Ethics and Compliance Paper
When considering the sustainable success of any organization one normally would turn to the company’s CEO seeing this person as the captain of the corporate ship. He or she sits on the bridge keeping his or her vessel on course. There is some truth to this thought; however without a healthy financial base and a strong short and long-term financial plan the ship could never leave its port. The following paper is written to bring to light several critical areas necessary to evaluate while trying to assess the financial health of any organization, in this case, Microsoft. It is important to analyze many areas of the organization’s annual report fillings and comparing at least two years of critical information that includes current ratio, debt to equity ratio, return on equity, and days receivable ratios. In addition to the financial evaluation this paper also provides information on how the financial markets work in the United States, the roles of ethics and compliance at Microsoft, and will explain the processes Microsoft uses to comply with SEC regulations.
Role of Ethics and Compliance
Microsoft’s finance division has a code of ethic of its own, which the company requires employee to act in a manner that is honest, and he or she should avoid any conflict of interests. The Microsoft Finance Code of Professional Conduct (Code) specifies that all employees, including leadership, keep all matters of the company confidential unless required legally and act underneath the law.
“Microsoft’s Chief Executive Officer (CEO), Chief Financial Officer (CFO), Corporate Controller, and other employees of the finance organization hold an important and elevated role in corporate governance in that they are uniquely capable and empowered to ensure that all stakeholders’ interests are appropriately balanced, protected, and preserved” (Microsoft Investor Relations, 2012). The principles of the “Code” relate to the conduct of the employees in regard...