Ethics and Compliance Essay

1800 Words Sep 2nd, 2012 8 Pages
Ethics and Compliance Paper
Matt Itter, Sarah Gustafson, Shane Bumgardner, Tanya Baker, Adam Caldwell
Fin 370
August 6, 2012
Christopher Hernandez

Ethics and Compliance Paper
Team B has chosen to analyze the annual filings for Lowe’s Companies Inc. In this paper we will go over the last two years of SEC filings for this company and we will analyze the information provided by those reports. Team B will look at the role of ethics and compliance in the company’s financial environment, we will discuss the procedures that are in place to ensure ethical behavior, we will also take a look at the financial market in the United States that this company operates in. Lowe’s must also ensure that it follows all SEC regulations in order to
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The security markets provide a link between corporations and investors (Titman et al, 2011). Corporations issue securities to investors that pay cash in exchange for the securities. The corporation invests in return-generating assets which generates cash flow from operations. The organization reinvests cash in the corporation, distributes cash back to the investors, securities are then traded among investors in the secondary market, and the investors and corporations pay taxes to the government (Titman et al, 2011). Lowe’s Compliance with SEC Lowes has corporate governance guidelines that have revisions as of June 1, 2012. “Lowe's values its reputation for complying with applicable governmental laws, rules and regulations in the conduct of its business. Lowes requires that every employee, while acting on behalf of the company, shall comply with all applicable domestic and foreign laws, rules, and regulations” (Lowes, 2012). Examples of Lowes following processes in place to comply with SEC guidelines are seen in the reports filed with the SEC in 2012. On July 31, 2012 Lowes filed an 8-K form with the SEC which is a report that reports unscheduled material or corporate events. Other forms filed with the SEC in compliance with regulations include Form 4 on July 3, 2012 and June which is a statement of changes in beneficial ownership and securities. On June 6, 2012 Lowes filed form 10-Q and Form S-8. Form 10-Q is a quarterly report which provides a