Corporate_Compliance_Plan

Running Head: Corporate Compliance Plan Corporate Compliance Plan University of Phoenix Tashia Thomas June 20, 2010 The purpose for this paper is to create a corporate compliance plan for Riordan Manufacturing Virtual Organization. This plan will focus on the management of legal liabilities of the company’s officers and directors. This plan will discuss alternative dispute resolutions, enterprise and product liability, international law, and tangible and intellectual property. This plan will also discuss governance, prevention and management guidelines, enterprise risk, and laws that the company must adhere to. ADR Any disputes or complaints against the company will be settled using alternative dispute resolution (ADR). An ADR will allow the company to resolve issues without the use of an attorney and is quicker and less costly than a court hearing. The first ADR process the company will use is negotiation. This will allow the parties to voluntarily settle the issue and be able to continue to do business with each other. If an agreement cannot be reached and the matter can’t be resolved using negotiation the company will move on to mediation. Mediation will be used in good faith to resolve any issue on an individual basis. Mediation will take place either in person, via email, or telephone conference. The parties involved in the mediation will be the director of both parties and the mediator. The mediator will be an agreed upon professional and the cost for that person will be split between the parties. The mediation process will not last more than 10 working days. The mediation agreement is will be considered an independent agreement and will be binding upon both parties only if both parties agree to be bound by the agreement. In the event that the company is still unable to reach an agreement through mediation, the parties shall move on to arbitration. The arbitration will be handled using a neutral, binding individual. As with the mediator the cost for the arbitrator will be split between the two parties. Arbitration proceedings will be considered a final attempt to settle a dispute before moving into actual litigation. Arbitration proceedings cannot begin without first attempting the other ADR processes. The decision of the arbitration will be considered binding by all parties involved. Enterprise and Product Liability Enterprise liability is defined as criminal liability imposed on the entire company for a crime committed by an employee, partner, department, or unit within the company. Product liability is defined as the legal responsibility of the manufactures, whole sellers, and retailers to the buyer or users of the damages or injuries caused by the use of defective products. In order to reduce matters in enterprise liability Riordan will hold all partners, subsidiaries, and subcontractors to the same high standards that the in house computers are held to uphold. Using quality control of all products produced by Riordan along with strategic planning will also assist in reducing the possibility of enterprise liability. In order to reduce matters in product liability Riordan manager and employees must understand the liability standards of the company. The company must also create a product liability statement that clarifies the company’s liability. This statement should be delivered to all who purchase products for Riordan. Riordan current has a documented form explaining the operating system. This operation system includes information on production, inventory, supply chain, project process, and communications. The company should continue with the normal recording keeping procedures. International Law International law is defined as the body of law that governs the legal relations between or among the states or nations. Most international business is done through agreements, charters, compromises, conventions, memorandums, protocols, treaties, and understandings. Riordan has a plant in China so it is vital that the company follow all international laws. The directors and officers in both the US and China must have an understanding of the fundamental principles of jurisprudence and the general principals of law. Understanding international law will provide the company with their obligations and rights within foreign lands. Tangible and Intellectual Property Tangible property is defined as property that has physical substance and can be touched. The facilities owned or rented by Riordan would be considered tangible property. The products produced by the company to be sold would also be considered tangible property. The company should retain leases and deeds for property owned or rented. Intellectual property (IP) is defined as the creations of the mind, inventions, literary and artistic works, symbols, names, images, and designs used in commerce. IP is split into two sections: industrial property and copyrights. Riordan must make sure that the lawyers keep updated records of the patents and copyrights of the company. The research and development department along with the company’s legal team will ensure that new designs are properly patented before releasing the product to the public. It is vital that the employees of the company recognize and understand what needs to be protected and how to protect company property. This understanding will protect the rights of the company, the products, and the employees. Legal Forms of Business and Governance Riordan is currently a corporation. Corporations are business entities governed by officers, a board of directors, and Executive Committees (Cheeseman, 2010). The company has shareholders and a board that assist in the decision making procedures. The directors and officers have certain rights and duties to the corporation and its shareholders (Cheeseman,2010). Following the guidelines of the Sarbanes-Oxley Act of 2002, the audit committee will be used to maintain internal control and provide proper financial reporting to the directors and shareholders. All employees of Riordan will be provided with a handbook as well as have access to any updates that apply to that handbook. It is very important that all employees of Riordan have any understanding of the rules, regulations, and laws that apply to the company. Conclusion It is vital that all business use a compliance plan. Compliance plans assist companies in a broad range of management issues. The plan for Riordan provides investigative and consulting in areas that will assist the company in continued success. The organization will do anything possible to ensure that all activities are done in the best interest of Riordan. Riordan will use an ADR to resolve most disputes, turning to the legal team only if the ADR does not work. Riordan will provide all employees with the proper training and documentation to protect the company and the employees. This documentation will assure that all are educated and have an understanding of the laws as they apply to the company. Riordan strives for success and will do their best to maintain solid relationships with its partners, consumers, and employees. References Cheeseman. H. R. (2010). Business law: Legal environment, online commerce, business ethics, and international issues (7th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.  Riordan Manufacturing Intranet. Retrieved on June 19, 2010, from https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/RioMfgHome002.htm Bryson www.lectlaw.com/def2/t005.htm