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CAPITALISM vs. CULTURE By Katherine Bishop
Look at your company. Dig out that mission statement said, “Put simply, the sale of tobacco products is inconsistent
you wrote when that company was still a dream. Are you
still following it? How important would you say culture is to your company? Is it important enough to sacrifice a huge percentage of profit?
CHOOSING CULTURE
The trend in business – or in some businesses – recently has been to move away from capitalism toward culture. They are making business decisions based on their moral compass. They are making social and political statements with the management of their company.
Chick-fil-A – That fast food restaurant keeps its doors shut on Sunday – despite the fact that they’re missing a ton of business. Personally, I’m always craving their milkshake on a Sunday afternoon. I’m always halfway to the car when I remember they aren’t open. Driving past the deserted parking lots on Sundays, you often see at least one car sitting in front of the drive through – presumably puzzled by the silver chain blocking the lane. How much money is that decision to remain closed on Sundays costing them?
CVS Caremark Corp – In a surprising move, CVS made the decision to ban the sale of cigarettes from their stores. This will go into full effect by October 1. President and CEO Larry J. Merlo
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with our purpose.”
This decision to pursue a healthier world is certainly costing
the retail pharmacy. The cost is estimated at $2 billion a year. Only $1.5 billion of that is the loss of tobacco sales. The remaining lost revenue will be non-tobacco products that smokers would’ve purchased while in the store.
CHOOSING CAPITALISM
While some businesses like those above and many others are making decisions based on culture, others are making big capitalism moves.
Wal-Mart – Did you want to buy that Black Friday flat screen T.V. before Thanksgiving dinner is even served? Don’t worry, Wal-Mart is open. Did you suddenly crave another bottle of eggnog Christmas morning? Don’t worry, Wal-Mart is open. Did the Easter bunny forget your favorite jelly beans? Don’t worry, Wal-Mart is open.
It happens. It’s a holiday and you need something around the house. Years ago, nothing was open and you just had to go without. Now, this need has driven some companies like Wal-Mart to keep their doors open rain or shine, holiday or no holiday. While Wal- Mart isn’t alone in this endeavor (Target, Starbucks and others are guilty), I will use them as the example.
With their doors open on holidays, Wal-Mart is still raking in