Ethics and Compliance - Research Paper Example

Ethics and Compliance Introduction Microsoft is in the business of producing software and technology products catering to the needs of personal andorganized sectors. The Chief Executive Officer of Microsoft in his letter to the employees speaks about the values such as integrity and honesty that are the basic foundations of the company. The company believes in ethical business practices and regulatory compliance. The paper explores about the procedures that Microsoft has put in place to ensure ethical behavior.

The paper also focuses on the processes that the company employs to comply with SEC regulations. Procedures to Ensure Ethical Behavior Microsoft has set the Finance code of Professional Conduct that the Chief Executive Officer (CEO), Chief Financial Officer (CFO), Corporate Controller, and other employees of the finance organization need to comply. In the Microsoft, it is the responsibility of individual business units to adopt and follow standards of professional conduct in their area of operations.

Microsoft Policy (MS Policy) document provides details about a specific policy for their employees. Checklists, Training, Tutorials have been provided to help employees understand and implement these Corporate Policy guidelines. In case of any possible violation to any of the policy matters, any staff member can report to their immediate supervisor, Human Resource Department or Legal and Corporate Affairs department. Moreover, toll-free a dedicated Business Conduct Line has been made available 24 hours a day, 365 days a year.

All concerns can be directed to the Microsoft Director of Compliance for necessary and appropriate action. If need be, the employee may send a confidential message to the Director of Compliance through the Microsoft Integrity Website. Alternatively, the employee may send a letter to the Legal and Corporate Affairs, Director of Compliance, One Microsoft Way, or even send a confidential fax at the given number. If the employee feels like to forward a letter anonymously, he or she can do so without any restriction (Microsoft Standards of Business Conduct 2010).

If the employee has a concern about the matters related to auditing or some questionable accounting and wants to draw attention to the company, they may also do so and submit a report using the Microsoft Integrity Website, or contact the Business Conduct Line or forward a letter or fax to the Director of Compliance. Microsoft promises to its all employees that all matters will be handled confidentially and discreetly to ascertain the facts within the time limits as granted by the law (Microsoft Standards of Business Conduct 2010).

Processes to Comply SEC Regulations Microsoft manages its business in accordance with the laws and requirements of the regulatory bodies. To function more effectively, Microsoft has formed two committees to comply with the SEC regulations and they are: The Audit Committee and the Regulatory and Public Policy Committee (Microsoft Investors Relations 2012). The Audit Committee is in direct control of the Board of Directors to assist the Board in discharging its duty in compliance with the statutory authorities including SEC.

The committee oversees financial reporting and accounting processes, the audit processes, internal control over financial reporting, internal audit functions and audit by an independent auditor. The committee periodically reviews and assesses the compliance in line with the requirement of regulatory bodies. Microsoft gets its financial statements audited from an independent registered public accounting firm every year. They conduct audits in line with the standards set by the Public Company Accounting Oversight Board (United States).

The standards make it necessary to certify that reported financial statements by the company do not contain any material misstatement. They also take into account the standards set by the Public Company Accounting Oversight Board (United States) while auditing the company reports whether adequate internal control over financial reporting has been made or not. The Regulatory and Public Policy Committee has been formed to assist the Board of Directors so that all necessary regulatory compliance including public issues of importance to the shareholders and the company can be effectively met with.

The committee consists of at least two directors and meets at least three times a year. The committee functions in accordance with the written charter to meet all regulatory requirements as proposed by the regulators time to time. Conclusion From the above, it is amply clear that the company is committed to ethical business dealing and has taken all necessary steps and procedures to ensure that the company functions in accordance with the laws following best business practices meeting the requirement of regulatory bodies including SEC.

References Microsoft Investors Relations (2012). Microsoft Corporation Board Committees. Microsoft. Retrieved October 13, 2012 from http://www.microsoft.com/investor/CorporateGovernance/BoardOfDirectors/committees.aspx Microsoft Standards of Business Conduct (2010). Microsoft. Retrieved October 13, 2012 from http://www.microsoft.com/about/legal/en/us/compliance/buscond/default.aspx