Organizations today have to be guided by what is right, just, and socially acceptable.  In other words, organizations have to act ethically, and make ethical decisions.  An organization can quickly lose the support of their consumers, and members of society in general, if they do not act ethically. This idea is often referred to as organizations being good corporate citizens, or Corporate Social Responsibility. The most successful organizations attempt to act as socially responsible as possible, and aim to do what is right.

Ethical issues and dilemmas may involve some very difficult decisions, especially when the organization is being guided by financial success and shareholder expectations.

A lot of the ethical issues that business face today stem from a lack of integrity in the decisions that they make. How do you feel about the decision made by CVS Pharmacy to discontinue the sale of cigarettes and tobacco products? Please read below for more information on the impacts of this socially responsible decision.

When CVS President and CEO Larry Merlo announced the pharmacy would discontinue the sale of cigarettes and tobacco products, he did so as a matter of principle. The company chose to forego $2 billion in annual revenue and put its customers' health first because it is the right thing to do. "Cigarettes have no place in an environment where health care is being delivered," Merlo said.

Federal, state and local lawmakers in several states praised CVS' decision. Former Health and Human Services Secretary Kathleen Sebelius called the CVS policy "an unprecedented step in the retail industry." CVS Health literally improved people's lives and the company is being rewarded for it. By eliminating low margin cigarette sales and increasing its Minute Clinic business, CVS also improved its income statement and share price, which is up 42 percent since the announcement.

Some of the most common issues that revolve around organizational ethical decision making today are:

1. Bribery- the act of offering someone money or something valuable in order to persuade them to do something for you.
2. Environmental Protection
3. Indigenous Land Claims and Disagreements
4. Sweatshops (many people working in poor conditions for low pay) and Child Labour 
5. Diversity and Discrimination- the practice of treating one person or group of people less fairly or less well than other people or groups.
6. Country embargoes- any legal stoppage of commerce (ex. Canada has an arms embargo against North Korea)
7. Fraud (the crime of gaining money or financial benefits by a trick or by lying)
8. Cyber Security (the state of being safe from electronic crime and the measures taken to achieve this)
9. Side deals

Pick one example of an unethical dilemma faced by a corporation that has been in the news within the last two years. Complete the following questions :

1. Explain the issue and identify why it is considered an ethical issue.
2. What did the organization do, or not do, in this example.
3. Did they handle the issue correctly or not? What could they have done better?