Ethics and compliance – hewlett packard assignment

Hewlett Packard recently expanded the chief privacy officer role as a part of the assessment. As a commitment from Hewlett Packard they will continue to monitor their ethics programs, process, and policies as needed. Organizational Processes Hewlett-Packard uses form 10-K to file the annual report pursuant to the Security Exchange Act of 1934 which was created to protect the investing public by providing control of securities business on the secondary market and control the interactions of broker-dealers (Security, 2008).

All companies listed on the stock exchanges are required to register any securities listed on stock exchange disclosure, substitute solicitation and audit requirements. Hewlett-Packard breaks down the 10-K report in 4 sections; Section 1 provides the company’s business overview, risk factors, which describe the factors that may affect the companies operating results. Section 1 also includes unresolved staff comments, properties, legal proceedings and submission of matters to a vote of security holders (Hewlett, 2007).

From the calculations it shows that Hewlett Packard’s debts were financing 47% of the assets for 2006, and financing 50% of the assets for 2007. These rates indicate that the value of assets for 2006 could have dropped 53% before equity would completely be wiped out and by 50% in 2007. These ratios tend to vary amongst industries and are not only an indication of risk to the creditors, but to the stockholders as well. For now Hewlett Packard seems to be at a fairly safe percentage, but it needs to be watched closely. If the percentage gets to high and the value of the assets decline, the equity of the company could be wiped out.

ROE – Return on Equity Ratio The ROE or Return on equity is a ratio of earnings to owner’s equity. Return on equityis calculated by dividing the earnings after interest and taxes by equity. Equity is defined as the sum of the common stock, the additional paid-in capital, and the retained earnings of a company” (Mayo, 2007). The sole purpose is to measures the earning being received from stockholders’ investment. The following information was obtained using information provided in the Consolidated Balance Sheet and the Consolidated Statements of Earnings for Hewlett Packard’s 2006 and 2007 fiscal years.

Hewlett Packard (2007) Security and Exchange Commission filings. Retrieved September 30, 2008 from: http://h30261. www3. hp. com/phoenix. zhtml? c= 71087; pirol-sec Kimmel, Weygandt, ; Kieso (2007) Financial Accounting: Tools for Business Decision Making 4th ed. John Wiley ; Sons Inc. Hoboken, NJ. Mayo, H. B. (2007). Basic Finance, An Introduction to Financial Institutions, Investments, ; Management (9th Ed. ). Mason, OH: Thomson Higher Education Security and Exchange Commission (2008) Security Exchange Act of 1934. Retrieved October 5, 2008 from: http://www. sec. gov/about/laws. shtml#secexact1934