Submitted by: Submitted by gem1984
Views: 573
Words: 1953
Pages: 8
Category: Business and Industry
Date Submitted: 06/18/2012 03:08 PM
Riordan Corporate Compliance Plan
Gemma Curci
LAW531
June 11, 2012
Robert Reimer
Riordan Corporate Compliance Plan
Introduction
Since its inception in 1991 Riordan Manufacturing has continued to grow and expand its operations internationally. The organization, wholly owned by Riordan Industries has over 550 employees across the United States and China, and as such, needs to be aware of the international laws which apply to their operations. Due to the size and net worth of Riordan manufacturing, an effective corporate compliance plan is required to ensure that all legislative requirements are met, and that the board and directors minimize risks to the organization, their employees and themselves. The following corporate compliance plan will make recommendations to the board and directors of Riordan Manufacturing based on an analysis of the organization conducted over the last two weeks, utilizing a framework set out by the Committee Of Sponsoring Organizations (COSO) on effective enterprise risk management, and analyzing the relevant legislation and requirements for operation.
Enterprise Liability
Enterprise liability refers to the liability imposed on a firm or its directors for a crime committed by the organization or an employee or director of that organization (Business Dictionary, 2012). This liability must be managed through strict regulations and guidelines of business operations.
COSO provides a framework of eight components to ensure that risk management is appropriately implemented within an organization (COSO, 2012). The internal environment at Riordan sets up an ethical workplace with clearly established rules, guidelines and processes. These are set out for all employees through the employee handbook, and an expectation is placed on all employees that they align with the organizational values. It is critical that the organization enforces these rules to set a clear standard for all employees. By identifying...