Corporate Compliance Report

In: Business and Management

Submitted By clarkkya
Words 1730
Pages 7

Corporate Compliance Report

Corporate Compliance Report

With so many corporate scandals and misappropriation of finances, the United States government has developed many laws and action agencies to aid in reducing the amount of corporate mishandlings. Regulatory legislation mandating a report on internal controls is now a corporate obligation. Risk management is a fundamental area of importance to stakeholders. Organizations that are best practice companies look to the Committee of Sponsoring Organizations for guidance to develop efficient internal controls, enterprise risk and against fraudulent activities. This paper will outline a plan to implement enterprise risk for an organization of choice.

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) “is dedicated to guiding executive management and governance entities toward the establishment of effective, efficient, and ethical business operations on a global basis. It sponsors and disseminates frameworks and guidance based on in-depth research, analysis, and best practices” (COSO, 2006). COSO is a private-sector program funded and sponsored by five professional organizations. The Committee conducted an 11-year research study to analyze instances of fraudulent financial reporting and determine contributing factors that lead to financial statement fraud (COSO, 2006). COSO’s research demonstrated that most fraudulent behavior involved the chief executive officer (CEO) and chief financial officer (CFO). In 83% of the cases, that COSO evaluated, either the CEO, CFO, or both implicated with fraudulent financial statements. In addition, managers, chief operating officers (COO), other significant executives, and members of the board were involved in unlawful acts as well.

“The new Enterprise Risk Management (ERM) COSO framework…...

Similar Documents

Riordan Corporate Compliance Plan

...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.......

Words: 11305 - Pages: 46

Corporate Compliance

...Corporate Compliance Plan Law/531 July 23, 2012 Company Overview Riordan Manufacturing, a subsidiary of Riordan Industries, is an international corporation with hundreds of employees worldwide with $1billion in annual revenues, making it a Fortune 1000 business. Riordan Manufacturing is a leader in international business for its production and manufacturing of plastic and polymer injection molds. Some of their current customers and clients include the department of defense, the aircraft and automotive developers, healthcare companies, beverage, cosmetic and more. Products the company produces include but not limited to plastic bottles and containers, fans, medical stents and fans. With the corporate headquarters located in San Jose, CA, the company has several production facilities in Georgia, Michigan, and also a joint partnership within China. Today, we will present to the Officers and Directors of Riordan a Comprehensive Corporate Compliance plan to help assist Riordan continual mission and growth to which will be determined on how well the company can handle and manage compliance issues. We will cover how to manage the legal liability of officers and directors of the company, how to properly address situations when the law is violated, enterprise liability, protecting the company’s real and intellectual property, governance, and international laws that the company must follow. Management Responsibilities and Guidelines Riordan very own Employee Handbook...

Words: 1645 - Pages: 7

Riordan Corporate Compliance Plan

...Law/531 January 9, 2012 Ayodeji Badaki Riordan Corporate Compliance Plan As an international plastics manufacturer employing 550 workers and $46 million in projected annual revenues, Riordan Manufacturing Corporation is focused providing customer product solutions and promoting a climate that focuses on the long term viability of the company. An important part of providing customer product solutions is being able to establish long term relationships with clients. This means that the company strives for transparency and ethics in it business dealings with all stakeholders. In the changing, fast moving and global business world today, it is essential that officers and directors are equipped with the resources to analyze and make decisions quickly. Equally important is the ability to assess and mitigate the risks associated with doing business both locally and abroad. This corporate compliance plan serves as the formal written document that outlines the process Riordan uses to both establish and maintain compliance with all applicable federal, state, local and international laws. Legal liabilities of Officers and Directors Riordan is committed to creating a corporation of well informed and properly supported employees that will provide a climate focused on the long term viability of the company (Riordan mission). In order to meet this commitment, it is essential that the officers and directors work to emulate this commitment in decision making and treatment of......

Words: 1384 - Pages: 6

Riordan Corporate Compliance Plan

...Introduction The paper provides an overview of the Riordan Manufacturing Company and explains the purpose of the Corporate Compliance Plan. Next, the paper emphasizes four main issues which are Enterprise and Product Liability, Real and Intellectual Property, Governance and International Law related to Riordan's situation. The paper concludes with the Riordan's future legal responsibilities that can affect workforce productivity, customer relationships and customer relationships. 1. Organization Overview Owned by Riordan Industries, Riordan Manufacturing is an international plastic manufacturing company specializes in manufacturing plastic parts for the beverage manufacturing industry, automotive industry, and fan manufacturers with its headquarters lodged in California. After its foundation by Dr. Riordan in 1991, Riordan Company has tried to expand its capability in terms of production of plastics and beverages containers. The company has increased its level of productivity and opened a number of new manufacturing branches in Albany, Michigan, Pontiac, and China, Hangzhou. Riordan's product line includes plastic beverage containers produced at the plant in Albany, Georgia, custom plastic parts are produced at the plant in Pontiac, Michigan, and plastic fan parts produced at the newest facilities in Hang Zhou, China. Riordan's major clients are automotive parts and aircraft manufacturers, the Department of Defense, beverage makers and bottlers and appliance......

Words: 1593 - Pages: 7

Riordan Corporate Compliance Plan

...Riordan Corporate Compliance Plan LAW/531 3/4/2012 Marlene Wilhite Table of Contents         I. Internal Environment       II. Mission Statement/Objective Setting       III. Code of Business Conduct           a. Legal obligations and compliance           b. Enterprise liability           c. Real and Intellectual Property       IV. Board Member Code of Ethics           a. Selection of Board           b. Board Leadership           c. Composition and Performance           d. Board Meeting Etiquette and Proceedings         V. Control Activities           a. Governance principles of regulatory compliance           b. International Laws           c. Steps to adhere to international laws       VI. Legal Counsel       VII. Reporting Violations Internal Environment As an industry leader in global plastics manufacturing Riordan must remain on the forefront of internal controls and corporate compliance.   This plan has been assembled to form a strategic corporate compliance plan for the board of directors.   The Committee of Sponsoring Organizations defines Enterprise Risk Management as the following: “Enterprise risk management 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 risk to be within its risk......

Words: 1482 - Pages: 6

Corporate Compliance

...of events that transpire during a meeting. Minutes also demonstrate that the board is fulfilling its duty of care. Board member absence should be noted in the minutes. Board members should be aware that their absence from a meeting of the board does not relieve them from their duty of care, obedience, loyalty. After each board meeting: Board meeting minutes should be written and distributed immediately. You are required to retain the board meeting minutes with your business records and update them annually. The following compliance mechanism correspond to each of the "7 steps" towards due diligence in implementing a effective corporate compliance program: 1 Code of Conduct: A statement of corporate management Philosophy 2 Compliance officer and compliance committee 3 Screening applicants: verification and background checks and monitor current employee 4 Code of Conduct: Compliance and ethics training 5 Compliance Auditing: Risk assessment inventory; forensic accounting examinations, neutral, independent, confidential, external "hotline" without fear of retribution 6 Establish disciplinary system to include types and grounds of disciplinary action 7 Program assessment and modification after offense has been detected. 8...

Words: 506 - Pages: 3

Corporate Compliance

...{text:bookmark-start} Corporate Compliance Report {text:bookmark-end} In order for any company or organization to be successful, it is essential that the management team take steps to identify, access and manage risk. For many businesses, risk management has been identified as a way to thwart and reduce losses, as well as develop business performance. A collection of new tools have been introduced over the past few years to help measure enterprise risk. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has also played a major role in helping companies manage risk. COSO was formed in 1985 and is a U.S. private sector initiative whose major goal is to identify the different factors that lead to fraudulent activities such as fraudulent financial reporting and make recommendations to reduce the incidences. COSO established a variety of internal controls and criteria that companies and organizations can use to assess their control systems in order to manage risk. “In 2001, COSO initiated a project, and engaged PricewaterhouseCoopers, to develop a framework that would be readily usable by managements to evaluate and improve their organizations’ enterprise risk management” (COSO Executive Summary, 2004). Based on the many COSO recommendations of risk management, many companies and businesses have implemented enterprise risk management techniques within their organization. The goal of this paper is to summarize a plan to apply enterprise risk management for...

Words: 1169 - Pages: 5

Corporate Compliance Benchmarking Paper

...Synopsis Wal-Mart is one of the world’s largest and wealthiest retail stores. Similar to CareNetWest, however, they face corporate compliance issues of all sorts. Some of these issues have been brought against the corporation as lawsuits. The majority of the cases have concerned labor conditions and wage and hour violations. Wal-Mart has reportedly been in violation of labor laws. Also, according to store associates, they are being paid unfairly below minimum wage without enough money to make a living and were also forced to work overtime. Wal-Mart, like CareNetWest was lacking the internal expertise necessary to mitigate its issues. Without the proper support teams on board to solve their issues, the structure of both companies is weak. Over the years, and after hundreds of lawsuits filed mostly by its associates, Wal-Mart has implemented new policies and a corporate compliance team to help better its reputation as a business. Issues According to Human Rights Watch online, interviews with Wal-Mart workers and managers, legal filings, and other relevant documents make clear that concerns over working conditions at Wal-Mart are wide ranging. They include not only the systemic hostility to workers, but also wage and hour violations, illegal sex and disability discrimination, claims of inadequate healthcare coverage and wages, and the perceived elimination of long-term workers, ( Wal-Mart has been accused of forcing associates to work off the clock,......

Words: 553 - Pages: 3

Corporate Compliance

...National Tax Journal Vol 49 no. 3 (September 1996) pp. 421-35 CORPORATE TAX COMPLIANCE AND FINANCIAL REPORTING CORPORATE TAX COMPLIANCE AND FINANCIAL REPORTING LILLIAN F. MILLS * Abstract - The tax law provides varying opportunities for tax planning, and firms have competing incentives to consider in planning a tax reporting strategy, including financial reporting effects. I present preliminary results that Internal Revenue Service audit adjustments increase in the excess of book income over taxable income. This is evidence that firms incur additional costs for reporting higher book income than taxable income. I also investigate the relationship between compliance costs and taxes paid. Existing descriptive research emphasizes the social cost burden of such compliance costs. Preliminary results indicate that firms that spend more on tax research and planning report lower tax expense. results that proposed Internal Revenue Service (IRS) audit adjustments increase as the excess of book income over taxable income increases. This is evidence that firms incur additional costs for reporting higher financial statement income than taxable income. I also investigate how the level of conformity varies as the relative incentives for book income versus tax savings change. Tax regimes that require more conformity between book and tax accounting will likely induce higher tax payments than those firms whose incentives to maintain high book income are the greatest. In addition,......

Words: 7692 - Pages: 31

Corporate Compliance

...Corporate Compliance Plan for Riordan Manufacturing October 19, 2009 Riordan Manufacturing is a profitable company generating large amounts of revenue for Riordan Industries. This compliance plan will outline the company’s legal processes and standards to ensure the company will be able to continue to operate and remain profitable in the future. The plan will address the laws that affect the company and provide a guideline for ensuring employees adhere to these laws. Riordan Manufacturing was started in 1991 by Dr. Riordan. He started the company by developing a process for turning polymers into high tensile strength plastic substrates. He patented these processes. In 1992 he purchased a manufacturing plant that made fans and started to get into the manufacturing business instead of just research and development. In 2000 the company started to venture out and expanded into China. This plan will outline an Alternative Dispute Resolution (ADR) for the company to use to keep them on track with their mission. Then discuss enterprise and product liability. Briefly discussed will be issues with international law and how those laws affect the expansion into China. The paper will cover tangible and intellectual property, legal forms of business as well as governess. The paper will also cover enterprise risk management as outlined by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). It will conclude by wrapping up with a discussion on laws that Riordan......

Words: 4209 - Pages: 17

Corporate Compliance

...Running head: CORPORATE COMPLIANCE PLAN 1 Corporate Compliance Plan Business Law/ LAW 531 MJ Meade June 25, 2011 Judge Gregory P. Holder CORPORATE COMPLIANCE PLAN 2 Corporate Compliance Plan for Riordan Manufacturing Date: June 25, 2011 To: Riordan Executive Officers and directors Subject: Corporate Compliance The Board of Directors and the Chief Executive Officer of Riordan Manufacturing are devoted to ensure high ethical standards and compliance with the laws in all areas and services provided by Riordan Manufacturing. To guarantee operations are conducted, in agreement with the laws and the uppermost of ethical principles, a compliance plan is put in place and required to be enforced. Company Overview and Structure Riordan Manufacturing is an international plastic manufacturing company with more than 500 employees and our headquarters are in San Jose, California. Our goods include plastic beverage containers created in the Albany, Georgia plant. Custom plastic parts are produced at the plant in Pontiac, Michigan, and plastic fan parts are produced at our new amenities in Hangzhou, China. Our company's research and development is conducted at the corporate headquarters in San Jose. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers, and......

Words: 1828 - Pages: 8

Riordan Corporate Compliance Plan

...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 to research requirements at the COSO website. Use at least two citations. The paper should be formatted in APA format. Riordan Corporate Compliance Plan Law 531 Riordan Corporate Compliance Plan Riordan Manufacturing, as a global plastics......

Words: 2615 - Pages: 11

Riordan Corporate Compliance Plan

...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......

Words: 2308 - Pages: 10

Riordan Corporate Compliance Plan

...Corporate Compliance Plan Paper University of Phoenix LAW/531: Business Law Group: DB12MBA01 Joseph Balistocky, JD, MFCC April 17, 2012 Workshop 6 Riordan Corporate Compliance Plan Riordan Manufacturing is a $1 billion Fortune 100 organization with approximately 550 employees specializing in plastic patient design with operations in the United States and China that realized $46 million in revenue last year. Due to concerns originating out of the company’s expansion into e-Commerce and increasing international sales, the company has decided to implement a enterprise risk management (ERM) program based on internationally recognized Committee of Sponsoring Organization of the Treadway Commission (COSO) Guidelines. The COSO design was chosen for its emphasis on defining processes that enhance an organization’s management responsibilities, legal risks and rights of employees in relation by advocating a dispute management process (University of Phoenix, 2012). Management Responsibilities At Riordan Corporation, the executive level officers also act in a fiduciary capacity with responsibility for acting in the best interest of the organization while upholding a high standard of corporate behavior. The executive level senior management of the organization along with the internal auditor level officers of the company are included in the Riordan organizational chart with clear duty responsibilities outlined in detail with......

Words: 2360 - Pages: 10

Mba560 Corporate Compliance

...Corporate Compliance Report University of Phoenix Rite Aid Corporate Compliance Introduction The Rite Aid Corporation is one of the nation's leading drugstore chains with more than 5,000 stores in 31 states and the District of Columbia, with a strong presence on both the East and West coasts. The Company serves the healthcare needs of its customers through its Rite Aid stores and online pharmacy, Due to the breadth and scope of its businesses, the Company faces a wide range of competitive challenges including, but not limited to, other retail drugstore chains, supermarkets, convenience stores, pharmacy benefit managers and other mail order prescription providers, Internet pharmacies and ambulatory care health providers. A primary component of the Company's human resources strategy to ensure high caliber leadership is the identification, recruitment, development and placement of key management and business talent. The Rite Aid Board of Directors (the "Board") and executive management team believe that a crucial aspect of executing this strategy is a comprehensive, integrated and straightforward executive compensation platform that provides competitive and differentiated levels of pay based on corporate and individual performance while reinforcing the alignment of executive interests with those of stockholders. When a company is facing issues dealing with corporate compliance, implementing a system to deal with the compliance and corporate......

Words: 1836 - Pages: 8