- August 19, 2012
- Posted by: essay
- Category: Free essays
The ethics policy of Wal-Mart requires honest and accurate accounting, because such large company can not afford to loose the consumers trust. The company provides annual reports, quarterly earnings releases and governance documents, code of ethics and SEC filings on its Internet site.
Wal-Mart Company has internal Audit Committee and independent auditor. Audit Committee consists of four directors, all of whom are “independent” as defined by the applicable rules of the SEC.Â Audit Committee monitors and oversees the process of preparation and issuing of consolidated financial statements. Committee has to ensure that statements fairly present Wal-Mart’s results of operations and financial position, and that they were prepared in accordance to accounting principles generally accepted in the United States. Besides, the Committee selects At the beginning of 2005 Wal-Mart toughened its ethic policy and issued a guideline of 26 pages for its employers and their families. The main places in this guideline take the questions of internal accounting issues, vendor relationships and personal conduct.
The guideline is to three times longer than most competitors’ policies. New guideline appeared after the retirement of 7 top managers in mid-December 2004. The reason of retirement was fail to meet company standards.
Wal-Mart regularly issues the statements to its shareholders to ensure them in compliance with SEC regulations. In the statement from June 14 2009 Company reported about the adopted measures. All these measures make the information regarding Company’s operation ore clear and readily accessible. Company promised to publish its press-releases on its web-site as soon as information is available.
Company promises not to use any part of this information before ots publication. Besides, Wall-Mart promised to publish the news before the start of trading on the New York Stock Exchange.
Thus, the Wal-Mart’s policy is rather strict and accurate.