Team W2






Team W2

Question one

According to ethics and compliance of an organization in relation to the financial environment, there are rules and regulation that a company should follow. In the case of Microsoft Annual reports and SEC filings, the company has complied with the rules and regulations that are internationally accepted. This is because it is the ethical duty of Microsoft to provide both internal and external parties to the organization with the relevant financial reports. In this situation, Microsoft has provided their shareholders, investors and any other party interested with the relevant annual reports and SEC filings (The Microsoft Corporation, 2011).

Secondly, it is the ethical duty of Microsoft organization to provide the relevant parties with timely annual reports. This is because when they provide the relevant parties with late financial reports, they will be of no use since the financial trend of a business often changes. Therefore, based on the different annual reports and SEC fillings Microsoft organization has provided the relevant users of the reports in time for them for appropriate use. In this case, it has complied with international rules and regulation to provide users of financial statement at the right time.

According to the international financial regulations, it is the ethical duty for an organization to comply by providing users of financial statement with the correct statements. For instance, it is a rule to provide reports that have been audited by an external auditor. In this case, Microsoft organization has complied with this rule, and they have their financial documents audited by an external auditor, Deloitte & Touche (The Microsoft Corporation, 2011). This shows that the company has complied with the other requirements that involve honest and undistorted financial reports.  Henceforth, Microsoft organization has complied and played their ethical duty to users of the financial reports.

Question two

All organizational finance procedures are supposed to follow certain procedures that will create ethical behavior in the organization. All employees in accounting and finance department have a duty of care to all their customers and other users of the financial reports. This department follows a strict code of conduct covered by the Finance Code of Professional Conduct (The Microsoft Corporation, 2011). It contains all the rules and procedures that the organization is expected to follow to create ethical behavior in the office. Additionally, it contains all the penalties or disciplinary action taken to any person who violates the procedures and rules. This alone shows that Microsoft organization has ethical environment in their offices.

The company employees should follow the international financial rules and regulations while presenting the annual financial reports to their customers. In this case, the employees who are involved in the preparation of the financial reports must follow the procedures set by this authority (The Microsoft Corporation, 2011). Failure to do this, disciplinary action should be taken. By doing so, the Microsoft organization has already created ethical behavior on their offices and the outside environment. Additionally, they have shown a duty to care for their customers and other user of the financial statements.

Microsoft organization has adhered to the SEC regulations and procedures. This is where they have an independent Chief Executive to oversee the companies work. Additionally, they have a seven member independent committee that over see the SEC filing of the organization. According to the SEC procedures, there must be an independent Chief Executive officer and an independent team of board members that will oversee the SEC filling (The Microsoft Corporation, 2011). This alone show that the company is following their ethical duty by complying with the procedures. This has created ethical behavior in the financial environment of the company.



The Microsoft Corporation (2011). Corporate Compliance (Company website). Retrieved from

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