Homework answers / question archive / ACCCB/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

ACCCB/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

Accounting

Share With

ACCCB/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 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 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 help managers with making business decisions? • What type of decisions would the WH Framework chart help you make as a manager

Exhibit 2-1 Enron, WorldCom, and Shifts in Business Regulation
During the past several years, ethics violations have been uncovered in the accounting practices of a number of large companies. Enron and WorldCom were two of the perpetrators in these scandals. Both companies failed to report or record billions of dollars in profit losses, which resulted in stockholders’ believing that the companies were in a much better financial state than actually was the case. Enron’s tangled web involved the company’s creating multiple subsidiaries and related companies. These businesses were often treated as companies independent of Enron and not shown on the accounting books. Enron used the subsidiaries to conceal debts and losses in a very complex fraud scheme. When the company went bankrupt, employees who had based their retirement plans around Enron stock lost almost everything. Additionally, Enron auditor Arthur Andersen was found guilty of shredding documents about Enron’s audits. In June 2002, shortly after the Enron bankruptcy was announced, WorldCom revealed that it also had engaged in unethical accounting practices. WorldCom’s violations included counting profits twice and concealing billions of dollars in expenses when making reports to the SEC. The company thereby made itself appear profitable when it was actually losing money. In total, WorldCom had more than $7 billion in misreported debt. These two cases, among others, left investors understandably concerned about the truthfulness of individuals who were in charge of operating large corporations. Those in charge of these companies had been awarded million-dollar bonuses while completely disregarding stockholders and employees who lost millions of dollars when the companies collapsed. The revelations of Enron and WorldCom suggested quite blatantly that the business world could not be allowed to regulate itself ethically. Their downfall in part led to many federal regulations designed to promote truthfulness and ethical practices among business managers. In this new business environment, there is a much greater degree of government oversight to ensure that companies maintain high standards of ethical behavior. Companies are required to make their 6/27/22, 6:57 PM Business Law and Business Ethics https://prod.reader-ui.prod.mheducation.com/epub/sn_3b37d/data-uuid-e7984a0e677848f191898a03b28ea413#data-uuid-1a9ffd9c94274feda92270d32ae48078 4/7 accounting records far more transparent to satisfy not only the federal government but their understandably wary investors. 6/27/22, 6:57 PM Business Law and Business Ethics https://prod.reader-ui.prod.mheducation.com/epub/sn_3b37d/data-uuid-e7984a0e677848f191898a03b28ea413#data-uuid-1a9ffd9c94274feda92270d32ae48078 5/7 COMPARING THE LAW OF OTHER COUNTRIES 6/27/22, 6:57 PM Business Law and Business Ethics https://prod.reader-ui.prod.mheducation.com/epub/sn_3b37d/data-uuid-e7984a0e677848f191898a03b28ea413#data-uuid-1a9ffd9c94274feda92270d32ae48078 6/7 BUSINESS GIFTS AND FAVORS IN CHINA In China, the practice of using guanxi has become an integral part of doing business for firms already located in the country and for those interested in entering the Chinese market. Guanxi refers to a sort of relationship building and is an intricate system of interpersonal networks woven together by social ties. The concept of guanxi is important to individuals involved in business because having good guanxi means having connections that can assist you in getting things that may normally be out of reach to you or your business. The rules and regulations in China can be burdensome, but the right guanxi, or connections, can make many processes much easier. The guanxi system is built on reciprocity, and if someone does a favor for you, you’ll be expected to return that favor in the future. A favor could technically be any number of things, from access to partnerships, contacts, and government officials to special consideration or useful information. The process of creating and maintaining guanxi may seem somewhat taboo to westerners because businesses in the United States often have strict rules about accepting gifts, doing favors and offering preferential treatment or consideration to clients. However, Dan Mintz, a Brooklyn native with no college degree, who is now the CEO of one of the largest advertising agencies in China, claims guanxi is a necessity when doing business in China. After moving to Beijing with no contacts and little experience, Mintz established his own business (Dynamic Marking Group) with two Chinese partners, Peter Xiao and Wu Bing. Both Xiao and Bing had extensive guanxi, networks that extended into high levels of Chinese government and banking. The trio spent their time targeting potential clients, delivering gifts, and hosting dinners as means to strengthen their guanxi and improve their business opportunities. Through their hard work and strong guanxi Mintz, Xiao, and Bing were eventually able to secure deals with some of the biggest brands in the world: Budweiser, Kraft, Audi, Volkswagen, and Nike. Source: Flora F. Gu, Kineta Hung, and David K. Tse, “When Does Guanxi Matter? Issues of Capitalization and Its Dark Sides,” Journal of Marketing 72 (July 2008), pp. 12–28; www.fastcompany.com/magazine/104/open_mintz.html?page=50%2C0; and www.ch inasuccessstories.com 6/27/22, 6:57 PM Business Law and Business Ethics https://prod.reader-ui.prod.mheducation.com/epub/sn_3b37d/data-uuid-e7984a0e677848f191898a03b28ea413#data-uuid-1a9ffd9c94274feda92270d32ae48078 7/7 Page 21 Of course, different ethical understandings prevail in different countries. Thus, ethical conceptions shape business law and business relationships uniquely in each country. Increasingly, business leaders must be sensitive to the differences in legal guidelines in the various countries in which they operate. These differences are based on somewhat different understandings of ethical behavior among businesspeople in diverse countries. As we mentioned above, business ethics does not yield one “correct” decision. So how are business managers to chart their way through the ethical decision-making process? One source of assistance consists of the general theories and schools of thought about ethics. Each ethical system provides a method for resolving ethical dilemmas by examining duties, consequences, virtues, justice, and so on. A detailed look at each of these ethical systems can be found in Appendix 2A. Exhibit 2-1 reminds us that unethical behavior by businesses has huge costs. In the interest of providing future business managers with a practical approach to business ethics that they can use to avoid these costs, we suggest a two-step approach: the WH process of ethical decision making. This approach offers future business managers some ethical guidelines, or practical steps, that provide a dependable stimulus to ethical reasoning in a business context. Appendix 2A provides the theoretical basis for the WH approach used in this book