Corporate Compliance Plan for Riordan Manufacturing
University of Phoenix Riordan Manufacturing is a profitable plastics manufacturer with annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 company with revenues over $1 billion. The following are some of the products produced by Riordan Industries: plastic bottles, fans, heart valves, medial stents, and custom plastic parts (Virtual Organization, 2009). This compliance plan will state the company's legal responsibilities and regulations necessary to continue earning a profit. The plan will address the laws affecting the plastic industry and guidelines to ensure management and employees understand and obey the laws. The focus of the…show more content… Riordan Manufacturing produces plastic bottles that are used by many consumers. These products could cause harm or injury to consumers. Under section 402A of the Restatement of Torts, Riordan Manufacturing is liable for damages to the consumer (Jennings, 2006). The compliance plan will address the possible ways of limiting product liability. Riordan Manufacturing will have an in house product test department. The department will test each new product under different conditions. The tests will include both normal, and misuse of the product. For each problem, or finding, the department will provide an action plan to resolve the problem. The department will also send the new products to an independent outside test laboratory for evaluation. The department will provide an action plan for any issues found by the independent lab. Once a year, the department will complete tests on all products and provide an action plan for any found deficiencies. The department will furthermore provide directions and warnings on the product. The directions and warnings must be accurate and complete to legally protect the company. International Law Tangible and Intellectual Property Riordan Manufacturing has a strong balance sheet because of their physical assets. The company's physical assets include equipment, inventory and buildings. The physical assets need to be safeguarded and protected. The corporate compliance
