MY DRAFT OF RIORDAN COMPLIENCE PLAN
10 Pages

MY DRAFT OF RIORDAN COMPLIENCE PLAN

Course Number: LAW 531, Spring 2012

College/University: University of Phoenix

Word Count: 2419

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Riordan Manufacturing Company produces high quality global plastic injection moldings. However, Riordan must keep up with competitors in the industry, Riordan will benefit from having a compliance plan in place for all bellwethers to follow in regards to protecting the companies licit aspects, and licit liabilities, as well as how these bellwethers should handle such situations. Riordan Manufacturing Companies...

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Manufacturing Riordan Company produces high quality global plastic injection moldings. However, Riordan must keep up with competitors in the industry, Riordan will benefit from having a compliance plan in place for all bellwethers to follow in regards to protecting the companies licit aspects, and licit liabilities, as well as how these bellwethers should handle such situations. Riordan Manufacturing Companies Boards of Directors have many responsibilities to oversee all management activities, along with business affairs, which comply with all state requisites for all corporations, by-laws, and Articles of Incorporation. According to (Riordan Manufacturing Corporate Governance Plan, 2012, p.1), the encompassing role of the board is to govern and manage the affairs of the Company for the benefit of shareholders. This orchestration shall help prepare employees for the obviation of licit disputes with given ADR methods. Furthermore, this orchestration briefly addresses both product and enterprise liability, along with information on both tangible and intellectual property, Riordans current forms of business, international law, and governance. ADR Methods Like most other corporations, Riordan Manufacturing focuses both time and money into providing both their customers and employees with a high quality accommodation. When licit matters come to Riordans attention, the company fixates on resolving these issues in both a quick and effective manner. This company also takes pride in their efforts of maintaining the highest standards in both their ethical and licit standpoints. This is one main reason Riordan Manufacturing has Litteral & Finkel law firm on retainer, to address the company on all licit matters or issues, which present themselves to the company. However, to keep a sense of both flexibility and privacy at all times, Riordan requires that all vendors, and company employees to sign a contract, which has an ADR clause, which states that all licit matters must use either arbitration or mediation to endeavor and settle the issue before going to court. This also helps Riordan reduce the amount of funds they will be obliged to spend on licit, court, and other fees in regards to these matters. If the employee or vendor seems to find a licit issue, which he or she requires to, address with the Riordan Company, this individual must contact Riordans licit counsel to file a grievance in regards to the licit issue. Once this step is complete, the company licit counsel will contact the AAA (American Arbitration Association) to obtain an arbitrator to settle the matter. However, if the individual wishes to utilize a form of mediation to endeavor to settle this issue, they must contact the licit counsel of Riordan to settle on a third party to oversee the present licit issue. It seems that more and more companies use ADR methods to settle licit issues; however, in some cases mediation is a preferred method to settle licit issues with businesses. Enterprise Liability This company presently manufactures various plastic products, which affects various people and businesses around the world. Riordan has many locations throughout the world, including the Amalgamated States, and China, because of these locations, the company presents themselves to enterprise liabilities and in the obligations, and they preform between the companies itself and the vendors or suppliers. However, in defense of the Riordan Company, management strives to sign contracts between vendors or suppliers who hold the same ethical and licit standards the company sets for it in all business transactions. It is imperative to all Riordan business transactions, and contracts that the contract states in a clear precise manner all expectations and responsibilities of the other party. Furthermore, any breaches of contract between Riordan and the other party shall follow all rules, and regulations set by the Uniform Commercial Code. However, Riordan executive officers, and board of directors has set preventive measures into place to help protect the company from these forms of liabilities. For example, Riordan takes all breaches of contract on behalf of the company very seriously; they take responsibility for these actions, and in turn remedy these breaches in a quick and ethical manner. Upon hiring employees, Riordan has all potential employees sign an acknowledgement form, stating the employees have read the employee handbook, and understands all requisites, policies, and responsibilities before hiring. Riordan provides the following mandatory training for all employees within 90 days of hire: new employee orientation (1 day), once per month, and Six-Sigma for all production, shipping and quality employees. Supervisors must attend workshops within a year of becoming a supervisor; these workshops include interviewing guidelines, obviating EEO claims and sexual harassment in the workplace and performance reviews (Riordan Manufacturing Company, Training and Development, 2012). Riordan does not abide negligent demeanors, or careless acts. Quarterly supervisors conduct employee evaluations on all employees. Riordan Manufacturing is not only work to ascertain employee and customer contentment, but also ascertain that all waste from company production is disposed of in compliance will the policies set by the Environmental Regulations Act. To safely ascertain that the company is at all times compliant with these terms, rules, and regulations set by regime officials Riordan conducts yearly inspections, and audits of each production plant, to ascertain the company is in compliance with the Clean Air and Water Acts. These actions are imperative to executive officers and the board of directors to assess any possible deleterious risks or chemicals the company relinquishes into waste disposal, and the ability to hold the company itself to an ethical and licit standard of ascertaining that all company actions are safe and compliant with all regime guidelines. However, by doing this before licit matters present themselves to the company, sanction the executive officers and board to ascertain the companys mission and profits are not lost. Product Liability One major product liability concern Riordan has is the waste the production of their products makes, which could give off deleterious chemicals, which can get into the communities drinking water and harm the public. This concern emanates from the issues the company is having in China with these chemicals. Executive officers must act quickly to rectify these liabilities before the public members bring lawsuits against the company. If the courts are to find Riordan Manufacturing liable for exposing the public to deleterious chemicals given off by the production of the companys products, the company may be obliged to pay a high cost in international lawsuits. In integration, all plant operations will stop until the court issues and matters are resolved. This will cost Riordan a high loss in both production and profits. However, the company can reduce the risk of exposing the public to deleterious chemicals by utilizing the Six-Sigma standards for shipping, control, and production. By conducting routine expectations and audits of both production, and waste disposal will help Riordan reduce the risk of product liabilities. If executive officers and the board of directors are to find any product defects, or chemicals they can resolve these issues quickly, without harming the environment or community around the company. This will also sanction the company to stay in compliance with the Occupational Safety and Health Act set by both state and federal regimes. This is essentially important to company. All violations of this act or any other safety act will cause the company to face strict liability penalties. International Law International business transactions hold all companies liable for all actions pertaining to business conducted overseas. For corporations to do business overseas they must comply with all international laws. Riordan must comply with these international laws, because they currently do business and overseas, in China. Riordans executive officers and board of directors currently do routine inspections to check for all deleterious chemical disposals and to set an orchestration in place to reduce the possible risks of liabilities. Executive officers of Riordan Manufacturing currently are assessing the current situation, and believe that the best solution to oversee security measures in China is to have the companys law firm Litteral and Finkel go into to China and set up a post. This will help any inspections given by the Chinese Center of Disease Control, of the Riordan plant location. If the desideratum should arrive that Riordan must dispute an implicative insinuation against the company in regards to the companies real or intellectual property, contracts, or business transaction the company will contact the International Chamber of Commerce, to establish arbitration to oversee the dispute. Tangible Property Assessing Riordans current amount of tangible property the board of directors, and executive officers will find that they have computer equipment, office supplies, shipping vehicles, other transportation, technology in plastics, and raw materials, all which are protect under company emolument in the event this property is damaged, destroyed, or stolen from company property. When Riordan Manufacturing purchases or acquires any tangible property for company purposes, the company puts these items into inventory. However, Riordan has set up two different inventory systems to keep track of both profits, and outputs of company property. In integration, Riordan takes protection of all tangible property very serious, this is why they have all employees sign an agreement of nondisclosure. This company also keeps both copyrights, and patents to all company property safely tucked away, in case they require them to show an outside source or another business. Intellectual Property Riordan Manufacturing has a development and research department in California, who develop this companys intellectual property such as secrets in patent trades. Before Riordan hires new employees all individuals are subject to a criminal background check. These potential employees must also sign a covenant-not-to-compete clause nondisclosure accedence within each employee contract before hiring on as an employee for this company. These employees include but are not limited to contractors, and engineers. The board of directors and executive officers refer to the companys licit counsel firm to ascertain that all company trademarks and patents are at the latest version. This all helps the company to protect their intellectual property, from other competitors who endeavor to make a profit off any patents or trademarks of Riordan. Forms of Business There are various forms of business in the legal sense. However, Riordan falls under the profit corporation. According to (Chesseman, 2010, p. 559), a profit corporation, is a legal entity in itself and can sue or be sued under the company name as well as holds all titles to the property. This form of corporation withstands a limited amount of liability for all shareholders and management. However, this company practices business under the Model Business Corporation Act. The Riordan Manufacturing Company chose this business model because it withstands both management latitude and liberal for all types of corporations. Riordan Manufacturing headquarters are in San Jose, California. The shareholders of Riordan help to elect the board of directors who help make profit decisions for the company. However, it is up to the board of directors to designate executive officers to manage all company operations. According to (Riordan Manufacturing, Corporate Governance Plan, 2010, p.3), the Board of Directors holds the ultimate fiduciary responsibility of managing affairs through its designated senior managers, with the right to remove senior management when it is in the best interests of the Company and its shareholders. The daily activity of operations shall by governed by departments through the development of Departmental Governance Plan. Furthermore, all executive officers, and the Board of Directors must follow all Sarbanes-Oxley Act fully, or face penalties given by government officials. In addition, to following all policies, rules, and regulations set by the Sarbanes-Oxley Act, Riordan must also follow all tax laws set by the state, and federal governments in which the manufacturing plant resides. Shareholders of Riordan are responsible to pay taxes on all dividends they currently pay out per year, and Riordan Corporation must pay taxes on all net earnings the business makes per year. Governance There are various forms of business in the licit sense. Corporate Governance is, the framework of rules and practice by which a board of directors ascertains accountability, fairness, and transparency in the companys relationship with its stakeholders, financiers, customers, management, employees, regime, and community. Corporate Governance also controls all business activities which help to meet specific goals or objectives set by the corporation (Business Dictionary, 2012). Corporate executive officers and the board of directors all feel that corporate governance is a desideratum when running daily operations of the company, and helps the company make a significant amount of profits. Riordan uses corporate governance as a way to ascertain all employees act in an ethical manner at all times, to reduce potential liabilities or other licit harm to the company. The executive officer of Riordan has responsibilities to ascertain that all employees, vendors, and suppliers acknowledge and practice ethical standards, procedures, and policies during business hours. This is one reason Riordan has a specific employee handbook designed to help guide all employees of what type demeanors, conduct, and transactions are not sanctioned during work hours, this helps to ascertain governance. Riordans Enterprise Risk Management System helps to reduce, and govern any potential risks that may affect the company. This system also helps to examine what extent the risk applies to the operations of the company. Riordans main goal is to make a substantial profit from all products, to supply profit to the company shareholders. However, in the process of making a profit, this company has liability plans in place to reduce the risk of paying out to much in licit costs. In integration, Riordan Company officials must adhere all guidelines set by SOX, in regards to all financial and auditing processes. This corporation will benefit from not only following SOX guidelines, but also following the Generally Accepted Accounting Principles. By adhering to both, the company should sustain a profit, and have a competitive advantage over competitors in the same industry. Conclusion Riordan Manufacturing is showing that the company as a whole stands by their mission statement, and sets themselves apart from other competitors, by identifying, and assessing all potential risks and liabilities. By doing this, the company is showing all shareholders and customers that they maintain a high ethical standpoint, in all business transactions. Riordan continually shows that they carefully watch all business transactions of employees, management, vendors and suppliers, to ensure that the company will continue to profit and grow. References Chesseman, H. R. (2010). Business law: Legal environment, online commerce, business ethics, and international issues (7th ed.). Upper Saddle River, NJ: Prentice Hall Corporate Governance. (2012). Retrieved September 17, 2012, from Business Dictionary: http://www.businessdictionary.com/definition/corporate-governance.html Corporate Governance Plan. (2012). Retrieved September 17, 2012, from Riordan Manufacturing: https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/docs/Legal/Corporat e%20Governance%20Plan.pdf Training and Development. (2012). Retrieved September 17, 2012, from Riordan Manufacturing :https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/HR/Policies.asp#tan dd

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