Preview

Ethics and Compliance

Better Essays
Open Document
Open Document
1462 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
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



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

You May Also Find These Documents Helpful

  • Satisfactory Essays

    B. From the e-Activity, examine ethical behavior within firms in relation to financial management. Provide at least two (2) recent (in the last 5 years) examples (other than Enron, WorldCom, and Bernie Madoff) of companies that have been guilty of ethics-based malfeasance related to financial management. What were the specific sanctions that were imposed and explain why the sanctions and penalties were appropriate?…

    • 2484 Words
    • 9 Pages
    Satisfactory Essays
  • Satisfactory Essays

    bus122

    • 1027 Words
    • 4 Pages

    2.Based on your research, describe the organization, the accounting ethical breach and the impact to the organization related to ethical breach.…

    • 1027 Words
    • 4 Pages
    Satisfactory Essays
  • Better Essays

    Acc/325 Phase 2

    • 983 Words
    • 4 Pages

    Ethics plays such an important role in the business world. There are organizations and boards that set guidelines specifically to improve the work environment and help control the amount of ethical dilemmas. The SEC works as the head quarters for these boards and has developed many new guidelines since the crisis of the early 2000’s. The International Ethics Standards Board for Accountants (IESBA) has established ethical standards and guidelines for accountants similar to those of the AICPA’s Rules of Conduct. There are many organizations that are working in unison to create the best atmosphere for the business world and those involved.…

    • 983 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    This assignment will help students understand the importance of ethics, ethics within an organization, and ethical decision making. This assignment will create an awareness of ethical practice within their academic life and professional life within their discipline. It will also help students understand the negative consequences of unethical behavior on individuals, organizations, and societies.…

    • 674 Words
    • 4 Pages
    Satisfactory Essays
  • Better Essays

    The paper will analyze the corporate ethical breaches in recent times, assess whether or not you believe that the current business and regulatory environment is more conducive to ethical behavior. Ethics behavioral aspect of accounting is a special area of accounting that is developed to address such aspect of human information processing behavior, judgment quality, accounting problems created by users and providers of accounting information as well as their decision making skills. Secondly, paper will describe the organization, the accounting ethical breach and the impact to the organization related to ethical breach. Thirdly, this paper will determine how the organizational ethical issue was detected and how management failed to create an ethical environment. In some cases, some company pledged its own stock to ensure that partnerships would be able to borrow money. And when Enron stock started plummeting, the whole thing fell apart. Fourthly, this paper will analyze the accounts impacted and or accounting guidelines violated and the resulting impact to the business operation. They operated as the masterminds behind the system to defraud investors. The banks, by offering fake, illegal and not approved by regulators deals,…

    • 2414 Words
    • 10 Pages
    Better Essays
  • Better Essays

    The purpose of this paper is to present, discuss, and examine the topic of ethical and social responsibility. It will discuss Southwest Airlines ' failure to comply with the Federal Aviation Administration 's rules on inspecting aircraft and what violations occurred. On March 6, 2008, Federal Aviation Administration (FAA) inspectors submitted documents to the United States Congress, alleging that Southwest allowed 117 of its aircraft to fly carrying passengers despite the fact that the planes were "not airworthy" according to air safety investigators. In some cases, the planes were allowed to fly for up to 30 months after the inspection deadlines had passed, rendering them unfit to fly. Records indicate that thousands of passengers were flown on aircraft deemed unsafe by federal standards. Clearly, this is an issue tied to social responsibility and ethics at the highest level, ignoring the safety inspections put people 's lives in jeopardy.…

    • 2277 Words
    • 10 Pages
    Better Essays
  • Powerful Essays

    The Sarbanes-Oxley Act

    • 1677 Words
    • 7 Pages

    Enron’s failure spotlighted corporate America’s moral failures and tremendously injured those that condoned and benefited from the unethical practices. This failure resulted in a major overhaul of accountability guidelines of the Securities and Exchange Commission and the American Institute of Certified Public Accountants. Code of Ethics was promulgated along with other support mechanisms that monitor a company’s ethics program that extends to the core values of company management and personnel. Of the five components of ethical behavior, honesty is perhaps the most complex and difficult to implement since the ultimate decision to disclose information to the public relies mostly on the individual’s ethical values or interpretations that can be manipulated to produce a desired…

    • 1677 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    The purpose of this essay is to discuss if Alex Rodriguez should be banned from baseball. I will present some arguments about the use of anabolic steroids in sports, and respond to these arguments by showing that the reason for banning steroids is not always as clear as it seems.…

    • 1167 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Discussion Question 2

    • 439 Words
    • 2 Pages

    Review the Enron case information presented in the textbook. If you were a high-level leader in this corporation, how might applying your personal ethics have changed the outcome?…

    • 439 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Working as a financial manager comes with a lot of responsibility; and a lot of standards of practice. Just like physicians and nurses, financial managers of health care organization have a set of rules and ethical guidelines they must follow in their practices. In this paper, I will explain what the four elements of financial management are. There will also be a summary of generally accepted accounting principles (GAAP) and financial ethical standards. Business’s mist follows these standards in order to comply with federal agencies such as the Financial Accounting Standard Board. I will also provide examples from articles that explain how corporations comply with these standards and deal with fraud or abuse.…

    • 986 Words
    • 4 Pages
    Better Essays
  • Better Essays

    All organizations that are currently operational have or ought to have a code of ethics in which is being followed. The importance of ethics in any organization helps direct in what way they will respond to internal and external stimulus. The largest organization in the world is Walmart, I work as sales manager for a CPG company and interact with Walmart every day. They deal with a great deal of external social pressures that influence their ethics. Walmart has dealt with its fair share of lawsuits as they have been in litigation 4,851 times just in the year 2000 alone Willing, R. (2001, August 13). Every time a concern rises they constantly analyze…

    • 977 Words
    • 4 Pages
    Better Essays
  • Better Essays

    Mayo, H. B. (2012). Basic finance: An introduction to financial institutions, investments, and management (10th ed.). Mason, OH: South-Western.…

    • 2174 Words
    • 9 Pages
    Better Essays
  • Better Essays

    1. Determine the impact of this event on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line). This event has had a major impact on the American Red Cross Association’s business ethics. Often times, employees join organizations because they believe that they share some of the same values as the organization. When business ethics are comprised in an organization it tremendously affects employee commitment and their overall performance. A lack of ethics in an organization sends…

    • 955 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    Ethics Compliance Plan

    • 743 Words
    • 3 Pages

    Ethics compliance is very important thing in the medical field and any medical organization. It is very important to have ethical standards for medical professional to follow in the office. The ethics and compliance plan shows the medical professional commitment to having an ethical work environment. The importance of the ethics compliance plan is to set forth standards of proper legal, ethical and professional behavior and explain how medical staff, clients, volunteers, families and vendors can communicate any legal concerns that they have. Medical professionals have to be familiar with responsibility not only to themselves but to patients, society and other health care professionals.…

    • 743 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    This paper is about information that will address financial reporting practices and ethics. It will address four financial management functions, summaries that accept accounting principles by generally accepted accounting principles (GAAP).It will also give an example from an article that has reflected ethical standards of conduct and financial reporting.…

    • 996 Words
    • 4 Pages
    Good Essays