...Corporate Compliance Plan: Riordan Manufacturing Law/531 Charles Cook February 21, 2011 Corporate Compliance Plan: Riordan Manufacturing Riordan Manufacturing Inc.(RM Inc.), established in 1991 by Dr. Riordan, developed quickly as a leader within Research and Development (R&D) and sales of plastic products. Clients, such as the Department of Defense, automotive segment manufacturers, multi-commerce transportation, and packaging plants. RM Inc. is competitive in multiple countries within the plastic mold industries. This positing within foreign customers leads the way for RM Inc. to expand across the boarders and develop further on many levels. To remain a respected leader within the multiple industries a strong corporate compliance plan is necessary. Prevention and management guidelines To ensure Riordan Manufacturing remains both ethical and on the right side of the law, preventative measures taken by all employees of RM, Inc. shall keep everyone accountable. Additionally, compliance with both federal and state regulations and foreign standards are imperative to follow. The focus of the compliance plan will demonstrate the commitment to compliance, along with laying down the required standards and the practices exceeding legal obligations. The company will adopt a proactive role in compliance issues to protect Riordan's interests, employees, environment, and the stakeholders. A compliance culture is likely to result in a higher level of compliance performance...
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...Corporate Compliance Plan: Riordan Manufacturing Corporate governance can be thought of as the overall umbrella of control and direction under which a corporation operates. Enterprise Risk Management (ERM) is “a process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risks to be within its risk appetite and to provide reasonable assurance regarding the achievement of entity objectives,” (BusinessDictionary.com, 2008). Ideal management of risk involves mitigating negative risk while taking advantage of positive risk. The board of directors is responsible for establishing an enterprise risk management philosophy that guides senior management when implementing an enterprise risk management plan for the company. Internal controls are a subset of ERM. “Internal control is broadly defined as a process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: effectiveness and efficiency of operations; reliability of financial reporting; compliance with applicable laws and regulations” (COSO, 2008). Internal controls assure accuracy of reporting of information and objectives. To develop a corporate compliance plan for Riordan Manufacturing, the three areas of concern should include the proposal...
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...Research Paper Management accounting: An instrument for implementing effective corporate governance Mayanja MK and Van der Poll HM Department of Management Accounting, Unisa, Pretoria, 0003 South Africa. Accepted 28 September, 2011 Management accounting is not given sufficient emphasis, at the board level, as a provider of timely and relevant information to facilitate the execution of good corporate governance. Without management accounting information corporations in Botswana may find it difficult to create sustainable corporate governance. A qualitative approach using questionnaires and interviews were used to establish the extent to which management accounting tools are applied by the directors in the target companies. The research was carried out amongst listed companies on the stock exchange and the parastatal companies in Botswana. Furthermore documentation, for instance annual financial statements from the companies were reviewed. Most directors in the companies do not fully utilise the tools of management accounting in decision making. Management accountants have also failed to provide the relevant information to the board. To execute their duties efficiently, directors may need to call for the management accounting reports from the senior management level up to the board level and regularly use these reports to facilitate decision making. Key words: Management accounting, corporate governance. INTRODUCTION Management accounting, which was traditionally intended...
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...Corporate governance Corporate governance: basic stance Honda considers corporate governance one of the most important management issues. We’re strengthening it on the basis of our fundamental corporate philosophy, aiming to have the global community—including our customers, shareholders and investors—place even greater trust in us as we strive to be a company society wants to exist. To ensure objective oversight of management, Honda appoints outside directors to its Board of Directors and outside auditors to its Board of Auditors. To strengthen its business execution system in each region and workplace, as well as enhance the supervisory function of the Board of Directors, Honda has introduced an Operating Officer System. To help its Board of Directors respond quickly to changing business environments, as well as to improve the flexibility of its decisionmaking process, Honda limits directors’ assignments to one year and Corporate Governance: Organization Board of Auditors: 5 Auditors (Outside Auditors: 3 Auditors) Business Ethics Committee: 6 Officers Compliance Officer Regional Sales Operations (Japan) Regional Operating Board Risk Management Officer Regional Operations (North/ Central America) Regional Operating Board determines their compensation in accordance with business results. Based on its fundamental corporate philosophy, Honda has refined its organizational structure. A general manager from the Board of Directors or an Operating Officer is now assigned to...
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...Riordan Corporate Compliance Plan Riordan Manufacturing Riordan Manufacturing is a global plastics producer with an employee base of 550. The company has projected annual earnings at $46million and is owned by Riordan Industries. There are different segments of the company but the major customers are the automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers, bottlers, and appliance manufacturers. The company has recently undergone some strategic changes in manufacturing and marketing. Some of those recent changes are beginning to effect employee retention numbers. Situation Analysis Riordan Manufacturing has many issues and opportunities laid before them. The company must identify the proper issues in order to make the right adjustments. For the company to prosper, they must first take care of their employees. Issue Identification There are a myriad of issues that exist for Riordan Manufacturing. The company has gone through some recent structural changes because of the ever changing industry. Riordan decided to switch from an individual sales model to a team-based sales model. The issue with the above is that the individuals are used to being compensated solely based on their own performance; now there is apprehension about compensation at the team rate. Another issue is just the pay itself. Some managers are concerned that employees may take proprietary information and share it with competitors after leaving the company. Higher...
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...Riordan Corporate Compliance Plan LAW/531 October 2012 University of Phoenix Riordan Corporate Compliance Plan The Corporate Compliance Plan will provide standard of conduct for the internal operations of the company to limit and reduce violations of the law within an organization. The plan is to reduce negative events from becoming legal liabilities. Definitions The people involved in this Compliance Plan are any person who is involved in business activities and transactions within an organization. 1. Employees – any person that is paid by the organization pertaining to services provided by the organization. 2. Contractors – person’s or companies contracted for services that directly pertain to the marketing and services provided by the corporation. 3. Board of Directors – persons elected by the company to handle the legal decision-making processes of the organization. 4. Administration, officers, or committees – people who hold position of authority to areas and projects. 5. Abuse – unethical acts of business to include discrimination and illegal doings. Functions and Responsibilities Company Standards or Code of Ethics: Riordan Manufacturing is dedicated to producing and providing the highest quality products, to be competitively priced, for the achievement of a safe and productive environment. Riordan Manufacturing Board of Directors has the responsibility of oversight of the bylaws and procedures developed by the organization. The strategic...
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...Monitor Corporate Governance Activities Research Project Semester 1 2007 Introduction The Directors of Expand P/L are about to make the transition from a large company to a public one. They are aware of recent developments in corporate governance and directors liabilities. They have asked you to provide advice on corporate governance aspects and to act as a consultant during the period of transition. You decide to use the corporate governance toolkit as the basis for your research. a) Overview: 1. What are the basic principles of corporate governance? • Transparency: Are the board telling us what is going on? • Accountability: Is the board taking responsibility? • Corporate Control: Is the board doing the right thing? 2. What mechanisms are suggested by the ASX corporate Governance Council? Relating to the three principles stated in the last question. The ASX Corporate Governance Council translates the elements into mechanisms: • Is the board telling us what is going on? →forming an environment to take risk. • Is the board taking responsibility? →clarifying the role of the board and management. • Is the board doing the right thing? →Meeting information needs of investment communities. 3. What is an SME? SME stands for Small and Medium Enterprises. 4. What processes would you expect to find in a company relating to risk management and compliance processes...
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...Riordan Manufacturing Corporate Compliance Plan LAW 531 – Business Law Facilitator: Gregory Schumacher March 30, 2009 University of Phoenix – Online Campus Riordan Manufacturing Corporate Compliance Plan Riordan Manufacturing, Inc. has been an industry leader in the plastics molding industry for nearly 20 years, and its success has been built on a formula of state-of-the-art research and development, strong customer relationships, and innovative, team-oriented employees. The current economic environment, state and federal regulations, and legislative statues present challenges to Riordan that require implementation of strong methods for organizing risk management responsibilities and activities. To achieve business objectives and continued competitive advantages, Riordan must structure risk management responsibilities and activities using a formalized process. The Enterprise Risk Management (ERM) process will ensure identified risks are properly assessed, controlled, and monitored throughout the company to reduce Riordan’s exposure to legal liabilities. This compliance plan outlines the ERM process for Riordan following the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework recommendations on critical aspects of organizational governance, business ethics, internal control, enterprise risk management, fraud, and financial reporting. Enterprise risk management deals with risks and opportunities that affect business value, negatively or positively...
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...Kim 1 School of Multimedia, Hannam University, Daejeon, Korea 2 Dept of Information Communication, Sunchon Univerity, Sunchon, Korea 3 Fumate Inc., Daejeon, Korea rosslin_john@yahoo.com, secho@sunchon.ac.kr, yslee@fumate.com, taihoonn@empal.com Abstract The Sarbanes-Oxley (SOX) Act is a United States federal law enacted on July 30, 2002 in response to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom. This paper discusses the effects of Sarbanes-Oxley (SOX) Act on corporate information security governance practices. The resultant regulatory intervention forces a company to revisit its internal control structures and asses the nature and scope of its compliance with the law. This paper reviews the implications emerging from the mandatory compliance with Sarbanes-Oxley (SOX) Act. Issues related to IT governance and the general integrity of the enterprise are also identified and discussed. Industry internal control assessment frameworks, such as COSO and COBIT, are reviewed and their usefulness in ensuring compliance evaluated. 1. Introduction Accounting scandals at some of the big corporations like Enron, HealthSouth, Tyco and WorldCom had a devastating impact on investor confidence. Clearly, it was possible to engage in frauds of such magnitude because of the inability of auditors to detect early signs of such possibilities. This paper reviews the impact of legal controls on Information...
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...Management — Integrated Framework at the COSO website: • On the home page, click the Guidance tab. • Select the Enterprise Risk Management link. • Click MORE. • Select the Download (English) the free executive summary link. Research additional information in the Guidance and Resources sections at the COSO website. View the Riordan virtual organization. Create a corporate compliance plan consisting of no more than 2,450 words for Riordan. Focus your plan on managing the legal liability of officers and directors of Riordan. The plan must also address how to handle situations when laws are violated or in question (such as when to call in legal counsel, what rights the employees have, or who to turn to when actions are taken against Riordan). Your plan must also include the following: • Enterprise liability • Real and intellectual property • Governance principles of regulatory compliance requirements • The specific international laws or aspects of the law that must be adhered to by Riordan and an outline of these steps for employees to adhere to these laws Format your Corporate Compliance Plan as if you were going to distribute this to the officers and directors of Riordan. Outline the prevention and management guidelines of the legal aspects listed above. Implement enterprise risk management based on the COSO’s 8 interrelated components. COSO can be used to structure your plan. Be sure to incorporate key concepts from your readings where appropriate. You need...
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...Riordan Corporate Compliance Plan Law 531 Riordan Corporate Compliance Plan Riordan Manufacturing, as a global plastics manufacturing company, has become a pioneer in its industry and has an employment base of approximately 550 people and has an annual earnings projected around $46 million. The company possesses a plant in Albany, Georgia that produces containers for beverage companies, a plant for manufacturing custom plastics in Pontiac, Michigan, and its Hangzhou, China plant develops plastic parts for fans. Riordan’s research and development group holds the title as the industry leader in identifying industry trends in research and development. Research and development activities are performed at Riordan’s corporate headquarters in San Jose, California. Beverage companies, automotive, aircraft, and appliance parts manufacturers and the Department of Defense are clients who can be found at the top of Riordan’s list of customers (University of Phoenix, 2012). Current Situation Riordan Manufacturing has recently suffered some strategic changes in the production and marketing areas. There are times when these types of changes begin to affect employee retention numbers. In order to make a business prosper, the company must take care of their employees. These leaders are concerned that employees might have private information and share it with commercial competitors. The other issue is that management is troubled that employees may leave because...
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...Best Practices: Nonprofit Corporate Governance One of the most significant and valuable developments of the post-Sarbanes-Oxley Act environment has been the emergence of governance “Best Practices” proposals designed to enhance and improve corporate responsibility and governance. These proposals have come from a wide variety of sources, ranging from self-regulatory agencies (e.g., NYSE, NASDAQ) and business groups (e.g., The Business Roundtable, The Conference Board, National Association of Corporate Directors) to professional associations (e.g., the American Bar Association) and major corporations (e.g., General Electric, WorldCom, TIAA/CREF). While most of these Best Practices proposals have been recommended for adoption by public companies, their relevance as an aspirational goal for nonprofit corporations and non-public companies is widely recognized. From these and other resources, we have developed the following set of guidelines as “food for thought” concerning governance “Best Practices” to assist nonprofit corporations in responding to the current “corporate responsibility” environment. To set the proper perspective, a few important caveats are in order. First, these are Best Practices guidelines, and do not in most instances, reflect current legal requirements. Instead, the guidelines reflect our perspective on evolving trends in nonprofit governance and law. In many circumstances, adoption of, and adherence to, “Best Practices” may reduce a nonprofit corporation’s...
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...2 pg. 3 pg. 4 pg. 7 pg. 9 pg. 11 pg. 12 pg. 14 1|P a ge Introduction Corporate Scandals are business scandals that initiate from the misstatement of financial reporting by executives of public companies who are the ones trusted to run these organizations. Corporate scandals are derived in many ways and these misrepresentations happen through overstating revenues and understating expenses, overstating assets and understating liabilities, and use of fictious and fraudulent transactions that gives a misleading impression of the company’s financial status. There were a few corporate scandals that took place in the last decade that forever changed investment policies in corporate America. The companies that are most commonly known for these scandals are Enron, Adelphia, and WorldCom. These companies had hidden their true financial status from creditors and shareholders until they were unable to meet the financial commitments which forced them reveal massive losses instead of the implicated earnings. The ultimate result cost investors billions of dollars when the share prices of the affected companies had collapsed. According to Hopwood, Leiner & Young (2002), pg. 130, “the public outcry from the corporate scandals were enormous, and congress responded by implementing the Sarbanes-Oxley Act of 2002 (SOX). The main reason for the implementation of SOX was to restore public confidence in corporate America.” In this statement, the authors are implying that the Sarbanes-Oxley was...
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...Enron, Arthur Andersen, WorldCom, and Tyco, these corporate names are heard and scandal is what it thought. When corporate names become associated with scandal and greed, public confidence begins to falter. The Sarbanes-Oxley Act (SOX) came to be in July 2002 and introduced major changes to the regulation of corporate governance and financial practices. Also like other regulatory requirements, some sections of the act are more pertinent to compliance than others. Sarbanes-Oxley has been called by many the most far-reaching U.S. securities legislation in years. Now, all companies required to file periodic reports with the Securities and Exchange Commission (SEC) have new duties for reporting and corporate obligation. Non-compliance comes with significant penalties. Compliance with the legislation is not a difficult task, it should be addressed with a method using proper analysis and study. Compliance should be part of the plan and implemented as a norm. The SOX is arranged into eleven titles. Within these titles the most important sections that have to deal with compliance are considered to be 302, 401, 404, 409, 802, and 906. According to "A Guide to the Sarbanes-Oxley Act" (2003)” Section 404 of the Act requires publicly traded companies to include the following information in their annual financial reporting: • A statement of management's responsibility for establishing and maintaining an adequate internal control structure and procedures; • Management’s assessment, as...
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...Ohio followed a series of corporate failures, which inacted the SOX Act based on Enron’s bankruptcy and other key organizations such as Worldcom, Tyco, Xerox, and Adelphia who were among the United States organizations executives in the headlines for misdemeanors and multi-billion dollar reassertions," (Dembinski, Lager, Cornford, Bonvin, 2005). The Sarbanes-Oxley Act of 2002, (SOX) was incorporated to strengthen the internal improvements and oversight of corporate control. The primary purpose is to shield and protect shareholders from fradualent activities within the public sector and the stock market. The table below provides a list of a few provisions implemented in SOX Act. Section 302 | Section 401 | Section 404 | Section 409 | Section 802 | Requires that corporate administration confirm that they have assessed the financial reports. | Requires that financial reports include disclosure about any applicable off-balance sheet responsibilities that may exist. | Requires organizations to state whether or not the business's internal mechanism technique are sufficient and operative. | Requires administration to update the public of important budgetary matters when they occur, instead of waiting until the annual or quarterly report. | Imposes penalties for abuses of the SOX rules, which could lead to fines or some jail time. | A description of the SOX Act is mentioned above to display the flow and process as it relates to the cycle of compliance within an organization. The...
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