How Will Initiative Affect Disney Cost?

Only available on StudyMode
  • Download(s) : 92
  • Published : August 31, 2011
Open Document
Text Preview
Ethics and Compliance
Daniel Bell, Francisco Le Febre, Gloria White, Jack Proctor, and Jennifer Carrier FIN/370
August 29, 2011
Rich Tappe

Ethics and Compliance
The Walt Disney Corporation is known worldwide with their parks around the globe, movies made monthly, and merchandise in every store. Walt Disney started his company on a dream and little did he know how rapidly it would turn into a multimillion dollar enterprise. By using the Disney’s annual reports and SEC filings for the last two years, Team A will assess the role of ethics and compliance in the financial environment and describe procedures in place to provide an ethical environment. As well as identify processes that comply with SEC regulations and evaluate their financial performance during the past two years using financial ratios. Financial Environment

The financial environment of Walt Disney World assesses a role and compliance of ethics in the business. Disney has high expectations for the company’s employees and cast members to have the knowledge and training to act ethically and legally. The training comes from the company’s Standards of Business Conduct upon hire. Within the Standards of Business Conduct, employees are responsible to act professionally by maintaining integrity, honesty, respect, fair play, and teamwork with all finance involvement. Finance involvement includes; the use of corporate information, opportunities, assets, and financial institutions. All company information is confidential. Any person working under Disney is not allowed to use the information to trade in stock of the Company and give away information about real-estate transactions or sales and earnings figures. Acquisitions or mergers, strategic business plans, major contracts, stock splits, commencement of legal litigation, the sale of an associated company, or new project contemplated by the company are all forms of finance information that is important to stay confidential(Walt Disney World Company, 2008). Any cast member or employee who participates in decisions concerning managing and launching the relationship between the company and other financial institutions must not personally enter into a transaction or a receipt of any assistance or opportunity from a intermediary institution that is not open to other customers or clients whom may be in relation with the financial institutions. The same applies to close family members of an employee or cast member that transactions are entered into by or have benefits and opportunities offered to the family. A financial goal in line of ethical standards of Disney is to provide a reasonable return back to the shareholders and build the value of the company’s investment. Lastly, all reporting should be accurate for all financial purposes. Part B – Ethical Procedures

In order for companies to do business ethically and to keep their employees truthful they have to create a set of rules and policies, which address all possible issues that the employees and companies could potentially have with customers and other coworkers. Within Disney some of the main policies they have in place to ensure ethical behavior are policies on conflicts of interest, the use of corporate information, protection of intellectual property, and lastly prohibit agreements with customers that hinder or restrain competition. The conflicts of interest policy states that an employee should not take private interests over company interests that can depend on the company’s products. The next policy, which is the use of corporate information, is important because it restricts the use of any company confidential information that could be used for personal benefit or the benefit of others. The next policy that is in place refers to the protection of intellectual property, which makes sure that all company employees maintain the confidentiality of information that is entrusted to the company. The last policy that is in place is...
tracking img