FIN 370 Week 2 Team Assignment - Ethics and Compliance Paper

FIN 370 Week 2 Team Assignment - Ethics and Compliance...

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Ethics and Compliance 1 Ethics and Compliance Paper University of Phoenix
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Ethics and Compliance 2 Ethics and Compliance Paper: Lowe’s Lowe’s incorporated is synonymous with quality hardware and home improvement materials. Founded in 1921, Lowe’s has withstood the test of time by mixing good products and pricing with following rules, laws, and ordinances that apply. Some of the laws that Lowe’s is compliant with are adhered to by using EDGAR, which is a hardware giant required to report properly figures, sales, and other information that could affect stock prices. Lowe’s also seems to excel at internal audits, using tools such as return on equity ratios to gauge a broad idea of current and long-term financial conditions. Lowe’s has also managed to keep current debt down by wholesaling products and not accruing much long-term debt. Lowe’s presents an excellent business model by combining ethics and proven business techniques to establish themselves as a major corporation. Lowe’s has a very strong sense of business and financial ethics. They operate more than 1675 stores in the United States. In 2008, Lowe’s ranked number 47 on the Fortune 500 list. Lowe’s has a very detailed code of ethics listed on their website for employees and customers to see; also found on LOWESNET, the company’s intranet website. Lowe’s code of ethics addresses every area of the way the business operates, not only the financial information. Not only does the Lowe’s code of ethics require every employee to follow it but Lowe’s also expects the board of directors to adhere to the code as well. In addition, Lowe’s expects employees to alert management of every unethical situation that occurs. When it comes to the ethics of their finances, they value their reputation in compliance with all government laws, rules, and regulations. Their code also includes mention of complying with the laws against payments to government officials, whether that payment consists of gifts or cash. Lowe’s dedicated an entire section to the accuracy of all books and records and adherence
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Ethics and Compliance 3 to the system of internal controls to financial reporting. “The integrity of financial reporting by public companies represents the foundation of the United States securities markets on which Lowe's common stock and other securities are traded” (Lowe’s, 2005, G, ¶ 1). Their view on insider trading is as strict as all their other codes. They list specific information on how to avoid breaking any insider trading laws such as when information disclosure regarding stock. To ensure the code of ethics is adhered to Lowe’s has put into place many departments
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FIN 370 Week 2 Team Assignment - Ethics and Compliance...

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