Essay Summary of Business Law

Riordan Corporate Compliance Plan I. Introduction Riordan Manufacturing Inc. is a global plastics manufacturer with facilities in San Jose, CA, Albany, GA, Pontiac, MI, and Hangzhou, China. The projected annual earnings for Riordan are $46 million. To achieve the projected earnings and financial profitability, the Riordan Board of Directors (BD) will need to focus on the formation of Riordan’s Corporate Compliance Plan (CCP). The CCP will provide to BD of Riordan the prevention and management course of action of legal aspects.
The aspects will be focused on enterprise liability, real and intellectual property, governance principles of regulatory compliance requirements, and specific international laws that must be adhered to Riordan Manufacturing and the stages for employees to adhere to these laws. Also implementing Enterprise Risk Management (ERM) based on the Committee of Sponsoring Organizations of the Treadway Commission (COSO) eight interrelated components. II. Mission Statement
According to Riordan mission “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” (University of Phoenix, 2012). III. Enterprise Liability and Product Liability Enterprise liability is critical for the management because managers represent the organization and will be held liable for actions and decisions in the areas of corporate responsibility they foresee.

Employing Enterprise Risk Management throughout areas such as corporate responsibility; specifically mitigating risk where possible without degradation of product, services, and profitability. Ensure every employee is trained to report violations and circumstances that are abnormal or they are not sure how to proceed. Specifically managers are “agents” of Riordan and have a unique responsibility to “act” in an appropriate manner in decision-making and actions. The board of directors oversees risk management and corporate liabilities of Riordan Manufacturing with the support of COSO.
Enterprise risk management (ERM) is a process and consists of eight interrelated components. 1. Internal Environment will set the base in how management of Riordan will identify and assess risk by an entity or person. It will include risk management philosophy and risk appetite, integrity, and code of ethics, and Riordan environments. 2. Setting Objectives will set before Riordan management can recognize probable actions which could affect organization achievement. The ERM will ensure Riordan management has a procedure in hand to establish goals, select goal support, and align with the organization mission as well with its risk appetite. . Identification of the Event will include situations, such as internal and external, which could affect the achievement of the Riordan goals, and recognize, and differentiate between risk and opportunity. 4. Risk Assessment, risk will analyze, in view of odds and influence, as part of how Riordan management will assets the risk. 5. Risk Response, the organization must avoid, accept, reduce, or share risk. Also must develop a set of actions that would be aligning with organization risk tolerance and risk appetite. 6.
Control Activities will be Riordan policies and procedures established and implemented to help ensure that responses by the organization are carrying out successfully. 7. Information and Communication will recognize, capture, and communicate in a suitable form and a reasonable time and support Riordan manager’s carry out their responsibilities. The communications have to be in every direction within the organization. 8. Monitoring, the whole ERM has to be monitored and if it is necessary be modified. This component will be accomplished by manager through management’s activities, separate evaluation, or both (University of Phoenix, 2004).
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 has corporate responsibility to the environment by complying with the Clean Water Act, such as contamination on lakes, rivers, and so on. Also The Clean Air Act, such as air contamination cause by manufacturer, vehicles, and anything that can affect the air. Both acts are regulated by the federal statutes that provide and regulate air and water quality in the U. S. (Cheeseman, 2010).
Riordan directors must evaluate potential violations by the organization, also if a violation is discovered the director executes the appropriate corrective actions and documentation. Riordan must act in accordance with the Occupational Safety and Health Administration (OSHA), “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” (Cheeseman, p. 489. 2010). Riordan will ensure by act in accordance with federal government and within organization to sustain a clean work environment.
Product Liability is critical for Riordan employees to mitigate on a daily basis from research and development to marketing. Employees should feel comfortable reporting detrimental information or violations to leaders at every level. Riordan is liable as an organization for every product produced in the United States and China, therefore constant leadership is required to manage the risk. The compliance audit team will be responsible for regular and random audits and inspections of Riordan operations in the United States and China with reports provided within 24 hours of completion.
The instances of non-compliance or concerns will be immediately addressed and reported for resolution within 24 hours and reported individually to the Legal team and CEO simultaneously. The laws that govern Riordian’s international interest in China are complex and will continue to follow ISO 9000 procedures and any other local “host nation” requirements. Employees will be sensitive to cultural issues as well as community concerns. ISO’s purpose is to assist international trade by providing sets of standards that people everywhere would identify and value.
The ISO 9000 standards can be apply in any type of organizations in many areas, such as Riordan Manufacturing. IV. Real and Intellectual Property According to Cheeseman (2010), real property is defined as “the land itself as well buildings, trees, soil, minerals, timber, plans, and other things permanently affixed to the land” (Cheeseman, p. 754. 2010). Riordan must assess, maintain, and manage the land and property throughout it’s’ lifecycle. However, the tenure and ownership of real estate are not free of federal regulation. To constitutional authority, federal, state, and local governments have enacted myriad laws that regulate the ownership, possession, lease, and use of real property” (Cheeseman, p. 754. 2010). Riordan must maintain records, including the organization titles of ownership and limitations of the land. In conclusion, everything within the limits of the land, either above or below, Riordan will be held liable and responsible for damages incurred to the surrounding areas. Riordan will must to follow the United States regulations to protect the environment of the nation’s water and air from pollution.
Clean Water Act is “a federal statute that establishes water quality and regulates water pollution” (Cheeseman, p. 707. 2010) Clean Air Act, is “a federal statutes that provides comprehensive regulation of air quality in the United States” (Cheeseman, p. 704. 2010) Intellectual property is an asset to Riordan patents held by the company are the core of the organization. The patents and copyrights for all of Riordian’s products, processes, formulas, and other trade secrets will be managed by the Legal team to ensure proper registration and rights are current and not provide for lapse to occur.
The statute is cover by the Copyright Revision Act is “a federal statute that (1) establishes the requirements for obtaining copyright and (2) protects copyrighted works for infringement” (Cheeseman, p. 114. 2010). Also patents are protected by the act of Federal Patent Statute is “A federal statute that establishes the requirements for obtaining a patent and protects patented inventions from infringement” (Cheeseman, p. 111. 2010). The China operation will also be managed by the legal team to ensure proper laws and international patents are current.
The software for the Finance and Accounting systems used by the Georgia, Michigan, California, and People Republic of China must have a current copyright as well as our own system used in San Jose. The new distance learning software will need proper legal staffing to ensure the proper copyright is obtained. V. Governance principles and International and Domestic Laws Riordan will be governed by strict compliance to laws and regulations and by the life-force to “Do the right thing” in every case. Riordan employees are required to adhere to compliance in their respective areas of responsibility and scope.
To ensure the employees adhere to Riordan regulations the organization must “maintain an innovative and team oriented working environment” (University of Phoenix, 2012). The organization must keep the employees informed and properly supported by providing the training and an environment focused on the long sustainability of the organization. Riordan complies with local and international laws with concern by conducting business within the region. In the United States, Riordan must follow labor laws and statutes concerning mployees within workplace environment. The employees of Riordan can be categorize as U. S. citizens, legal residents (holding valid green card), and worker with valid work visas. The organization sustains diversity in the workforce, without any prejudice against protected groups outlined by the Equal Employment Opportunity Commission (EEOC). The commission is the main entity who enforces the antidiscrimination laws. If complaints arise between Riordan and employees, EEOC will investigate, interpret, and encourage conciliation.
Additionally, The Title VII of the Civil Rights Act 1964 according to the Justice Murphy (1944) “Racial discrimination in any form and in any degree has no justifiable part whatever in our democratic way of life. It is unattractive in any setting but it is utterly revolting among a free people who have embraced the principles set forth in the Constitution of the United States” (Cheeseman, p. 514. 2010). Furthermore, Riordan will resolve disputes using Alternate Dispute Resolution (ADR) methods. Riordan must have in hand an ADR framework in place to handle conflicts that arise within the organization.
The most commons methods used by ADR are arbitration, mediation, negotiation, conciliation, or other forms of dispute resolution. The ADR is cost-effective and an efficient method of resolving disputes in the workplace better than trying a case in court. Litigation will be more expensive and time-consuming; the trial will emphasize more on an encounter but ADR will emphasis more on reconciliation between both parties. Though, Riordan has to follow international laws and the laws established by the host country, Republic of China, where the manufacturing plant is located. Riordan will comply with laws and regulatory agencies within China.
The organization will comply with treaties of all countries the organization conducts business with. The organization will comply with international laws and adhere to the United Nations Convention on Contracts for the International Sales of Good (CISG) guidelines. In accordance to Cheeseman (2010) the CISG “is a model act for international sales contracts” (Cheeseman, p. 163. 2010). The CISG specified in its preamble that international trade is equal and mutual benefit. Additionally, Riordan will comply with General Agreement on Tariffs and Trade (GATT) guidelines supported by the World Trade Organization (WTO).
The WTO was established to “promote and enforce trade agreement among member nations” (Cheeseman, p. 856. 2010). In addition, “GATT is a multilateral treaty that establishes trade agreements and limits tariffs and trade restrictions among its 150 member nations” (Cheeseman, p. 856. 2010). Compliance with international law will improve trade relations between Riordan and other countries. Riordan will comply with environmental laws on an international level and not participate in activities that violate trade agreements.
Riordan is facing issues since the management’s decision to move the manufacturer plant in China, from Hangzhou to Shanghai. Riordan’s management is basing the decision on cost saving in distribution and shipment. The movement can raises a conflict in workplace. Riordan employees can suffer stress because of job losses. Riordan must ensure that the layoff is in compliance with local laws. In this situation the use of ADR will be the most suitable to resolve dispute. Riordan management and employees can negotiate the manufacturer relocation.
Furthermore Riordan must follow the laws in China to implement the movement. The employees could negotiate for increased severance pay or additional retaining fees, among other choices, to help convince them to stay until the shutdown date. This could help ease any tension or stress between management and the employees during the time of numerous changes and layoffs. The employees will feel as if they are heard and understood. VI. Conclusion Riordan will continue to lead the industry with continued innovative strategies in marketing, research and development, product optimization, and customer service.
Riordan Officers and Directors will be vigilant in protecting all assets from legal or otherwise litigation in the failure or neglect of duties, responsibilities. The legal team is available to 24 hours seven days a week to officers and directors for the purpose of providing timely and accurate counsel. Managers are directed to follow plan and always do what is right and correct, maintain methods of checking the results of areas and act in a responsible, ethical, and proper manner. References Cheeseman, H. R. (2010).
Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues (7th ed. ). Upper Saddle River, NJ: Prentice Hall. Praxiom research group limited. (2009). Retrieved from: http://www. praxiom. com/iso-intro. htm Steinberg, R. M. (2011). Using the new COSO Risk-Management Guidance. Retrieved from University of Phoenix, LAW531 website. University of Phoenix. (2004). Enterprise Risk Management – Integrated Framework. Retrieved from University of Phoenix, LAW531 website. University of Phoenix. (2006). Riordan Manufacturing. Retrieved from University of Phoenix, LAW531 website