Ethics and Compliance Paper
Starbucks is a coffee drink vendor that was established in Seattle, Washington, and it is famous for its unique roasted coffee flavor and superior taste. The firm operates more than 17,000 branches worldwide in over 55 countries and is known worldwide (Starbucks Corporation, 2012). The aim of this paper is to identify how the firm complies with Securities Exchange Commission (SEC) regulations. In doing so, the paper addresses the role of ethics and compliance for the firm’s financial environment. The firm has a business ethics and compliance programs that supports its missions and protects its reputation and culture through ethical practices and decisions.
One of the responsibilities of the company is to ensure that all stakeholders are informed on their filing to SEC quarterly and annually. In an attempt to comply with SEC regulations, Starbucks instituted the Audit and Compliance Committee to oversee the financial and accounting reporting processes of the company. The committee has both internal and external audit processes (Starbucks Corporation, 2012). This committee also holds the responsibility of ensuring that the firm complies with all the regulations and rules that the SEC requires including disclosures and financial statements.
Starbucks uses the services of external auditors who conduct their services in accordance with the generally accepted auditing standards. Such standards define how to plan and perform the audit with the aim of obtaining sound assurance of credibility of the financial statements. The eternal audit process includes examination, testing, looking for supportive evidence, and disclosure of financial statements. Independent auditors report ensures that the company’s quarterly and annual reports of the firm comply with SEC regulations (Starbucks Corporation, 2012). This is a good way of ensuring that everything follows the provisions and laws made by the SEC.
Starbucks also avails its 10-K reports, in addition to all other amendments and reports furnished or filed with the SEC free of charge through their Investor Relations section in the company’s website, which is available at http://investor.starbucks.com or at www.sec.gov. In addition to these, the company’s procedures and policies are devised to abide by applicable laws, reporting and accounting standards, tax requirements, and regulations, including those imposed by SEC.
Reference:
Starbucks Corporation. (2012). Investor relations. Available at: http://investor.starbucks.com [Accessed 28 June 2012].
