The Walt Disney Company, better known as Disney, represents a premier name in family entertainment worldwide (The Walt Disney Company, 2011). Since the company 1923 beginnings, Disney has become a company with a worldwide market capitalization of more than 82 billion dollars (Google, 2011). Disney is a business that operates in four business segment, consumer products, studio entertainment, media networks, and resort and theme parks. Disney executives have made ethics and compliance a top priority for the company.
Learning Team A will given information that talks about Disney’s role of ethic and compliance, procedures used to ensure ethical behavior, SEC regulations, financial performance, and the financial health. Role of Ethics and Compliance Disney has a tremendous amount of exposure to ethics and compliance criticism. Millions of consumers patronize the Disney Company, spending billions on the products and services the company offers. Possessing an ethical and compliant reputation is crucial to the Disney Company’s bottom line. The Disney Company maintains a high level of social responsibility.The company trains and guides its employees and cast members through programs like Disney Development Connection, which provides knowledge and training on how to act ethically and legally in compliance with the company’s standards of business conduct (The Walt Disney Company, 2011). The return on the Disney Company investment in ethics and compliance training has paved the way for Disney to be recognized for its success and contributed to decades of profitable operations with minimal exposure to unethical and incompliant behavior.
Procedures to Ensure Ethical BehaviorSome of the procedures Disney use to ensure ethical behavior are listed in several steps. Disney has five ethical standards they use to make sure that everyone affiliated with Disney is happy. The first ethical standard of Disney states the Responsibility to Guest and Customers. In this standard, it speaks of the quality and safety that Disney provides to their guests and customers. The second ethical standard of Disney states the Responsibility to Cast Members and Employees. This standard speaks on professional development, safety, diversity, teamwork and communications, and respect for the individual.
The third standard is the Responsibility to company and shareholders. This standard deal with conflict of interest, doing business or influencing business relationships with family members and affiliates, and other conflicts. It also deals with use of corporate information, opportunities and assets, intellectual property, proprietary information, and accurate reposting.
The fourth standard states the Responsibility to other Businesses. This standard deals with the way Disney’s business associates are an essential part of their team.This standard also deals with customers and licensees, vendors, acceptance of gifts, dealing with financial institutions, bids, sole sources, negotiated bids, minority vendor’s purchases and multiple relationships. The last ethical standard used at Disney is the Responsibility to Communities. This standard deals with government officials, political activity, communities, and international.
These are only the ethical standards used at Disney. Other ethical procedures used at Disney deals with the Legal Standards. This information is located within the history of The Walt Disney Company (Walt Disney, 2011).SEC Regulations SEC stands for the Securities and Exchange Commission, which serves as, administer of the federal securities laws in the United States. The job of the SEC is to provide oversight in order to ensure that securities markets operate in a systematic and just manner while securities professionals are fair to their clients.
Another purpose of the SEC is to make sure that all corporations provide readily available material for investors to have the proper decision-making information at their disposal. Walk Disney Company provides reports to the Securities Exchange Commission.The reports consist of internal disclosure, technology, independent accounting auditors, and internal control over financial reporting. SEC Independent Accounting Audit is the tool in which the SEC can ensure that companies are complying with the regulations that it has mandated. Investment businesses consider regular audits as routine events. As such, any investment adviser will consider an SEC Accounting Audit as ultimately inevitable. Therefore, SEC compliance is a critical element of any firm’s daily operations, since a negative audit may result in deficiency.
The SEC requires the technology of Walk Disney to submit all interactive data files. These data files should line up with Rule 405 of Regulation S-T. The Disney website has a listing of SEC report forms such as S-4, 425, S-8, 11-K, 8-K, 10-Q, and 10-K statements (Google, 2007). Walk Disney Company requires signatures from the senior management only, for the Internal Disclosure Policy. The senior management consists of the CFO, President, Internal Counsel, and Managing VP. The member’s responsibility requires them to conduct correct filing procedures, and communicate information to other stakeholders of Disney’s management.Another report Disney offers is the Internal Control Financial Report. This framework manages the accountability of the company.
The ICFR provides reliable, accurate, detailed, and timely financial reports. The framework provide detailed information of maintain records of disposition. Other framework provides assurance of recorded transaction for preparation of statements authorized from the company. Another framework provides safety of preventing detection of an unauthorized use of Disney assets, which could affect financial decisions. Financial Performance during the Past 2 YearsWalt-Disney consolidated results reflect that 2010 revenues is higher than 2009 with a 5% increase or1. 9 billion to 38. 1 billion. The cost and expenses for 2010 is 3% higher than 2009.
The net income in 2010 is 20% higher than 2009 $656 million, to $4. 0 billion. Current The year 2009 Disney financial ratio current assets 2. 928 divided by current liabilities, which is 1. 369 the total is 2. 14.
The year 2010 current assets 3. 055 divided by current liabilities of 1. 504 totals are 2. 03.
The current assets and liabilities in Disney were lower in 2010 compared in 2009.The cash and cash equivalents are 3,417 in 2009 compared to 2. 722 in 2010. The receivables, inventories, television cost and other current assets is lower compare to 2010. The deferred income taxes were higher in 2009 versus 2010. The accounts payable and other occurred liabilities, current portion of borrowing and unearned royalties and other advances were lower in 2010 compared to 2009, which contribute to a lower number for current assets and current liabilities in 2010. Debt Walt-Disney dept is the total depth 11. 49 billion divided by total assets of 63.
117 the total is 0. 820 in 2009. The year 2010 the total depth divided by total assets is 0. 1467 because the number is lower in 2010 the dept is greater in 2009.
Disney borrowed 10,130 in 2010 compared to 11,495 in the year 2009. The other long-term liabilities were higher in 2010 compared to 2009. Return on equity: The Disney financial reports consist of key components that directly relate to the return on the equity rate. The return on equity rate for the 2010 Disney financial reports was 11. 18%.
This figure informs the public of Disney’s amount of net income returned as a percentage of shareholders equity.The average return on equity rate for similar corporations is in the range of 10 to 15 percent. This figure puts Disney squarely in the median rate of return on equity. Days receivable: The Disney financial reports also provide another key component that is a measuring stick of a corporation’s success.
The day’s receivable report shows the amount of time a customer takes to pay for purchases. The day’s receivable rate for Disney was 64. 81 days. This rate is low for a corporation the size of Disney. This figure informs the shareholders that the turnaround of payment for purchase is roughly two calendar months.Financial Health The ratio of the current for 2009 and 2010, show that the current assets and liabilities in Walt Disney were much lower in 2010 compared to 2009.
After receiving these ratios and charts, this shows that Disney was much more profitable in the 2010-2009 year. Account payable and other liabilities show a portion of borrowing and unearned royalties. Other earnings were lower in 2010 compared to 2009, which will attribute to the low numbers for current assets and current liabilities in the year 2010. When looking at the debt of Disney and the ratio charts, this clearly shows that in 2009 the debt was greater.
The long-term liabilities were much higher for the fiscal year of 2010. The Disney finance relate to the return on equity rate. The return on the equity rate for 2010 was 11. 18%. This shows the public their net income and the shareholder equity for the fiscal year. The days receivable shows how the turn around on the money takes place. Conclusion The Walt Disney Company, better known as Disney, represents a premier name in family entertainment worldwide (The Walt Disney Company, 2011). Disney is a business that operates in four business segment, consumer products, studio entertainment, media networks, and resort and theme parks.
Disney executives have made ethics and compliance a top priority for the company. Learning Team A has given information that talked about Disney’s role of ethic and compliance, procedures used to ensure ethical behavior, SEC regulations, financial performance, and the financial health.ReferenceGoogle.
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