international laws or aspects of law that must be adhered to by Riordan and an outline of these steps for employees to adhere to these laws
This is written with the intention of creating a plan that incorporates the three-pronged framework of the Committee of Sponsoring Organizations (COSO) to provide parties with an all-around directive for managing the legal liability of officers and directors of Riordan.
The plan details how to handle situations when parties violate laws or laws are in question (such as when to call in legal counsel, what rights employees have, or who to turn to or when to take action against Riordan).
The plan also includes:
details of Real and intellectual property
-Governance principles of regulatory compliance requirements
the aspects of law that Riordan must adhere to and an outline of steps for employees to adhere to these laws
To simplify this structure as much as possible, the organization will use COSO's three interrelated components: A) enterprise risk management, B) internal control, and C) fraud deterrence to structure the plan.
The Committee of Sponsoring Organizations (COSO) imposes on itself the objective of guiding organizations in the areas of enterprise risk management, internal control, and fraud deterrence to improve organizational performance and governance and to reduce the extent of fraud in organizations" (COSO; online).
COSO believes by using these three categories as guidelines, organizations can evaluate themselves to achieve maximum effectiveness. To that end, COSO has publishes liberally on the three categories of Enterprise risk management (ERM), fraud deterrence, and internal controls. We will use these three categories as an outline for this plan.
A. Enterprise risk management
Enterprise risk management essentially deals with 1) recognizing possible risks within the operation of the enterprise, 2) controlling these risks, 3) preventing others, and 4) safeguarding security of these risks.
COSO's framework for ERM falls into the following framework:
1. Strategic -- steep goals that are aligned for effecting its mission
2. Operations -- effectively using its resources
3. Reporting -- responsible and effective communication
4. Compliance -- adherence to relevant laws and strictures (COSO, 2004).
Applying these categories to Riordan, we have the following recommendations:
• Strategic -- Riordan should set lofty goals that support its mission
• Operations -- Riordan should use its resources effectively. Engage in a model such as lean management. Parties are careful to invest in labor, time, energy, and resources only for what Riordan needs. Other examples include unnecessary movement of products in a system, unnecessary delay, and excess inventory cost through financial costs, storage, and movement costs, spoilage, wastage, unnecessary movement by employees in the system, and failing to achieve maximum capacity because of ignoring ideas of employees (or failing to consult them).
• Reporting -- Riordan will practice accountability and financial integrity (discussed in following sections)
Compliance -- adherence to relevant laws and strictures . (COSO, 2004).
Included in this section are the following laws:
1. Affirmative Action
Affirmative Action insists that parties should base employment opportunity (and other factors) on merit rather than on extraneous factors such as skin color, race, gender, physiology, and so forth.
The Federal Register states that "race, color, religion, gender, sexual orientation, or national origin" has no place when evaluating the candidate's chance for "areas of employment, education, and business"
The principles of affirmative action exist in almost all countries. Their policies vary but their fundamentals are the same.
In America, Executive Order 10925 affirms that:
"[employers are] not [allowed to] discriminate against any employee or applicant for employment because of race, creed, color, or national origin & #8230;. [They must also] take affirmative action to ensure that applicants are employed and that employees are treated during employment, without regard to their race, creed, color, or national origin" (U.S. Equal Employment Opportunity Commission).
2. Real and Intellectual Property Laws
Riordan has to be clear of and abide by laws for real and intellectual property. Intellectual property definition is "the creation of any intellectual innovation by an individual such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. The law provides him exclusive rights to this innovation and is strictly against theft or plagiarism in any way. Innovators can safeguard their property by one or more of the following: copyright, trademarks, patents, industrial design rights and in some jurisdictions trade secrets.. Copyrights, patents, and trade secrets are each authored by different Offices. Each is based on the Laws of Commerce" (LII. Intellectual property; online).
Real property, (otherwise known as immovable property or real estate) refers to any part of land or building that has had additions incorporated to it by human labor. Examples are buildings, machinery, landscaping, etc. Real property and personal property are the two main categories of property in English Common Law, and in many ways the intricacies of these laws are far more complex and detailed than those pertaining to intellectual law. Real property refers to land, but it goes way beyond that. It includes anything beneath or above it too, referring to minerals (for instance) or use of seas and lake water. (LII. Real property; online)
For Riordan, its preoccupation with the laws of real property will likely limit to the following three categories: (LII. Real property; online)
1. Freehold estates -- an individual has ownership for an indefinite period. For instance, the Riordan location itself; its ownership of its business plot for an indefinite amount of time
2. Non-freehold estates -- property interests limited duration such as tenancy for years, tenancy at will, and tenancy at sufferance.
3. Concurrent estates -- two individuals who own property simultaneously. Riordan is a shared enterprise, so it falls under this category too.
Because states have exclusive jurisdiction over land, everything parties do with the land -- (the way parties use the business plot and buildings) are subject to Federal control" (LII Real property)
3. Other international business laws that Riordan has to abide by:
There are both national and international laws that Riordan, a company with locations in other countries will have to abide by. According to Global Legal Resources.org:
"The immense body that makes up international law encompasses a piecemeal collection of international customs; agreements; treaties; accords, charters (e.g., the United Nations Charter); protocols; tribunals; memorandums; legal precedents of the International Court of Justice (aka World Court) and more
Laws addressing international law include both common law (case law) and civil law (statutes created by governing bodies). Their application covers the facets of national law, to include substantive law, procedure, and remedies.
International law abides by three main principles:
1. Principle of Comity -- two nations share similar policy ideas- one abides by the polices of the other
2. Act of State Doctrine -- each state is authoritative in its own domain and another country may not challenge it on legal grounds. Courts from one-country cannot decide cases of foreign policy belonging to another country.
3. Doctrine of Sovereign Immunity -- A court of one country can only try actions of another country in its court with the consent of the other particular country.
International law is different from national law. There is no one uniform- governing- enforcing- entity that compels the business to abide by it. It is largely a voluntary intention. (GlobalLegal Resources.org)
Governance principles of regulatory compliance requirements:
To ensure corporations comply with the above laws, both international, and national compliance standards must be in place. On an international scale, the International Organization for Standardization (ISO) produced the international standards such as the ISO17799. Each area has its own compliance standards. The "International Electro technical Commission" (IEC) for instance, produces international standards in the electro technology area" (ISO).
On a national level, the United States introduces its most famous act- the Sarbanes-Oxley (SOX) that intends to increase organizational accountability and transparency. Other regulations include the following:
1) Payment Card Industry Data Security Standard (PCI-DSS) - these are regulations to increase control for organizations that handle a large amount of transactions. These standards/regulations intend to reduce credit-card theft. Monitoring of adherence occurs annually by a Qualified Security Assessor (QSA) who creates a Report on Compliance (ROC). (PCI; online)
2) The Gramm -- Leach -- Bliley Act (GLB) -- essentially prohibits any institution from combining the tasks of acting as investing bank, commercial bank, and insurance bank. (BCP Business Center; online)
3) Federal Information Security Management Act of 2002 (FISMA) insists that every organization have an environment of information security in place. (NIST. Gov.)
4) Health Insurance Portability and Accountability Act of 1996 (HIPAA) - This requires employers to protect confidentiality of health-related issues of employees. It falls under auspices of information security and details are within the section on Internal Control. (Legal Inf. Inst. Real property; online)
B. Fraud Deterrence:
There are various laws that govern organizational accountability. One of the most important is the Sarbanes-Oxley (SOX) to ensure organizations do not engage in fraudulent or subjective activity.
SOX have six articles/precepts:
1. Responsibilities -- Members work collaboratively to assist each…