BUE Presentation - GR3

Business Ethics - Tut 5
GROUP 3
Trịnh Như Quỳnh
Lương Phương Thảo
Phạm Thị Thùy
Khúc Thị Thúy
CONSUMER VALUE STORE (CVS)
SMOKES THE COMPETITION IN
CORPORATE SOCIAL RESPONSIBILITY
01 Background information
02 Analyze ethical issues
03 Causes & Impacts
04 Recommendations
BACKGROUND INFORMATION
CVS HEALTH
First opening in Lowell, Massachusetts in 1963, by
brothers Stanley and Sidney Goldstein
Selling products that meet high-quality standards
and have a Cosmetic Safety Policy.
Composing of four business functions:
CVS Pharmacy,
CVS Caremark
CVS MinuteClinic
CVS Specialty.
PRIVACY AND DATA SECURITY
In 2009, CVS was accused of improperly disposing of patients' health information: company employees threw
prescription bottle labels and old prescriptions into the trash without destroying sensitive patient information
Fail to address the safe handling

CAUSES Lack of proper training for employee
Neglect to establish repercussions
Stakeholders
Customers: Being stress because of information leak
IMPACTS Community: Taking negative actions
Employees: Being fined, or even fired
Investors: Suffering from reputional damage and financial risk
Company
Losing trust from the community
Compensating @2.25M
Improve the security system, so that important
information can’t be displayed easily in the
RECOMMENDATIONS
prescription
Putting all of unused prescriptions into Shredding
Machine
Showing to the employees about the consequences
of not destroying sensitive information carefully
Deceptive Business Practices - Conflict of interest
CVS was accused of encouraging patients to switch name-brand prescriptions - with the notion that it would
save them money without caring about the financial burden on patients. In 2009, FTC investigation concluded
consumers had been misled when had to bill up to 10 times the amount they expected
CAUSES Make a profit maximization

The boss covers up his employee's actions to
defraud customers
Many people trust a well-established and well-
known prescription like name brand prescriptions
under CVS Health
Deceptive Business Practices - Conflict of interest
Stakeholders
Patients/ customers: increased financial burden, erosion
of trust, impact on physical health.
IMPACTS Doctors: can be fired
Community: lose trust
Shareholders: bad reputation, financial risks
Company:
Paid a settlement of $38.5m to reimburse states for the legal costs and
patients due to the switch in prescriptions.
CVS settled with the FTC for $5 million to reimburse customers paying
higher prices than they expected.
RECOMMENDATION
other stakeholders’ interests

interests of shareholders which is customers, employees
maximizing profit (doctors, nurses,..), and
Government
short run
long run interests
interests
Misuse of Prescription Pharmaceutical - Abuse Behavior
CVS acknowledged that between 2008 and 2012 its stores had dispensed controlled substances including
oxycodone (narcotic), fentanyl, hydrocodone, and pain pills- not comply with regulations
Company: lack of oversight in distributing oxycodone

CAUSES and other narcotic
Negligence on the part of the pharmacists
Employee management issues
Make a profit maximization
Misuse of Prescription Pharmaceutical - Abuse Behavior
Stakeholders:
Customers/ patients: financial burden-> stress -> impact on physical and
IMPACTS mental health
CVS employee: lack of responsibility-> can be fired-> get nervous
Doctors/pharmacists: can be fined/ fired
Community: affect on public health, waste time and money
Shareholders/ investors: reputational damage -> financial risks, loss of trust
Company:
Lose trust, loss of large profit
In 2014, paying $1.5 million in fines
RECOMMENDATION
Run a campaign that diagnoses the

impact of misusing of Prescription
Pharmaceutical
Give the effective ways to solve

the problem - Compensation
Fraudulently Billing for Illegal Dispensed Drugs
Omnicare (a CVS Health company) allowed its pharmacies to distribute prescription drugs-including opioids-
even after a prescription had expired or the resident had no additional refills available.
Make a profit maximization

Ignored prescription refill restrictions and expiration dates
CAUSES Continuing to push pharmaceuticals out the door based
on stale, invalid prescriptions.
Did not adequately train pharmacy staff on what
constitutes a valid prescription
Fraudulently Billing for Illegal Dispensed Drugs
Stakeholders
Patients/customers: affecting health and even life-threatening,
increasing financial burden
IMPACTS
Doctors: increased workload because many people's health is
affected by expired drugs
Shareholders: a bad reputation for quality, and financial risk.
Investors: lose trust -> not invest.
Company
Lose trust, have a bad reputation
In 2020, CVS Health agreed to a $15.3 million settlement.
RECOMMENDATION
improving the health care system
training the staff about their patients’

conditions
=> give timely consulting services.
=> customers will feel to be consoled and

increase their reliability.
Q&A
SECTION
Thank You
For Attention

BUE Presentation - GR3

Uploaded by

Copyright:

Available Formats

BUE Presentation - GR3

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

BUE Presentation - GR3

Uploaded by

Copyright:

Available Formats

Business Ethics - Tut 5

02 Analyze ethical issues

03 Causes & Impacts

Fail to address the safe handling

CAUSES Make a profit maximization

other stakeholders’ interests

Company: lack of oversight in distributing oxycodone

Run a campaign that diagnoses the

Give the effective ways to solve

Make a profit maximization

training the staff about their patients’

=> give timely consulting services.

=> customers will feel to be consoled and

You might also like