Business Finance Essay

1212 words - 5 pages

In today's business environment a company must be seen as being ethical. This applies to internal and external operations. Companies should implement internal policies and procedures to insure employees are treated fairly. Externally a company needs to use accounting procedures that gives investors an honest look at the company's financial performance. This is why there are controls in place such as generally accepted accounting procedures (GAAP), and the Sarbanes Oxley's law, that was put in place to establish rules that could be trusted and used to evaluate different an organizations. In this paper Team A will analyze the Pepsi Companies Ethics policies and financial performance through the use of current, debt, return on equity, and days receivable ratios.Tracey - Pepsi Co has consistently led the industry with outstanding financial performance, with that comes a higher standard of performance and how its employees conduct themselves. Pepsi Co has established a code of conduct, this code of conduct sets forth the way Pepsi Co ensures ethical behavior will be met. In this code of conduct it discusses how employees will respect all employees including diversity. It also discusses the procedures for all employees, subcontractors, contractors, agents and their employees to report any conduct or situation that conflicts with the code of ethics or violates federal, local and state law to their immediate supervisor or call anonymous to the Speak Up hotline. Pepsi Co is committed to reviewing any report in a prompt manner and taking remedial action. Pepsi Co is also committed to protecting the rights of those individuals who report the issue. Each employee has a responsibility to understand the Code and to comply with it. If a situation is not clear the employee must seek guidance from the manager, Pepsi Co's General Counsel, or the General auditor or the Speak Up hotline. Pepsi Co also has an Ethics Advisory Board this advisory board deals with diversity and inclusion; it provides management with external viewpoints on certain issues. The advisory board consists of an African American Advisory Board and a Latino/Hispanic Advisory Board.Pepsi Co's code of conduct states that they will ensure all documents and reports that they submit to the Securities and Exchange Commission (SEC) and in other public communications are full, fair, accurate, timely and understandable. The code of conduct also states each employee must keep a record of all transactions and the employees are expected to cooperate with internal and external audits. Under a new rule with the SEC, Pepsi co must file signed affidavits certifying their third-quarter earnings. The affidavits are and attempt to build investors confidence in the stock market, especially since Enron and WorldCom. The deadline is August 14(Preziaso). The SEC ordered companies to file sworn statements on June 27, on July 29 947 public companies posted revenues at 1.2 billion or more that are required to file...

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