Riordan China Considerations Memo, Essay Example

Riordan Manufacturing Company, an international plastics manufacturer, was founded in 1991 as a business that processed polymers and made them into durable substrates. It is widely regarded as  a leading business in the plastics sector because of its ability to adapt to shifting customer necessities. The manufacturing plant in operation in Hangzou, China of Riordan Manufacturing is a decentralized unit of the company that forecasts the sale of electric fans on a global basis, including in the United States. An international plastic manufacturing firm, it specializes in creating various container parts for fans, automobiles, and beverage drinks and is completely owned by Riordan located in strategic locales in the United States and in China. There are some concerns about the plants in China, however, because of the way the company is run and whether or not it adheres to international law. Indeed, international law, according to Cheeseman (2010), is critical both to foreign businesses and to nations across the globe since it regulates the affairs between businesses and individuals with regards to foreign affairs (Cheeseman, 2010, p. 249). In line with environmental initiatives that have been passed in the United States, Riordan Manufacturing aims to go Green, which requires a better understanding of production processes and how they affect the environment. The Chinese must be consulted about the Going Green proposal because it has in place very complex laws dictating foreign businesses. Riordan Manufacturing Company must ensure that its employees are in total compliance with required stipulations and rules.

Laws in place in the United States as well as regulations in China must be understood in order for the company to self-regulate the plant in operation in China. In the United States, the most significant regulation regarding total compliance is the Sarbanes-Oxley Act, which specifically defines tight personal accountability of leading corporate executives for the preciseness of fiscal statements recorded annually. With regards to environmental protections, the U.S. Environmental Protection Agency (EPA) and environmental agencies at the local level enforce environmental regulations in order to mitigate air and water pollution. The Clean Air Act is one example, and businesses that emit too much pollution or carbon dioxide are exacted large fines. While some critics decry the excessive regulation of small businesses in the United States, Chinese law has arguably become more draconian with regards to the punishments doled out to polluters. During the 1990s, rampant economic growth took place at the expense of the environment, as several rivers desiccated and cities slammed by smog clouds. As such, businesses that continued to pollute the air and water supply were at risk of company bosses incarcerated for two weeks if environmental impact assessments were not carried out. Environmental protection policy became the law of the land the official rhetoric of the Chinese government. While such rhetoric takes a hard-line stance towards environmental degradation, the chasm between legislation and implementation remains quite large. As a result, it is the prerogative of Riordan Manufacturing Company to consult with Chinese officials and carry out environmental impact assessments on a regular basis.

Business managers can play an integral role in finding solutions to environmental issues while also increasing company profits. Indeed, environmental protections can be implemented without harming the profitability of the company. Industry self-regulation is critical for regulating business activities without the need for government interference. Environmental protections are critical for the public welfare, which is why company consultants must ensure that all activities carried out by the company are in line with going Green initiatives. The people living in China as well as company executives and workers are all stakeholders in ensuring that the company complies with going Green initiatives. As such, Riordan Manufacturing officials must act as agents of change and be disciplined by cogent stakeholders. Environmental harm often drives self-regulation because the cost of it is believed to have come about as a result of other business or firms. Such externalities often are elided from the balance sheet of the polluter, and the right to have access to environmental resources often become part of the commons since they are not clearly defined or protected. Such a reality undergirds why pollution remains justified in the eyes of many and drives the need for industries to self-regulate.

References

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Cheeseman, H. (2010). Business law: Legal environment, online commerce, business ethics, and international issues. Upper Saddle River, New Jersey: Prentice Hall.

Cherrington, J., Dunn, C., & Hollander, A. (2005). Enterprise information system. New York: McGraw Hill.