Corporate Compliance

Running Head: Riordan Corporate Compliance PlanRiordan Corporate Compliance PlanUniversity of PhoenixJeremy BrooksCorporate Compliance Plan I. Organization Overview Riordan was founded in 1991 by a professor of chemistry named Dr Riordan. He developed several products and obtained patents relative to processing different polymers into high strength plastic substrates (University of Phoenix, 2004). The company started as Riordan Plastics, in 1993 changed to Riordan Manufacturing with the acquisition of a manufacturing plant in Albany, GA. In today??™s time, Riordan has expanded their manufacturing plants to include on in China. They produce plastic fan parts in the China plant and the Pontiac, Michigan facility makes custom plastic parts. Riordan services several industries, including auto parts and aircraft manufacturers, the department of Defense, beverage makers and bottlers, and appliance manufacturers. This company employs 550 people within their facilities. They have revenues in excess of $1 billion and annual earnings of $46 million (University of Phoenix, 2004). II. Corporate Compliance Overview
Riordan has established a Corporate Compliance Plan tailored to the company??™s line of business. In keeping with the changing business, Riordan is dedicated to managing, manufacturing, and operating our products in an ethical and moral manner. Riordan will conduct its business in compliance of the laws of whatever jurisdiction that it does business, whether its local, state, or federal regulations. This Compliance Plan was adopted so that Riordan may fulfill its obligations to observe the laws and public policies that affect our business. This plan will us the recommendations found in the Committee of Sponsoring Organization of the Treadway Commission, or COSCO (, 2010). The cooperation of all employees is necessary for this plan to be effective. It will contain resources for questions that may arise about appropriate conduct in the workplace. Instances in which questions do arise, will be directed to the President, Dr Michael Riordan, or the Corporate Compliance Officer that will be appointed by the Riordan Board of Directors.
III. Code of Business Conduct and Ethics
The Code of Business Conduct and Ethics applies to all Riordan employees, officers, and directors. This company is proud of the way they conduct business and will continue to conduct the highest level of business ethics and integrity. This will organize and emphasize the way the company is committed to compliance to the law. It will also set standards of ethical behavior, and help prevent any wrongdoing.
IV. Ethical Standards of conduct
A. Conflict of Interest:
i. Conflict of interest occurs when a person??™s private interest interferes with the interest of our company. This situation may arise when a employee actions may have an interest that makes it difficult for him or her to perform company work objectively and effectively. Another conflict may arise when an officer, director, or employee, or a member of their family receives an improper personal benefit from his or her status or position.
ii. All conflicts must be reported to Riordan immediately. No action will be taken unless the Compliance Committee has done their due diligence and found that there was a violation against our policies. Riordan will take action for a violation that is in the best interest of the company and its investors.
B. Standards of Conduct
i. The objective of this plan is to aid in identification and correction of any violation that has been found or reported. To attain this goal, Riordan states that all employees have a duty to report to designated individuals any perceived violation of any policy or procedure. The designated individuals are the Compliance Officer, or the President Dr Michael Riordan. These individuals have been appointed to oversee this plan and ensure all violations are investigated and treated equally no matter what the violation is.
ii. Riordan expects all employee to report such violations freely and feel comfortable doing so. Riordan will ensure all reports are kept confidential and will support the employee who comes forth. To ensure employees have the option to report violation, Riordan has set up a compliance hotline in which employees can report these violations anonymously. This number is (866)-555-1212. The reporter must leave enough information where Riordan can conduct an investigation. No retribution or adverse action will be taken on any employee who chooses to come forward and file a report.
iii. Individuals who fail to follow the rules and regulation of this Compliance Plan, may be subject to dismissal, probation, oral reprimand, criminal charges, and monetary fines. With any questions or comments regarding a possible violation of this plan or policy, forward them to the listed individual above or call the hotline.
C. Use of Company Assets
i. Company assets need to be protected and used soley for company use. Any employee shall not disclose any confidential information during or after employment of the company for the benefit of another entity or person. Confidential information includes physical facilities, office equipment, intellectual property rights, records, computer software, personnel data, financial data, proto type, trade secrets, technical or engineer information, current or future business plans, product specification, research, develop information, and any other information relating to the company, its customers, or any subsidiaries.
ii. In conducting business, all employees have to comply with the regulations and laws that govern patents, copyrights, trade secrets, all forms of intellectual property owned by the company or a third party. Any employee who violates this code and reveals confidential information may be subject to investigation and may lead to termination of their employment.
D. Transaction outside the United States
In today??™s global economy, Riordan will be conducting some of it business outside of the United States. We expect all employees who conduct business in other nation to follow this plan and the rules and regulations of the nation where the business is conducted. There must be no types of bribes, or anything of value given or offered to any ranking official of another nation for monetary gain of the individual or the company. Any agreement made with a third party involving overseas transaction, must be in writing and authorized by the board of directors.
V. Corporate Governance
A. Riordan Managers, Board Members, Directors, and employees have a direct responsibility to shareholders to comply with policies, regulations, and guidelines set by the company and any governing regulation. Riordan will focus on recognizing all employees as a part of this corporate process and will be the key element for us to have a more balanced governance structure. To ensure constituencies in this Plan, shared responsibility of complying with Sarbanes-Oxley Act, our policies and regulations, and our responsibility to our shareholders will be among all employees.
B. Board of Directors Duties
Responsibilities of the Board will be to uphold the organization??™s mission and values. They will evaluate and monitor Riordan??™s fiscal management and are accountable to shareholders. They will represent the corporation to the public and approve any media communications. The board will review and approve annual budgets, any new or revised policies, and ensure that there are adequate resources readily available to the organization. The board will be responsible for screening and hiring any directors or high-level employees. The board will monitor and establish long-range planning for Riordan and evaluate our effectiveness. The board will not be involved with the day-to-day operations of Riordan and its subsidiaries. The board of directors will be monitored and elected by the shareholders through general meetings.
C. Compliance Officer Responsibilities
The Corporate Compliance Officer will oversee the Compliance Program and will review and evaluate any issues or concerns that arise within the organization. This individual will be responsible for ensuring that all employees, including the Board of Directors, management, salary, and hourly employee are following the company rules, regulation, policies, and any regulations set by governing organizations. He or she will collaborate with other departments to educate and train employees on compliance issues. This Officer will report to the President and the Board of Directors. Officer will work with human Resources to initiate the training of compliance for new employees and coordinate ongoing training for existing employees and managers.
D. Human Resources
Human resources will be responsible for utilizing effective screening and hiring procedures to ensure that Riordan employees will adhere to the standards of conduct that we have established. The screening will be completed only if the applicant has been given offering to a position with our organization. We will require our HR employees to attend any training that is necessary throughout a given year. This will ensure that they are kept up-to- date on the current laws and will assist in establishing policies and regulations.
E. Management
i. An effective manager must be able chose from intervention based on the individuals learning needs, styles, and personal charactericts. Managers must reinforce the rules and regulation of our policies and regulations. Managers will identify any risks that may be present in their employee??™s actions. Managers will report any violation to the Compliance Officer and will assist with any investigation of such violations. Managers will be knowledgeable about this plan and the rules and regulation that govern them.
F. Enterprise Risk Management (ERM)
i. ERM goal is to provide reasonable assurance regarding the achievement of our organization??™s objectives by identifying events that may affect the organization and managing risk to be competitive and remain profitable (, 2010). ERM will assist managers align risk decisions and form a strategy that follows Riordan??™s guidelines for what types of risk we are willing to take. Committee of Sponsoring Organization, or COSO, is a company that deals with compliance management and using their model can assist us in managing our ERM. COSO has eight components of ERM and we will incorporate them into our organization. When we find that all eight of those components are present and effective on a regular basis, we will classify our ERM program effective. Possessing an effective ERM and employees who are supportive of this will serve as a foundation for a balanced corporate compliance plan (, 2010).
G. Prevention, Control and Corrective Actions
i. Riordan need to be prepared to protect their assets for any unforeseen risk they may encounter within our global business. We have preventative measure within our business model to focus on the day-to-day operations. These types of measures will protect us from product liability risks and will ensure our effectiveness in product manufacturing. To protect our organization and its shareholders, we will research all possible financial meaning to the company of investments or agreements that we enter to ensure the benefits will increase our position within the industry.
ii. The Corporate Compliance Officer will be directly responsible for any violation investigation. Any report that is filed will be handled with confidentiality within the corporations??™ obligations to protect employee??™s information. If the result of the investigation is an individual or group of individuals are guilty of a violation, the Compliance Officer and the President will decide if the action will be employee discipline, termination, or a combination of either and any legal proceedings that may be necessary. There may be instances in which Arbitration Dispute Resolution may outweigh the possibility of litigation. This would be a peer review and we would use a counsel appointed by the Compliance Officer of managers and HR employees.
H. Conclusion
Rirodan??™s Corporate Compliance Plan has been established to make all employees aware of the legal and ethical conduct we expect from our employees. It is not an entire list of the principles and laws that govern our company, however is a plan that is used with your good faith to our company and you daily routine of representing our company with the best interest of Riordan and its subsidiaries. References
University of Phoenix. (2004). Riordan Manufacturing [Computer
Software]. Retrieved from University of Phoenix, Simulation,
Business Law LAW/531 website
(2010).? Committee of Sponsoring Organizations .? Retrieved from http://www.coso.org
Jennings, M. (2006). Business: Its legal, ethical, and golbal environment. ? .

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