Corporate Compliance Plan
Riordan Manufacturing is a plastic injection-molding corporation that creates innovative plastic designs, and has four facilities located in California, Georgia, Michigan, and China. With the state-of-the-art technology, Riordan is capable of producing and manufacturing plastic bottles, fans, heart valves, medical stents, and custom plastic parts. In the following paragraphs, I will focus my plan on managing the legal liability of officers and directors of Riordan and address ADR, enterprise liability, product liability, international law, tangible and intellectual property, legal forms of business, and governance.
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The main intention of the legal principle is to provide the customers of Riordan the certainty that the same standards are being applied globally and that they will be covered for any loss of products. If Riordan brings upon numerous lawsuits, the organization's insurance company will raise the cost for coverage. The increase in coverage cost can affect the pricing of the products, and therefore, lead the customers to research for other affordable manufacturers or suppliers on plastic designs.
Riordan's engineers are committed to conduct regular inspections of the products being manufactured within the company to reduce product liability. Because product liability is one of the fields that is most litigated in tort liability, Riordan will take more measures to minimize legal expenses related to product liability. According to Jennings, the average cost for product liability in 2002 was $520,000 (2006). Therefore, if any defects were detected after the product has been introduced to the market, Riordan guarantees they will recall the product with a full refund or exchange for an upgraded product or another product that Riordan manufactures or produces.
The purpose of international law is to resolve any legal issues in an international level and also maintain peaceful international relationships. Since Riordan distributes its products globally, they are subjected to abide by the international laws. Although the enforcement of international regulations is challenging, the United Nations and international courts are responsible to uphold the product quality on an international level. The International Framework Agreement was adopted in 2002 to distinguish the negotiated agreement from the voluntary codes of conducts that corporations were using to prove their commitment in regard to social responsibility. The agreement was known to be the standard agreement on a global scale; however, the responsibility of the proper procedures still relies on the employees within the organization
Tangible and Intellectual Property
Riordan's tangible property will be secured with an electronic security system, monitored with 24-hour surveillance cameras and protected with trained security personnel. Employees who deal with the property will have to go through a security clearance before access and use. If any of the employees are caught stealing, they will be terminated and prosecuted for retribution of damages caused by the theft. As for...