The tobacco companies have paid billions because of smoking-related illnesses. In particular, Philip Morris, a leading cigarette manufacturer, paid more than $3,000,000,000 in settlement payments in one year.
Suppose you are the chief financial officer (CFO) responsible for the financial statements of Philip Morris.
- What ethical issue would you face as you consider what to report in your company’s annual report about the cash payments?
- What is the ethical course of action for you to take in this situation?
- What are some of the negative consequences to Philip Morris for not telling the truth?
- What are some of the negative consequences to Philip Morris for telling the truth?