakeholders.

Chapter 19: CVS: “Fired Up” about Social Responsibility: 19-6 Stakeholder Orientation Book Title: Business Ethics: Ethical Decision Making and Cases Printed By: Kennisha Holloman ([email protected]) © 2019 Cengage Learning, Cengage Learning

© 2020 Cengage Learning Inc. All rights reserved. No part of this work may by reproduced or used in any form or by any means - graphic, electronic, or mechanical, or in any other manner - without the written permission of the copyright holder.