Ethics

Ethics and Compliance

FIN/370

January 31, 2011

Ethics and Compliance

Wal-Mart is one of many companies who report its filing with the United States Securities and Exchange Commission.   The purpose for writing about Wal-Mart's Ethics and Compliance paper is to inform the reader about Wal-Mart's important compliance processes.   SEC filings, analysis of financial statements, requirement for certification and legal proceedings will be explained throughout further reading.

Role of Ethnic and Compliance

Wal-Mart position on ethical behavior and compliance is very important to the organization success. Wal-Mart C.E.O. Mike Duke states in the 2009 financial report that, “the company was founded on the belief that open communication and the highest standard of ethnics are necessary to be successful”. Wal-Mart developed the Open Door Policy to ensure issues concerning ethics at Wal-Mart are address both promptly and thoroughly by management. The management team at Wal-Mart encourages its associates to notify them about any issues relating to unethical behavior.

To ensure the associates understand the company’s belief and dedication to set high ethical standards Wal-Mart adapted a Statement of ethics guide. The State of ethnics guide is built around the principles of integrity, honesty, and compliance with the laws in all matter concerning the business. Wal-Mart management team is expected to know and be in compliance with the company State of ethic guide. Also, financial officers and directors are held accountable to an additional code of ethics that requires specific transactions to be reviewed by an audit committee. Wal-Mart put an ethics hotline in place to allow associates to keep complaints confidential and anonymous to report behaviors that violate the organization statement of ethics.

As Wal-Mart continues to be a leader in its industry, setting high ethical standards and compliance with the law are key components in building a company of integrity....