Discussion Question

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?