Ethics and Compliance FIN/370 Dec/14/2011 Ethics and Compliance “The mission of the Walt Disney Company is to be one of the world’s leading producers and providers of entertainment and information.
Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world” (According to??”Walt Disney Company Mission Statement”??(2011) Walt Disney began as a cartoon studio in the 1920s more than eight decades later is become a global corporation, and premier provider of quality family entertainment across America and around the world. What is the secret of the Walt Disney success?
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What are the rules and standard that make Walt Disney one of the biggest corporations in the world? Team C is going to discuss in this presentation the role of ethics compliance, the procedures and ethical behavior, the processes that the company uses to comply with the SEC regulations, and assess the financial performance of Walt Disney Company. Disney’s Ethics Since the beginning of the Walt Disney Company, ethics and compliance were very important for the entire organization and the Walt Disney Company of today the business standards and ethics are well written, and outlined in great detail.
One of the reasons that the ethics and compliance standards were implemented is to ensure that the financial health of the company is not compromised by the misused of proprietary information to gain wealth illegally by the employees and the Board of Directors. All employees, managers and Directors are responsible for the financial health of the company and the best interest of the stockholders. Walt Disney Company used internal audits to ensure that all documentation and reports are accurate and also that all financial statements are in compliance with the general accounting practices. Each individual shall report and record all information, and complete Company document, accurately and honestly. These include, for example, time cards, reimbursable business expense requests, invoices, payroll records, safety records, business records and performance evaluations. ” According to??”The Walt Disney Company”??(2011) Walt Disney Company has taken steps to ensure the ethical behavior in the organization, honesty is emphasized in the 2011 employee handbook, employee and upper management is accountable for all documentation are accurate.
Evaluation of Disclosure control and procedures is a division of Walt Disney Company created to ensure that all employees, management, and Directors are following the ethical behavior established by the company and all financial reports files within the time mandated the General Accounting Practices. SEC Regulations The U. S. Securities and Exchange Commission (SEC) is in place to ensure that people who invest in publicly traded companies are protected, and that an efficient market is maintained in a fair and orderly fashion.
The SEC has put in place several laws and rules to ensure that all investors have access to certain financial information before they buy stock in a company. This information is to remain public and readily available as long as the company is publicly traded. This means that the companies that are publicly traded must disclose this financial and other related information to anyone who requests it. Most companies have it posted online on their company website. These rules and laws ensure that investors are making informed decisions both before they buy stock and the entire time they are owners of company stock.
Every year, the SEC finds companies who are in violation of the rules they have in place. Some companies will neglect their duty to post their annual financial data, or they may manipulate the data that they post. These violations can be viewed as insider trading, account fraud, or purposefully misleading company shareholders. Those companies who are found guilty of these types of offenses face serious fines against the company, and may include jail time for the people who manipulated the data.
Disney is a publicly traded company, and as such, is expected to follow the rules and regulations set forth by the SEC. To comply with the regulations, Disney has made available all of the required annual financial statements on their company website. This website is separate from their storefront and theme park websites, and is dedicated to providing information about the Disney Corporation. This information includes the history of the company, investor relations, news releases, career information and job listings, and all of the required financial documents for investors.
This way, any existing or potential investors can readily find information about the Disney Company that can be useful when trying to make sound decisions regarding buying or selling shares of Disney stock. Disney’s Financial Performance | | | The Walt Disney Company has several different operations: media networks, parks and resorts, studio entertainment, customer products and interactive media (Disney,??2010). Based upon Disney’s 2009 and 2010 financial statements, we have calculated these key ratios: Key ratios:| 2010| 2009| Current ratio| 1. 11| 13. 31| Debt ratio| 0. 90| 0. 08|
Average collection period| 55. 46| 49. 01| Return on equity| 0. 11| 0. 10| Disney’s revenues increased on 2010 compared to 2009. The overall liquidity of the company was better on 2009. On 2010 Disney acquired a bigger debt because of the current financial crisis. They took a bigger risk by doing this, but the risk turned into a positive outcome. Their collection period extended more in 2010, but this allow them to generate more businesses as suppose they would have kept a more extract payment regiment. Disney managed its resources efficiently, making a bigger profit on 2010 than they did on the previous year.
Between all of their operations, some more popular than others, they could produce a higher profit margin on 2010. They also focused on the new trends such as technology, and product globalization, to stay competitive and profitable. Disney has adapted to the economy changes and taken risks in order to keep up with the competition and to maintain the business growth. 2009 was more stable and secure in every aspect, but the risk taken was necessary to increase the company’s profit. Conclusion The Disney Corporation is a company that has been publically traded for many years, and has grown to be one of the largest companies that is publically raded. The company strives to follow the regulations set forth by the SEC so that stockholders in the company can easily make sound decisions regarding their shares of stock. For 56 consecutive years, Disney has been able to pay dividends to their shareholders, even through the most recent financial recession. Most recently, the annually paid dividend increased by 50% for the 2011 fiscal year. (Disney, 2011) Over the last couple of years, the company has shown steady growth, and could be considered a wise investment for someone interested in buying shares of stock.
References The Walt Disney Company,??(2010). Retrieved from http://corporate. disney. go. com/investors/annual_reports. html The Walt Disney Company,??(2011). Retrieved from http://corporate. disney. go. com/corporate/complete_history. html The Walt Disney Company,??(2011). Retrieved from http://corporate. disney. go. com/news/corporate/2011/2011_1201_board_increases_annual_dividend. html Walt Disney Company Mission Statement,??(2011),??Retrieved from http://retailindustry. about. com/od/retailbestpractices/ig/Company-Mission-Statements/Walt-Disney-Mission-Statement. htm