The Corporate Compliance Plan for Riordan Manufacturing Company - Report Example

Riordan Manufacturing: Corporate Compliance Plan Number Table of Contents Table ofContents 1 (i)Introduction 2 (ii)Legal Liability of Riordan Administration 2 (iii)Legal options 3 Alternative Dispute Resolution 3 (iv)Enterprise liability 5 (v)Real and Intellectual property 6 (vi)The Specific International Laws or Aspects of the Law that must be adhered to by Riordan 8 Reference List 9 (i) Introduction The Corporate Compliance Plan for Riordan Manufacturing Company aims at touching all employees. The first people to comply with the program squarely start with the officers and the directors of the Company. The set standards are to be followed by all employees irrespective of their status in the company. The main focus of the Corporate Compliance Plan is on the accountability of the officers and directors of Riordan Manufacturing. The officials and the directors of Riordan are obligated to comply with all state corporation requirements, the Articles of incorporation, and its By-Laws. This is crucial as it entails for maintaining harmonious working relationship in the company, minimise conflicts arousal and in case they arise should be tackled in the best way possible. (ii) Legal Liability of Riordan Administration Looking at the Board of Directors and the Chief Executive Officer (CEO) at Riordan Industries, their dedication and commitment towards ensuring high ethical standards, as well as compliance to the applicable laws in all its practices, is outstanding in the company. In order to make sure that the operations in all programs and service delivery are conducted with compliance to appropriate laws and uphold high ethical standards; a Corporate Compliance Plan is inevitable. The plan established creates an organizational culture that exhibits transparency and ensures preclusion, recognition and resolution of instances of conduct that may not be in line to the company’s mission, values and set ethical standards. Articulated in this plan is the duty of all officers and directors to comply with the code of ethics and compliance standards that are appropriate to the individual areas of employment and assignment. The corporate compliance plan also lays out a benchmark of conduct and inner control systems that are rationally capable to bring down the violations of law (Banks and Banks, 2008). The steps outlined in the Plan are crucial to the company in the prevention of negative and uncalled for actions; further, facilitate the company to benefit from risks and eventually roll predictions to the benefit of the company (Biegelman, 2008). There is crucial necessity to look into given matters that could extend into many larger inconveniences and challenges if the company fails to manage assertively, the activities involved. (iii) Legal options In the eventual arising of legal problems concerning Riordan Manufacturing, the most probable and cost effective method will be employed. Whenever applicable, Alternative Dispute Resolutions (ADR) will be imperative for use instead of the traditional forms of litigation to save the company time, money and possible public analysis. The reason behind the use of ADR at Riordan is because it will lead to an effective way of resolving the current dispute and enhancing business competition with each other. The following section looks into the ADR of Riordan in details. Alternative Dispute Resolution Riordan Manufacturing will incorporate the use of ADR where possible in its quest to handle disputes, differences, discrepancies, controversies and dissension among the employees. There are instances where the employee engages in illegal activities or hinders proper investigations; in such circumstances, the employee is subject to litigation or cessation of duties. Further, the employee is right to obtaining of legal counsel whenever situations warrants for, and at the employee’s expense. Whenever a case has a direct bearing on the welfare of the organization, legal counsel can be provided at the employer’s expense. According to Cheeseman (2010), ADR and other aids to dispute resolution are highly crucial with the most sought after form or Alternative Dispute resolution being arbitration. Arbitration is crucial as participation is essentially participatory with a third party acting as a private judge and imposes a resolution. Other forms of ADR include “mediation, negotiation, mini-trial, conciliation, fact finding and the use of judicial referee” (Cheeseman, 2010, p. 43). The importance of using ADR at Riordan Manufacturing is in the minimization of the potent of risk of litigation. With any eventual of an employee’s complaint or matter that requires address by the organization, the employee will use the chain of command. This will be through the immediate supervisor of the employee being one responsible in handling issues or complaints lodged by the employees. Failure to adequate addressing of the issues at hand by the supervisor, the compliance hotline through the telephone or internet can be used. The importance of using the immediate supervisor is in the aspect of being the one knowing the employees well, and their working situations, thereby better placed to tackle their issues well. Looking at informal mediation process, it is recommended in resolving disputes between parties and participation is totally voluntary. The chosen mediator is not in charge of resolving the dispute, nor provides legal advice; but acts as the facilitator and provides the best environment for disputing parties to resolve the issues at hand. After the disputing parties come to a resolution, the mediator records the conclusion reached at and keeps a record of the resolution. In case of the disputing parties failing to come to a consensus, the case should be forwarded to a board of Peer review. At this stage, the individual employees are given the chance of selecting an advocate to argue on their behalf, and the disputing parties present their case to a selected panel of neutral parties. On the same note, the employees go by the terms and sign documentation stating that the decision of the panel will be binding. Finally, with the panel coming up with a decision, the mediator records the decision and documents the resolution made. The above ensures fair and equitable treatment of the employees in conflict resolution, in the company. The ADR method will ensure cost effectiveness and reduce time of resolving arising issues, as there is a set process to be followed, and be in line with COSO components of enterprise management. (iv) Enterprise liability Enterprise liability can be termed as the principle of an entire organization, held liable for the offences and commitments of its borough; also known as the tort law. The directors of Riordan Company have the responsibility to handle any liabilities within the organization, and the discussion based on COSO’s components of risk management. The Directors ought to tackle their practices in the company with utmost ethical standards and responsibility (Rittenberg and Martens, 2012). An individual director or official can be held personally responsible for any breach of duty. Riordan Manufacturing entrusts an ethical relationship of trust with its officials. The officials have a legal duty to adhere to the principles of responsible care in all practices. Conflicts arising for personal interests or even engagements into acts that are tantamount to the reputation of Riordan Manufacturing ought to be stringently proscribed. This may result to litigation proceedings and damages for all officers or directors who breach the set code of conduct. The board of directors has various responsibilities, which include: - Having the authority to investigate corporate matters and maintain accurate documentation. Supervise and direct officers within the organization. Stay informed of the corporate events and regularly attends the board meetings: this is critical as they discuss critical matters touching the progress and compliance of the company’s strategic measures. The board of directors supervises the risk management and corporate liabilities of Riordan Manufacturing with support of COSO (Committee of Sponsoring Organization of the Treadway Commission, 2004). Enterprise risk management entails a process affected by the entity’s board of directors, management and other workforce. It is functional in the approach setting, and across the venture designed to identify potential procedures that may have an effect on the entity, and manage risk to be within its risk appetite, present rational declaration concerning the attainment of entity objectives in the subsequent categories: effectiveness and efficiency of operations, reliability of financial reporting, compliance with applicable laws and regulations (Committee of Sponsoring Organization of the Treadway Commission, 2004, p 2-3). Risk management and strategic objectives are critical in safeguarding the organization from startling risks. The various departments within the organization are evaluated on how best they protect personnel and corporate assets. The maintaining of order and prioritizing the management of risk is the prerogative of the management. Any manufacturing organization has the responsibility to the environment by conforming to the Clean Air Act and Clean Water Act. In the US, Clean Air Act is a federal statute providing a comprehensive regulation of air quality (Cheeseman, 2010). The directors within the organization are obligated to evaluate potential violations and execute corrective measures and documentation in case of any discovery. According to Cheeseman (2010), “Occupational Safety and Health Administration (OSHA), is a federal administrative agency in the Department of Labour empowered to enforce the Act. Further, the Act inflicts record keeping and reporting requirements on the employees and requires them to post notices in the place of work that informs the employees of their rights as stipulated in the Act. With Riordan’s compliance to the federal statutes and organizations ensures maintaining a safe working environment as highlighted in the interrelated components of COSO (2004). (v) Real and Intellectual property Intellectual property (IP) like development research, trade secrets, patents, copyrights and strategic business plans are highly crucial assets to a company. According to Cheeseman (2010), Federal State laws protect IP rights from embezzlement and violation. The management organ is mandated with the responsibility of protecting the IP of the organization. This is by monitoring Probable Avenue of breach. Riordan Manufacturing ought to protect its IP also by enhancing safety and appropriate data access, use and disclosure. This is through the use of current upgraded technological approaches in data security by unifying access and data handling policies. In US and China, laws have been put in place concerning the IP and procedures that could be used by Riordan manufacturing to claim damages from infringement. Real property refers to the tangible property, which can be fixed in a place or movable. The Riordan’s management has the responsibility of delegating and protecting the organizational property. With respect to damaged property, a damage report ought to accompany it with a clear stipulation of how the damage occurred and the employees witness to the incident. Transfers of property in an organization do occur; thereby, any transfer at Riordan Manufacturing should be documented and monitored for accuracy. In case of stolen property, prompt investigation should be launched, even if it calls for bringing the investigation authorities to the premises to effect the investigations. Any employee found stealing or having stolen from the company turned to the relevant authorities for legal actions. Governance Principles of Regulatory Compliance Requirements at Riordan Manufacturing Any organization is obligated by certain legislations that have to be adhered and followed. Riordan manufacturing complies with the Sarbanes-Oxley Act 2002, as the company is publicly traded. Sarbanes-Oxley Act of 2002 establishes far-reaching rules regarding corporate governance. According to Cheeseman (2010, p. 592), the goals of the Act are to develop corporate governance rules, reduce conflicts of interest, and inculcate confidence to investors and public. This confidence is that the management will run public companies in the best interest of all companies. The organization’s management is accountable to the stakeholders, and strategies are designed to enhance a strategic advantage within the industry. There is the possibility of potent risks, and their remedy falls in proper accountability, guidelines and policies within the organization. The application of governance is crucial in management of risks within the organization as well as internal controls (Banks and Banks, 2008). The pinnacle of governance falls in matters regarding oversight, review, and the creation of documentation. Riordan officers struggle to be fair and transparent as they conduct organizational practices. Finally, the officers’ in-charge of compliance in the organization will be accountable for the compliance plan; this is in its eventual and effective implementation and achievements realized. (vi) The Specific International Laws or Aspects of the Law that must be adhered to by Riordan Riordan Manufacturing being one organization conducting business at the international realm has the obligation of complying with international laws and treaties of all countries it with which conducts business. Specifically, it is bound to comply with laws and regulatory agencies within China. The organization is bound to adhere to the CISG guidelines as stated by Cheeseman (2010) that CISG is a model Act for international sales contract. Compliance by the organization to the GATT and guidelines established by the world trade organization (WTO) is imperative (Cheeseman, 2010). The essence of international laws compliance is the improvement of trade relations between Riordan and other countries. Finally, Riordan being a manufacturing company should be in line with international environmental laws and ought not to participate in activities violating trade agreements. Reference List Banks, F. and Banks, T. (2008). Corporate Legal Compliance Handbook. New York: Aspen. Biegelman, M. (2008). Building a World –Class Compliance Program: Best Practices and Strategies for Success. New Jersey: John Wiley & Sons Inc. Cheeseman, H. R. (2010). Business Law. Legal Environment, Online Commerce, Business Ethics, and international issues. (7th ed.). New York, New York: Pearson Education. Enterprise Risk Management-Integrated Framework. (2004). The Executive Summary. Retrieved from Read More