Riordan Manufacturing Inc

Riordan Manufacturing Inc. Corporate Compliance Plan

The laws regulating manufacturing firms can be unclear and sometimes complex. As a result, Riordan Manufacturing, Inc. must establish and implement a corporate compliance plan to achieve an optimum level of legal compliance and ethical conduct that emphasizes integrity and fairness to avoid conflicts of interest in all organizational and business dealings. Key leaders must develop an unambiguous plan that: (1) is understood and practiced by all employees, (2) assists the organization in “doing the right thing”, and (3) helps to identify, prevent, or report improper conduct. In this paper, Learning Team A will discuss the importance of establishing a corporate compliance plan and develop prevention and management guidelines to help Riordan officers and directors manage the legal liabilities of the organization.

Prevention and Management Guidelines

The compliance plan is more than just a document that provides prevention and management guidelines. It is a process that should be developed to help each person know what he or she needs to do to comply with all the different areas of the business. The compliance plan should be developed using the enterprise risk management (ERM) framework. Furthermore, the plan should include ERM components as outlined by The Committee of Sponsoring Organizations of the Treadway Commission (COSO, 2010).

Alternative dispute resolution (ADR)

In the business world disputes are inevitable; therefore, it is important for Riordan to adopt an ADR. There are several benefits to establishing an ADR system. The most significant benefit of an ADR process presents a less expensive and more efficient method in resolving disputes as opposed to litigation. Additionally, ADR is an essential tool for key personnel in managing legal risks and reducing conflicts within the organization.

Riordan’s tolerance...