Part of Lesson Plan: Business Risks include Human Resource Management

Activity Overview / Details

Teacher asks for group discussion:  "Does the following real-life scenario qualify as an employee risk?  Why?"

·         Members of management at the energy trading giant Enron Corporation and its accounting firm, Arthur Andersen LLP, used questionable accounting techniques that inflated profits and hid losses.  These fraudulent practices resulted in the company declaring bankruptcy in 2001 – which was, at that time, the largest bankruptcy in U.S. history.  Thousands of Enron employees lost their jobs, and many people lost savings they had invested in Enron stock.  In addition, Arthur Andersen LLP, previously one of the top five accounting firms in the United States, lost its auditing license and sold its assets to competitors. (P 721, Marketing Essentials, McGraw Hill, Glencoe 2009)

Teacher asks for group discussion:  "Has anyone in class ever suffered from food poisoning after eating in a restaurant?"

        Failing to properly cook or handle food can lead to customers becoming ill or hospitalized.  To reduce risks of this type, many companies have instituted safety programs that stress the importance of proper food handling.