Riordan Compliance Plan Law 531 Final

Topics: Management, Corporate governance, Corporation Pages: 7 (2283 words) Published: January 9, 2010
Corporate Compliance Plan for Riordan Manufacturing

University of Phoenix
Riordan Manufacturing is a profitable plastics manufacturer with annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 company with revenues over $1 billion. The following are some of the products produced by Riordan Industries: plastic bottles, fans, heart valves, medial stents, and custom plastic parts (Virtual Organization, 2009). This compliance plan will state the company's legal responsibilities and regulations necessary to continue earning a profit. The plan will address the laws affecting the plastic industry and guidelines to ensure management and employees understand and obey the laws. The focus of the compliance plan will be on managing the legal liabilities of Riordan officers and directors. Riordan Manufacturing was started and founded by Dr. Riordan, a professor of chemistry. The company focused on research and development of plastic substrates. In 1992 the company purchased a fan manufacturing plant in Pontiac, Michigan. In the year 2000, the fan operation was moved to China. The corporate headquarters that include research and development is located in San Jose, California. Plastic beverage containers are produced in Albany, Georgia and custom plastic parts are produced in Pontiac, Michigan (Virtual Organization, 2009). The compliance plan will include an Alternative Dispute Resolution (ADR) to resolve a dispute, product liability to address risks against defective product claims, international laws regarding the plant in China, tangible and intellectual property laws, laws regarding the corporate form of business and protection to the interests of public and private investors through a Corporate Governance Plan. Alternative Dispute Resolution (ADR)

The definition of an alternative dispute resolution (ADR) according to the book Business: Its Legal Ethical and Global Environment written by Marianne Moody Jennings is, "Alternative dispute resolution (ADR) offers parties alternative means of resolving their differences outside actual courtroom litigation and the costly aspects of preparation for it. ADRs range from very informal options, such as a negotiated settlement between the CEOs of companies, to the formal, written processes of the American Arbitration Association. These processes may be used along with litigation or in lieu of litigation (Jennings, 2006)." There are two major disadvantages of solving problems through litigation, it is very expensive, and it can take years before a decision is reached. The most popular ADR method is arbitration, other methods include mediation, mediation arbitration, mini-trial, rent-a-judge, summary jury trials, early neutral evaluation, and peer review (Jennings, 2006). Riordan's mission statement states the company will maintain an innovative working environment. Employees will be well informed and properly supported. Furthermore, the company will provide a climate focused on keeping employees long term (Virtual Organization, 2009). The Peer Review process will be used to resolve disputes between the company and employees. When an employer-employee dispute arises, a panel of three people will resolve the problem. The panel consists of fellow employees, one chosen by management, one chosen by the employee, and one chosen randomly. The panel will interview, review documents, and make the final decision which can include a monetary award of damages. Peer Review is a new process that has beenvery successful. Only 10% of peered reviewed cases proceed to litigation, saving the company time and money (Jennings, 2006). Riordan's mission statement states they will provide solutions for their customers and not be part of their customers challenges. Riordan will strive for long-term relationships with customers (Virtual Organizations, 2009). For external disputes the mediation process will be used. Mediation is a process where both parties...
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