Preview

Walmart Ethics and Compliance

Better Essays
Open Document
Open Document
2059 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
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
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Eth/316 Week 3 Cross Cultural Perspectives
    • 1060 Words
    • 5 Pages

    Eth/316 Week 3 Cross Cultural Perspectives

    As an organization goes global, there is a new set of social and ethical issues that arise. In this instance, the organization, Wal-Mart, is considered the giant of retail and one of the largest companies in the world. It has grown as a staple in America as well as on an international platform, touching base in countries such as Japan and China. Wal-Mart is the largest retailer and the largest company in the history of the world in the way it conducts business operations. Wal-Mart management has implemented ways to overcome the challenges that present the ethical and social responsibilities with regard…

    • 1060 Words
    • 5 Pages
    Better Essays
    Read More
  • Better Essays

    Johan Gonzalez ETH 316 Wk 3 Organizational Ethics paper

    • 836 Words
    • 3 Pages

    Johan Gonzalez ETH 316 Wk 3 Organizational Ethics paper

    Each and every organization that exist have or should have a code of ethics in which they follow. The ethics of an organization governs how they will reply to both an internal and external stimulus. Walmart is one of the largest organizations in the world, that’s why it was chosen for this essay. Furthermore, they deal with lots of external social pressures that influence their ethics. They have had more than their fair share of lawsuits because they was sued 4,851 times in the year 2000 alone Willing, R. (2001, August 13). Lawsuits a volume business at Wal-Mart. USA Today. Whenever an issue arises they always fall back on their code of ethics to figure out the best possible solution. These issues are relevant to organizational and personal decisions and it will be explained how later in this paper. The relationship between legal and ethical issues will also be covered.…

    • 836 Words
    • 3 Pages
    Better Essays
    Read More
  • Good Essays

    Opposing viewpoints on Wal-Mart
    • 1238 Words
    • 4 Pages

    Opposing viewpoints on Wal-Mart

    When you hear the words low prices it is hard not to think of Wal-Mart. The company that revolutionized discount shopping. But what happens behind the scenes? How is it that the world’s largest retail chain can offer so many deals? In the last 20 years the anti-Walmart campaign seems to continuously be on the minds of many. Sebastian Mallaby and Karen Olsson share radically different views on the ethics of the Wal-Mart Corporation. In “Up Against Wal-Mart” we are forced to believe that Wal mart is a vicious company that shows no remorse when firing employees and cutting their benefits. The author produces factual information and eyewitness accounts pointing to these horrible deeds that the large corporation run by money hungry businessmen have cheated many employees out of proper wages, proper benefits and even their jobs. While Sebastian Mallaby depicts Wal-Mart like the average American company. In his article “Progressive Wal-Mart. Really.” He states that while Wal-Mart is responsible for many questionable deeds, they are merely doing what they have to in order to survive.…

    • 1238 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Walmart Ethical Issues
    • 174 Words
    • 1 Page

    Walmart Ethical Issues

    There are many discussions and theories of ethical practices regarding corporate social responsibility. When many corporate companies focus solely on their bottom line, many of their leadership and ethical decisions come into question. In particular, Walmart is the largest "big box" retailer in the world doing billions in sales every year with their low price philosophy. Though starting as a humble neighborhood store, Walmart has now become an unstoppable behemoth which many people are now taking a notice of. This paper is about analyzing the Walmart’s leadership and ethical practices. In 2005, Walmart faced various stakeholder problems in spite of its tremendous achievement as a retail brand. Walmart was related to various issues: outsourcing…

    • 174 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Better Essays

    Wgu Hr Task 2
    • 3261 Words
    • 14 Pages

    Wgu Hr Task 2

    The decision-making process that was used to develop the decision alternatives listed above to resolve the whistle problem was the decision making model #3. During this decision process the following…

    • 3261 Words
    • 14 Pages
    Better Essays
    Read More
  • Powerful Essays

    FIN/370 Week 2 Team
    • 1867 Words
    • 8 Pages

    FIN/370 Week 2 Team

    In regards to the finance environment, Starbucks plays an active role in ethics and compliance. Not only are their employees offered ways to voice concerns of unethical issues in the work place, but also Starbucks’ partners as well. Starbucks holds a meeting every year for their shareholders in order to review the yearly performance, vote on issues, and voice their concerns about the company. Starbucks’ ethics program is setup in a way that helps integrate and network ethical business practices on all levels of the company. For six years now, Starbucks has been named among the world’s most ethical companies and to this day is still going strong (Business Ethics and Compliance. 2012).…

    • 1867 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    What Are Walmart's Ethical Issues
    • 680 Words
    • 3 Pages

    What Are Walmart's Ethical Issues

    Ethic violations includes bribes, theft, personal conduct violations, and falsification of company assets, system hacking, or global trading malpractices. While Founder Sam Walton had a vision of employees of excellence. In the past 20 years Walmart’s ethics regarding employees has been questionable in the eyes of today’s workforce. It is evident by visiting several Walmart stores that customer service, excellence and engagement of Walmart employees is often inconsistent among locations and the individual leaders or Store Managers of each locations. It is not uncommon that the customer experience varies greatly from one Walmart location to the next. Walmart has long been criticized for low employee wages, unethical employment practices, which has resulted in thousands of employee related lawsuits. In a move to improve company image, culture and ethics, Walmart introduce new opportunities to employees, which included higher wages, flexible schedules, advancement opportunities, benefits and investment opportunities. Walmart also prides itself with by offering advancement opportunities for those stakeholders who practice dedication and commitment to the company. While these efforts appear to be long overdue by Walmart. Employers across the country are watching and measuring results as workforce challenges continue to plague industries throughout the…

    • 680 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Walmart Business Ethics
    • 2244 Words
    • 9 Pages

    Walmart Business Ethics

    Wal-Mart, the big giant, the place where a lot of people usually do their shopping for the low prices and the variety of products were founded by Sam Walton. Walton was an entrepreneur with an innovative vision started his own company and made it into the leader in discount retailing that it is today. In fact, Wal-Mart is considered to be the biggest company in the U.S. and it has stores worldwide. According to PBS, “Wal-Mart employs more people than any other company in the United States outside of the Federal government, yet the majority of its employees with children live below the poverty line.”(www.pbs.org) In addition, Wal-Mart likes to portray itself as a seller of U.S. manufactured goods but in reality the company has products on its shelves made in foreign countries and at questionable workshops. It would seem that Wal-Mart encourages “made in the USA” but it really encourages products made outside the USA. As a result, Wal-Mart has forced many manufacturers out of business. As a matter of fact, this big giant is facing a significant amount of controversy for unethical business practices. In fact, some of these unethical business practices include the following.…

    • 2244 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Costco Ethics
    • 1321 Words
    • 6 Pages

    Costco Ethics

    Today ethics has become such a controversial topic. It would seem as though corporate fraud and breaches of fiduciary responsibility, coupled with greed and selfishness plague every aspect of our corporate environment; therefore, a simplified model of ethics which implies choices are either right or wrong, or that ethical decision making depends solely on personal character or values is too simple. Ethics in a broader sense, is a matter of carefully and responsibility managing the things which are entrusted into our care. For Costco their code of ethics is simple: “Obey the law, take care of its members, take care of its employees, respect its suppliers and reward its shareholders.” (Cascio)…

    • 1321 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Better Essays

    Eth 316: Code Of Ethics In Business
    • 977 Words
    • 4 Pages

    Eth 316: Code Of Ethics In Business

    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
    Read More
  • Good Essays

    Wal-Mart Controversy
    • 755 Words
    • 4 Pages

    Wal-Mart Controversy

    Wal-Mart is the world’s largest retailer, but controversy surrounds their operating practices (Ferrell, Fraedrich, & Ferrell, 2013). The company known for significant sales profits, a large employee base, and the everyday low price provided to consumers is clouded by the pressure applied to suppliers requiring continuous reduction in pricing (Smith & Young, 2004). The small startup company that has grown to a multitude of stores across several countries does have some positive impact, but is it overshadowed by debatable ethical choices.…

    • 755 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Case Study - Wal Mart: the Main Street Merchant of Doom (Corporate Social Responsibility Case Study)
    • 2735 Words
    • 11 Pages

    Case Study - Wal Mart: the Main Street Merchant of Doom (Corporate Social Responsibility Case Study)

    Since its establishment in 1962, Wal-Mart has grown to be one of the biggest conglomerates in the world. Inevitably, with the expansion of the company, the weight and number of social and ethical issues facing the company has increased.…

    • 2735 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Better Essays

    Ethics and Compliance
    • 1462 Words
    • 6 Pages

    Ethics and Compliance

    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).…

    • 1462 Words
    • 6 Pages
    Better Essays
    Read More
  • Better Essays

    Fin 370 Ethics and Compliance Team Paper
    • 1650 Words
    • 7 Pages

    Fin 370 Ethics and Compliance Team Paper

    Wal-Mart Corporate-Governance Documents. (2013, MAY). Code of Ethics for the CEO and Senior Financial Officers. Retrieved from http://stock.walmart.com/corporate-governanance/governancedocuments…

    • 1650 Words
    • 7 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Ethical Issues In Walmart
    • 452 Words
    • 2 Pages

    Ethical Issues In Walmart

    The ethics statement of Wal-Mart is functioning as a lead and source for ethical decision making. Along with this, it supplies with a secret and unidentified reporting system. It used to lead a long-lasting ethics education and…

    • 452 Words
    • 2 Pages
    Satisfactory Essays
    Read More

Related Topics