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Walmart Ethics and Compliance

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Walmart Ethics and Compliance
Wal-Mart Ethics and Compliance

University of Phoenix
August 24, 2009

Wal-Mart started as a single store in 1962 and since then has expanded to over 3,600 stores in the United States and operates in 15 international markets. This paper will discuss the role of ethics and compliance in the Wal-Mart organization as it relates to the financial environment. We will describe the procedures in place to ensure ethical behavior and identify the processes used to comply with SEC regulations. Using the annual report information for Wal-Mart we will evaluate the financial performance over the past two years and calculate financial ratios. Based on those financial ratios, we will discuss the trends evidenced and the organization’s financial health.
Ethics and Compliance The role of ethics and compliance within an organization today is of utmost importance to the well-being and livelihood of that organization. Any associates who are part of Wal-Mart’s management are required to be familiar and compliant with the Statement of Ethics. “The Company also maintains a separate Code of Ethics for our senior financial officers. Wal-Mart also has in place a Related-Party Transaction Policy. This policy applies to Wal-Mart’s senior officers and directors and requires material related-party transactions to be reviewed by the Audit Committee. The senior officers and directors are required to report material related-party transactions to Wal-Mart.” (Duke and Schoewe, 2009). Wal-Mart has a Statement of Ethics applicable to all associates. The CEO and all
Senior Financial Officers, including the CFO and Corporate Controller, are bound by the provisions set forth therein relating to honest and ethical conduct, conflicts of interest and compliance with all laws. In addition to the Statement of Ethics, the CEO and Senior Financial Officers are subject to the additional specific policies set forth below. If the CEO, the CFO or Corporate Controller has a reporting obligation under


References: Downes, J., & Goodman, J. (2003). Dictionary of Finance and Investment Terms (6th ed.). (, Ed.). Beating the Dow: Author. Duke, M., Schoewe, T. (2009). Wal-Mart. Wal-Mart 2009 Annual Report. Retrieved on August 23, 2009 from online resource: http://classroom.phoenix.edu/afm212/secure/view-attachment.jspa?ID=10222696&messageID=50765946&name=FIN%20370%202009%20Annual%20Report.pdf&view=inline Wal-Mart. (2003). Wal-Mart. Code of Ethics for the CEO and Senior Financial Officers. Retrieved on August 23, 2009 from online resource: http://walmartstores.com/media/Investors/seniorofficers.pdf
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