Riordan Manufacturing: Corporate Compliance Plan

Company Overview

According to Apollo Group, Inc (2006), “The company was founded by Dr. Riordan, a professor of chemistry, who had obtained several patents relative to processing polymers into high tensile strength plastic” (History, para. 1). Seeing a commercial need for his patents, Dr Riordan founded Riordan Plastics, in 1991. The initial direction of the company was to perform research and development, and to sell licensing his patents. After obtaining investment capital in 1992 and purchasing a manufacturing plant in Michigan, Dr Riordan changed the name of the company to Riordan Manufacturing, Inc. In 1993, the company acquired another manufacturing plant in Georgia and started manufacturing plastic beverage containers. In 2000, the company expanded by moving its fan manufacturing operation into China and reconfiguring the local plants for manufacturing of custom plastic parts.

Riordan Manufacturing, Inc is entirely owned by a $1 billon dollar, Fortune 1000 company, Riordan Industries. Riordan Manufacturing, Inc is a global plastics manufacture, has current annual earnings of $46 million, and employs 550 people. The company continues to perform R&D and manufacturers plastic beverage containers, custom plastic parts, and plastic fan parts. According to Apollo Group, Inc (2006), “Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers” (p. 1).

Form of Business

As a corporation, Riordan Manufacturing, Inc must follow the federal regulations under the Sarbanes-Oxley Act. According to Cheeseman (2010), the Sarbanes-Oxley Act is a “federal statute established rules to improve corporate governance, prevent fraud, and add transparency to corporate operations” (p. 578).

Directors and officers, of Riordan Manufacturing, Inc have a duty-of-care to the corporation and its shareholders. Development of company policy and employing of...