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CVS Gives Butts the Boot Ahead of Schedule

CVS Stops Selling Cigarettes

In the May issue of Risk Management, I wrote about CVS Caremark’s bold move to ban the sale of cigarette and tobacco products in its 7,600 pharmacies nationwide. At the time, CEO Larry Merlo said, “We’ve come to the decision that cigarettes have no place in an environment where health care is being delivered.

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” The decision came with a hefty price tag of up to $2 billion in projected lost sales, but the company was clearly betting on long-term gains from fulfilling the promise of brand reputation.

Today, CVS announced it had officially pulled all tobacco products from stores, beating the anticipated Oct.

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1 deadline by almost a month.

“Every day, all across the country, customers and patients place their trust in our 26,000 pharmacists and nurse practitioners to serve their health care needs,” CVS/Pharmacy President Helena B. Foulkes said in a statement. “The removal of cigarette and other tobacco products from our stores is an important step in helping Americans to quit smoking and get healthy.”

Further, the company changed its corporate name from CVS Caremark to CVS Health to reflect “our broader health care commitment.”

“The rate of reduction in smoking prevalence has stalled in the past decade. More interventions, such as reducing the availability of cigarettes, are needed,” the company explained in the press release. With the early strike and brand new name, CVS is stepping up to the challenge, and doubling down in its bet on brand reputation for long-term success – and long-term sales from healthier customers.

“CVS is now one of a small group of companies that have realized that their reputation is the most valuable asset they have and that building a stronger reputation by avoiding risks to that reputation can create a significant competitive advantage,” Paul Argenti, professor of corporate communications at Dartmouth’s Tuck School of Business, wrote in a column for the Harvard Business Review when the company’s initial plans were announced. “From the White House to the American Lung Association, CVS has received kudos for what seems to be a focus on shared value with society rather than the reckless pursuit of revenue at any cost.

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Check out the initial story for more on CVS’ brand reputation strategy.

Measuring Employee Engagement

Organizations that successfully engage their employees earn loyalty and can see measurable benefits from higher shareholder returns, according to BI Worldwide. Engaged employees translate to increased productivity, higher quality of work, lower accident and injury rates and higher employee retention.

BI Worldwide explains that companies can encourage employee engagement by creating a culture where loyalty is rewarded.

Also included are trainings to enhance employee performance, safety awareness and wellness programs.

Fourth of July May Be the Riskiest Holiday

fourth of july risks

July 4 may celebrate American independence but, when it comes to risk, you’re far from free.

“With school out for summer, the Fourth of July holiday is typically the busiest summer travel holiday, with five million more Americans traveling compared to Memorial Day weekend,” said AAA Chief Operating Officer Marshall L. Doney. “In line with tradition, most travelers are celebrating their newfound summer freedom with an all-American road trip.

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” Gas prices are 20 cents higher than they were last year, but that is not going to stop even more people from driving – AAA Travel projects that 34.8 million people will be on the road over the holiday weekend.

Unfortunately, it is the deadliest time of year to be on the road. According to the National Highway Traffic Safety Administration, 40% of all motor vehicle traffic fatalities occur over the Fourth of July holiday weekend. It is also the time of year when the highest proportion of drivers get behind the wheel while under the influence, playing a role in almost half of those deadly crashes. Many states have already announced plans to increase DWI and distracted driving patrols, including New York, New Jersey, California, Colorado and Arizona.

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Closer to home, fireworks present a notable safety risk for you and your home. In 2013, eight people died and an estimated 11,400 were injured by fireworks, and 65% of those accidents took place within a month of July 4, the U.S. Consumer Product Safety Commission reported. That is about 30% more than in 2012.

According to the National Fire Protection Association there are more fires reported on the Fourth of July than any other day of the year and a third of those fires are caused by fireworks. With extreme drought plaguing the western states, fireworks, outdoor grilling areas and camp fires require extra caution.

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“Low water levels and extreme drought conditions in many states makes fire safety even more crucial this year,” Christopher Hackett, director of personal lines for the Property Casualty Insurers Association of America, said in a press release. “One ember from a camp fire or firework can travel and ignite a fire a mile away. It is critical that people follow state laws and take extra precautions to avoid causing preventable fires.”

“Fireworks are a great way for charities to raise funds and make childhood memories, but they can get out of control and turn fun into tragedy very quickly,” he added. “Let the Fourth be a reminder to not only prevent wildfires but also prepare our homes and family finances for catastrophes.”

Five Questions with a Food Fraud Expert

Food Fraud

BALTIMORE—After his Food Safety Summit session on food fraud and economically motivated adulteration, I caught up with Doug Moyer, a pharmaceutical fraud expert and adjunct with Michigan State University’s Food Fraud Initiative. Here are a few of his insights into top challenges for the supply chain, and the biggest risks to be wary of as a consumer.

What are the riskiest foods for fraud?

The most fraudulent are the perennials: olive oil, honey, juices and species swapping in fish. Most people underestimate the amount of olive oil adulteration, but the amount of what is labeled “extra virgin olive oil” that Americans buy is more than Italy could ever produce. I buy certified California olive oil because I’ve sat down with that group and I know that their industry is really concerned about standards and have established a rigorous certification process. I am also really concerned about species swapping in the seafood industry. I love sushi, but I have a lot of concerns eating it, and they are not always about health. I don’t like feeling duped, and a lot of companies now have to contend with that reputation issue after so many studies have found that the odds can be incredibly low that you are eating the fish that you think you ordered—as little as 30% in some sushi restaurants in Los Angeles, for example.

Adulteration has been getting a lot more attention recently, from consumers and regulators. How old of a phenomenon is food fraud?

Food fraud actually dates back to the antiquities. In the industry, we refer to it as a 2,000-year-old problem. There are actually ancient jugs used for oil or wine that feature art that is misleading about the origin or quality of what came inside.

Why are we seeing more food fraud in the U.S. now?

In the United States, we have the real luxury of solid supply chains and active food safety protectors in the form of regulators and advocates. But, as the supply chain lengthens, strangers and anonymous players get introduced, and that’s where the system is most endangered.

What is the worst case of food fraud you’ve ever seen?

Melamine in Chinese infant formula is definitely one of the worst, and especially sinister. In the ‘80s, there was also a truly horrible case with olive oil in Spain. Many people hear about olive oil adulteration now and say, “What’s the harm, if it’s just another oil?” In that case, though, it was adulterated with industrial grade oil. Over 1,000 people died, and some are still infirm and in hospitals today.

What are the biggest culprits in pharmaceutical fraud?

Male enhancement, by far, is the top victim. Patients may be too embarrassed to see a doctor about their symptoms, so they log online and order from a rogue pharmacy—which may not even be a pharmacy at all. But if they were too embarrassed to get the medication to begin with, they will probably be too embarrassed to report the issues, too. Anti-malarials are also a big culprit abroad. In countries with a lot of demand for medications that fight malaria, many counterfeiters see the opportunity to fill that need before legitimate providers can. Poor populations gravitate toward these cheaper products, and access to doctors may be limited by a long, expensive trip—when you are already sick, or cannot afford the trip, it’s easier to go to a street vendor who rips off a sheet of what he says will help. It’s a particularly heinous crime because counterfeiters will trick customers with a little bit of aspirin in the pills that lower fevers and help with the body ache. That kind of deliberate attempt to keep people from getting better, to me, is more heinous than food fraud.