Company Overview
Riordan manufacturing is a global plastics manufacturer owned by Riordan Industries, a Fortune 1000 enterprise. They employ 500+ employees by which some gross up to $46 million annually. The company has also accomplished the financial growth of more than $1 billion. They are consistently focused on providing feasible product solution and quality to their customers. They believe in being the solution than being a part of the problem. This would imply that Riordan savors the importance of establishing and maintaining productive and ethical relationships with their stakeholders. They also believe in taking care of their employees by creating a work environment governed by innovation and team building.
Legal Liabilities of Officers and Directors
Long-term relationships will be sought by maintaining rigorous quality controls, innovative solutions, and a responsive business attitude and reasonable pricing (Riordan Mission). This statement requires officers and directors to become more proactive within the field of operations of the entire company. Honoring this commitment promotes consistent yet sustainable growth for Riordan. Therefore, it is obligatory that every member understands and abides the duty of their role. Each general rule must be acknowledged and understood by each member. Also the rights and laws implemented by the state are to be fully considered. “The board and relevant committees should work with management to promote and actively cultivate a corporate culture and environment that understands and implements enterprise-wide risk management” (Lipton, 2010, pg. 1). The COSO framework indicates capacity of assessment when a strategy and objective is created and put into motion. It creates a balance of growth and the risks that comes along with success. It is inevitable yet attainable, which is the overall goal – A Balance.
Enterprise Liability
In recent news, Riordan Manufacturing expanded their operations to China. During that time, they moved the entire facility from the Pontiac, MI facility to China. That would require downtime on current production for the company and misses work time for their employees. This new addition with China could cause enterprise liability issues to ascend. So it is important to maintain a healthy relationship with suppliers and the construction of all new contracts within the process of relocation. This would require Riordan to review, and amend existing contracts as well conducting new ones. When there are compliance issues regarding liability, the best option in this case would be to implement an ADR process. Arbitration and Mediation would be the primary alternatives in this case. They both are much cheaper than going to trial and it allows the dispute to be handled in a more private atmosphere. Litigation is a difficult, time-consuming, and costly process that must comply with complex procedural rules (Cheeseman, 2010). This process will allow both Riordan and their vendors to handle their own legal transgressions.
Real and Intellectual Property
Protecting the Real and Intellectual property of Riordan requires the complete protection of the entire corporation. Lowell Bradford is the Chief Legal Counsel of Riordan Manufacturing. All contracts must be signed and approved by him regarding any legal matters. “The chief executive officer is ultimately responsible and should assume ownership” (COSO, 2004). During the preparation of relocation, Riordan’s legal team oversees all real property contracts. Not to mention the real property contracts local environment regulations. China is a very rich city in which they have implemented their own rules and regulations that Riordan must adhere to. Therefore it is imperative that Riordan and the legal counsel are full aware of all China’s laws and are confident that Riordan are in compliance with regulations and contracts. This would include acknowledging the other plants that Riordan