Riordan_Manufacturing

Running Head: Riordan Corporate Compliance Plan Riordan Corporate Compliance Plan Law 531 Riordan Manufacturing Corporate Compliance Plan Introduction Alternative Dispute Resolution (ADR) Riordan Manufacturing will implement the use an ADR for conflicts and breach of contracts among clients, employees and supervisors. An alternative dispute resolution offers parties alternative means of resolving differences outside actual courtroom litigation and the costly aspects of preparation for it (Jennings, 2006). If the direct supervisor can not provide an adequate solution, then the employee or client can escalate the complaint to the human resources department. When the human resources department fails to reach a solution, the employee or client has the option to have mediation. The mediator works to have both parties reach an agreement. Enterprise and Product Liability The product is the most important aspect of Riordan Manufacturing. As a manufacturer of goods Riordan has a responsibility to compensate for injury caused by defective merchandise that it has provided for sale. To avoid acts of negligence the company must take greater precautions to ensure safety in production, design, and assembly. Riordan must honor warranties issued to consumers and avoid misrepresentations in promotions and advertising of the products. By ensuring the quality and safety of products, Riordan can avoid lawsuits involving strict tort liabilities. Resources will be reserved to deal with inevitable torts, allegations, claims and regulatory risks. Riordan will ensure that their products are adequately insured by an A rated insurance carrier in an effort to protect the company. International Law Riordan has several divisions for production Albany, Georgia, Pontiac, Michigan, and Hangzhou, China. The company’s recent acquisition of the China plant heightens the Riordan’s awareness of international business law. The legal department will educate the company on international business operations policies and how to govern Riordan’s business conflicts in accordance to the legal system on China. To avoid miscommunication related messages, a translator or third party translator will be employed by Riordan. The company’s legal department will research foreign policies which affect currency exchange, immigration laws, patent, and trademark registrations. Governance of Riordan Manufacturing: Riordan Manufacturing must develop an integrated financial system to include industry analysis, new solutions to business problems, reducing operating costs, execution of informal analysis, and improving overall business performance. As the corporation, Riordan will follow the guidelines under The Sarbanes-Oxley Act, which came into force in July 2002 during the Bush Administration. Sarbanes-Oxley Act introduces changes to the regulation of corporate governance and financial practice. Riordan Manufacturing officers and directors will seek external consultant and legal expert for periodic statutory financial reports. The reports should include certifications that: (a) signing officers reviewed the report; (b) statement and information must be misleading; (c) signing officers are responsible for internal controls; (d) list of all deficiencies in the internal controls and information on any fraud that involves employees; and (e) any significant changes in internal controls or related factors that have negative impact on internal controls. Tangible and Intellectual Property: The implementation of tangible and intellectual properties is vital to Riordan Manufacturing’s success. Riordan must product their technologies and products through licensing, patenting and other methods to compete in a fair and respectful marketplace. Employees play an active role in protecting the trade secrets of the company and consumers. Employees will receive training on securing confidential information. The legal department will investigate patent, trademark and copyright infringements. Legal Forms of Business Riordan Manufacturing is wholly owned by Riordan Industries, a Fortune 1000 enterprise, must ensure that corporate statutory compliance is followed. Because the corporation is incorporated in the state of Georgia and produces parts in Michigan, and China, Riordan will function with limited liability for shareholders and owners. All amendments to Riordan’s established corporate “bylaws” outlines the operating rules for the corporation will be shared with the directors and shareholders. Implementation of Enterprise Risk Management Enterprise risk management comprises of the company’s ability to monitor, evaluate, and determine how decisions made by the company its leaders, managers, and employees will ultimately effect stockholder growth and Riordan’s ability to continue to evolve as the leader in the plastic container industry (Riordan, 2006). Riordan will streamline its operations by requiring all divisions to use the same accounting and financial practices, upgrading the tracking of sales, tailoring the market strategy to embrace the target market areas, enlarging the legal department past personal relatives and friends, developing an human resource contingency plan in the event the employees shift toward unionization as the company grows domestically and abroad. Specific Laws The Riordan Manufacturing Employee Handbook outlines important information about the company and policies affecting employees. Riordan adopts an employment-at-will policy. To avoid future legal disputes for the wrongful termination of an employee, all employees and supervisors should comply with the guidelines for progressive discipline. Progressive discipline includes four steps: verbal warning, written warning, and suspension with or without pay or termination of employment. In the event of an improper discharge, employees can contact the human resources for a peer review. A peer review is a formal grievance procedure for nonunion employees (Jennings, 2006). To avoid lawsuits regarding discrimination, Riordan will not foster the discrimination on the basis of race, color, religion, sex, national origin, age, disability, or any other characteristic protected by law. The human resources must be aware of the employee rights in regards to discrimination under the Civil Rights Act of 1964, Americans Disability Act (ADA), Pregnancy and Discrimination, and the Equal Opportunity Acts respectively protect the company. Employees who recognize a violation of these acts should notify their immediate supervisor for assistance. If the supervisor is unable to resolve the issue, then the human resources department will take the complaint and launch an investigation. Employees who are privy to confidential information will sign an agreement (NDA) non-disclosure agreement, referencing the release of trade secrets, designs, and financial records. The employee agrees to relinquish over any ownership rights for designs, patents or products that were produced during employment with Riordan. The registration of patents will last between 14 to 20 years (Jennings 2006). Any one who sells or uses a patented product or without the consent of the company has committed patent infringement. Riordian Manufacturing has its own legal counsel the Litteral & Finkel firm that oversees all matters for the company. Lowell Bradford and Rick Ehtridge handle all the company’s patents applications, litigation, tax issues and real estate. References (1909). The Laws of Unfair Business Competition, Trade Secrets and Confidential (Ch 15.) (2006)Marianne Moody JenningsBusiness: Its Legal, Ethical, and Global Environment, (Ch16) 1. University of Phoenix. (2009). Legal Environment of Business [Computer Software]. Retrieved from University of Phoenix, Simulation, and Law/531 website. 2. Jennings, M.M. (2006). Its legal, ethical, and global environment. Retrieved: https://ecampus.phoenix.edu/content/eBookLibrary2/content/TOC.aspx'assetdataid 3. (2006).  The Sarbanes-Oxley Act 2002. Retrieved from http://www.soxlaw.com.