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Week 5 Assignment

WH Framework Chart:

Guidelines:

Stakeholders Guidelines

Employees Ethical behavior

Customers Quality products

Shareholders Financial growth

Management Legal compliance

Society Corporate responsibility

Explanation of the list of stakeholders:

The management of L'Oreal in this instance adhered to the global patent quota set by the

company's French parent, whereas Trzaska catered to the ethical rules that govern the legal

profession. Trzaska thought that submitting patent applications for something he did not honestly

think were patentable would go against his ethical obligations. The management of L'Oreal, on

the other hand, was concentrated on achieving the global patent quota and raising the caliber of

patent applications submitted to the USPTO. The management of L'Oreal made meeting the

global patent quota a priority since it was mandated by the French parent business and failing to

do so would have a severe effect on the employment and career prospects of staff members at

L'Oreal USA. This shows that management made decisions to serve the needs of the parent

company and shareholders who would gain from an increase in patent applications, which might

result in higher revenue and earnings for the business. Trzaska and his group were serving

L'Oreal's interests as well as those of the legal community, since they thought that submitting
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patents that are not really honestly patentable would be against the law and may perhaps damage

the company's reputation if such patents were contested or overturned.

Based on the key principles outlined in Exhibit 2-3 and the fundamental values of L'Oreal, the

recommendations in the WH Framework chart were chosen. Passion, innovation,

entrepreneurship, open-mindedness, and the pursuit of perfection are among L'Oreal's key

principles. These principles suggest a dedication to producing high-quality goods and practicing

corporate responsibility, which is expressed in the standards for personnel, clients, and society.

The standard for financial growth serves to reflect the interests of shareholders, another

stakeholder group. Lastly, the policy for legal compliance denotes management's duty to uphold

ethical standards and observe guidelines established by the USPTO (Kuokkanen & Sun, 2020).

After deciding to terminate Trzaska, the L'Oreal management made efficiency their top priority.

They put the quality of patent applications submitted to the USPTO second to the global patent

quota, which conflicted with Trzaska's professional responsibility as an attorney. The

management decided to put efficiency ahead of moral considerations since they thought

terminating Trzaska was vital to reach the patent quota.

Self-reflection:

By identifying the relevant stakeholders and their individual interests, the WH Framework

assisted in the analysis of the problem. It gave a clear framework for assessing Trzaska's and

L'Oreal's management's choices in light of the fundamental principles and values of the

organization. Trzaska and the management of L'Oreal were able to evaluate the potential effects

of their actions by taking into account the criteria for each stakeholder group.  The WH

Framework offers managers a systematic method for taking stakeholder interests and their

implications into account when making business choices. Managers may make sure that their
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choices are in line with the company's values and do not harm any stakeholder group by applying

the framework's principles. The framework can assist managers in identifying possible ethical

problems and conflicts of interest that might develop during corporate operations. Managers may

use the WH Framework chart to aid in decision-making with ethical concerns, stakeholder

management, and corporate responsibility. The WH Framework may be used, for instance, to

assess the possible effects of a company's choice to outsource manufacturing to a vendor with a

track record of labor abuses on employees, clients, shareholders, and society. The framework

may also be used to assess choices made in relation to corporate governance, environmental

sustainability, and product quality.

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Reference

Kuokkanen, H., & Sun, W. (2020). Companies, meet ethical consumers: Strategic CSR

management to impact consumer choice. Journal of Business Ethics, 166, 403-423.

https://link.springer.com/article/10.1007/s10551-019-04145-4