:confused: :confused:
Ethical issue: the tobacco companies have paid billions because of smoking related illness. In particular, phillip morris, a leading cigarette maufacturer paid over 3 billion dollars in one year

1) Suppose you are the CFO (Chief Financial officer) responcible for the financial statement of Phillip Morris. What ethical issuaes would you face as you consider what to report in your company's annual report abvout the cash payment? What is the ethical course of action for you to take in this situation?
You would face issues of whether to lie or not. If you do not lie surely this business will fail and you will lose your job as a CFO for this company. You could say he paied only a couple of hundred dollars because of smoking related illnes or you could disreagrd the face he ever paid for any smoking related illness. You should however, be honest, and write the truth, do not distort any inofrmation on any of the financial statements.
This was my answer but is there anything I left out?

2) What are some of the negative consequenses to philip morris for not telling the truth? What aare some of the negative consequences to phillip morris for telling the truth?
For not telling the truth--> (1) major lawsuit agains him and his business (2) he can be sent to jail for fraudery (3) he can lose his business
For telling the truth--> (1) people will not want to buy anything from him and it will cause a downfall in his business and eventually close his business. Is there anything else I should include or anything was wrong in my answer?

3) Better days ahead, a charitable organization, has a standing agreement with First nations bank. The business allows Better days Ahead to overdraw its cash balance at the bank when donations are running low. In the past, Better days ahead, managed funds wisely and rarely used this privilege. Jacob Henson has recently become a president of better days ahead. To expand operations Henson acquired office equipment and spent large amounts on fundraising. During Hensons presidencys, better days ahead has maintained a negative bank balance of approximately $10,000

What is the ethical issue in this situation? State why you approve or disaprove of henson's management of better days ahead's funds.

The eitchial issue presented of whether First nation Bank should take away their privelege they granted to this orginization.
Im not really sure what a negative bank balance is. I think though it means that they owe the bank 10,000 dollars. If it is what i think then if the orginization was able to collect a lot more money due to his increase in the size of this orginization then I approve of Hensons management, but if it did nothing for the charity and donations stayed the same, the I definitely dissaprove of his management. Especially if he spent all the money at once without looking to see if the few additions in the orginization was helpful

Thanks for all your help!

Your answers look fine.

Number 3, you are correct in assuming what a negative balance is. Frankly I think whoever at the Bank who gave a charity this provision is an idiot, but hey, what's 10,000 to a bank.

As for numbers 1 and 2.

Why would Phillip Morris even lie? I mean, yes, its not flattering to know how much they paid, but is this the norm in the industry? If it is, no reason to lie. And they should not lie. Omitting information is quite different than lying.

They should NOT say only a few hundred million are for health costs. Either say the entire thing is for health costs (the truth) or do not mention it at all.