Corporate Compliance Plan
By means of application of proper internal control and governance structure, the company will succeed in monitoring its environment. It is also connected to the resource-saving system (which is sometimes referred to as the objective of the company), because proper internal control eliminates wastes, misuses and limitations. The internal control system should not only concentrate on the smoothness and efficiency of the manufacturing operations, since an appealing ethical conduct code should be comprised (Marchetti, 2007). It is human resources that are mainly responsible for practical application of the internal control system, and that is why it is reasonable to track the needs of the personnel, introduce flexi-time schedules and workplace conditions, maintain salary wages on decent level and re-educate specialists to refresh their knowledge and qualification (Biegelman & Biegelman, 2008). This is especially essential with officers and directors that take top-management positions. Corporate compliance plan should combine with an effective informational system that allows transparency and organization-wide participation. It is also crucial to determine the role of governing directors and officers; however, at the same time, these responsibilities should not become limitations on the way to increase sales, improve the company’s output and achieve many other strategic or tactic goals. The corporate compliance plan should serve as a key for the society and the stakeholders, so as to learn more about Riordan activities and operations. The information should be clear and concise so that the potential or current stakeholders never doubt their investments or have other negative considerations.
The Company’s Legal Liability
One of the important parts of this corporate compliance plan is to make sure Riordan Company takes proper care of all violations and misconducts, which take place within the borders of the organization. The most influential instrument to eliminate errors, mistakes and violations is the implementation of technology to control, track, monitor, and identify all the frauds and defects in the company’s operations. Such cases are also stopped by preventive procedures and measures, introduction of safety standards for better problem management, and accident compensation programs (Silverman, 2008). The last point is especially noteworthy, as the number of manufacturing accidents has grown sufficiently in the last few decades as the company’s scale of operations grew. The legal liability of the company would help fulfill its objectives a lot faster. The legal liability program along with the accident compensation policies will help prevent future problems and demonstrate the high value of each employee to the company.
Enterprise Risk Management
Enterprise Risk Management at Riordan embraces, first of all, internal environment; this assumes the approach and methods of risk assessment, used by the company’s executives, as well as their considerations in risk appetite, values, morals, working conditions and familiar techniques. Secondly, setting objectives, defining influential events (both negative and positive aspects. Moreover, assessing risks, responding to them, controlling and monitoring, informational support and communication are integral constituents of the internal environment. It is essential to keep in mind that all these processes cannot be separated from each other as each of them affects all the others in a certain way (COSO, 2011)..
The company’s risks are defined by the internal weaknesses and the external threats that come in the way of fulfilling the company’s objectives. Enterprise Risk Management implies an effective analysis of such weaknesses and threats, interpreting them as risks and working out proper solutions (Tarantino, 2008). Riordan Manufacturing have various instruments and tools that can combine an effective risk assessment and elimination system including innovative technologies, transparent informational system, responding to the external environment changes, and strict accounting. The capabilities of all these tools are not limited with threats and weaknesses as they allow reviewing opportunities and strengths, as well.
A list of priorities and requirements will also help eliminate the influence of risks quickly and efficiently. Each risk factor should have a complex explanation including immediate and subsequent consequences along with recommendations on how to cope with such. Each proposed action or measure should also have such explanations to avoid the appearance of further complications (COSO, 2011). Risk assessment tools should be flexible in case unforeseen risks appear, or the planes measures are not effective anymore while the expected and obvious risks should be handled with a corresponding risk management plan.
In case conflicts, misunderstandings or serious disagreements arise among top managers and their subordinates (company employees) a dispute resolution system will help the situation to stabilize. The stress and conflict management system should be standardized and updated according to the international experience. It ensures that the best solution for the future company’s advance is chosen. Although Riordan is mostly known to concentrate on the manufacturing and operational processes smoothness and perfection, several tools to investigate the nature of human behavior and employee/CEO psychology should be studied, in order to control conflicts and disputes within Riordan (Dholakia, Herzenstein & Sonenshein, 2011). Such approach will also eliminate the possibility of interest conflict appearance in those company team members that head towards the success of the entire organization (Silverman, 2008).
Legal and Government Considerations
All the processes that are completed under the guidance of Riordan Manufacturing Company must be fulfilled under the compliance with governmental regulations and laws. The company should mandatorily respect both local and nationwide rules and governmental standards. No actions should go beyond the limitations of law, both local and nationwide (Tarantino, 2008). It is a primary demand for reliability and effectiveness of the compliance plan, and it also builds solid ground for further business expansion. Each of the company’s objectives should be supported by a corresponding point in the compliance plan, and no points that are contradictory should be introduced (Nordeng, Spindel & Saner, 2000). The reflection of governmental regulations in the operations of Riordan will determine the influence and weight of the compliance plan as any organization should have data protection systems, information security and infrastructure support.
Real and Intellectual Property
In comprising an effective compliance plan the issue of real and intellectual property remains critical because it determines the borders of property ownership for the company. The laws and regulations related to copyrights should be specifically paid attention to in order to avoid unauthorized trademark, license or patent uses. The competitors should have no access to intellectual property of Riordan, and as for merger or acquisition situations a range of distinctive regulations should be developed defining information and property access strictly. It will reduce the risk of disputes among representatives from different companies (Marchetti Sarbanes, 2007). The Immigration and Customer Enforcement rules should be followed in order to guarantee superior protection for real and intellectual property using legal support. The compliance plan should include a clear ownership statement in order to eliminate misunderstandings and court cases. The plan should also embrace all rules and guidelines related to the treatment of property such as administration, protection and distribution. It will guarantee that minimum unauthorized actions of intellectual property use will appear.
Several offices and a plant of Riordan operate in China, and further business expansion may imply launching new affiliated branches on other countries, so including international law considerations into our compliance plan is essential. The organization will be effective overseas only if the compliance plan meets the requirements of the international legislation. The first international organization to keep in mind is the World Trade Organization (WTO). The international market is largely defined by the influence of this organization, so compliance with WTO is essential for winning new market positions and remaining the plastic manufacturing leader of the world. The international legal compliance chapter is also recommended for introduction (Nordeng, Spindel & Saner, 2000). The compliance plan should include potential multinational legal cases and their solutions for successful international business experience. Foreign corrupt practice act will be a teaching guide for Riordan specialists to avoid such situations in the company. With help from these guidelines and regulations for compliance, Riordan will have a truly successful corporate plan.
The effective corporate compliance plan at Riordan, first of all, should rely on the top management of the organization, as well as focus on a smaller number of significant risks. Secondly, the plan should try to reach for tangible and immediate results, develop the existing audit and risk management tools while use top managers as the leverages for the initiative start. Furthermore, the plan should pursue to improve the exiting communication and information policies, adhere to local, nationwide and international legal regulations and determine the borders of property ownership in a strict manner. With all these precautions and mechanisms Riordan can fulfill its objectives faster heading towards its mission of becoming the world leader in plastic manufacturing; thus, selling its goods to all world countries while maintaining a proper level of quality and customer service satisfaction.