Creating a Risk Management Plan Project
requirements of Submission: Written components of your project must follow these formatting guidelines when applicable: double spacing, 12-point Times New
Roman font, one-inch margins, and APA format for all elements. The Risk Management Plan has a required minimum of 5 pages, and should include legal,
ethical, safety, environmental, cultural, political, and financial factors. You need to include references and a cover page. You will need to include a minimum of 5
properly cited, scholarly sources in your risk management plan.
Your final submission is your Risk Management plan. Your plan should be no less than 5 pages answer the following question: What specific challenges must the
HR department address to mitigate organizational risk situations? The risk management plan should address the following critical elements:
1. Ethical and Legal Risks—Identify ethical and legal challenges that were taken into account when analyzing the two public cases, such as positive and/or
negative impacts on key stakeholders (e.g., employees, their families, shareholders, and the communities involved).
a. What are some approaches your company could take to ensure legal compliance? Explain the probable impacts of those approaches.
b. What methods could your company use to mitigate ethical and legal risks? Provide specific examples.
2. Potential Impact—Evaluate the impacts of legal, safety, environmental, and financial risks that were encountered in the two public cases.
a. What was the impact of the legal, safety, environmental and financial risks to the organizations in the public cases? Provide specific examples to
illustrate. Use these examples to forecast potential impacts for your company in the risk management plan.
b. Considering that the executive team is having you take a proactive approach by creating a risk management plan to organizational risk, what are
some of the costs associated with these risks?
3. Public Relations—Identify the challenges associated with the cases going public.
a. What factors were considered when society as a whole either supported or opposed the decisions made in the public cases? How important is
societal support, and what factors will you consider to produce positive societal support?
b. What factors were considered with regard to cultural support or opposition in the public cases? How might you apply these factors to your
company?
c. Were there political influences affecting management’s decisions in the public cases? Give examples of possible political issues and explain how
they are relevant to your company’s decisions.
4. Trends—Describe current and projected trends regarding workplace health, personal safety, and security in the public cases. Based on those current and
projected trends, address the following:
a. What are the implications for workplace health and safety of the risk situations in the public cases? Why should these factors be considered in
the risk management plan?
b. Why would an employer be concerned with the personal safety and security of workers in these risk situations?
5. Employment Laws
a. Identify the applicable federal laws and acts and the possible impacts of each law on current employees at your company.
b. Propose methods that could be used to ensure compliance with all identified regulations.
Risk Management Plan Project Phase III
Author's Name
The Institutional Affiliation
Course Number and Name
Instructor Name
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Table of Content
TOC \o "1-3" \h \z \u 1. Introduction PAGEREF _Toc76925967 \h 32. Ethical and Legal Risks PAGEREF _Toc76925968 \h 32.1. Ethical and Legal Challenges Taken into Account for Two Public Cases (Positive and Negative Impact on Key Stakeholders) PAGEREF _Toc76925969 \h 42.2. Approaches for Starbucks Corporation to Ensure Legal Compliance and their Impacts PAGEREF _Toc76925970 \h 42.3. Methods of Starbucks Corporation to Mitigate Ethical and Legal Risks and Examples PAGEREF _Toc76925971 \h 43. Potential Impact of Legal, Safety, Environmental and Financial Risks Encountered in Two Public Cases and Its Impact on Organizations PAGEREF _Toc76925972 \h 53.1. Examples to Forecast Potential Impacts to Starbucks in the Risk Management Plan PAGEREF _Toc76925973 \h 53.2. Costs with the Safety and Environmental Risks PAGEREF _Toc76925974 \h 54. Public Relations: Challenges Related to Cases Going Public PAGEREF _Toc76925975 \h 54.1. Factors as a Whole Society Opposed the Decisions Made in the Public Cases PAGEREF _Toc76925976 \h 64.1.1. Significance of Positive Societal Support PAGEREF _Toc76925977 \h 64.2. Application of Factors in the Starbucks PAGEREF _Toc76925978 \h 64.3. Impact of Political Issue in the Public Cases and Relevance to Starbucks PAGEREF _Toc76925979 \h 65. Trends: Current and Projected Trends Regarding Workplace Health, Personal Safety, and Security in the Public Cases PAGEREF _Toc76925980 \h 75.1. Implications of Workplace Health and Safety of the Risk Situations in the Public Cases PAGEREF _Toc76925981 \h 75.1.1. Factors to be Considered in the Risk Management Plan PAGEREF _Toc76925982 \h 75.2. Starbucks Concern with the Personal Safety and Security of Workers in the Risk Situations PAGEREF _Toc76925983 \h 76. Employment Laws PAGEREF _Toc76925984 \h 86.1. Federal Laws and Acts and, Impact of Each Law on the Current Employees in the Starbucks PAGEREF _Toc76925985 \h 86.2. Method to Ensure Compliance with the Regulations PAGEREF _Toc76925986 \h 8References PAGEREF _Toc76925987 \h 9
Risk Management Plan Project Phase III
1. Introduction
Organizations require an effective risk management plan (RMP) to minimize risks and accomplish sustainable competitive advantage in a different market or business environments. Projected profitability and revenues are achievable in the environment, where companies continuously evaluate their RMP to introduce new changes as per requirements and expectations. The report highlights an RMP for Starbucks Corporation – a market leader in the coffee and beverages industry.
2. Ethical and Legal Risks
Among different risks, ethical and legal risks are the most important.
The selected public cases for the analysis are:
* The first public case is related to recalling the 12 million pounds of raw beef by JBS Tolleson Inc. because of the potential salmonella contamination (Siegner, 2018). However, the Arizona superior court has dismissed the case filed by an individual who contracted a salmonella infection (Byington, 2018).
* The second public case is of a lawsuit accusing Hershey International of the deliberate action of selling the semi-full packages of different products like Whoppers and Reese's Pieces (Byington, 2018). The customer claim was that semi-full packages are deceptive and unlawful because Whoopers are only 59% filled (Byington, 2018). However, the U.S. district judge dismissed the unjust enrichment claim because the claimant keeps on buying products even after the findings of semi-full packages (Byington, 2018).
2.1. Ethical and Legal Challenges Taken into Account for Two Public Cases (Positive and Negative Impact on Key Stakeholders)
From two public cases, the ethical issues are food safety, sustainable practices, and accurate information about food. The legal issues are Compliance to Food Safety Modernization Act (FSMA) (Mahmoud, 2018), Hazard Analysis Critical Control Point (HACCP) (FDA, 2021), and Federal Trade Commission (FTC) guidelines on marketing and advertisements (Federal Trade Commission, 2021). In the first case, JBS Inc. needs to comply with the safety regulations; otherwise, company goodwill negatively impacts and eventually leads to fewer customers. In the second case, Hershey employees, especially the marketing department, should follow the FTC guidelines to market the right information to customers about the quantity or volume of products.
2.2. Approaches for Starbucks Corporation to Ensure Legal Compliance and their Impacts
Starbucks needs to develop a joint board that consists of workers' representatives and senior-level executives to ensure that workplace and manufacturing facilities comply with the guidelines by the US FDA (Food and Drug Administration). The joint board is responsible for continuously evaluating the FDA guidelines and relevant changes and then implementing specific strategies to ensure improvement in every aspect of Starbucks chains across the U.S.
2.3. Methods of Starbucks Corporation to Mitigate Ethical and Legal Risks and Examples
For Compliance with the FDA, employees' training is a compulsion to ensure that cross-contamination risk eliminates unprepared food. In addition, FDA guidelines state that fast-food chains need to display nutrition guidelines on every product (Blum, 2018). Finally, information about the product's quantity should be visible for customers' knowledge and awareness in terms of packaged products.
3. Potential Impact of Legal, Safety, Environmental and Financial Risks Encountered in Two Public Cases and Its Impact on Organizations
In the first case, JBS Tolleson faces the risk of food safety. It directly impacts the company's goodwill and profitability because of the withdrawal of 12 million pounds of raw beef – a clear indication of financial risk in the short period. In addition, the Food Safety and Inspection Service (FSIS) and the Center for Diseases Control and Prevention (CDC) collectively identify the Salmonella disease in raw beef. Therefore, environmental risk also exists because it affects society (FSIS, 2021). In the second case, Hershey International potentially faces more financial risks because fewer products in packaged products encourage customers to switch to other competitors in the market.
3.1. Examples to Forecast Potential Impacts to Starbucks in the Risk Management Plan
Starbucks has the potential resources to comply with FDA guidelines regarding food safety; however, additional efforts are essential from the marketing department to label the packaged products to transfer the quantity and nutrition to potential customers (Ellison et al., 2016).
3.2. Costs with the Safety and Environmental Risks
Recommendations include more investment in green packaging for products and deploying more advanced technological equipment at manufacturing facilities to ensure food safety (Vasile and Baican, 2021). As a multinational like Starbucks, an estimated budget of $100 million is vital to combat the safety and environmental risks and implement FDA guidelines.
4. Public Relations: Challenges Related to Cases Going Public
In both cases, the biggest challenge is the negative impact on companies' goodwill and credibility of information the product packaging contains.
4.1. Factors as a Whole Society Opposed the Decisions Made in t...