Well. Not really. Record companies exist to make money (obviously) and so they have a vested interest in keeping their artists alive and well, simply because a live artist produces more work. No record executive on the planet would want their most famous artists to die. Sure they'd make money off the compilations and re-issues but those are limited in comparison to what they'd make off new work. I imagine if you asked anyone at Geffen, they'd much rather have Cobain alive and making money for them now, than having to depend on re-issues and re-masters of Nirvana's back catalogue.
Drugs and art have gone hand in hand since man first started drawing dinosaurs in caves. Is there anything sinister in a record company having their own dealers? Maybe, but to play devil's advocate for a moment. If you were a record exec and your biggest star had a secret drug addiction. Would you risk allowing them to go out on the street and buy God knows what from God knows who. Or would you get someone in who was discreet and whose drugs were clean?
Record companies are always portrayed as evil monsters who exist only to suck the life out of innocent young artists. Are they all evil though? If an artist signs with a record company isn't it their responsibility to look at whatever contract they're signing, or if they can't then at least get a lawyer to look it over for them? In the end all most record companies do is provide promotion and distribution. It's up to the artist whether or not they want to fill themselves full of drugs, fuck every manipulative skank that crosses their path or blow their heads off with a shotgun.