Ethics and Compliance
Ethics and Compliance
Fabian Marrero, Kevin Martinez
FIN/370
March 9, 2013
Norberto Molina Perez
Ethics and Compliance
In this paper we will as a team: Assess the role of ethics and compliance in your organization’s financial environment. Describe procedures your organization has in place to ensure ethical behavior. Explain how financial markets work in the United States. Identify processes the organization uses to comply with SEC regulations. Evaluate your organization’s financial performance during the past 2 years, using financial ratios. Calculate the ratios for each year: Current, Debt, Return on equity Discuss the trend for each ratio and what it tells you about the organization’s financial health.
The business code and ethics code at the company Lowe’s stores begins with the board of director’s right through to the newest of workers. The requirement to read and follow the code of conduct is vital for all who are associated or represented by the company. Compliance with governmental regulations involving ethics is valued by Lowe’s and held strong. The application of ethics financially, under section B of the code of conducts states: “employees and members of their immediate families should not have any financial interest, direct or indirect, in any organization that is or is seeking to be a supplier of merchandise or other property or services to the company” (Lowe’s, 2012). Areas of importance that are also covered in the codes pertaining to financial concerns are “payments to governmental officials or other persons, the importance of accurate books and records along with adhering to internal controls to financial reporting, protection, and proper use of company assets, public company reporting, and insider trading according to the code of conduct.” (Lowe’s, 2012). The possession of information or knowledge of a transaction or attempted transaction must be informed to the employee’s direct supervisor. There is a strong encouragement towards
Fabian Marrero, Kevin Martinez
FIN/370
March 9, 2013
Norberto Molina Perez
Ethics and Compliance
In this paper we will as a team: Assess the role of ethics and compliance in your organization’s financial environment. Describe procedures your organization has in place to ensure ethical behavior. Explain how financial markets work in the United States. Identify processes the organization uses to comply with SEC regulations. Evaluate your organization’s financial performance during the past 2 years, using financial ratios. Calculate the ratios for each year: Current, Debt, Return on equity Discuss the trend for each ratio and what it tells you about the organization’s financial health.
The business code and ethics code at the company Lowe’s stores begins with the board of director’s right through to the newest of workers. The requirement to read and follow the code of conduct is vital for all who are associated or represented by the company. Compliance with governmental regulations involving ethics is valued by Lowe’s and held strong. The application of ethics financially, under section B of the code of conducts states: “employees and members of their immediate families should not have any financial interest, direct or indirect, in any organization that is or is seeking to be a supplier of merchandise or other property or services to the company” (Lowe’s, 2012). Areas of importance that are also covered in the codes pertaining to financial concerns are “payments to governmental officials or other persons, the importance of accurate books and records along with adhering to internal controls to financial reporting, protection, and proper use of company assets, public company reporting, and insider trading according to the code of conduct.” (Lowe’s, 2012). The possession of information or knowledge of a transaction or attempted transaction must be informed to the employee’s direct supervisor. There is a strong encouragement towards
References: Lowe’s. (2012). Investor Relations. Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=95223&p=irol-IRHome Lowe’s. (2012). Lowe’s 10-k annual report. Retrieved http://phx.corporate-ir.net/phoenix.zhtml?c=95223&p=irol-reportsannual New York Stock Exchange. (2012). History. Retrieved from http://nyse.nyx.com/history U.S. Securities and Exchange Commission. (2012). What we do. Retrieved from http://www.sec.gov/about/whatwedo.shtml