MSchwandt_RiskPreventionPolicy_112223

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1 Risk Prevention Policy Megan Schwandt Rasmussen University LDR5300/CBE: Legal, Ethical, and Risk Issues In Organizations Venus Fisher December 15, 2023

2 Risk Prevention Policy Gagliano Vineyard is a family owned and operated winery. Our winery grows its own grapes in the vineyard that are then turned into wine. At Gagliano Vineyard, we process, age, bottle, and distribute wine to our customers. Gagliano Vineyard is located in Roscoe, Illinois. This is a short drive for most of our customers and workers. Our company promotes our homemade wine and wine slushies. Customers might view the mission statement as a purpose to remain loyal clients. A mission statement expresses the reason for and organizations existence that address both internal and external populations (Comstock, 2022). Our mission at Gagliano Vineyard is to produce the most sustainable-sourced products that have the highest quality, while providing our customers with an exceptional experience. This will create meaningful connections within the community around us. Core values are an important aspect to our company. Core values guide our company to determine if we are fulfilling our goals by creating commitment. These guiding principles help define how the company behaves in business. Core values are usually expressed in the corporation’s mission statement (Banner, 2021). In order to ensure that our mission is achieved, we ensure that our employees understand the core values of our company. Our core values focus on integrity, respect, innovation, commitment, teamwork, and family. Not only should employees respect one another, but they should also show signs of respect towards customers as well. Employees should be committed to what they do every day. Employees should also foster collaborative teamwork to achieve the mission of the company. Everyone that steps foot in our winery should feel like family and our employees play a vital role in making sure that is achieved. In this risk prevention policy, we will evaluate safety and security compliance of organizational and employee work environments, analyze organizational practices, design

3 reasonable accommodations to meet employee needs, appraise the workforce relations, integrate negation strategies, and design an organization risk management plan. Standards for employee safety and security: The standards for employee safety and security at Gagliano Vineyard are well thought out and followed by all members of the company to ensure that risks are mitigated as much as possible. This ensures that our employees and customers are kept safe. Risk mitigation can protect our organization through the prevention of harmful risks occurring. Taking initiative and minimizing risks may reduce costs, save time, and improve workplace morale. Risk mitigation strategies can reduce the impact of inevitable risks. This helps Gagliano Vineyard conserve resources for its main objectives. There are also government regulations that require the workplace to pursue workplace safety measures. The Occupational Safety and Health Act of 1970 requires employers to pursue workplace safety and deals with the physical protection of employees from injury or illness while on the job. OSHA sets and communicates federal safety and health standards to employers. Employers must meet all OSHA safety standards, maintain records of injuries and deaths due to workplace accidents, and submit to on-site inspections when notified. HR management works close to other departments and maintains health and safety records along with managing safety training programs. There are many consequences that come from violating OSHA standards such as payment penalties of up to $150,000 for each occurrence depending on severity, imprisonment for the employer if the violation is willful or repeated, and serious injury or risk of death. There are many ways to avoid violating these standards set by OSHA and we must find and correct safety and health hazards, inform and train employees about existing hazards in the workplace, and we must notify OSHA within eight hours if a fatality

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4 occurs, or three or more employees are hospitalized due to workplace conditions. Gagliano Vineyard will provide all personal protective equipment necessary to do the job at no cost to its employees and we will keep accurate records of work-related injuries or illnesses. This is to ensure the safety and well-being of all of our employees. Employees must be trained to recognize and avoid the hazards of our company. Under OSHA, employees are granted certain rights such as the ability to contact the administration about safety and health conditions in their workplaces. Employees have their confidentiality maintained, the ability to contest the time period that OSHA allows for correcting standard violations, and to participate in OSHA workplace inspections. (Weiss, 2022). Measures for reasonable accommodation: In order for individuals to be protected under the Americans with Disabilities Act, an Individuals must have a physical or mental impairment that limits one or more major life activities such as seeing, hearing, eating, walking, standing, lifting, speaking, breathing, and other factors. According to the ADA a qualified individual will possess the skills, education, experience, and other job-related requirements for the position. A qualified individual with disabilities can benefit the organization just as those without disabilities by being able to perform the job functions required. We are looking for a qualified individual who can complete the job functions with reasonable accommodation. This individual will help the company and departments thrive, which in turn will make the company competitive and increase profits. As a company we want to make sure we are an equal opportunity employer. We understand that some of the employees have disabilities or will have disabilities we are prepared to make reasonable accommodations as needed and are prepared to support our employees under the Americans with Disabilities Act. A reasonable accommodation is the modification,

5 adaptation, or adjustment in the job application process, work environment, performance of the job, or in the benefits and privileges of employees (Custom, 2018 ). A reasonable accommodation according to the law can include modified work schedules, adaptive equipment, leave of absence, interpreter, handrails, widening doorways, and many other accommodations. Any accommodation that is needed must be requested by the employee. For example, if an employee of ours has a disability such as being in a wheelchair, we would widen all doorways in order to make the building entrance and exit areas more accessible to wheelchairs in order for those employees to complete their daily tasks. Studies show that only four percent of accommodation costs the organization more than $500 (Rasmussen, 2023). Another example of our organization accommodating employees would be providing a chair for those at the winery to sit down in when they need to. This would cost the organization no more than $30 per chair, which would not pose any undue hardships for the company, and it would allow our employees to complete the necessary functions of their job. Accommodation should be made on a case-to- case basis because each disability case can be different, and the requirement of the job varies (EEOC, 2023). Critical Components: In the event of a natural disaster, it is important that the winery has a disaster recovery plan. The Human Resource Management team is the team that determines the goals of the disaster recovery plan. The goal of this disaster plan is to ensure that the business can continue with the critical elements of the business despite the natural disaster that has occurred. The overall objective is to respond appropriately to the emergency and manage the restoration of the organization and its programs and services its associated with. Other goals would include the organization minimizing interruptions to normal operations, limiting disruption and damage,

6 minimizing economic impact, establishing alternative means of operation, training personnel in emergency incidents, and protecting and securing all information, records, business sites, and facilities. The critical component that must be addressed to assure business continuity is for the owners to do a regular maintenance check of the property to make sure it is in the best shape to withstand natural disasters. This can be done through regular repairs and maintenance such as removing dead or dying landscaping. There needs to be a business continuity plan in place that consists of a contact list with all employees’ names and phone numbers in order to establish communication guidelines in the event of a disaster. There must also be a list of customers and suppliers that will be contacted and notified as well if a disaster occurs. The winery manager will be responsible for monitoring natural disasters and the manager has clear authority to make decisions about the safety of our vines, inventory, and staff. Our electronic data must be backed up regularly, so we do not lose information if servers are damaged. his data should be stored offsite in a safe and secure location 50 miles or more from the winery (Catalyst, 2008). In the event of an earthquake, it is important that our wine racks are sturdy enough to withstand the shaking and rattling. The first step of the plan is to identify critical business functions. These are activities that are vital to the organization’s survival in the event of a disaster. The second step is to create a business continuity action plan. This plan outlines roles and responsibilities for each business function. The third step is to communicate with all employees and stakeholders of the winery before the event occurs. The fourth step is for the winery to test the plans frequently to ensure everyone knows their role in the company. The winery should have updated technology, ensure files are correctly documented, and be thorough and precise in its communication efforts.

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7 Importance of management decisions aligning with ethical values of the organization: Ethical values are the set of moral guiding principles that determine how a company will conduct business. According to the Chronicle, a primary objective of the code of ethics is to clearly define what the company is about. The article also stated to make it clear that the company is based on honesty and fairness as well (Custom, 2018). Ethics are important within the company for the simple fact, they play a vital role in the company’s long-term success by creating a positive reputation and encouraging brand loyalty. Ethics also lead to satisfied and loyal employees. Ethics guide the operations of the winery and how the company interacts with stakeholders. Ethics are also important to uphold integrity, transparency, and responsibility of the winery. Examples of this would include creating sustainable farming practices for the vineyard, treating employees equally, marketing, and maintaining product quality and safety. When managers align their decisions with the company’s ethical values, they set the tone for the entire company. This occurs through the managers upholding integrity in their decision- making efforts which fosters trust, transparency, and accountability. This is important because it also helps build a strong and solid reputation for the company and increases the stakeholder’s confidence in the company’s products. Aligning decisions with the company code of ethics is also important for legal and regulatory compliance, long-term success of the company, and employee engagement and retention. Not upholding the company’s ethics can lead to major legal and reputational issues as well as consequences. Both customers and stakeholders will no longer trust a company who has a bad reputation. If managers do not uphold the code of ethics neither will the employees. The company should have an open-door policy included in the code, which allows employees or other management to anonymously report any ethical issues (Custom, 2018).

8 Impact of labor laws and unions: Gagliano Vineyard is subject to all applicable labor laws and regulations and the company will not tolerate any violations. The company respects the rights of employees to form and join unions if they decide to. Diversity in the workplace is crucial to a successful business and in 1964, Title VII of the Civil Rights Act was passed. This Act protects all working-class citizens of the United States. This Act prohibits employment discrimination based on race, color, religion, sex, and national origin these are considered the protected classes (Custom, 2018). Title VII exists for equal employment opportunities and fairness in the workplace. There are three key ethical issues that relate to gender discrimination which are pay inequality, glass ceiling, and pregnancy. This Act means that employees have specific protections against discrimination, and they have a right to equal employment and fair treatment. For employers, this means they cannot discriminate against those who possess the proper skills, education, and other qualifications and they cannot make employment decisions based on protected characteristics of an individual. Employers must create and enforce policies that promote both diversity and inclusion within the workplace. Bona Fide Occupational Qualification is an exception however, because it requires that in order for an individual to be able to successfully perform all job duties and functions for the particular job they are applying for (Custom, 2018). Employees join unions for a variety of reasons, including better pay and benefits, unfair management practices, poor labor relations, job security. For example, union members can go to their employer with a concern or idea on how to improve efficiency in the workplace and know that they are protected from any reprisals (Klein, 2011). The union organizing process consists of the five steps which are initiate organizing activities, signing authorization cards, figuring out the bargaining unit, election, and then finally certification. If 30% of employees do not sign the

9 process ends and if less than 50% of employees vote for the union the process ends (Fisher, 2023). Unions help with better pay and benefits for employees by making sure employees have health insurance, retirement plans, paid sick leave, vacations, paid holidays, and unions give employees a voice and input into the number of hours they work during the week (Banerjee, Poydock, Mchnicholas, etc., 2021). Unions also require workplaces to provide employees with the proper safety equipment and they encourage employees to report any unsafe working conditions without fear of retaliation from management. Unions also help with job security by knowing that an organization cannot just fire an employee because the employee is voicing their concerns or reporting to the proper authorities about issues in the organization. Unions make sure employees have their wants and needs heard by the organization that sometimes may go ignored without a union. The Equal Employment Opportunity Act of 1972 is a federal law that amended Title VII to increase protection of minorities and women in employment. The EEO also makes sure employees are given equal opportunities to be successful in the workplace based off their skills and qualifications. Human Resources Audit: A Human Resources audit involves devoting resources and time to taking an intensely objective look into company’s practices. HR policies, strategies, and procedures to protect the company, identify opportunities for improvement, and to establish best practices. An audit consists of evaluating the following: an evaluation of the company’s policies, processes, and policies, with a focus on key HR department areas- recruiting (both internal and external); compensations, employee retention, benefits, performance management, training, and development. Criteria 1: Fair recruitment practices internally and externally. 5/5

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10 Auditor notes: The organization abides by all laws and regulations in relation to recruiting employees both internally and externally. The organization is highly diverse in all areas of the business. The recommendation is for the company to continue being fair in their recruitment strategies and processes to keep their company diverse and abide by all laws and regulations. Criteria 2: The organization provides equal pay to all employees 2/5 Auditor notes: This organization has room for improvement with compensation. The audit revealed huge disparities among salaries of similar roles. Leadership was not able to provide evidence, documentation, or sound rationale for the salary differences. The recommendation is for a more in-depth audit and review, or the organization’s hiring practices, specifically compensation and a full market review of compensation based on similar roles within the industry. Criteria 3: Employee retention rates 3/5 Auditor notes: The company has a slightly lower retention rate than it should. My recommendation is for the company to make sure they are providing equal pay across all departments. This will help employees to feel equal to one another and feel the company cares about everyone equally. The company should also be offering growth opportunities for current employees to advance their career. Along with growth opportunities the company can offer its employees tuition reimbursement. For example, a maximum reimbursement amount of $5,250 per year with a one-year service requirement prior to eligibility, but no requirement following participation, and the employee must receive a grade of C or higher to receive the reimbursement (Manchester, 2012). Criteria 4: Benefits 4/5

11 Auditor Notes: The benefits of the company are a perfect score. The company can increase this score by adding benefits. The recommendations for the company are to include 401 (k) plans, flexible work schedules, and paid parental leave. Adding these three benefits will also help in the employee rendition strategies as well. Criteria 5: Performance Management 4/5 Auditor Notes: The company’s performance management cycle is good, but it could be better. The recommendation to increase this score is for the company to offer a better rewards program. This will help employees feel more obligated to work more efficiently and effectively in the workplace. The company can use rewards such as top performers receiving monetary incentives that include gift cards or additional PTO, or non-monetary incentives, such as special parking spots like employee of the month. Criteria 6: Training and Development 3/5 Auditor Notes: Training and Development within the workplace has a lot of room for improvement as this can help increase employee retention rates. To increase this score our recommendation is for the company to assess team needs, create a plan, deliver training, and evaluate the success of the training. Conclusion: Our mission at Gagliano Vineyard is to produce the most sustainable-sourced products that have the highest quality, while providing our customers with an exceptional experience. This will create meaningful connections within the community around us. The standards for employee safety and security at Gagliano Vineyard are well thought out and followed by all members of the company to ensure that risks are mitigated as much as possible. This ensures that our

12 employees and customers are kept safe. As a company we want to make sure we are an equal opportunity employer. We understand that some of the employees have disabilities or will have disabilities we are prepared to make reasonable accommodations as needed and are prepared to support our employees under the Americans with Disabilities Act. A reasonable accommodation is the modification, adaptation, or adjustment in the job application process, work environment, performance of the job, or in the benefits and privileges of employees (Custom, 2018 ). A reasonable accommodation according to the law can include modified work schedules, adaptive equipment, leave of absence, interpreter, handrails, widening doorways, and many other accommodations. In the event of a disaster, the critical component that must be addressed to assure business continuity is for the company to do a regular maintenance check of the property to make sure it is in the best shape to withstand natural disasters. This can be done through regular repairs and maintenance such as removing dead or dying landscaping. When managers align their decisions with the company’s ethical values, they set the tone for the entire company. This occurs through the managers upholding integrity in their decision-making efforts which fosters trust, transparency, and accountability. This is important because it also helps build a strong and solid reputation for the company and increases the stakeholder’s confidence in the company’s products. Gagliano Vineyard is subject to all applicable labor laws and regulations and the company will not tolerate any violations. The company respects the rights of employees to form and join unions if they decide to. Diversity in the workplace is crucial to a successful business and in 1964, Title VII of the Civil Rights Act was passed. This Act protects all working-class citizens of the United States. This Act prohibits employment discrimination based on race, color, religion, sex, and national origin these are considered the protected classes (Custom, 2018). Title VII exists for equal employment opportunities and fairness in the

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13 workplace. Audits can help the company make sure they are following all regulations and policies. An audit consists of evaluating the following: an evaluation of the company’s policies, processes, and policies, with a focus on key HR department areas- recruiting (both internal and external); compensations, employee retention, benefits, performance management, training, and development.

14 References Banerjee, A., Poydock, M., McNicholas, C., Mangundayao, I., & Sait, A. (2021, December 15). Unions are not only Good for Workers, They’re Good for Communities and for Democracy . Economic Policy Institute. https://www.epi.org/publication/unions-and-well- being/. Banner, T. (2021). Core Values Are Crucial to Your Business’s Success. Retrieved from: https://eds.s.ebscohost.com/eds/pdfviewer/pdfviewer?vid=13&sid=2a50ea67-bdb0-40da- b4d2-ed1abd522602%40redis. Catalyst. (2008). Business Continuity Planning: 10 Steps To Ensuring Business Continuity After A Disaster. Retrieved from: Business_Continuity_Planning_10 Steps to Ensuring Business Continuity After a Disaster.pdf. Comstock, N. W. (2022). Mission and vision statements . Salem Press Encyclopedia. Retrieved from: https://eds.s.ebscohost.com/eds/detail/detail?vid=1&sid=b78cbeb9-ab22-44ca- b410-b77ba1c1570b %40redis&bdata=JkF1dGhUeXBlPWlwLHNoaWImc2l0ZT1lZHMtbGl2ZQ%3d %3d#AN=100259273&db=ers. Custom, S. (2018). CUSTOM: Rasmussen College LDR 5300 Legal, Ethical and Risk Issues in Organizations Custom Interactive eBook Edition. SAGE Publications, Inc. (US). https://ambassadored.vitalsource.com/books/9781544349282. EEOC. (2023). The ADA: Your Responsibilities As An Employer. Retrieved from: https://www.eeoc.gov/publications/ada-your-responsibilities-employer.

15 Fisher, V. (2023). Live Classroom Deliverable 2 . Retrieved from: https:// rasmussenedu.sharepoint.com/sites/LDR5300CBESection01CBELegal_d2e822d1-5645- 11ee-9a1c-053f8071df40/_layouts/15/stream.aspx?id=%2Fsites %2FLDR5300CBESection01CBELegal_d2e822d1-5645-11ee-9a1c- 053f8071df40%2FShared%20Documents%2FGeneral%2FRecordings%2FWeek %202%2FWeek%202%20Content%20Live%20Session%20-%20Part%20II %2Emp4&referrer=OneDriveForBusiness&referrerScenario=OpenFile Klein, E. (2011). Do We Still Need Unions? Yes. Newsweek , 157 (10), 18. Retrieved from: https:// eds.p.ebscohost.com/eds/detail/detail?vid=2&sid=f9d68476-b1d8-4c11-b29d- 21e98a980012%40redis&bdata=JkF1dGhUeXBlPWlwLHNoaWImc2l0ZT1lZHMtbGl2 ZQ%3d%3d#AN=58731392&db=pwh. Manchester, C. F. (2012). General Human Capital and Employee Mobility: How Tuition Reimbursement Increases Retention Through Sorting and Participation. ILR Review: The Journal of Work and Policy, 65(4), 951–974. Retrieved from: https://eds.s.ebscohost.com/eds/pdfviewer/pdfviewer?vid=2&sid=99c5c6f8-3dab-4ea4- 8e90-4139dac73379%40redis. Rasmussen University. (2023). Reasonable Accommodations for People With Disabilities in the Workplace. Retrieved from: https://learning.rasmussen.edu/ultra/courses/_141084_1/outline/edit/document/ _14616224_1?courseId=_141084_1&view=content. Weiss, M. (2022). Occupational Safety and Health Act of 1970. Retrieved from: https://eds.s.ebscohost.com/eds/detail/detail?vid=8&sid=2a50ea67-bdb0-40da-b4d2-

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