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In the past two years, the Walt Disney Company has had tremendous financial results. The company is composed of five primary units that operate independently, but under the same name (Sirklos, 2009). They include; the studio entertainment, Disney consumer products, parks and resorts, media network and the Walt Disney Interactive Media group. All these sectors have experienced tremendous financial improvement in the last few years. For example; the annual gross revenue of Walt Disney studio entertainment was at 6, 351 million dollars in the year 2011, by 2012, the figure had increased to 6, 825 million dollars (Disney annual report, 2010). The net income of the same department increased from 618 million to 722 million dollars in 2011 and 2012 consecutively.
The consumer product entity was dealt the same fate with gross revenues of 3049 million dollars in 2011 and 3252 million dollars in 2012. The net income increased from 816 million in the year 2011 to 937 million dollars in 2012. An impressive performance was experienced in the net income of Disney media networks. The values increased with about 400 million dollars in the two consecutive years.
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However, the Walt Disney internet group seems to be the worst performing department of the five entities. The annual gross revenue decreased from 982 million dollars to 845 million dollars between the years 2011 and 2012 (Disney annual report, 2010). The same department experienced a decrease in the annual net income. Generally, the total annual gross revenue of all departments increased from 40,893 million dollars in the year 2011 to 42,278 million dollars in the year 2012. The total annual net income increased by approximately 1000 million dollars.
The quarterly analysis of the SEC filings unearths a tremendous performance of the Walt Disney stocks in the New York Stock Exchange. For instance, in December 2012, the stock prices in the New York Stock Exchange increased by approximately 0.68%. NASDAQ rates the Walt Disney Company among the top five best performers in the entertainment industry. The financial performance has been impeccable over the two years. However, the two consecutive years may not be the best in the entire history of the company (Carrol and Buchholtz, 2009).
Role of Ethics and Compliance in Walt Disney’s Financial Environment
The Walt Disney Company takes places of immense importance in the ethics of a society in the process of serving the consumers. They have adopted the code of business conduct and follows all the stipulated rules and laws (Sirklos, 2009). Every employee is expected to behave in a specific manner as a way of upholding the business ethics. The employees are scrutinized regularly to find out if business ethics are being upheld (Grover, 2009). As a way of ensuring that rules are not broken, the Walt Disney Company takes into account every customer criticisms. For instance; some movies produced by Walt Disney have been criticized for having sexual content. As a result, the movies were recalled and the controversial parts edited. This is one way with, which this company has ensured that there is customer loyalty and hence an increase in the income (Carrol and Buchholtz, 2009).
Procedures for Ensuring Ethical Behavior Is Upheld
The Walt Disney Company has adopted the Code of Business Conduct and Ethics for its Directors. This is after the realization that ethics is an aspect of mimicry. Employees tend to mimic the behaviors exhibited by their leaders (Sirklos, 2009). Therefore, every director is forced to represent the interests of the shareholders. He is expected to exhibit high standards of integrity, commitment and independence of thought and judgment. This determines customer’s loyalty and hence financial performance.