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Ethics and Compliance Paper Essay The companys project-oriented approach improved teamwork and leveled the playing field; team culture and corporate culture have been promoted; an innovative spirit has been instilled; and international integration has been improved. In terms of the market results, Lenovos adaptation of project management has improved the ompanys core competitiveness with improved delivery and customer satisfaction. In turn, distinctive performance was delivered: In 2006, the company had a market share of seven percent in the global PC market, led only by Dell and HP. Its total turnover was USD 14. 6 billion, a rise of 10 percent over the previous year. Ethics and Compliance Paper BY bc64762 Walmart is one of many companies who report its filing with the United States Securities and Exchange Commission. The purpose for writing about Walmarts Ethics and Compliance paper is to inform the reader about Walmarts important compliance processes. SEC filings, analysis of financial statements, requirement for certification and legal proceedings will be explained throughout further reading. Procedures for Ethical Behavior Walmart has an official statement of ethics which is meant to be applied to not only the associates and directors employed by the organization but also third parties. These third parties include suppliers, consultants, public relations firms, contractors and all other third party companies who conduct business with Walmart in any fashion. Due to the fact that Walmart does conduct business in several countries the tatement of ethics may be modified to coincide with the laws and customs of each country. To conform to the statement of ethics written out by Walmart, associates expect to follow the laws written by their city, state, and country at all times. These employees are also responsible for not only reading the Guiding Principles but also understanding and using those principles every-day. Employees do not expect to memorize these policies; however they are expected to learn those that apply directly to their Jobs. If an employee has a question or concern they should not be afraid to sk help from a manager or report any inappropriate conduct. If there was anything to happen and an investigation would take place with Walmart employees, the employees are expected to cooperate with and ensure the investigation remain private and come up front with any news that any employees may have. Along with these requirements of employees, Walmart has additional responsibilities for managers to ensure the ethical behavior is conducted. If an ethical issue is brought to a managers attention, it is their Job to report this to the Global Ethics Office at the Walmart Corporation. Managers are also expected to meet with their employees as a group to review the Guiding principles and answer any questions that may arise. Managers encourage always putting ethics first in the event that an ethical issue is in conflict of business objectives. It is the managers duty to lead by example, and ensure that Just because one ethical mistake is made that this does not continue within their department. Open communication between managers and employees is a must and no issue should ever be put aside regardless of the magnitude. Along with these responsibilities and requirements, discipline is handed own for those in violation. Actions are taken up to and including termination for violation of the organizations ethics policy. SEC Compliance Processes The most important process that Walmart uses to comply with SEC is to make SEC filings in accordance to the law. A sample of these filings can be examined at: http:// finance. yahoo. com/q/sec? s=WMT. This page gives a list of 8K and IOQ filings made by Walmart with SEC. Also of utmost importance, the finance department at Walmart prepares the financial information and statements required by the SEC like the Income Statement, Balance Sheet and Cash Flow Statements. The company is then financial statements, more disclosures, controls and procedures and other information as required under part B. It is also necessary to provide Other Information relating to the company. The most important process of compliance that appears in the report is the signature certifying that the report is in compliance with Section 13(a) or 1 5(d) of the SEC Act of 1934. The act of signing makes the President and Chief Executive Officer responsible for the information contained in the reports. The requirement for certification makes it important for the CEO and the CFO to nsure that the information contained in the report is correct. Other organization processes are somewhat mechanical. For instance, the legal proceedings, including those against the company need to be listed. The legal department will provide a comprehensive list of the legal proceedings. Three officers, the President and the CEO, the Executive Vice-President and CFO as well as the Senior Vice Preside nt law suits filed against Walmart and the disclosures in the court contains information about the internal proceedings of Walmart. The following web sites offer one the opportunity to examine Walmarts compliance with SEC requirements: http:// walmartstores. com/lnvestors/SECFilings. aspx or http://www. wakeupwalmart. com/ press/article. tml? article=784. Apart from this, the SEC is responsible for the enforcement of the Sarbanes-Oxley Act, the Investment Advisers Act of 1940, the Investment Company Act of 1940, Trust Indenture Act of 1939 and the Securities Act of 1933. In consideration of the Sarbanes Oxley Act, the CPA auditor of Walmart is required to comment on the internal control of the company. The auditor of Walmart, Ernst ; Young carries out the requisite examination of the internal control at Walmart and makes comments about the internal control at Walmart. Walmarts Financial Performance over the Last Two Years Financial ratios are used to identify the strengths and weaknesses of a company. The current ratio, debt ratio, return on equity ratio, and days receivable ratio will be used to identify Wal-Marts financial health. The ratios used will be for 2008 and 2009 to obtain a brief look at the companys financial health. The first ratio is the current ratio. The current ratio tests for a companys liquidity (Keown, Martin, Petty, ; Scott, Jr. , 2005). The simplest and most basic test for a companys relative liquidity is the current test, which divides the companys current assets by its current liabilities. In 2008, Walmarts current assets were $48,020 million and the current liabilities were $58,478 million for a ratio of 0. 8. In 2009, Walmarts current assets were $48,949 million and current liabilities were $55,390 million for a ratio of 0. 9. The ratios indicate that the Walmarts financial health was slightly better in 2009 than it was in 2008. Because a companys assets may be financed by debt or equity it is important to consider a companys debt ratio. The debt ratio shows relatively how well a company manages its assets or rather how much of its assets are in the form of debt (Keown,