Starbucks Ethics and Compliance

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Starbuck’s Ethics and Compliance Ethics and compliance is a vital part of Starbucks success. Their organizational mission includes inspiring and nurturing the human spirit by indulging one person, cup, and neighbor at a time (Our Starbucks Mission Statement, n.d.). The leaders of this publicly traded companies are responsible for ethical compliance as it relates to the Security and Exchange Commission (SEC), and they are also responsible for filing annual financial reports. These financial reports are required by the SEC to help investors make decisions about their investors. The board of directors is responsible for overseeing and exercising corporate powers and certifying the company’s business affairs while managing the goals and objectives for long-term interests of the shareholders. Organizational Annual Report and SEC Filing The SEC requires publically traded companies to file annual financial reports, and these reports are open to the public. Investors are interested in these reports because it helps in determining the financial health of a company. As a means for providing guidelines, principles, and objectives for the financial markets in the United States, the Sarbanes-Oxley Act of 2002 enhances the SEC’s roles for reforming corporate accountability. This also includes establishing a private-sector regulator to oversee the auditing profession to combat accounting fraud, and enhancing financial disclosures. Companies are under more pressure to comply with SEC and Sarbanes-Oxley Act after recent and growing concerns about their ethical behaviors. Role of Ethics and Compliance in the Financial Environment Starbuck’s role of Ethics and Compliance in the financial environment applies to the Chief Executive Officer (CEO), Chief Financial Officer (CFO), comptroller, and other financial leaders. The company’s code of ethics encompasses

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