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The Walt Disney Co. warned investors that the corporation’s pursuit of social goals could harm profits.
The company made the disclosure in its Form 10-K filing with the Securities and Exchange Commission for the last fiscal year.
As a public corporation, Disney is required by U.S. law to file a 10-K report every year.
A 10-K report notifies investors and the government about the risks and liabilities the company faces, its performance in the market, agreements, and the status of its operations.
“We face risks relating to misalignment with public and consumer tastes and preferences for entertainment, travel and consumer products, which impact demand for our entertainment offerings and products and the profitability of any of our businesses,” the company’s 10-K filing noted.
“Generally, our revenues and profitability are adversely impacted when our entertainment offerings and products, as well as our methods to make our offerings and products available to consumers, do not achieve sufficient consumer acceptance,” the company said in the report.
“Further, consumers’ perceptions of our position on matters of public interest, including our efforts to achieve certain of our environmental and social goals, often differ widely and present risks to our reputation and brands,” the 10-K filing said.
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