Ethical Issue F1:1
Many companies have been affected during the COVID-19 global pandemic. In particular, Starbucks Corporation (NASDAQ: SBUX) noted in its annual report, “Our financial results have been and could continue to be adversely affected by the impact of COVID-19 pandemic, which has resulted in a disruption of customer routines, changes to employer “work-from-home” policies, reduced business and recreational travel, and changes in consumer behavior.” Visit http://www.pearsonhighered.com/Horngren for a link to Starbucks Corporation’s annual report for the year ending October 3, 2021.
Requirements
- Suppose you are the chief financial officer (CFO) responsible for the financial statements of Starbucks Corporation. Why is it important to disclose the adverse impact COVID-19 has had on Starbucks Corporation’s business and financial results?
- What are some of the negative consequences to Starbucks Corporation for not telling the truth? What are some of the negative consequences to Starbucks Corporation for telling the truth?