Create a WH Framework chart, similar to Exhibit 2.1. Refer to L'Oreals core values and the primary values in Exhibit 2.3 to determine the guidelines to include in the WH Framework.
Exhibit 2-2 The WH Process of Ethical Decision Making 1. W-WHO (Stakeholders): Consumers Owners or investors Management Employees Community Future generations 2. H-HOW (Guidelines): Public disclosure Universalization Golden Rule Exhibit 2-3 Primary Values and Business Ethics VALUE ALTERNATIVE MEANINGS Freedom 1. To act without restriction from rules imposed by others 2. To possess the capacity or resources to act as one wishes 3. To escape the cares and demands of this world entirely Security 1. To possess a large-enough supply of goods and services to meet basic needs 2. To be safe from those wishing to interfere with your property rights 3. To achieve the psychological condition of self-confidence to such an extent that risks are welcome Justice 1. To receive the products of your labor 2. To treat all humans identically, regardless of race, class, gender, age, and sexual preference 3. To provide resources in proportion to need 4. To possess anything that someone else is willing to grant you Efficiency 1. To maximize the amount of wealth in society 2. To get the most from a particular output 3. To minimize costs Universalization Test. A third general guideline shares with the other two a focus on the "other"the stakeholders whom our actions affect. Before we act, the universalization test asks us to consider what the world would be like were our decision copied by everyone else. Applying the universalization test causes us to wonder aloud: Is what I am Page 27 about to do the kind of action that, were others to follow my example, makes the world a better place for me and those I love? Apply the universalization test to the Case Nugget on the previous page to get a sense of how valuable it is as an ethical guide. Another way to think of the public disclosure test is to view it as a ray of sunlight that makes our actions visible, rather than obscured. As Exhibit 2-5 suggests, the issue of transparency of behavior is often seen as a method of improving ethical behavior. The public disclosure test is sometimes called the "television test," for it requires us to imagine that our actions are being broadcast on national television. The premise behind the public disclosure test is that ethics is hard work, labor that we might avoid if we did not have frequent reminders that we live in a community. As a member of a community, our self-concept is tied, at least in part, to how that community perceives us. Passion for what cosmetics can bring to women and men: well-being, self- confidence, an openness towards others. Passion also for a business which Is intrinsically linked to humanity and culture. Because creating beauty products and services means seeking to understand others, knowing how to listen to them, apprehending their traditions, anticipating their needs.... This passion is what makes the L'Oral adventure so fascinating. Innovation is also one of our founding values and the name of the game in our business. We always have in mind the fact that our company was founded by a scientist. Innovation is essential because beauty is an endless quest that constantly requires a higher level of performance. At L'Oral, it is vital. Always wanting to push back the limits of knowledge means discovering new ways to create products and services that are truly different and surprising. To always stay one step ahead. Because there is no innovation without daring, without taking initiatives, L'Oral has always given priority to the individual rather than to processes. Entrepreneurial spirit a synonym for autonomy, challenge, and adventure, has always been encouraged and embodied in a specific management style. Today it is still the driving force behind a Group built above all on a bellef of the Importance of each individual and their talents. Open-mindedness Listening to consumers and understanding their culture, being open to others and benefiting from their differences are absolute priorities in order to respond to the infinite diversity of beauty aspirations around the world. They are inseparable from our business and our mission. Quest for Excellence These four values are inextricably related to our fifth value, the Quest for Excellence. A value that permeates every aspect of our business, in every country and that is expressed in a state of mind and a constant pursuit of doing better. We all share this desire to surpass ourselves to be able to provide the best for our consumers Responsibility Finaly, whether the Group is innovating or showing its entrepreneurial spirit, it has always done so with a sense for Responsibility. L'Oral's first invention, the "safe hair dye" was already an expression of this fundamental concern for effective, safe and innocuous products. But our sense of responsibility goes far beyond that. As a world leader in beauty, we have, more than others, the duty to protect the beauty of the planet and to contribute to the well-being of our employees and of the communities with which we engage. The Golden Rule. The idea that we should interact with other people in a manner consistent with the way we would like them to interact with us has deep historical roots. Both Confucius and Aristotle suggested versions of that identical guideline. One scholar has identified six ways the Golden Rule can be interpreted: 1. Do to others as you want them to gratify you. 2. Be considerate of others' feelings as you want them to be considerate of yours. 3. Treat others as persons of rational dignity like you. 4. Extend brotherly or sisterly love to others, as you would want them to do to you. 5. Treat others according to moral insight, as you would have others treat you. 6. Do to others as God wants you to do to them
