Lynn Paine teaches the course on Corporate Governance and Accountability.. Her last slide today focused on a Phillip Morris / Czech Republic issue of taxation on cigarettes.
Czech Republic wanted to raise taxes on sale of tobacco products citing the increase in health care costs on account of smoking related diseases. What is appalling is the following:
Phillip Morris engaged Arthur D. Little to conduct a study. The following is an excerpt from the study:
That’s how much a study sponsored by Philip Morris said the Czech Republic saves on health care, pensions and housing every time a smoker dies.
Obviously Phillip Morris issued an apology to the Czech government but I am amazed that Arthur D. Little was stupid enough to conduct the study.
Lynn ended by highlighting that often times Corporate lawyers focus on the economics and legality of the case and ignore the ethical aspects completely.
Some of the living group mates went to the Harvard – Brown game tonight. It was cold so cut out early..
The stadium is 106 years old. Concrete gets pretty cold quickly!