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 ...view middle of the document...
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 meet with a neutral person who listens to both sides. The neutral person does not issue a decision, they help the parties find an agreeable solution. According to the National Law Journal, 88% of lawyers prefer mediation as a way of resolving disputes. Mediation is a popular process to resolve conflicts between businesses (Jennings, 2006).
Enterprise and product liability
Riordan Industries wholly owns Riordan Manufacturing. Because of enterprise liability, when Riordan Manufacturing does not comply with laws and regulations,both Riordan Manufacturing and Riordan Industries are liable. Riordan Industries must ensure that Riordan Manufacturing does not create corporate liability for itself. Enterprise liability is mainly concerned with criminal acts, thus the compliance plan must address criminal law.
The best way to limit the liability to Riordan Industries is to have a panel of managers between the two companies evaluate the risks of Riordan Manufacturing committing criminal acts. The panel should evaluate each step of the manufacturing process to verify compliance to laws, regulations, and criminal acts. An example of criminal activity would be illegal dumping...