Riordan Manufacturing Business Plan
Corporate Compliance Plan: Riordan Manufacturing name University of Phoenix
LAW/531 Business Law
SC10MBA01B
Teacher name
May 26, 2010
Corporate Compliance Plan: Riordan Manufacturing In the early 20th century many large corporations were guilty of committing scandals and fraudulent activities. Many people today are very familiar with Sarbanes Oxley Act (SOX) of 2002 when the large companies such as Enron, WorldCom, Adelphia, and many others collapsed between 2001 and 2002, and Congress passed SOX also known as the White-Collar Criminal Penalty Enhancement Act of 2002 (Jennings, 2006). To minimize the fraudulent activities done by especially the educated ones such as top executives of the company, Security Exchange Commission (SEC) …show more content…
But as Riordan’s internal functions are analyzed it is found that the company needs to change and upgrade many functions and policies to comply with the principles of TQM. One of the reasons Riordan is not being 100% in compliance with TQM is that it is a fairly new and small organization compared to GE or Motorola and needs to grow stronger overtime. There are a few functions that need immediate attention for the company to become more efficient and profitable. Riordan has three locations Georgia, Michigan, and California plus a joint venture in China. All the locations have their own finance and accounting systems. The finance and accounting system is almost in chaos when it comes to compatibility and communication among all the locations and the headquarters in California. Each location has a different way of operating its finance and accounting system resulting in delays and hurdles in the smooth operations of the company. Management needs to discuss this ongoing problem as soon as possible and must come up with a solution that is in compliant with Generally Accepted Account Principle (GAAP) and rules and guide lines under the Security Exchange Act 1934. Instead of hiding and make negative out come a secret, periodic filing of financial report under SOX is recommended as SOX require both chief …show more content…
Certain export licenses, regulations, and documentations have to be considered to ship into China. This adds steps to the shipping process for Riordan Manufacturing when shipping items to China from the United States. Riordan Manufacturing lists some of these additional items on the company intranet under Operations. The company still uses a common shipping company in FedEx, but has to have a registered export license through the United States Bureau of Export Administration, list Product Duty Classification Codes on certain shipments, and deal with a customs broker and United States Customs (Riordan Manufacturing, 2004). To continue to achieve TQM, it is important that Riordan fully understand the additional requirements and logistics of global
LAW/531 Business Law
SC10MBA01B
Teacher name
May 26, 2010
Corporate Compliance Plan: Riordan Manufacturing In the early 20th century many large corporations were guilty of committing scandals and fraudulent activities. Many people today are very familiar with Sarbanes Oxley Act (SOX) of 2002 when the large companies such as Enron, WorldCom, Adelphia, and many others collapsed between 2001 and 2002, and Congress passed SOX also known as the White-Collar Criminal Penalty Enhancement Act of 2002 (Jennings, 2006). To minimize the fraudulent activities done by especially the educated ones such as top executives of the company, Security Exchange Commission (SEC) …show more content…
But as Riordan’s internal functions are analyzed it is found that the company needs to change and upgrade many functions and policies to comply with the principles of TQM. One of the reasons Riordan is not being 100% in compliance with TQM is that it is a fairly new and small organization compared to GE or Motorola and needs to grow stronger overtime. There are a few functions that need immediate attention for the company to become more efficient and profitable. Riordan has three locations Georgia, Michigan, and California plus a joint venture in China. All the locations have their own finance and accounting systems. The finance and accounting system is almost in chaos when it comes to compatibility and communication among all the locations and the headquarters in California. Each location has a different way of operating its finance and accounting system resulting in delays and hurdles in the smooth operations of the company. Management needs to discuss this ongoing problem as soon as possible and must come up with a solution that is in compliant with Generally Accepted Account Principle (GAAP) and rules and guide lines under the Security Exchange Act 1934. Instead of hiding and make negative out come a secret, periodic filing of financial report under SOX is recommended as SOX require both chief …show more content…
Certain export licenses, regulations, and documentations have to be considered to ship into China. This adds steps to the shipping process for Riordan Manufacturing when shipping items to China from the United States. Riordan Manufacturing lists some of these additional items on the company intranet under Operations. The company still uses a common shipping company in FedEx, but has to have a registered export license through the United States Bureau of Export Administration, list Product Duty Classification Codes on certain shipments, and deal with a customs broker and United States Customs (Riordan Manufacturing, 2004). To continue to achieve TQM, it is important that Riordan fully understand the additional requirements and logistics of global