According to Cheeseman, 2010 The use of court system to resolve business and other disputes such as conflicts, disagreements, discrepancies, and controversies among employees, can take months, years, and cost thousand, or even millions of dollars in legal fees and expense. To avoid or reduce these problems, businesses are increasingly turning to methods of Alternative Dispute Resolutions (ADR), and other aids to resolve disputes. The most common ADR is arbitration. Other forms of ADR is mediation, conciliation, mini-trial, fact-finding, and using a judicial referee. Riordan will consider and exercise some form of ADR to minimize the potential risk of litigation.
Employees will utilize its chain-of-command when there is a concern, gripes,or concern. The immediate supervisor will have 72 hours to resolve or ...view middle of the document...
Riordan have zero tolerance for any employee that does not conduct themselves ethically or responsibly. Riordan holds directors or officials personally for Breach of Duty. A breach of duty of care is the failure to exercise care. In other words, it is the failure to act as a reasonable person would act (Cheeseman, 2010).
After looking at Riordan ______________, I didn't notice any board meeting minutes being recorded and the governance plan. The governance plan does not identify who tracks the board meeting minutes, and who would step in if the assigned person is unable to attend. It is important to record board meeting minutes. It creates an official record 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.