It isn’t communication and public relations that will save the world; it’s what PR professionals have to work with – corporates’ social responsibility and business innovation.
CVS Pharmacy is doing it by ditching cigarettes from their retail shelves. Chick-Fil-A and Starbucks are doing it through their stances on gay rights and sexual orientation. There are opportunities aplenty in the areas of resources (including energy) and waste.
Positive public relations from commercial and ethical foundations
On February 5, 2014, CVS Pharmacy (CVS Caremark), one of America’s largest pharma-retail companies, announced it will end the sale of tobacco products in its 7,600 stores come October, 2014.
This is a guest post by Adedamola Jayeola, who writes from Loyalist College in Ontario, Canada. Adedamola has written previously for this PR blog and brings a unique perspective and experiences to his observations, thanks in part to his Nigerian background, but also due to his global perspective.
Launching the move with the slogan “CVS quits for good,” company CEO, Larry J. Merlo said that “tobacco products have no place in a setting where healthcare is delivered and removing them from our pharmacies is the right thing to do.” This makes CVS the first pharmaceutical retailer of its size to chart such a course. As expected, the announcement received commendation from stakeholders such as the American Nurses Association, the American Medical Association and even the White House, to name a few.
This is not a step without consequences.
The company is projected to lose about two billion dollars in revenue (one percent of its estimated $120billion annual revenue) and significant ‘traffic’ from tobacco consumers, meaning further negative ‘knock on’ impact on the sale of other merchandise in the pharmacies.
Analyses will uncover different objectives for this decision, from the public health perspective proffered by the company, to business strategy (CVS Caremark plans to evolve from the retail model into a health care provider) or just “Great PR”, as described by Forbes.com and other industry watchers.
However, what is indisputable is that CVS is taking a stand, a definite one. Tobacco smoking is still dangerous to health and CVS wants to have nothing to do with it.
Taking a stand: fallacy or fact?
Do brands take stands now? Recently, some brands have brazenly expressed, or alluded to ,opinion on controversial issues, often dividing their audience into different schools of thought in the process.
The debate on gay rights and sexual orientation involving Chick-Fil-A, Starbucks and some brands in sports and entertainment come to mind. For-profit ventures now declare a corporate stand on sensitive topics, either as a matter of choice or in a move of strategy. Indifference as a business stance seems to be losing its appeal.
Not to be dismissive of socio-cultural or ethno-religious issues, I find CVS ending tobacco sale an action with greater impact. With consideration of health dynamics, morbidity as a sequel to tobacco usage will supersede individual orientations such as sexual preferences or proclivities. It is a matter of life first, before how you swing. No pun intended.
Applying conscience and commerciality to African enterprises
I had a chat with a colleague on the lesson(s) indigenous businesses (small, medium and large-scale) in Africa’s emerging economies can take from CVS. She gave me that “you cannot be serious” look which I (admittedly) saw coming.
The peculiarities of the business environments in some regions on the continent will make any brand think again before deciding to be a hero. According to the World Bank’s Doing Business Report of 2014, Nigeria and Kenya score 147 and 129 respectively (out of 189) in a ranking of “ease of doing business.” Suffice to say ,the regional average for Sub-Saharan Africa in this data is 142.
Behind any ‘sunny’ statistic positioning the continent as emergent are everyday challenges of infrastructure, finance and lately, security. For local businesses, these are real excuses to be indifferent and leave saving the world to super, cape-donning [and western-based? – Ed.] brands.
These handicaps notwithstanding, I believe Africa’s businesses can take a stand on some issues of global importance. Possible areas include:
- Energy: Nigeria (my home country) is still challenged in power production for domestic and industrial consumption. This forces many businesses to generate their own electricity, often through fossil-fuel powered engines. The downside of this is extreme air and noise pollution, especially in the commercial cities. Until power is fixed, brands that take a stand to Go Green on energy (solar, wind, etc.) either partially or totally, will reduce their own carbon footprint. The benefits for the society if there is industry-wide replication will be tremendous.
- Waste: Waste and energy share an interesting relationship. Public-Private-Partnerships (PPPs) on waste management are yielding success in cities such as Lagos and Accra. The progress can be made symmetrical if brands are active with sustainability initiatives (recycling, composting, etc.) or develop in-house eco-preservation projects that are strategically communicated.
- Resources: Specifically, raw materials that go into manufacturing or production. Issues and conflict from crude-oil exploration in Nigeria’s Niger Delta are legendary, but little attention is paid to other natural resources. For example, wood is an important raw material for industries such as art, tourism and furniture on the West African coast. Players in these industries can take a stand on preserving the earth through tree planting projects, or choose to adopt synthetic materials as substitutes for wood, if possible.
These suggestions are not unfamiliar and would fit somewhere in a corporate social responsibility (CSR) plan. Are they practical? Yes (though I admit this practicality is relative). For instance, in (1) and (3) three above, production costs may be involved, no matter how marginal.
So, here is the crux. Taking a stand will be a step beyond executing a CSR script. As earlier described, it will often come at an appreciable cost, even in the short-term. With pressure on Walgreen and other players in pharma-retail to tow the CVS line, credence is being lent to a radical, yet credible point of view:
the brand of the future cannot afford to only create value for profit, it must demonstrate values in itself. Strong values that may yet give our dying earth some hope.
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