Lockheed Martin Retirement Plan

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Recommended: Importance of accounting ethics

Value: Trust and Transparency Retirement plans are an intricate part of a strong company. They are one of the greatest benefits to employees. Retirement plans provide a financial security towards the employee’s well being in a long-term sense. However, today there are a lot of problems regarding retirement plans were companies are often trying to avoid providing maximum benefits to their employees. A major example in recent news is the settlement made by Lockheed Martin giving 61 million dollars back to their employee’s 401(k) plans. Lockheed Martin was charged with “imprudently managing employee retirement savings in funds that charged high fees, allowing a high level of employee savings to be held in low-yielding money-market funds, …show more content…

First, if I own my own company, I plan to make retirement funds a fundamental aspect of the employee benefits package. Strong retirement plans promote employee loyalty towards a company. Employees feel passionately about whom they are working for if well managed and strong retirement plan or long-term investment options are available with the business. Strong retirement options show an employee that they are more than just a replaceable commodity in the chain of production, but rather an important aspect of the business. I believe the key component to achieving this goal of truthfulness and avoiding the mistakes of Lockheed Martin is maintaining strong oversight of all accounting. Avoiding closely held partner companies without full disclosure should be a priority. In addition, utilizing third party oversight involvement can help maintain transparency of the actions of your company. The practice of being truthful and trustworthy is extremely important for the recording of a companies actions because correct and transparent accounting practices provide great indicators of how a company is doing and can help avoid unethical business transactions. The value of trustworthiness makes you an excellent company to do business with because employees and customers believe you will do the right

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