The WH Framework Analysis

W-Who (Stakeholders)

The W in the WH framework represents a company’s stakeholders who benefit from the activities of a company.

Customers

Investors

The management

H- How (Guidelines)

The ‘How’ represents the guidelines a company uses to make ethical decisions.

The Golden rule

Stakeholders Catered to By Trzaska

From the case, it is clear that Trzaska decided to cater to employees’ interests. The quota system on patents set by the head office was certainly unattainable by L’Oréal employees in the US subsidiary. That is because patenting rules in the US are strict, and if some employees fail to attain them, it does not necessarily mean that they are underperformers. Trzaska’s decision went against the desires of L’Oreal’s management, whose primary objective was to increase shareholder returns through enhanced patent acquisition.

As mentioned above, L’Oreal’s management objective was to improve the company’s bottom line by increasing the number of patents. By insisting on the quota system implementation, the managers knew well that some employees would be disadvantaged. Since a company’s management balances stakeholder interests, in this case, the company chose the investors (Kubasek et al., 2020).

Underlying Values for L’Oreal’s Decision to Fire Trzaska

The decision to fire Trzaska was based on the freedom value system. When directors act freely, they make decisions based on their volition without considering employee input (Kubasek et al., 2020). L’Oreal’s managers knew that their decision would affect employees, but they were not concerned since it would improve the company’s bottom line. Besides, L’Oreal’s management anticipated resistance from employees, which would delay the implementation of the critical decision. L’Oreal’s management decided to fire Trzaska to eliminate resentment altogether to avoid resentment. For investors, the move was positive, but employees were disadvantaged. Also, firing Trzaska was based on the fact that the company would no longer trust her. The managers’ goal was to improve the company’s financial position, but they felt Trzaska would be a potential stumbling block. They had to fire and replace her with someone who would align with the management’s objectives.

Reflection

The WH framework helped in analyzing the situation in various ways. Notably, the WH framework determines the organization’s value system, which in turn determines an organization’s culture. An organization’s value system guides managers’ short-term and long-term decision-making processes. For instance, L’Oreal management’s decision shows that maximizing stakeholder return is one of their cultures. Employees are expected to align with the organization’s culture as one of the employment requirements. By refusing to implement the patent quota system, Trzaska went against that culture; hence, she had to be fired. Prospective employees are supposed to review a company’s WH framework before deciding if they can work in the circumstances.

The WH Framework in Business Decision-Making

The WH framework helps managers assess organizational needs before making operational decisions. A WH framework helps managers focus on organizational needs instead of a manager’s individual needs (Rushworth, 2008). Some managers may divert from an organization, especially when pursuing individual values or building their image. For instance, Trzaska’s decision may have been influenced by a desire to fulfill her value as a caring manager.

Also, the WH framework helps managers build an organization’s ethical framework. Managers’ intuitions may affect decision-making, which may sometimes be detrimental to the organization. However, a WH framework helps managers eliminate rationalizations that may negatively affect the decision-making process (Rushworth, 2008). Conclusively, the WH framework should be applied across all business areas to ensure uniformity of culture.

References

Kubasek, N. K., Browne, M. N., Dhooge, L. J., Herron, D. J., & Barkacs, L. L. (2020). Dynamic Business Law (fifth). Mcgraw-Hill Education.

Rushworth, S. (2008). Thesis for PhD Degree The What, Why and How of Organizational Values A study of the interpretation and implementation of organizational values within fast-growing Australian companies. https://researchbank.swinburne.edu.au/file/413004aa-e407-47b6-94f9-0e837b65ffe7/1/Susan%20Mary%20Rushworth%

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Question

ACB/543 Competency 3 Assessment and Rubric
Course Title: Managerial Accounting and Legal Aspects of Business
Competency Assessment Title: WF Framework
Assignment Directions
Refer to section “The WH Framework for Business Ethics” of Ch. 2, Business Ethics of Dynamic Business Law for information on the WH

The WH Framework Analysis

Framework.
For this assignment, refer to the scenario located in the “Questions & Problems” section of Ch. 2, “Business Ethics” in Dynamic Business Law.
This scenario involves Steven J. Trzaska, the head of L’Oréal USA’s regional patent team, and the ethical rules and core values of the company.
Read the scenario in the textbook and complete the following activity.
Create a WH Framework chart similar to Exhibit 2.1. Refer to L’Oréal’s core values and the primary values in Exhibit 2.3 to determine the
guidelines to include in the WH Framework.
Write an explanation of how you decided on the list of stakeholders and guidelines to include in your WH Framework. Address the following
questions in your explanation:
• Which stakeholders did Trzaska and the management of L’Oréal cater to? Why?
• What values did L’Oréal’s management choose when they made the decision to fire Trzaska? Why?
Address the following self-reflection questions in addition to your explanation:
• How did the WH Framework help you analyze the situation?
• Now that you’ve put together the framework, how does the WH Framework hel