Ethics and Compliance Paper

Running head: Ethics and Compliance Paper

Ethics and Compliance Paper

Team B
Aaron Bullock
FIN/370 Finance For Business
Instructor Joe Brennan
March 10, 2008

Ethics and Compliance Paper

Introduction
The SEC (Security and Exchange Commission), helps protect investors, maintain
fair, orderly, and efficient markets, and facilitate capital formation. "The SEC oversees the key
participants in the securities world, including securities exchanges, securities brokers and
dealers, investment advisors, and mutual funds" (www.sec.gov). As more and more first-time
investors turn to the markets to help secure their futures, pay for their homes, and send their
children to college, the SEC investor protection mission is more compelling than ever.
Pepsi Co. is a very large and complex organization. According to Indra Nooyi, Chief
Executive Officer of Pepsico products, ethics and integrity are the foundation of Pepsi's past
success and the keys for their future (www.pepsico.com). Pepsi takes many process to comply
with the SEC regulations such as keeping investors informed on reports of unscheduled material
events or corporate changes. This helps investors know what exactly is going on with the
company. It also gives, in detail when, for example, a person in office for Pepsico decides to
retire or step down. Another example is that recently PepsiCo was to express confidence in
business outlook at a Consumer Analyst Group of a New York Conference. Any kind of legal
activity with Pepsico needs to be noted and filed with the SEC. This just helps the public's faith
in the capital markets to be strong and maintain that strength. Pepsi also releases information to
comply with the SEC, which gives information about press releases issued by PepsiCo, Inc.,
reporting the companys financial results for a specific time frame.

Ethics and Compliance Paper

Evaluate Pepsi's financial performance over the past two years and calculate current,
debt, ROE, and days receivable ratios. Discuss each trend for the ratio and what it tells
about the organizations financial health. (This will need two people to accomplish.)
Worth noting, a lot of options being sold at the top lately.

Ethics and Compliance Paper

References
www.Pepsico.com, retrieved March 7, 2008.
www.SEC.gov, retrieved March 7, 2008.

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