University of Phoenix
LAW/531 Business Law
May 26, 2010
Corporate Compliance Plan: Riordan Manufacturing
In the early 20th century many large corporations were guilty of committing scandals and fraudulent activities. Many people today are very familiar with Sarbanes Oxley Act (SOX) of 2002 when the large companies such as Enron, WorldCom, Adelphia, and many others collapsed between 2001 and 2002, and Congress passed SOX also known as the White-Collar Criminal Penalty Enhancement Act of 2002 (Jennings, 2006). To minimize the fraudulent activities done by especially the educated ones such as top executives of the company, Security Exchange Commission (SEC) now regulates and requires public companies to file reports of the accurate finding of the audit reports under SEC rules and guidelines. Despite the set in place of internal control systems, financial policies and procedures, many people in power have been abusing the systems and manipulating the guidelines to gain profit or hide the truth that can potentially ruin the business. Problem is that quick cover ups and hiding the dust under the carpets worsened the situation and many companies or executives of the company who were acknowledged by public for outstanding business example who appeared on top magazines and publications found to be untrue and many faced lawsuits. In this paper, corporate compliance plan to prevent unethical conducts of the business, minimize the liability and implement the risk management for better future of a corporation such as Riordan Manufacturing, Inc. will be discussed. Riordan Manufacturing
According to Apollo Group Inc (2004), Riordan Manufacturing is a global plastics manufacturer employing 550 people with estimated $46 Million in sales per year. As Riordan Manufacturing practices its business globally, high level of strategic quality improvement program such as ISO 9000 and 14000, and newly designed Continuous Process Project Review (CPPR) is required. It is imperative to identify and analyze the following elements when developing a strategic corporate compliance plan for Riordan Manufacturing: The mission and vision, organization’s strategic objectives, the significance of Total Quality Management (TQM) as a strategic level objective, and identifying the impact, legal compliance plan, and complexity of globalization on TQM. For Riordan’s new quality improvement plan to be successful and be competitive in the global market, the organization require higher level of commitment to meet all the corporate compliance and support from the executive management team. Organization’s Mission and Vision
Riordan Manufacturing’s mission and vision statement has four emphases; company Focus, Customer Relationships, Employees and the Future. The emphasis on the organization’s Focus includes continual development of excellence in quality exceeding the standards and maintaining the position as the industry leader in using polymer materials. The emphases on Customer Relationships include providing solutions to customers and maintaining long-term relationships by producing quality products at a reasonable price. For Employees, providing a team oriented working environment and through proper support, employees are retained for the development of the company. The organization’s Future will be focused on profitability and availability of financial and human capital for uninterrupted development.
Riordan’s mission statement reflects that the company strives to meet all the legal compliance and the quality management in all the operating and strategic functions. But as Riordan’s internal functions are analyzed it is found that the company needs to change and upgrade many functions and policies to comply with the principles of TQM. One of the reasons Riordan is not being 100% in compliance with TQM is that it is a fairly new...