Corporate Compliance Plan

Submitted by: Submitted by

Views: 471

Words: 2956

Pages: 12

Category: Business and Industry

Date Submitted: 01/16/2011 08:36 PM

Report This Essay

Corporate Compliance Plan

Ryan Tarkowski

LAW 531/Business Law

July 5, 2010

Thomas Kohler

Corporate Compliance Plan

Riordan Manufacturing must always act ethically and responsibly. To achieve this goal we must understand that internal control is an ongoing process that takes place at every level of the organization (McCallum, n.d.). In this report I will outline a compliance plan covering best practices for legal issues the company may face.

Alternative Dispute Resolution

The best way to ensure the long-term sustainability of Riordan Manufacturing is to maximize profits and minimize costs. The cost of courtroom litigation can be a huge drain on the resources of any company. In addition to the obvious monetary losses in terms of cash paid to lawyers, there are also several hidden costs. Lost productivity, public relations issues, large jury awards, and the unpredictability of the legal system are all hidden costs of litigation. In an effort to reduce our exposure to these costs, Riordan will use alternative dispute resolution (ADR) whenever possible.

A clause in every employment contract will state that the company and employee agree to resolve disputes through binding arbitration instead of going to court. Arbitration is similar to a trial – both sides have the opportunity to give testimony, introduce evidence and call witnesses. The final decision is made by a neutral third party. The arbitrator’s decision is final, and “cannot be appealed to the courts” (Cheeseman, 2010, p. 45). A bonus to the company is that the decision in binding arbitration is confidential and not public record like jury decisions. Confidentiality will Riordan avoid any potential negative publicity.

Congress recognized the benefits of ADR in passing the Uniform Arbitration Act. In addition to the savings arbitration offers the involved parties, it also

ADR is also beneficial when resolving disputes with parties outside the company. It will be Riordan’s policy...