EA Games Fifa Loot Boxes and Whales Business Ethics and Responsible Management

Assessment Case Choice 1 :
EA Games Fifa Loot Boxes and Whales -
Business Ethics and Responsible
Management

Table of Contents
Part 1-A REPORT............................................................................................................................1
1. Ethical issues...........................................................................................................................1
2. Role of business in society......................................................................................................2
3. Stakeholders............................................................................................................................2
4. Good and bad ethics................................................................................................................3
5. Recommendations...................................................................................................................4
Part 1-B TWO THEORIES..............................................................................................................4
1. Description of Ethical Theories..............................................................................................4
2. Application of Ethical Theories..............................................................................................4
3. Critical Analysis of Ethical Theories......................................................................................5
4. Recommendations...................................................................................................................6
PART 2 REFLECTIVE ESSAY......................................................................................................6
REFERENCES................................................................................................................................9
PART 1-A...................................................................................................................................9
PART 1-B...................................................................................................................................9
PART 2.......................................................................................................................................9

Part 1-A REPORT
1. Ethical issues
The evolution of technology with the passage of time together with the incorporation of
innovations like AR and VR into gaming industry has brought extensive growth and success for
the concerned sector. Majority of the games in the present time are made by the well renowned
organisation named Electronic Arts (EA). The games developed by this company are mainly
based on a freemium model. Hereby, a user can get free access to the game, however to gain
access to the interesting as well as exciting elements of the game, they are directed to the in-
game purchases for the generation of revenues from these games. Lately, the concept called as
loot box has been criticised by people because of the unethical element involved within it. These
loot boxes persuade the players of the game to carry out in-game purchases which are not really
justified. As per the views of the Vice President of Electronic Arts, loot boxes are ethical,
exciting and fun. These boxes tend to trigger the gambling activities as well as addictive
behavioural pattern within the children who play such kinds of games. Owing to the instillation
of addiction within the children, these loot boxes are acknowledged to be working in the favour
of game developer companies like EA for the generation of revenues. BBC has published that
these boxes does not account to gambling, they are similar to the Kinder Egg (EA Games: Loot
boxes aren’t gambling, they’re just like a Kinder Egg, 2019).
It is determined that the players who expend their money upon purchase of loot box are
often not happy about such things present within the game but can not resist themselves from
buying them due to their extreme addiction. This gives rise to the emergence of ethical issue on a
number of grounds. At first, the game developers make these games in a manner such that users
become addicted to them and get induced to purchase the loot box, however, this is unethical
generation of revenues. Secondly, it is determined that such games also promote gaming
addiction since a heavy sum of money is invested by users for the anticipation of exciting stuff
making the game more thrilling with the loot box. There are several revenue generation ways
available for these gaming companies however the model currently being exploited by Electronic
Arts is the epitome of business ethics violation.
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2. Role of business in society
In accordance with the business ethics, it is the prime responsibility of a business entity to
give their effective contribution towards greater good of the society and thereby, carry out
business activities epitomising ethical behaviour. It is important for the top management of
Electronic Arts to reconsider their revenue generation approach by taking business ethics into
account. The present model of EA is having a significant negative influence upon the society. In-
game purchases along with loot boxes trigger gambling addiction within individuals, especially
in children who get easily persuaded to make the purchase. The games are developed in a
manner such that they can effectively appeal to the audience and make it addicted to them. The
resultant outcome of the same is unnecessary expenditure done by children of their parents'
money upon purchase of these elements of the games. Owing to such unethical act of EA, users
of these games get addicted and thereby purchase everything that can make the game more
thrilling and exciting (Brady and Prentice, 2019). This results into depression, anxiety, mental
health issues, cognitive functioning, isolation, and so on, within the users. It is important for
business to adopt ethical business practices and activities in order to generate revenues. This
helps the corporation in acting in the interest of the society. For this, businesses should adopt a
business model which demonstrates greater societal good, contrary to the act of Electronic Arts.
3. Stakeholders
Gamers:
By virtue of the given case, gamers is acknowledged to be the stakeholder group which is
most affected by the unethical behavioural conduct of Electronic Arts. Designing of an addictive
game to persuade the individuals to carry out the in-game purchases leads to severe mental
health problems. Further, it is acknowledged that addictive gaming results into loss of sleep,
stress and anxiety within individuals of less age. It also put the users in emotional phase as
despite knowledge of wasteful expenditure of purchase of loot boxes, they find themselves
induced for purchasing extra elements to make the game more interesting, just because of their
addiction to the game.
Friends and family:
Families of the users who are addicted to games having the option of in-game purchases
and loot boxes are often seen to report issues of their children spending their hard earned money
on wasteful purchases related to the game. Also, the friends and families of these individuals
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