Corporate Compliance Plan Please Attachement Rewrite Create Essay
- Length: 7 pages
- Sources: 3
- Subject: Business
- Type: Essay
- Paper: #28244764
Excerpt from Essay :
Corporate Compliance Plan
Please attachement rewrite. Create a corporate compliance plan Riordan. Focus plan managing legal liability officers directors Riordan. The plan address handle situations laws violated question ( call legal counsel, rights employees, turn actions Riordan).
Riordan manufacturing is a company that manufactures plastics products and has realized tremendous growth since inception. The manufacturing was founded in 1991 and is part of the Riordan industries. The success of the company is epitomized by the good profits the company continues to post together with the financial forecast showing a high-expected profit growth. Currently, the company has moved globally with operations in more than one jurisdiction including starting operations in large economies like china. With the significant growth, the company to ensure good stewardship of the business and to preclude the business from multiple legal suits that are likely to arise from the business operations must formulate rules and regulations. The expansion into the different countries with different legislation further implies that the company management has the obligation of customizing their regulations in this particular jurisdiction in order to ensure compliance and reduce unnecessary legal burden.
Employees and Directors Liability
Organizations exist because of the existence of individuals who are bestowed with the mandate of managing the affairs and executing the plans of the business. In a company, employees and directors are the important stakeholders who are charged with the obligation of translating the plans of the business into actual activities that ensure their achievements and organizations success. To help realize the objectives of the business; therefore, rules and regulations have to be formulated to help control the conduct and behavior of the employees and directors in order to guide the business into success Kim & Nofsinger, 2007.
Through the internal business regulations, employees may become liable for their intentional acts that result into loss to the business itself or other third parties Brodie, 2010.
However, the legal framework may sometimes demand that the enterprise become liable for the mistakes and losses that arise because of the actions of their employees. Laws and regulations are thus fundamental in reducing the number of actions that can amount into losses to third parties and to protect the business from incurring high legal cost.
This plan, therefore, focuses on the liability of the employees and the directors of Riordan with respect to their actions that entail the breach of rules and duty. The plan also includes the rights that the employees of the business enjoy and their limits. For the plan to be effective, enterprise liability, Real, and intellectual property, Governance principles of regulatory compliance requirements and international laws are all covered. The objective of the plan is to help in the realization of order and ensure good corporate governance in a world characterized by competition and legal requirements.
Employees and directors liability
Riordan in their manufacturing business has to engage employees and directors who will execute the tasks of the business and ensure protection of the rights of third parties like the consumers and other competitors. Without rules and regulations, Riordan employees lack a benchmark of evaluating their behavior or even a reference point for their responsibilities and liability.
The plan has, therefore, considered the fundamental rights of the employees as provided in the relevant labor laws and the international labor laws requirements. Employees will, therefore, have a right to fair compensation based on their duties and productivity. Riordan employees who exceed set limits will also have a right to receive bonuses for their performance. Other than the compensation, all employees will be subjected to fair and equal treatment without discrimination based on race, gender, tribes, or any others discriminatory premises Kim & Nofsinger, 2007.
Moreover, all employees will have the right to work in a good working environment in which all the necessary and basic equipment and inputs are providing. In addition, employees would work for reasonable duration and have a right to enjoy a holiday and other work leaves. The company will offer the employees and opportunity for training and retraining to ensure the employees have the necessary skills in doing their work.
On the other hand, the employees will be responsible for the execution of duties as stipulated in the work contract as and when required. The immediate managers who will guide the employees and ascertain that their actions are in line with the expectation of the company will provide supervision. Unavoidable errors or unintended mistakes will be tolerated by the business, and the company will take responsibility for losses that might arise in such courses. Besides, the management of the company will ensure that the medical scheme protects employees from injury and losses that arise in the course of doing the mandate of the business.
It must, however, be noted that the company will not be liable for losses and injuries that arise because of the intentional breach of rules and directions that the employees have specifically been warned. Employees who fail to adhere to the rules of the organization intentionally and who makes abnormal errors or mistakes will be subjected to punishments or actions that would ensure they refrain from repeating such actions or, which will bring, to a halt such actions. In case the actions of the employees or directors results into loss to third parties, the business would be liable as dictated by the Sarbanes-Oxley Act. However, the company will have a right to make the relevant deductions on the employees' payments to compensate for such losses and to ensure that such actions are not promoted in the company.
Similarly, directors owe the company a duty of care in their actions. Directors are the individuals who are entrusted with the stewardship of the business and who have control on the management of the business. The actions of the directors thus have a direct impact on the performance of the business and their actions would extend and affect innocent third parties. The rules and regulation will require directors to act in good faith and for the interest of the company and not their personal interest. In instances where there is a conflict between the personal interest of directors and that of the company, such directors will be required to disclose the facts and wash their hands from such contracts. Failure to disclose the facts will make the directors personally responsible for any loss that might arise to the company or to third parties. Good faith here means that the directors should act at the best interest of the company and not at the interest of a constituency of shareholders or their own economic interest. Moreover, the rules of the company further prohibit insider trading and dealings. Directors of Riordan are, therefore, prohibited from using information at their disposal to take advantage of rising opportunities at the expense of other third parties Kim & Nofsinger, 2007.
Those directors who are in contravention of such laws are, therefore, liable to punitive action, which include expulsion or direct monetary deduction of their remuneration. The rules and regulations of Riordan would therefore be uniform in most cases except for instances in which there might be a need to domesticate the rules to be in tandem with legislation of particular countries.
Riordan manufacturing will be liable for some actions of its employees, directors or subsidiaries. First, the company will be liable for the loss to their employees that arise from the normal execution of their duties. The company will also be liable to losses to third parties like the users of their plastic products who incur losses because of the failure of the company to manufacture standards that met the basic requirements set by the regulatory authorities. In addition, the company will also be obliged to compensate third parties who are injured or suffer loses that arise because of the mistakes or errors of their employees or directors who are in their normal businesses Brodie, 2010.
Moreover, the enterprise will incur cost fines and charges that are imposed because of breach of environmental laws, breach of Sarbanes-Oxley Act, or other criminal acts. Employees and directors will also have the right to be compensated by Riordan if they incur injury or losses because of the negligence of the company. To mitigate the losses incurred by the company, the management has set the rules and regulations which bar the employees and other individuals from causing harm or losses to the business Brodie, 2010.
Riordan therefore consider protection of the environment core in its operation and will ensure that its operations are in line with the requirement of the labor laws and other legislation.
Real and intellectual property
Riordan Inc. has the duty to protect its intellectual property from competitors or unauthorized users from exploiting the knowledge without paying for it. Dr. Riordan has to obtain several patents applied in processing the polymers in top plastics. Since Riordan is a company that invests colossal amounts in research and development, the business has the obligation to protect and control the use of such developments…