WH Framework
Refer to section “The WH Framework for Business Ethics” of Ch. 2, “Business Ethics” of Dynamic Business Law for information on the WH Framework.
Review the scenario and complete the activity below. This scenario can also be found in the “Questions & Problems” section of Ch. 2, “Business Ethics” in Dynamic Business Law.
Scenario:
Steven J. Trzaska was the head of L’Oreal USA’s regional patent team, managing the procedure by which the company patented products. As an attorney barred in Pennsylvania, Trzaska had to adhere to professional rules of conduct established by the Supreme Court of Pennsylvania in addition to rules promulgated by the US Patent and Trademark Office (USPTO). In 2014, L’Oreal S.A., the French parent company of L’Oreal USA, enacted a global quota of patent applications each regional office had to file each year. Employees were informed that failure to meet the quota would negatively impact their careers and even their continued employment at L’Oreal. Meanwhile, L’Oreal USA simultaneously enacted a rule to increase the quality of patent applications filed with the USPTO. The second rule led to a decrease in number of patents that could be filed with the USPTO. Trzaska’s team would not be able to fulfill the patent quota.
Faced with the problem, Trzaska informed management that his team would not file patents that they did not believe in good faith were patentable. Several weeks after Trzaska’s meeting with the management, he was offered 2 severance packages that he did not accept. Finally, Trzaska was let go. Trzaska subsequently sued L’Oreal, alleging that he was fired for refusal to violate ethical rules that regulate the legal profession.
Create a WH Framework chart, similar to Exhibit 2.2. Refer to L'Oreal’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 Traszka and the management of L’Oreal cater to? Why?
What values did L’Oreal’s management choose when they made the decision to fire Trzaska? Why?
Self-Reflection
In addition to your explanation, address the following self-reflection questions:
How did the WH Framework help you analyze the situation?
Now that you’ve put together the framework, how does the WH Framework help managers with making business decisions?
What type of decisions would the WH Framework chart help you make as a manager?
Sample Solution
The WH Framework is a tool that can be used by managers to make business decisions. It stands for Who, How, and Why. The WH Framework helps managers to identify the key stakeholders involved in a decision, the ethical guidelines that should be considered, and the reasons for making a particular decision.
The WH Framework can be used to make a variety of business decisions, such as:
- Hiring a new employee
- Investing in a new product
- Expanding into a new market
- Making a pricing decision
- Dealing with a customer complaint
Full Answer Section
The WH Framework can be helpful for managers because it forces them to think about the ethical implications of their decisions. It also helps them to identify the different stakeholders who may be affected by their decisions. Here are some of the specific ways in which the WH Framework can help managers with making business decisions:- Identifying the key stakeholders: The WH Framework can help managers to identify the key stakeholders who will be affected by a decision. This includes employees, customers, suppliers, investors, and the community. By understanding the needs and concerns of these stakeholders, managers can make decisions that are more likely to be ethical and successful.
- Considering ethical guidelines: The WH Framework can help managers to consider the ethical guidelines that should be applied to a decision. This includes laws, regulations, and professional codes of conduct. By considering these guidelines, managers can avoid making decisions that are unethical or illegal.
- Understanding the reasons for a decision: The WH Framework can help managers to understand the reasons for making a particular decision. This includes the costs and benefits of the decision, as well as the risks and opportunities. By understanding the reasons for a decision, managers can make more informed and effective decisions.
- The WH Framework can help managers to think more critically about their decisions. By identifying the key stakeholders, ethical guidelines, and reasons for a decision, managers can avoid making decisions that are impulsive or based on emotions.
- The WH Framework can help managers to communicate their decisions more effectively. By explaining the reasons for a decision to the key stakeholders, managers can build trust and avoid conflict.
- The WH Framework can help managers to learn from their decisions. By reflecting on the results of a decision, managers can improve their decision-making skills in the future.