OL 645 Risk Management Plan Phase II

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Apr 3, 2024

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1 | P a g e Risk Management Plan Phase II Cynthia Tomblin Date: March 26, 2023

2 | P a g e In any company, the HR department in responsible for helping to mitigate risks in all aspects including legal and ethical. Risk management is defined as identifying, analyze, evaluate, correct, and control issues that lead to loss and monitor and control including financial resources to mitigate loss and the negative effects caused by these losses (Marquette University, 2023). Companies can reduce the risks of these losses by preparing a strategic plan to handle these risks if and when they do happen. The incorporation of risk management when looking at environmental sustainability is an ongoing process that Leadership should always be undertaken. This paper will look at two companies and compare the strengths and weaknesses in terms of ethical and legal risk mitigation process of each company. Walmart is a worldwide company that generates $530 billion each year as one of the largest retailers in the US. Walmart also employs over 2.3 million people around the world. One of the issues that has emerged from the transformation that the company has made over the last few years is its regulation of its relationship with its worldwide suppliers. One concern is the working condition for its employees, poor quality of its products, the company’s ethical conduct, as well as environmental and social transparency and accountability. Walmart has been successful in mitigating the risks generating from these issues and is progressing toward a company that is being seen as a socially responsible. This is due to the company supporting local farmers and investing in healthier food options (Qiani,2018). Another strength is that its employee base is its key asset. The company spends time training and developing their employees (Blodget, 2010). The weaknesses of Walmart’s risk management plans where very visible in the fact that the company was found in violation of labor and social concerns with suppliers and customers as well as landfill management issues pertaining to waste management and requests for renewable

3 | P a g e energy (Harrison, 2019). The company also has had employee treatment issues as well as poor working conditions and has faced several lawsuits due to this issue. In addition, the company has had issues with low wages and inadequate healthcare. Gender discrimination was an issue as far back as 2001as well as recent as 2018 (Business & Human Rights Resource Centre, n.d). The second company that will be discussed in this paper is Coca Cola. This company was formed in 1886 and became the world’s largest distributor of nonalcoholic beverages in the world. Their product is distributed to 198 countries all over the world. The Coca-Cola company has many strengths when it comes to mitigating risks including being sustainability conscious and has policies in place to enhance its sustainability in the future such as healthy living, packaging, workplace benefits, water preservation, climate and energy, as well as community development which are spelled out in guidelines that have been adopted by the company (Juric, 2016). These practices has not only raised the competitiveness of the company but gained the company a positive image when it comes to progress with sustainability. The weaknesses of the Coca-Cola company include the issues of water preservation even after demonstrations and campaigns to deter these issues. In addition, there has been concern of the addition of harmful additives to its products affecting both people and the environment. As the supply of water used on production becomes less and less, consumers and the criticism that the company receives because of this as well as the increase in the price of the products. Regulators have taken notice (Mazur & Mazur-Małek, 2018) and the problems will not be corrected until the company decides to address the situation and come up with alternative solutions. Every company should prepare a strategic risk management plan to mitigate all possible risks to the company. The HR department and the executives should confer when there are

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4 | P a g e changes to policies, procedures or other changes that are made to how the company works daily. These risk management plans should assess all risks, especially those relating to all legal and ethical issues that may come up in conjunction with any of these current or added policies.

5 | P a g e References Blodget, H. (2010, September 20). Walmart employs 1% of America. Should it be forced to pay its employees more? Business Insider. https://www.businessinsider.com/walmart- employees-pay Business & Human Rights Resource Centre. (n.d.). Walmart lawsuit (re gender discrimination in USA) . https://www.business-humanrights.org/en/latest-news/walmart-lawsuit-re- gender-discrimination-in-usa/ EEOC. (n.d.). Small business resource center . US EEOC. https://www.eeoc.gov/employers/small-business Harrison, V. (2019). Legitimizing private legal systems through CSR communication: a Walmart case study. Corporate Communications: An International Journal. Jurić, M. (2016). Strategic Rivalry In Beverage Industry (Doctoral dissertation, University of Zagreb. Faculty of Economics and Business. Department of Organization and Management.). Mazur, B., & Mazur-Małek, M. (2018). Corporate Wellness: The Case of Coca-Cola Poland Company. International Journal of Contemporary Management, 2018(Numer 17 (2)), 97-110. Qian, J. (2018). Charitable Giving, Corporate Image Building, and Market Expansion: The Case of Walmart (Doctoral dissertation).

OL 645 Risk Management Plan Phase II

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