Ethics and Compliance - Hewlett Packard
How a company conducts business is important. The U.S. Security and Exchange commission has established guidelines for publicly traded companies so investors and creditors have easy access to the information they need to evaluate the risk to invest or extend credit to a company (Kimmel, Weygandt, & Kieso, 2007). In this paper Hewlett Packard’s ethics policy, U.S. Security and Exchange compliance, financial ratios reported in their 2006 and 2007 annual reports, and filing with the U.S. Security and Exchange Commission are examined.
HO Ethical Behavior
According to Mark Hurd, Chairman and CEO of Hewlett-Packard the company wants to be known for ethical leadership so that employees can be proud to work for them, and customers and partners that will continue to do business (2008). Hewlett Packard considers it important to focus and understand the financial aspects of their business. To be successful and grow, Hewlett Packard must be on the right path to financial performance and at the same time focus on proper business ethics. Hewlett Packard must comply with federal, state,and local laws, regulation, and ordinances. Hewlett Packard must conduct business with complete honestly and integrity and in such a way that best serves the interests of the business, employees,and customers. Employees should avoid any situation that benefits, or appears to benefit the employees, such action could be in a form of a business transaction, gift, or favor.
Hewlett Packard’s Standard of Business Conduct (SBC) embodies the fundamental principles that govern the ethical and legal obligations of Hewlett Packard. They pertain not only to the conduct within the company but also to conduct involving customers, channel partners, suppliers,and competitors. (Hewlett Packard, 2008) Some of the business ethics proved by Hewlett Packard are:
We are passionate about customers; We have trust and respect for individuals; We perform at a high level of achievement and contribution; We act with speed and agility;
We deliver meaningful innovation;
We achieve our results through teamwork; and We conduct our business with uncompromising integrity (Hewlett Packard, 2008).
Hewlett Packard business conduct is more than a written policy; it’s a way of doing business. Not only should Hewlett Packard conduct business that meets legal requirements but the business must act responsiblyand ethically when making business decisions. Since Hewlett Packard values everything, importance is placed on any report of misconduct. At any level of the organization, integrity and trust are very important to them. Hewlett Packard requested an assessment on their ethics practices, selected independent directors, and a compliance council was established. Hewlett Packard recently expanded the chief privacy officer role as a part of the assessment. As a commitment from Hewlett Packard they will continue to monitor their ethics programs, process,and policies as needed.
Hewlett-Packard uses form 10-K to file the annual report pursuant to the Security Exchange Act of 1934 which was created to protect the investing public by providing control of securities business on the secondary market and control the interactions of broker-dealers (Security, 2008). All companies listed on the stock exchanges are required to register any securities listed on stock exchange disclosure, substitute solicitation and audit requirements. Hewlett-Packard breaks down the 10-K report in 4 sections;
Section 1 provides the company’s business overview, risk factors, which describe the factors that may affect the companies operating results. Section 1 also includes...
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