...Lowes Companies – Ethics and Compliance Ethics and compliance within a company’s financial environment is crucial to long term success as well as gaining investors’ and employees’ trust. When an organization demands ethical behavior from it entire workforce, compliance and adherence to various important standards is a much easier task to obtain. This type of environment creates better relationships with shareholders, employees and customers. This behavior also passes savings on to customers and higher dividends to shareholders. Lowes Companies sets this type of expectation throughout its organization. This steadfast dedication to diligent, honest work is apparent when reviewing Lowes annual reports and code of ethics. With dedication to shareholder value, Lowes vows improvement to financial performance by 2015 in its 2011 annual report by implementing the vision, Never Stop Improving™. This promise to shareholders as well as the openness of the company’s financial information shows that Lowes holds ethics and compliance in a high regard from the company’s employees in stores to the workforce on the corporate level. Lowes code of ethics acts as a guideline for any employees who make decisions within the company. Lowes believes in holding its employees to a high standard of integrity and professionalism ("Lowes Companies Code Of Ethics", 2012). When it comes to high standards and the importance of accurate record keeping in the financial environment, Lowes outlines its expectations...
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...Ethics and Compliance Analysis FIN375 – Business Finance 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...
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...Ethics and Compliance Team C has chosen Lowe’s as our organization. The role of the ethics and compliance in Lowe’s financial environment will be assessed and the procedures the company has in place to ensure ethical behavior will be described. An explanation of how the financial markets work within the United States, identifying the processes that Lowe’s uses to comply with SEC regulations. Attached are the annual report and SEC filings for the past two years. With the financial information from Lowe’s, Team C will select one ratio from each of the ratio categories to include liquidity, asset management, debt management, profitability, and market value. It will be discussed the trend for each ratio and whit it says about the organization’s financial health. Lowe’s values it reputation for maintaining high ethical standards in its workplaces and around the world where ever they do business (Lowe’s, 2012). The company states that integrity is one of their core values and that every employee must comply with all governmental laws, regulations and rules while acting on behalf of the company. All employees of Lowe’s should avoid in any conduct that is inconsistent with the company’s ethical principles, even if it is legally permissible. Lowe’s also requires all vendors and suppliers to comply with their code of conduct and business ethics, failure to do so will result in termination of the business relationship. Lowe’s requires all personnel (including family members...
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...Ethics and Compliance Leslie Hope, Quo-vades Simonton, Teresa Duncan, Kizzy Richardson FIN/370 August 2, 2012 Professor Franklin Olivieri Ethics and Compliance This paper contains analyzed data of the organization Lowe’s Home Improvement Stores. Lowe’s is a home improvement store that provides its customers with the supplies needed for any improvements around the home. The discussion hereafter will assess the role of ethics in the financial department and describe the procedures the company has to encourage ethical behavior. Next, explain the role financial markets in the United States. Followed by how Lowe’s complies with Securities and Exchange Commission (SEC) regulations. Lastly, provide an evaluation of the company’s financial performance last two annual periods, followed by the calculations of ratios for each year. The ratios include current, debt, return on equity, and days receivable along with an explanation for trends. The code of business conduct and ethics at Lowe’s improvement stores starts with the board of directors down to the newest employee. Everyone associated with or represented by Lowe’s is required to read and adhere by the code of conduct. Lowe’s values its reputation as a leader when complying with governmental regulations involving ethics. Lowe’s applies ethics in its financial dealings by requiring, under Section B of the code of conduct. That “employees and members of their immediate families should not have any financial interest, direct...
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...Ethics and Compliance Paper Shalom J. Duarte, Chris Campbell, Eric Newhart, & Ron Reda FIN/370 June 18, 2013 James Campbell Ethics and Compliance Paper Strategic planning and financial preparation are vital to ensure the success of big retail corporation such as Lowes. This type of planning happens when a company sets up both long term and short term goals for their strategic marketing and planning to achieve financial success. Strategic initiatives can be created in various areas, such as in the area of new products being rolled out and new departments being created. In particular a strategic plan, determines a company’s long term goals and then identifying the best approach for achieving those goals. From the financial perspective, financial planning initiatives are long-term plans aimed at generating capital with objectives focused on greater return on assets, growth in market share, and at solving foreseeable problems. When Strategic plans are met, such as plans focused on certain products or departments, it helps the overall health of the company’s financial status in different areas such as with the store’s revenue, over head spending control, and maintaining a store’s budget. Both Strategic and financial planning share the same company goals for success and the understanding of where the financing must come from to accomplish these goals. Lowes is a leader in home improvement and is committed to never stopping improvement. Lowes mission is to deliver...
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...Lowe’s Home Improvement Stores Sheila Thomas Webster University Abstract Lowe’s exists to help customers improve and maintain their biggest asset- their home. We do this by meeting the changing needs of our customers by providing inspiration and support whenever and wherever they shop. Whether our customers shop in store, online, by phone, or if we’re meeting them at their home or place of business, Lowe’s is ready to help. In our more than 1,830 stores, we have implemented multiple systems to improve the customer experience, including an upgraded store information technology infrastructure that allows customers and employees to access richer product information, enjoy an endless aisle of product choices and manage their projects from inspiration to enjoyment (Lowe’s.com). Online, we are rapidly expanding our assortments to offer customers a broader range of products that can be researched and purchased online, in store or via our mobile app. MyLowe’s makes it easy for our customers to automatically track and store all purchases on their online customer profile. We’ve vowed to “Never Stop Improving” so we can satisfy the ever-changing needs of our customers (Lowe’s.com). Lowe’s operates more than 1,830 stores in the United States, Canada and Mexico. We serve approximately 15 million customers each week and employ more than 260,000 people (Lowe’s.com). Our stores stock 12 product categories ranging from appliances and tools, to paint, lumber and nursery...
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...Lowes Ethics and Compliance FIN/370 Introduction Role of Ethics and Compliance Processes and Procedures Lowes takes pride in making sure that its employees maintain a level of professionalism as well as follow a strict code of ethics. Within the Code of Conduct and Ethics document that Lowes distributes to its employees, third party vendors and board members they discuss in detail the expected performance of each individual. This performance is not only based on day-to-day interactions but also with federal and state regulations. Since Lowes is a retailer more than likely the largest ethical concerns would be fair treatment of employee’s friends and family. According to "Code Of Business Conduct And Ethics" (2012), “Therefore, every Employee, while acting on behalf of the company, shall comply with all applicable domestic or foreign governmental laws, rules and regulations, and should avoid engaging in any conduct that, even if legally permissible, that is inconsistent with the ethical principles to which Lowe's subscribes.” This statement shows how passionate Lowes is about their ethical standards and what the company expects from their employees. Stating that regardless if something is “lawful” by domestic or foreign laws that certain actions will still not be tolerated if it is against the policy that Lowes enforces. Lowes gives ample information concerning different ethical and legal situations that employees may find themselves in. Within...
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...Kohlberg's model, ethical reasoning is motivated by: A. Fear of punishment B. Satisfaction of one's needs C. Following the law D. Acting based on universal ethical principles 3. In the DigitPrint case, at which stage does Wally Wonderful reason if he insists on compliance with GAAP? A. Stage 2 B. Stage 3 C. Stage 4 D. Stage 5 4. Each of the following is an element of Rest's model of morality except for: A. Moral sensitivity B. One's stage of ethical development C. Moral motivation D. One's courage in making decisions 5. The actions of Sherron Watkins in the Enron case appears to reflect each of the following except for: A. Moral sensitivity B. Egoism C. Enlightened egoism D. Professional skepticism 6. Professional judgment in accounting includes each of the following attributes except for: A. Exercising due care in carrying out one's professional responsibilities B. Maintaining one's objectivity in decision making C. Maintaining one's integrity in decision making D. Acting in accordance with the moral point of view 7. In Thorne's model of ethical decision making, the instrumental virtues relate to: A. Moral sensitivity B. Ethical reasoning C. Ethical motivation D. Ethical character 8. In Cherron and Lowe's study of the link between professional skepticism and management accountants, the authors identified the importance of: A. Understanding the motivation and integrity of evidence providers B. Understanding the nature of the corporate culture C. Understanding the way...
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...CONFORMING LETTER Home Depot Inc. Dear Home Depot Inc. Management, As a partner of KNAM LLC, it is my pleasure to present you with the results of our initial review. Included with these results is our assessment of Home Depot Inc.’s performance is our proposition of areas we’d like to review further to determine improvements, efficiency, functionality, and health of your organization. Background Your organization’s core service is in the DIY home improvement market. You sell goods that consumers need for home improvement as well as advice on said projects, contracting services, lawn and garden, and appliances and tools. Your organization was founded in 1978 with the purpose of providing DIY one-stop shopping. Since inception, Home Depot Inc. has grown to become a multinational company with foundations strongly in the United States with roots in the Canadian, Mexican, and Chinese markets. Shortly after inception, Home Depot Inc. enlisted on NASDAQ and the NYSE. Your company has seen considerable growth in its main business as well as developments in subsidiary businesses and services. Home Depot Inc. has become one of the fastest growing retailers in America and as such, you would like to review the operations of your organization to determine areas of further growth and areas that may need to be leaner. Objectives of the Operational Review As a result of our initial review and interviews with your executive management...
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...Building Better Home Improvement Experiences 2012 ANNUAL REPORT Building Better Home Improvement Experiences Learn more by visiting our online Annual Report at www.Lowes.com/2012annual or scan the QR code with your smartphone. Shareholder Letter Great customer experiences start with our associates, whether they interact with customers face-to-face or work tirelessly behind the scenes to simplify the complex business of home improvement. And together, Lowe’s associates are building better home improvement experiences. We’ve laid the foundation to transform our core business over the past two years, and we will continue our efforts in 2013 and beyond. We expect to generate compelling returns for shareholders as we further align our people, processes and financial resources to provide better home improvement experiences. 2012 PERFORMANCE We delivered solid performance in 2012. Comparable store sales grew 1.4% and total sales grew 0.6% to $50.5 billion. Net earnings increased by 6.5% to $2.0 billion and diluted earnings per share increased 18.2% to $1.69. Operating cash flows, along with the net issuance of $1.4 billion of long-term debt, were used to acquire $1.2 billion in fixed assets and return $5.1 billion to shareholders through dividends and share repurchases. Robert A. Niblock Chairman of the Board, President and Chief Executive Officer OUR PROGRESS Our transformation is centered on the customer. In the inspiration phase of a project, customers realize...
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...Midterm Exam – Summer 2011 Chapter 01 Ethical Reasoning Implications for Accounting Multiple Choice Questions 1. Each of the following characteristics describes the importance of integrity in decision making except for: A. Acting out of moral principle B. Being loyal to one's superior C. Having the courage to do the right thing D. Not subordinating professional judgment to others 2. The ancient Greeks thought of the virtues as characteristics of behavior that: A. Could lead to a good life B. Make up the "six pillars of character" C. Support the rights theory D. All of the above 3. Ethical relativism can best be described as a: A. Point of view that morality is relative to the norms of one's culture. B. Concept that holds that integrity should be maintained in the face of pressure by others. C. An ethical reasoning method that holds one should always act out of self-interest. D. An ethical reasoning method that holds one should always consider the effect of one's actions on others. 4. When is it appropriate to contact the audit committee about a difference of opinion with the CFO over an accounting or financial reporting manner? A. If the CFO does not agree to correct the financial statements B. The CEO supports the CFO and does not agree to correct the financial statements C. The external auditors support the CEO and do not agree to correct the financial statements D. The audit committee should always be the first to be informed about...
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...Jonathan P. Doh and Terrence R. Guay GLOBALIZATION AND CORPORATE SOCIAL RESPONSIBILITY: HOW NONGOVERNMENTAL ORGANIZATIONS INFLUENCE LABOR AND ENVIRONMENTAL CODES OF CONDUCT Abstract • Concerns over the potential negative spillovers from globalization have resulted in increasing demands for multinational corporations (MNCs) to adhere to international standards and codes of responsibility. Nongovernmental organizations (NGOs) have been important advocates for development and adoption of these standards and codes. • In this paper, we provide a brief review of the emergence of NGOs and their influence on debates about globalization, and a specific assessment of NGO efforts to promote stronger labor and environmental policies of multinational corporations. • We examine the role of NGOs in development and enforcement of twelve international agreements and codes of conduct addressing labor issues and environmental practices. We use findings from these cases and insights from international business and other managerial theory to develop propositions that explain the circumstances under which NGOs have more or less influence in developing and enforcing international codes. Key Results • We suggest NGOs will achieve the greatest impact on codes of conduct when: 1) they intervene early in the code development process; 2) they forge transnational coalitions with other organizations, including other NGOs, MNCs, and governments; 3) codes are devised...
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...Best Buy Corporation - S. Bensen, A. El Haddi, K. Fitzsimmons, A. Hussein, H. Marotske -- UST EMBA [1] “Best Buy Corporation: Strategic Management Analysis” S. Bensen, A. El Haddi, K. Fitzsimmons, A. Hussein, H. Marotske Strategic Management University of St Thomas, College of Business Executive MBA program, Cohort 62 Abstract Best Buy’s news coverage of the last few years has been consistently negative. The company’s performance and reputation suffered greatly. Its Earnings per Share fell by more than 200% in 2012 alone. These negative events were the result of governance problems, a changing market landscape (cloud computing, music streaming, online purchasing, online gaming, etc.) and a significant leadership turnover in a period of crisis. The company’s value stream is in a state of flux and could be said to be a master of none at this time. This paper presents strategies to deal with these problems by creating a strategic road map that will first stabilize Best Buy and eventually put it on a growth path. As a result of our analysis, we recommend that the company employs new strategies that include growing its online business by capitalizing on Geek- Squad’s expertise and exploring an internal fix-it strategy with the development of a compelling mission and vision. Finally, we recommend that BB explore the formation of an alliance with its rivals and leverage opportunities presented by new markets. 1. INTRODUCTION The purpose of this paper is to examine Best...
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...EXAMINING THE CRACKS IN THE CEILING: A Survey of Corporate Diversity Practices of the S&P 100 March 2013 Table of Contents FOREWORD ....................................................................................................... 1 EXECUTIVE SUMMARY ................................................................................. 2 EXAMINING THE 10 KEY INDICATORS .................................................... 7 1. Equal Employment Opportunity (EEO) Policy ........................... 8 2. Internal Diversity Initiatives ...........................................................10 3. External Diversity Initiatives ..........................................................12 4. Scope of Diversity Initiatives...........................................................13 5. Family-Friendly Benefits....................................................................14 6. EEO-1 Disclosure ..................................................................................15 7. Highest-Paid Executives ...................................................................16 8. Board Representation .......................................................................18 9. Director Selection Criteria ...............................................................20 10. Corporate Commitment ................................................................21 DIVERSITY SCORES BY SECTOR ................................................................22 CONCLUSIONS AND NEXT STEPS...
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...Executive Summary The Household Appliance Manufacturing industry felt the pressure in the past five years to 2012 due to the effects of the changing real estate market. Like most producers of household goods, appliance manufacturers watched demand grow during the real estate surge through 2006 and then watched it decline when the housing market weakened. As consumers move into new homes, they will more than likely purchase new appliances. Therefore, activity in the residential real estate market directly affects household appliance manufacturers. As a result of the subprime crisis and housing market collapse, industry revenue has declined at an estimated average annual rate of 6.3% to $15.2 billion in the five years to 2012. Introduction The household appliance industry is an innovative industry depending upon the ever changing market. We take into consideration the five environs of a situation analysis including: competitive, political, social, cultural and economical environment to assess the nature of the industry presently and to predict the direction of the market. We need these set of environs to effectively conduct a long term marketing plan for a company that is thriving in this industry. We will attempt to outline the industry overview, competitive landscape and the products, operation, & technology to further conduct our analysis in a detailed scope of the market. Our perspective will be reflected in our outlined short and long term strategic recommendations...
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