Ethics and compliance play an important role in the financial environment at Amazon.com. In response to corporate accounting scandals from companies such as Enron and WorldCom, the enactment of the Sarbanes-Oxley Act of 2002, administered by the Securities and Exchange Commission (SEC), has mandated stricter code of conduct requirements regarding financial practices, accounting controls, and corporate governance. These requirements also call for the enforcement of criminal penalties if violated. Therefore, the employees at Amazon.com must agree to follow the Code of Business Conduct. The employees must agree to act in a lawful and ethical manner, and in the best interest of the company. As required by the Securities and Exchange Commission (SEC), all financial statements and records must be detailed, and they must be retained for a minimum of five years. At Amazon.com, their records must correctly reflect the company's transactions, and they must conform to applicable laws and internal controls.
The corporate leadership at Amazon.com is responsible for ensuring that all employees cooperate with these procedures. Amazon.com communicates these standards through the Code of Business Ethics and enforces this ethical compliance through the employment of annual audits and strict internal controls. The main message that Amazon.com gives to its shareholders focuses on bold investment decisions rather than short term profits. Cash flow takes priority over GAAP accounting. The leadership shares their strategies with their shareholders, and they evaluate and share this information to the extent that the law allows to the public.
Processes the organization uses to comply with SEC regulations
Amazon.com is one of the leading companies that uses the Internet to earn money. Amazon.com buys, sells, transfers, and exchanges retail products online. Some of steps that are in place at Amazon.com are governed by the Security and Exchange Commission (SEC) which protects investors, maintains...