CORPORATE COMPLIANCE PLAN
Revised: February 2012
TABLE OF CONTENTS Page
I. INTRODUCTION 4
II. MISSION STATEMENT 4
III. EMPLOYMENT & LABOR 5
IV. ALTERNATIVE DISPUTE RESULUTION 6
V. ENTERPRISE LIABILITY 7
VI. PRODUCT LIABILITY 9
VII. INTERNATIONAL LAW 9
VIII. REAL AND INTELECTUAL PROPERTY 10
IX. GOVERNANCE 10
Riordan Corporate Compliance Plan
International plastics manufacturing company, Riordan specializes in manufacturing plastic parts for the beverage manufacturing industry, automotive industry, and fan manufacturers. Riordan employs 550 employees and the organization’s annual income is approximately 46 million. Riordan Manufacturing is owned by Riordan Industries that has an annual income over 1 billion dollars. Riordan Manufacturing has locations in the United States and China. The United States locations include: Pontiac, Michigan and Albany, Georgia. Riordan is committed to complete compliance with State, Federal, International laws and regulatory bodies in the regions where Riordan conducts business. Riordan Manufacturing practices generally accepted business practices. The purpose for the development of The Riordan Corporate Compliance Plan is to manage the liability of the directors and officers of Riordan through regular reviews. The reviews will provide oversight to ensure compliance with relevant legislations. The compliance plan’s aim is to protect Riordan, its employees, and the environment.
II. MISSION STATEMENT
According to Apollo Group, Inc. (2012), “Six Sigma, leading edge R&D and exceeding ISO 9000 standards define the attitude and abilities of Riordan Manufacturing. We are industry leaders in using polymer materials to provide solutions to our customer’s challenges. Our R&D is, and will remain, the industry leader in identifying industry trends.”(Mission).
III. EMPLOYMENT & LABOR
In order for Riordan to sustain a viable company, the organization needs to maintain an informed, innovative, and properly supported team of employees. Riordan complies with all local and international laws that pertain to conducting business within the region. Riordan follows labor laws and statues regarding employees in a workplace environment. Riordan employs United States Citizens, workers with a valid green card, or individual with a valid workers permit. The organization maintains a diversified work force and doesn’t discriminate against protected groups outlined in Title VII of the Civil Rights Act of 1964. Niedrich (2011) stated, “Tide VII seeks to achieve its noble goals by utilizing a categorical framework to prohibit employment discrimination on the basis of membership in certain class categories: race, color, religion, sex, and national origin.” (p.27). Federal law doesn’t cover sexual orientation as a protected class, however some States have adopted legislation that defines sexual orientation as a protected class under State law. The directors and officer of Riordan need to be careful not to discriminate against protected classes of people. The organization could be found liable for damages if a manager, supervisor, officer, and director is found guilty of discrimination. The management of Riordan should select employees based on qualifications and treat everyone equal in order to avoid unnecessary risk regarding discrimination. The management needs to be annually trained in sexual harassment and keep the management informed of their legal responsibilities regarding sexual harassment. Riordan has a responsibility to provide safe working conditions and comply with OSHA guidelines. The organization also has a social responsibility to the community and the protection of the environment.
IV. ALTERNATIVE DISPUTE RESULUTION
Riordan manufacturing will use ADR whenever possible to handle disputes, conflicts, disagreements, discrepancies, discord, and controversies among employees. In cases that the employee has clearly engaged in illegal activity or obstructed an investigation the employee maybe subject to litigation or termination. The employee has the right to obtain legal counsel at any time it is deemed warranted at the employees expense. Legal counsel can be provided at the employers expense if the case has direct bearing on the welfare of the organization. Cheeseman (2010) stated, “Alternative dispute resolution (ADR) and other aids to resolving disputes. The most common form of ADR is arbitration. Other forms of ADR are negotiation, mediation, conciliation, mini-trial, fact-finding, and using a judicial referee.” (p.43). Riordan Manufacturing’s use of alternative dispute resolution will minimize the potential risk of litigation. When an employee’s have a complaint or matter that needs to be addressed by the organization the employee will use the chain of command. The immediate supervisor of the employee is responsible for handling issues or complaints addressed by the employees. When the employee’s complaint or issues have not been adequately addressed by the employees immediate supervisor the employee can use the compliance hotline via phone or internet.
Informal mediation process is recommended to resolve disputes between parties and participation is voluntary. The mediator is a facilitator and provides a safe environment where disputing parties can come to resolve an issue. The mediator is not in charge of resolving the dispute and doesn’t provide legal advice. Once the disputing parties come to a resolution the mediate records the conclusion and documents the resolution. When the disputing parties don’t come to an agreement through mediation the case is presented before a board for Peer review. During peer review each employee is allowed the opportunity to select an advocate to argue on their behalf. The disputing parties present their case to a panel of five neutral parties. The employees agree and sign documentation that states that the panel’s decision is binding. Once a decision has been made the mediator records the decision and documents the resolution.
V. ENTERPRISE LIABILITY
A legal principle or tort law that states that an entire organization can be held liable for the offences and obligations of its constituency is known as enterprise liability. Riordan Manufacturing’s directs are responsible for handling liabilities associated with the organization. Directors of Riordan Manufacturing are expected to handle themselves ethically and responsibly. A director or official representatives of Riordan Manufacturing can be held personally responsible for breach of duty. Riordan Manufacturing has an ethical relationship of trust with it officials. Riordan Manufacturing officials have a legal responsibility to adhere to standards of reasonable care in all activities. Conflict of interest and engaging in activities that could be harmful to Riordan Manufacturing or its affiliates is strictly prohibited. Officers or directors who breach the code of conduct maybe subject to litigation proceeding and damages. Directors have authority to investigate corporate matters and a responsibility to maintain accurate documentation. Directors have a responsibility to supervise and direct officers within the organization. Directors have a responsibility to stay informed of corporate events and regularly attend board meetings.
The board of directors oversees risk management and corporate liabilities of Riordan Manufacturing with the support of COSO. “Enterprise risk management is a process, affected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives in the following categories: effectiveness and efficiency of operations, reliability of financial reporting, compliance with applicable laws and regulations.” (Committee of Sponsoring Organizations of the Treadway Commission, 2004, p. 2-3). Risk management and strategic objectives protect the organization from unforeseen risk. Departments within the organization are evaluated on how well they protect personnel and corporate assets. The management maintains order within the organization and makes risk management a priority.
Riordan manufacturing has a responsibility to the environment by complying with the clean air act and clean water act. Cheeseman (2010) stated, “Clean Air Act A federal statute that provides comprehensive regulation of air quality in the United States.” (p.704). The directors of the organization evaluate the organization for potential violations and if a violation is discovered the director executes the appropriate corrective actions and documentation. The organization also needs to comply with OSHA guide lines. Cheeseman (2010) stated, “Occupational Safety and Health Administration (OSHA), a federal administrative agency within the Department of Labor that is empowered to enforce the act. The act imposes record-keeping and reporting requirements on employers and requires them to post notices in the workplace, informing employees of their rights under the act.” (p.489). Riordan manufacturing by complying with federal statutes and organizations is insuring to maintain a safe work environment.
VI. PRODUCT LIABILITY
Riordan complies with state, federal, and international guidelines regarding products sold from the organization. The organization uses quality control to ensure that products meet the organizations targeted standards. Products sold to consumers are supplied with accurate information that is compliant with the law. Consumer complaints are handled on a case by case basis and are reviewed by the legal department. The officers within the organization monitor activities and ensure that the organization stays compliant with the federal trade commission. Defective products and equipment malfunctions will be reported immediately. The research and development department will test products periodically for safety issues. Once an issue is found it will be indentified and documented accordingly.
VII. INTERNATIONAL LAW
Riordan manufacturing shall comply with laws and regulatory agencies within China. The organization will comply with treaties of all countries the organization it does business with. The organization will comply with international law and adhere to the CISG guidelines. Cheeseman (2010) stated, “The United Nations Convention on Contracts for the
International Sale of Goods (CISG) is a model act for international sales contracts. (p.163). The organization will also comply GATT and guidelines established by the world trade organization. Cheeseman (2010) stated, “the General Agreement on Tariffs and Trade (GATT). GATT is a multilateral treaty that establishes trade agreements and limits tariffs and trade restrictions among its 150 member nations.”(p.856). Compliance with international law will improve trade relations between Riordan and other countries. Riordan Manufacturing will comply with environmental laws on an international level and not participate in activities that violate trade agreements.
VIII. REAL AND INTELECTUAL PROPERTY
Cheeseman (2010) stated, “Intellectual property rights Patents, copyrights, trademarks, and trade secrets. Federal and state laws protect intellectual property rights from misappropriation and infringement.” (p.915). The management of the organ have a responsibility to protect the intellectual property of the organization by monitoring potential avenue of infringement. The States and China have laws regarding intellectual property and procedures that organizations could use to claim damages from infringement.
Tangible property or real property can be fixed in place or movable. The management of Riordan is responsible for the delegation and protection of organizational property. All damaged property needs to be accompanied with a damage report stating how the property was damaged and employees that witnessed or participated in the incident. The transfer of property is to be documented and monitored for accuracy. Stolen property will be immediately investigated and the authorities may be brought into the facilities to conduct an investigation. Employees caught stealing from the organization will be turned over to the authorities for processing and litigation.
Riordan Manufacturing is compliant with the Sarbanes-Oxley Act 2002, because the organization is a publicly traded company. Cheeseman (2010) stated, “Sarbanes-Oxley Act of 2002. This act establishes far-reaching rules regarding corporate governance. The goals of the Sarbanes-Oxley
Act are to improve corporate governance rules, eliminate conflicts of interest, and instill
confidence in investors and the public that management will run public companies in the
best interests of all constituents.” (p.592). The management of the organization is accountable to the stakeholders. The organization strategies are designed to maintain a strategic advantage within the industry. Accountability, guidelines, and policies are used to protect the organization from potential risks. Governance is applied to the management of risk within the organization and internal controls. Maters regarding oversight, review, and the creation of documentation are subject to governance. The organization strives to be fair and transparent when conducting business. The officer in charge of compliance will be responsible for the compliance plan.
Steinberg, R. M. (2011). Using the New COSO Risk-Management Guidance. Compliance Week, 8(86), 36-37.
Enterprise Risk . (2004). Retrieved from https://www.coso.org/documents/COSO_ERM_ExecutiveSummary.pdf
Niedrich, A. (2011). REMOVING CATEGORICAL CONSTRAINTS ON EQUAL EMPLOYMENT OPPORTUNITIES AND ANTI-DISCRIMINATION PROTECTIONS. Michigan Journal Of Gender & Law, 18(1), 25-112.
Apollo Group, Inc.. (2012). Riordan Manufacturing. Retrieved from https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/index.asp
Cheeseman, H. R. (2010). Business Law. Legal Environment, Online Commerce, Business Ethics, and international issues. (7th ed.). New York, New York: Pearson Education.
Committee of Sponsoring Organizations of the Treadway Commission. (2004). Enterprise Risk Management â€” Integrated Framework. Retrieved from Committee of Sponsoring Organizations of the Treadway Commission, Law531 website.