5-2 Project Two Submission Southern New Hampshire University BUS-206: Business Law Martine Anderson 02/09/2024
Ethical Test or Framework The WH Framework for making ethical business decisions is a powerful tool meant to be used by managers and business leaders to thoroughly evaluate the impact of their decisions and determine their moral correctness. While it is primarily geared towards large-scale decisions made by business leaders, I believe it can be utilized by everyone in our organization to make better decisions in any situation. The WH framework consists of two components: "Who" and "How". When approaching a decision using this framework, the "Who" aspect prompts us to consider who will be affected by the decision. The relevant stakeholders include the owner, employees, customers, and the community in which the company operates. After identifying the affected parties, this information is used to determine "How" they will be impacted by the decision. Once the potential effects are understood, there are several criteria that can be used to evaluate the moral correctness of a decision. However, I consider the "Golden Rule" to be the most important and valuable criterion. It's a simple principle that most people learn as children - treat others as you would like to be treated. Applying the Golden Rule allows us to quickly assess if an action is morally right. If a decision would negatively impact someone in a way that we wouldn't appreciate ourselves, it is likely not a good decision. By using this framework, we can ensure that the right thing is done for everyone involved. Let's consider a specific scenario: a data
breach has occurred and needs to be addressed. In this situation, the stakeholders affected are the owner, Clare, the employees, the customers, and the community. If the data breach is ignored and covered up, Clare could suffer irreparable financial damage and potentially lose her business. The employees would also be at risk of losing their jobs if the company were to go out of business. Additionally, the customers would be unaware of the breach, leaving them vulnerable to identity theft without the necessary knowledge to protect themselves. Moreover, if news of the cover-up were to emerge, it would tarnish the company's reputation in the community. On the other hand, if the data breach is properly addressed, Clare can take necessary steps to investigate and secure the breached database. She can then inform the customers about the breach, enabling them to take appropriate measures to safeguard their personal information. By acting transparently and responsibly, Clare can protect her business, preserve the employees' jobs, and demonstrate her commitment to rectifying the situation. While customers may be unhappy about the breach, they will appreciate the notification and preparedness against potential identity theft. Additionally, the community will likely view the company positively, appreciating the honesty and efforts to address the breach. Moreover, Steve will establish a reputation for being honest and proactive in handling the incident. By considering these outcomes, it is clear that informing the business owner about the