It should be no surprise that there is developing research suggesting that certain organizations that meet the criteria of being compliant or ethical are inclined to perform better in the financial market on fundamental operational metrics, including shareholder buy in and return. The characteristics found in successful businesses are typically the same as businesses that are also labeled as ethical or compliant. Organizations that focus on being accountable, good communicators, consistent, and controlled, generally outperform their peers financially. This is why most organizations have a code of conduct when it comes to legal or acceptable business behavior. Considering industry standards and government law, and in turn creating a code of ethics within a business, can help the organization understand how to conform to ethical actions. Creating a culture of responsibility and integrity can also serve as a method of achieving exceptional financial performance for that organization.
The backbone of sustainability for many organizations is commonly a strong set of standards. In order to accomplish this, the business must make the every day incorporation of these standards a priority. One business that has succeeded in doing so is the New Jersey based Johnson & Johnson. This company’s innate sense of placing the needs of those they serve first is certainly key in how they have generated a philosophy of following ethical behavior. By identifying processes as a company that uphold SEC regulations, Johnson & Johnson has secured success and great financial strength. To help ensure that Johnson & Johnson conducts business ethically, the organization has set forth a number of policies that outline their expectations for their employees throughout the enterprise. Johnson & Johnson’s employees are required to adhere to the individual laws where they do business, and clear direction is provided on how they should act rendering their specific business values.
These policies especially include compliance with rules and regulations in regards to health care, which is highly subject to government regulation throughout the world. “The approval and sale of pharmaceutical products and medical devices is particularly heavily regulated, and many other aspects of the business are also covered by statutes and regulations, and consistent to the policy of Johnson & Johnson, all employees are to comply with the laws of each country in which our companies do business. It is the responsibility of each company’s management and employees to be familiar with the laws and regulations that relate to their business responsibilities and to comply with them” (Johnson & Johnson, 2012). Johnson & Johnson is also committed to conducting business in an environmentally comprehensive manner, and it is the responsibility of each employee to be familiar with and adhere to the regulations set forth by the industry that align with their employment responsibilities and remain compliant.
The same value applies to healthcare compliance, labor laws, securities laws, and trade secrets. Johnson & Johnson has also set forth best practices in terms of the sale and marketing of their product, including the responsible interaction of employees with health care professionals regarding their goods. To ensure this relationship remains compliant, the organization has delineated industry codes of conduct as well as the professional, legal, and regulatory requirements of the territories where they conduct business. Again, each employee is required to be aware of these regulations and adhere to the code of ethics. Johnson & Johnson also defines what type of conduct they consider compliant in terms of how they address the consumer or patient directly.
This includes providing education that is not misleading, and that which is supported by evidence of fact. Above all else, Johnson & Johnson’s policies define a process by which they ensure that they conduct business ethically and according to the standards embodied in their culture. These principles safeguard against conflicts of interest, guarantee accurate information, and comply with the requirements of the Securities and Exchange Commission. There are two main markets in the United States. There is the Capital Market and the Money Market. Both markets are different from each other, the Capital Market is the market where the government or a company has the ability to raise money in order to fund their operations and make long term investments. This is something that is typically done through selling bonds and stock; therefore the stock markets and bond markets are included and are involved with the Capital Market.
The Capital Market is also referred to as capitalism. Capitalism is when companies turn to both bond and stock markets when they are in need of assistance during construction of new developments or renovations. The Capital Market is also known as a great place for investors because they are able to buy and sell stock as needed. Unlike the Capital Market, the Money Market is the market that provides loans issued by different financial institutions, the government and large corporations. Money Market securities trade in high denominations in order to limit the access of individual investors. Access to the money market is often through bank accounts because these accounts combine assets of a ton of investors in order to procure the money market in a way that is favorable to them. Both of these markets end up working together in order to increase both business and individual profits, while complying with the rules of the SEC.
There are many different ways to comply with SEC regulations and these are followed according to the organization that you are in. Johnson & Johnson has grown and developed over the years and during that time they continue to remain compliant with different laws rules and regulations. Johnson & Johnson remain compliant with SEC regulations by having rules and regulations in the corporation that need to followed. These regulations are SEC compliant because they were initially implemented by them. Johnson & Johnson follows ethical conduct rules, antitrust and environmental laws. Johnson & Johnson remains compliant with SEC regulations in order to conduct business in a professional and ethical manner. Financial Market can be described as financial securities resembling stocks, bonds and valuable metals titled commodities each of the instruments are exchanged at efficient market prices.
Financial markets have distinctive classifications such as Primary and Secondary Markets furthermore we have Capital Markets or Money Markets. Capital Markets are used to trade new and existing securities; Whereas Primary Markets issue new securities to Corporation as well as individual and institutional investors, thus secondary markets trade existing securities. The U.S. Securities and Exchange Commission (SEC) protects investors, maintains market integrity, and facilitates capital formation. The Sarbanes-‐Oxley Act of 2002 supports the SEC in compliance applicable to deadlines and ethical business transactions. This Act also fosters an environment for all parties (including the investor) to perform due diligence in auditing Financial Markets are essential for fund raising.
Financial borrowers can discover suitable creditors. Banks also assist in the process of financing by functioning as agents. Banks use the money deposited by local and national US citizens; to lend to factions of people to fund small business, consolidate debt or purchase a new home. Commonly, banks stipulate financing in the form of advances and mortgages. The Financial Markets are based on Borrowers and Lenders. Borrowers issue a note to lender promising to payback the capital and lenders will expect some compensation in the form dividends or interest in return.
Borrowers of the Financial Market can be individuals; private companies just to name a few. Individuals commonly take short term or long-term mortgage to purchase property. Private Companies take short term or long-term loans to expand and grow their business or improve their infrastructures. In the Financial Markets lenders are the actual investors, money that is borrowed is bankrolled through customers of the Lenders by way of deposits into savings accounts and checking accounts and interest on other capitalized loans.
Johnson & Johnson. (2012). Johnson & Johnson Policy on Business Conduct. Retrieved from http://www.investor.jnj.com/governance/conduct.cfm