Is Avoidance Of Morally Ambiguous Or Offensive Activities Justifiable In Corporate America?

Reuters’ Robert Cox recently highlighted how "Corporate America," especially Pfizer Inc. PFE, has been denying business by avoiding morally questionable activities.

Pfizer had “recently restricted the use of its drugs in executions,” said Cox. These actions have led Cox to ask the question: “Is Corporate America converting to Catholicism?”

Reducing Risk

“It's not Catholicism,” Cox answered his own query. “After all, Pfizer still sells Viagra, the little blue pill that has men of a certain age continuing carnal acts that might not be approved by the Curia. And there's no sign that Google will be excising pornography from its search results.”

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The selective censorship is more likely due to the fact that avoiding questionable activities often improves profitability. In Pfizer’s case, it means reducing risk.

“Botched executions, like those in Arizona and Oklahoma, make for terrible press and potentially, legal liabilities,” and the sales for these activities are “miniscule” stated Cox. That can mean a lot for investors who regularly see stock shakeups due to pharmaceutical law suits.

“It’s simply capitalism” Cox said.