Corporate Compliance Plan for Riordan Manufacturing Essay
This document has been complied as a Corporate Compliance Plan for Riordan Manufacturing to address the management of legal liability of officers and directors of Riordan.
This document will consist of suggested paths for resolution for aspects of enterprise liability, real and intellectual property, governance principles of regulatory compliance requirements, and any specific international laws or aspects of the law that must be adhered to by Riordan. Company Overview Riordan Manufacturing bills itself as the industry leader in the field of plastic injection molding.Wholly owned by Riordan Industries, the global plastics manufacturer employs 550 people with projected annual earnings of $46 million.
Riordan is listed as a Fortune 1000 enterprise with revenues in excess of $1 billion. Riordan’s major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers. Its products include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts produced at its facilities in Hangzhou, China.The company’s research and development is done at the corporate headquarters in San Jose. The Succession Plan Riordan created a very comprehensive assessment on the two candidates looking to succeed as Chief Executive Officer: Kenneth Collins and Hugh McCauley. Both candidates have strong characteristics but there is disturbing documentation regarding the ages of the candidates. With only a two-year difference between the two, the older candidate, Collins, has his age of 60 listed toward the negative, assuming he is on track to retire at 65.McCauley is 58-years-old, but it is implied that if he does not get the job as CEO, he is highly likely to take his talents elsewhere.
Despite not being as good with customers and colleagues as Collins, his talents would be hard to replace. It is important that the officers of the company ensure that the decision on the next CEO is determined sole on merit. The elements of age and expectations of who will get the job in the evaluation that could open up Riordan to legal action by Kenneth Collins if Hugh McCauley were hired for the job.The evaluation can possibly be skewed to insist that the process was only for show, and that Collins never had a legitimate chance at the CEO position.
Strategic Sales Objectives Riordian has a target of $50 million in sales by year’s end, and the plan to reach this goal is two-fold: 60% coming from increased sales from existing customers and 40% coming from expanded sales to new customers. The proposed plan for working with the existing customers is to help them work out their requirements before they even release their Request For Proposals (RFPs).This would ensure that the RFPs are developed around the products, services, and solutions we offer.
This approach opens the company up to issues where it can be accused of unethical and even unlawful manipulation of the companies that would be targeted. There will be issues raised if Riordian were to act in the role of consulting a customer for the sole purpose of helping them create RFPs that give our company an advantage when it is time for the customer to select a vendor.A greater focus on advertising and educating our current customers of our company’s offerings that can improve their process is not out of the question. Showing how using our products and procedures can be added to existing contracts or negotiated into contract extensions could offer the sufficient leverage for sales to reach and possibly exceed that 60% sales target from our existing customers.
It is within our boundaries to create a consultative sales approach to understanding the current needs and anticipate and influence the future needs of our customers, but there must be no signs of impropriety in the process.Our plan to acquire 40% of the incremental sales through sales to new customers by attending tradeshows and leveraging market research reports is both sound and reasonable, and should provide no problems legally or ethically. Objective Setting Riordan’s company goals are to stay focused in achieving and maintaining reasonable profitability to assure that the financial and human capital is available for sustained growth. We accomplish this primarily by assuring that our company operates as a solution provider for our customers, and not have the operations of Riordan added to the list of our customer’s challenges.By implementing and maintaining Six Sigma, Riordan will continue to stay ahead of our completion in ensuring the quality of the products we produce, and the quality where our workers operate. Six Sigma is the leading edge R&D and exceeding ISO 9000 standards, and with our workforce well informed and properly supported in the standard, we can insure a corporate climate focused on the long term viability of our company. Financial Reporting Systems Issues with the financial reporting systems currently being used by Riordian continue to be raised.The system has been described as being in need of a complete overhaul, with an estimated cost of the new system at approximately $1,350,000.
Any remaining issues with financial reporting should be resolved with internal policy changes and additional training, but until the new financial reporting system is officially put in place, any financial reporting from the company could be subject to data flaws and fluctuations. China Relocation Management is in the early stages of working out a move of the China operations from Hangzhou to Shanghai. Strategic planning would have the operation fully transferred and relocated within the next five years.While the initial decision to locate the China operations in Hangzhou largely due to our Chinese partners’ facilities in that city and its proximity to the Qiantang River for ease of shipping, increased production volume is showing an increased cost from using the Hangzhou plan, and the company sees a significant savings possibility by using container shipping companies, with one example being China Shipping Container Lines, a branch of the China Shipping (Group) Company.
These trucking companies generally charge just as much as the local shipping companies for moving the same volume of goods to the Shanghai ports.This shifting of transport locations and companies may not be as simple to execute initially believed. Dealing with an American-based company with operations foreign country, especially a country like China which does not have the same standard business rules and protections as we are accustomed to in the United States. The Foreign Corrupt Practices Act is a doctrine that protects American companies from shady dealings orcastrade by foreign nations, but also prohibits some of the actions of American companies as well.
Riodian must make sure all compliance regulations are met before attempting to change the terms of any foreign contract. Research And Development Riordan’s Research and Development (R&D) activities continue to be a prime example of what this company always has done well, and thanks to the implementation of some recent recommendations coming from the project managers working on the CardiCare Valve Proof-of-Concept, R&D should continue to perform as expected.Four of the recommendations contained in the project’s Lessons Learned Report: securing at least one user representative from 80% of the current population of current and potential product users, piloting an iterative development methodology with two current R&D projects, assessing feasibility of an R&D asset management strategy, and cross-training R&D staff on high profile project activities. Conclusion This Corporate Compliance Plan for Riordan Manufacturing was compiled to address the legal liability of officers and directors of the company.Riordan operates as a multi-national company with a workforce that is diverse in location and personality, especially with its massive operations in the country of China.
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