Riordan Compliance Plan

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Riordan Corporate Compliance Plan
Lesley Yeargin
LAW 531
November 26, 2012
Nicole Harrison

Riordan Corporate Compliance Plan
Riordan is a manufacturing organization in global plastics founded by Dr. Riordan in 1991. According to the Apollo Group, Inc., “The company's most recent expansion took place in 2000 when it opened its operations in China” (2012, History). Possessing a legal team available to Riordan at all times is necessary for the smooth operation of the organization. As this company has international locations, the law has to be respected in those countries as well. Riordan has a responsibility to anticipate risks and keep them at a minimum. A solid Corporate Compliance Plan will serve in protecting Riordan from unnecessary lawsuits. As Riordan would have much to lose, a plan is needed in case legal action is sought to resolve a dispute. The ultimate goal of a Corporate Compliance Plan is to serve as a guide to determine liability of directors and officers. Enterprise liability and duty of care are intertwined. In the case of enterprise liability, the entire organization is at fault if the organization is found in violation of the law. The company at large is held responsible for the misconduct or negligence of one or a group of individuals. According to Cheesman, “Duty of care refers to the obligation people owe to each other–that is, the duty not to cause any unreasonable harm or risk of harm” (2010, p. 81). Riordan has the responsibility of keeping their employees safe. As Riordan is a manufacturer in plastics, there are harmful chemicals in which employees are exposed to on a daily basis. Employees must adhere to specific guidelines when producing the chemical components in making plastics. Personal protective equipment or PPE’s is required of employees to wear for limiting or preventing exposure of hazardous materials. Minimal requirements of PPE’s are determined by OSHA (Eye-and-Face Personal Protective Equipment, 2009). The federal law maintains organizations follow guidelines set by OSHA (Occupational Safety and Health Act) that promotes safe working conditions in places of employment (Cheeseman, 2010, p. 489). Without a Corporate Compliance Plan, Riordan could be liable for an employee who chooses not to follow the set guidelines. Riordan takes research and development very seriously. Each employee is required to sign a confidentially agreement upon the date of hire. Anything created under the employment of Riordan becomes the intellectual property of the organization and cannot be used for personal gain. Any duplication of works without having the written consent of an authorized Riordan management staff will be found guilty of copyright infringement (Cheesman, 2010, p. 116). The organization has its own responsibility in protecting intellectual and real properties. Proper security measures will be in place to prevent theft. Only authorized employees will have access to sensitive material for a set specified time. This action is incorporated to remove the temptation of such criminal activity. The Sarbanes-Oxley Act of 2002 is recognized by Riordan (2010, p. 592). Riordan has policies and procedure in place that coincides with this law. According to the Apollo Group, Inc. (2012), “The Riordan Manufacturing Board of Directors carries the responsibility of overall management of business affairs of the Company in accordance with state corporation requirements, the Articles of Incorporation, and its By-Laws. The encompassing role of the board is to govern and manage the affairs of the Company for the benefit of shareholders. The Board endeavors to faithfully fulfill its obligations through oversight of quality management personnel who carry out the daily activities on behalf of the Board of Directors of Riordan” (Corporate Governance Policies). Riordan has attendance requirements to be met in regard to board meetings. Board members are presented with financial data and all other reports three days...
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