Corporate Compliance Plan
Introduction
The corporate compliance plan relates to Riordian Manufacturing Co., which is engaged in the manufacturing of various plastic products having around 550 people working for them and also yearly income of around $ 46 Million.
While based at San Jose, California, the different production units are found in:
- Plastic and beverages container unit based in Albany, Georgia
- Custom built parts in Pontiac, Michigan
- Plastic fan unit in China. (Information Technology Affects On Riordan Manufacturing, 2009).
Over the last few years it is seen that there has been heavy turnover of employees due to job dissatisfaction, mismatch of corporate with personal goals, absence of good interpersonal relations , etc, and at present the employee morale seems to be very low which the management fears may result in lower productivity, frequent job changes.
Another aspect with regard to employee turnover would be in terms of training costs lost on employees who quit and the need to conduct frequent appointments to replace lost productivity.
Another factor would be the lack of strong leadership and people management skills that need to be imbued in the Riordian context to forge the company ahead.
It is primary for purpose of reinforcing human resource planning and organizing that this Compliance Plan has been chalked up, in order to boost up employee morale and motivate the people to make better contribution to corporate efforts for realizing corporate goals and objectives.
Besides the factor of low productivity and rising costs, the impact of economic forces is influence operations in this company. The escalating cost of fuel, recessionary trends in the economy and competitive elements in the business are also key factors in arriving at a useful and workable corporate compliance plan for the Company. The Corporate Compliance Plan is addressed to employees, management staff and workforce of Riordian Manufacturing Co. and is believed to reinforce and streamline major elements and deficiencies for this corporate.
There are several challenges, pre known and unknown which encounter managers working in global organizations like in terms of corporate operating environment, dealings with personnel, either external or internal, governmental dealings and handling of disputes and its resolutions.
Alternative Dispute Resolution
The main aspects that need to be address are the resolution of ADR arising out of employer- employee relationships. In such situations it is seen that certain employees are not aware of their roles and responsibilities in organisation and are obdurate about their job functions. In such cases, it is necessary to train and
re-train personnel in order to make their goals in conformity with organizational goals and objectives and to accept suggestions and criticism in a constructive spirit. It is seen that in Riordian, some employees do not see eye-to-eye with their superior officers, with the result that communications networks are compromised and optimum work is not gained. Therefore, in the Riordian context, it is seen that ADRs need to take a holistic approach regarding employee productivity and conduct, taking into account factors that may impinge these aspects. Again, the main aspects regarding ADR are to seek and find solutions that would improve the totality of a person’s work ethos and his interaction with peers, subordinates and superior officers.
In a large organization, employing several hundred employees, it is natural that some friction and disputes may occur, especially when dealing in highly target-oriented and competitive markets. Thus it is necessary for management to draw up plans, procedures and processes through which disputes are kept to the barest minimum, allowing employees to work to their full potential and productivity, create harmonious and peaceful work environment where positive work culture is promoted and nurtured, and negative and cross purpose working, discouraged and eliminated.
It is also to be seen that ADR need to be based on specific issues like disputes arising out of absenteeism, issues arising out of lack of lack of promotional avenues, pay stagnations, lowered reward systems and lack of motivation and incentives that could address employee discontent and attrition. “Keeping abreast of technological, financial, and policy changes will be critical to maintaining a strong team and team.” (Strategic pan final draft: Customer service challenges, 2006, p.5).
Enterprise Liability
As an equal opportunities company, Riordian is committed to ethical practices within limits of legal and moral frameworks of its operations both within USA and in other parts of the world, including Far East. This being so, Riordian strongly advocates use of peaceful negotiations, dialogue and arbitration procedure to deal effectively with incipient disagreements before it flares up into full scale disputes. The senior management and consultants, including legal experts, financial and cost auditors, and other professionals are regularly consulted to pre-empt liability issues in terms of the company’s workings. The aspects of Committee of Sponsoring Organizations (COSO) of the Treadwell Commission – with regard to “internal control systems” that could address setting up “Effectively implemented internal control leads to more accurate information for both internal and external decision-makers, ultimately facilitating successful achievement of business objectives.“ (Rittenberg & Morris, 2006).
The enterprise liability would be in terms of contingent lawsuits against the company, employee litigation or other demands for contractual non-performance, etc. It is seen that the management are extra cautious when signing contracts with third parties and potential employees, or any one outside the organization since potential risks may be lurking. Contracts need to be examined by experts before being ratified.
Product Liability
Product liability may originate when complaints arise regarding product quality, usage, performance or any other factor that causes the consumer to reject the goods. I such cases, the manufacturer have to repair or replace the products, as deemed necessary. In the case of Riordian, it is necessary that the Compliance Plan takes care of the following aspects:
- All products need to carry warnings wherever necessary regarding its safe applications and do’s and don’ts. In the event the consumers do not heed warnings, the company would disclaim responsibility for them.
- Further it is necessary that proper training and maintenance needs to be imparted, regarding safe use, operational maintenance and servicing of products. This needs to be demonstrated through training and retraining clients on the safe use of Riordian products.
- In the case of manufacturing procedures and processes, Riordian pursues a hazard free, environmentally conducive and safe manufacturing process. However, regarding manufacturing of new product lines, it is necessary that safe procedures need to be established to ensure complete safety. Thus guidelines need to be issued to operators and personnel working at shop floor incorporating the non-hazardous and low risk methods that need to be pursued to avoid incurrence of product liability at later stage.
- It has been seen that manufacturing and marketing processes have been streamlined in recent times, to take advantage of e-commerce enabled technology and optimum use of internet services. The main idea is to reduce operating and selling costs and reinforcing the bottom line of the organization.
Implications of International Laws
It is seen that Riordian attached great important to internet business. In modern industrial environments, it is observed that maximum business and turnover is generated through internet. However, it is subject to various risks and challenges. For one thing, internet laws need to be adhered to, and also the confidentiality, safety and security of internet transactions need to be ensured. This is important because international laws underpin internet business immensely. While local showroom sales are subject to local and national laws, exports and internet business are subject to import laws in the country of entry and internet business is governed by internet laws which may be country specific and customer ruled.
The next aspect is that international business is fraught with risks and challenges. There could be issues relating to shipments, order processing, and even payments may not be realized on time. Thus, international business needs to ensure a greater degree of security and safety of operations and final processing.
Again, it is necessary to inculcate major cost savings through prudent and judicious fund management in Riordian. In terms of international transportation, it is seen that it would make much more economical to transport goods directly to Shanghai, instead of using intermediary water transport as is being presently done. In international business, it is important that all avenues of cost savings be used in order to reduce sales costs and add to revenues. Ultimately profits could be achieved by significantly decreasing sales costs and increasing sales revenues consistently over a period of time.
Protection of Tangible Assets and Intellectual Property Rights (IPR)
Again in the context of international trade, large players (like Riordian) are often detrimentally affected by violation of IPR laws by smaller firms. It is seen that Riordian has tangible Assets worth around $34 million, which needs to be protected.
It needs to take necessary steps to protect fixed assets through insurance covers, good maintenance and regular replacements. Again, since it is a global player, it has to legally guard itself against IPR violations. Its product needs to be patented and also secure trademarks have to be provided to products. It is believed that certain countries in the East have high rates of Trademark infringements. So it is necessary that Riordian takes to take more than adequate care of its trademarks, designs and products. Any reported infringement needs to be immediately brought to the notice of the legal department and necessary actions levied in consultants with legal experts.
To a very large extent, protection of assets could be made by adopting scientific manufacturing techniques and processes. Manufacturing scheduling software is one such software which seeks to optimize task though systems.
“Manufacturing scheduling software provides a system for planning and scheduling of the various tasks of the company. It offers manufacturers a better way to control the production environment through planning and forecasting. This acts as a long-term strategic tool for scheduling, the flow of work and management the work of the operating team.“ (Riordan manufacturing: Manufacturing scheduling software, 2008).
Legal compliances
It is seen that Riordian Mfr is a fully owned subsidiary of Riordian Industries. The legal compliances would stem from the following considerations:
Financial compliances
Complying with Company law matters relating to production of annual accounts, audit and statutory disclosures to investors and shareholders, besides the SEC compliances incorporating Sarbanes Oxley norms.
“The Sarbanes-Oxley Act is intended to put in place highly significant legislative changes to financial practice and corporate governance regulation. The Sarbanes-Oxley Act’s new rules and regulations are intended to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws.” (Sarbnes Oxley resource center: Sarbenes Oxley act of 2002, 2009). All corporate, especially public limited companies, need to adhere to the requirements of Sarbanes-Oxley laws while preparing and presenting their annual accounts, etc.
Environmental concerns
There are several legal aspects of environmental or ecological importance, especially relating to manufacturing units, in terms of waste disposal, refraining from pollutive practices, proper waste management programs and other matters. Infringements or violations of these laws would give rise to legal notices or litigative issues. Therefore, it would be in best interests of this company to attend to such legal requirements and strictly observe its consequences.
Ethical business practices
It is necessary that business should be carried out ethically with sound financial and cost fundamentals, treating men, materials and money with due care and concern. Dealing with vendors, suppliers and other third parties need also be underpinned with high integrity, mutual trust and belief and would give rise to strong undercurrents of strategic vendor management strategies and best industry practices needs to be invoked during dealings with shareholders and other relevant agencies and institutions.
Legal aspects of dealings with employees, work force staff and outsourced personnel
This plan needs to consider the fact that induction, training and promotional avenues, and retirement of employees need to be planned, organized and documented in order to retain these records for long term.
Again, corporate policies with regard to promotions norms needs to be performance based. Employers are aware of the expectations employees have with respect to their careers and its productive outcomes, in terms of motivations and job satisfaction. It has been seen with respect to Riordan that areas of high turnover and labor attrition could be a breeding ground for discontent, which could also affect morale and productivity of the remaining workforce.
“Re-designing an organization’s current reward system is therefore, an attempt to fulfill the needs and expectations of its employers, while striving to increase motivation and morale, decrease job satisfaction and benefiting the overall efforts and performance of the organization.” (Problem Solution: Riordan manufacturing. 2009).
Conclusion
What is even more important that formulating and issuing corporate compliance plan for Riordan Manufacturing is the regular and effective implementation and execution of this Plan. For this the co-operation of the work force at all levels is essential in terms of adherence to Corporate guidelines initiated from time to time to realize corporate goals and objectives in terms of lowered costs, higher revenues and greater efficiencies in all major areas of public accountability.
There are definitely areas of deficiencies in the present set up in terms of reduced sales, and consequently profitability. High turnover, especially in the Chinese unit have resulted in deflated morale, affecting productivity and motivation levels.
The aspect of motivation in work environment is important since a highly motivated worker is able to raise his performance bar and contribute more to the business.
He is also able to motivate others to improve their performance.
It is also seen in the Riordan context that the emphasis in recent years has shifted from individual sales efforts to group performance. Under the changed selling scenarios, with group efforts gaining more substance, group motivation and morale building assume center stage and would become intrinsic in brand building and marketing efforts. The future leaders would evolve out of motivation and morale boosting endeavors of the company and would assume major roles in the future growth and development of this company in later years.
Equally important is the communication systems between the different levels of the company. Communications help in resolving issues and bringing the work force together as a cohesive and unified unit, sharing issues and building bonds beyond work. It also aids in keeping the Board of Directors informed about the results of new procedures and work processes and how further improvements and modifications could be made for reducing costs and enhancing revenues.
Compliance is an ongoing feature and needs to be evolved and improved over time and changing market situations. It would be incredible to retain outdated compliance systems in a fast changing business environment, especially when a lot of technological changes and modernization is being enforced. These plans also need to consider the performance of business competitors, and how they react to market challenges and competitive elements. If certain marketing strategies and plans are found suitable, they could be also implemented in the Compliance Plans of this company, in order to capitalize on market opportunities and reap benefits.
However, it needs to be clarified that the induction of this plan may be first considered on a smaller, but strategic sample population of work force in order to test its results, before a large scale implementation is planned.
This is because a test sampling would provide insights into the reactions of the work force and how they propose to deal with matters considered in the plan. Any adverse reactions to the plans could be assessed and revised at this stage, so that the final implementation would be readily acceptable by the work force and easily enforced. At the early stages, it is easier to effect changes in procedures rather than at later stages when this has been ingrained in psyches of the employees and staff. Once the plans have been formally accepted, it is now necessary to seek devises to enforce the same on a routinized basis, according to the directives of the management.
It is also necessary to review the plans periodically to order to reaffirm its validity and relevance to current tasks and issues. If review is not conducted, it is quite possible that compliance plans may become irrelevant to current trends and contemporary settings. In a highly competitive business and marketing environment, it is necessary that Riordan stays ahead of the competition and builds on its strengths and eliminates its threats as far as possible.
It is believed that the Corporate Compliance Plans would go a long way in helping the company achieve its short term goals and long term objectives, in terms of high morale, lowered turnover of work force, harmonious interpersonal relationships and excellent communication network throughout the global networks of the organization.
Since a plan is only as good as its implementation and usage, it is believed that widespread use of such plans, revised and updated from time to time, would go a long way in establishing Riordan in a leadership role in the years to come.
References
Information technology affects on riordan manufacturing. (2009). Oppapers.com: Research Papers and Essays for All. Web.
Problem Solution: Riordan manufacturing. (2009). Peerpapers: Less Work, More Weekend. Web.
Riordan manufacturing: Manufacturing scheduling software. (2008). Riordan Manufacturing. Web.
Rittenberg, Larry. E., & Morris, Nancy. M. (2006). Coso: Committee of Sponsoring Organizations of the Treadway Commission. Web.
Sarbnes Oxley resource center: Sarbenes Oxley act of 2002. Sarbanes Oxley Resources. Web.
Strategic pan final draft: Customer service challenges. (2006). OMF Business Operations Strategic Plan. 5. Web.