Ethics and Compliance

Role of Ethics and Compliance

Wal-Mart has a strong position on ethical behavior and compliance. The companies C.E.O. Michael T. Duke states, in the 2009 financial report, that, “the company was founded on the belief that open communication and the highest standard of ethics are necessary to be successful.” Wal-Mart has developed, what it calls, an Open Door Policy to ensure that issues involving ethics at Wal-Mart are address both quickly and thoroughly by management. The management team at Wal-Mart encourages its associates to inform them about any issue concerning unethical behavior at Wal-Mart.

To help associates fully understand the company’s belief and dedication to high ethical standards the organization has adapted a Statement of ethics guide built around the principles of honesty, integrity and compliance with the law in all matters concerning Wal-Mart’s business. Members of Wal-Mart’s management team are expected to be familiar with and be in total compliance with the companies Statement of ethics guide. Senior financial officers and directors are held to an additional code of ethics that requires all material related-party transactions to be reviewed by an audit committee. Wal-Mart also has an ethics hotline that allows associates to make confidential and anonymous complaints in situations where members of management or associates observe behaviors that violate or potentially violate the company’s statement of ethics.

Wal-Mart has continued to move in a forward direction as a leader in its industry; the company has not wavered from its commitment to high ethical standards and compliance with the law. The organizations commitment to exhibiting the highest standard of ethics observed by associates and customers remains to be a key focal point for the organization based on both the 2009 and 2010 financial reports.

Procedures

Since Sam Walton founded Wal-Mart Stores, the organization has always been a values-based and ethically led company...