Ethics and Compliance Analysis
The Lowes Company was established in 1921 by L.S. Lowes as a local hardware store selling
products such as power tools, electronics, paint, lawn care products, as well as other forms of
hardware products. Later L. S. Lowes passed away and L.S. Lowes’s son and son -n –law took
over the company later selling most of the merchandise to reorganize the store allowing the store
to sell both hardware and building supplies (Lowe’s Companies, Inc, 2010). Selling both
hardware and building supplies allows the company to be more flexible attracting a larger more
versatile customer base and expanding the number of stores throughout the word to over 400
store locations (Lowe’s Companies, Inc, 2010). The following will discuss their code of ethics,
compliance with SEC regulations, and an evaluation of the company’s financial status.
Code of Ethics
The Lowes Company has a policy of adhering to a stick code of business conduct and ethics
which are designed by a series of people on the Board of Directors which are not employed by
the Lowes Company. The ethical behaviors required by the Lowes Company are to be followed
by all employees of the Lowe’s Company both internal and external employees (Lowes, 2010).
The rules of the policy include: compliance with laws, and regulations, conflict of interest, fair
dealing, corporate opportunities and loyalty, confidential information, social networking media
and collaborative networking technologies, payments to governmental officials or other persons,
importance of accurate books and records and adherence to system of internal control to
financial reporting , protection and proper use of company assets, public company reporting ,
insider trading, intellectual property, employee relations, compliance with code, amendment,
modification, and waiver.
The first ethical behavior required by the Lowes Company is to follow all government rules, laws,
and regulations. The rules, laws, and regulations are provided to each employee by the
management team of the Lowe’s Company (Lowes, 2010). If there were to be any questions
regarding any of the various rules, laws or regulation The Lowe’s Company requires the
individual to seek guidance from the companies general counsel or chief compliance officer
(Lowes, 2010). The next form of ethical behavior is conflict of interest. The conflict of interest
includes anything started at work or started outside the work place. The forms of conflict of
interest are shown by forms of disagreement or by ones appearance (Lowes, 2010).
Fair dealing is another form of ethics which Lowes expects their employees to follow. The fair