Ethical Issues in Loot Boxes and Ethical Leadership

ASSIGNMENT

Table of Contents
PART 1............................................................................................................................................3
A) Ethical issues included in having loot boxes as part of business model................................3
B)Applying two ethical theories for case study...........................................................................6
PART 2............................................................................................................................................8
Reflection on what makes an ethical leader................................................................................8
REFERENCES..............................................................................................................................10

PART 1
A) Ethical issues included in having loot boxes as part of business model
In context of EA games, loot box is a consumable virtual thing which will be redeemed to
receive a randomized selection of further virtual products or loot, increasing from simple
customization options for player's character, to game changing assets such as armour and
weapons. Spending money on loot boxes will be linked to gambling related harm among children
and adult, it is considered as ethical issue. Making misconstructions of small amounts of actual
world money for virtual and other items had been general in video games for several years
(Neely, 2019). Loot Boxes are relatively new term for players specially children to spend money
in video games.
Perspective of organization regarding issue-
Electronic Arts company believed that loot boxes are ethical in perspective of ethics, they
believe that boxes are quite fun and ethical, they are virtual crates that contain goodies like
costumes, weapons and other perks. According to organization it is not an ethical issue, kids
enjoy playing games just like a kinder Egg. Firm Fifa ultimate team & its packs is actually quite
fun and ethical as well as quite enjoyable to people. With loot Boxes receiving massive scrutiny
lately, EA firm came up with novel justification for what controversial game mechanic must be
considered perfectly legal. Loot boxes are not taking to gambling but are rather surprised
mechanics like kinder eggs, one of the most famous chocolate candies among children with toys
inside their pack, it is not technically considered as form of gambling. In simple words, EA
company should not look purchasing and playing games with loot boxes as ethical issue. The
vice president of government and legal affairs at video games EA, declared that there were no
ethical problem considered with loot boxes, UK government do not make it illegal to sell video
games featuring loot boxes given that consumers like surprises. Firm arguing loot boxes are
ethical, they are quite normal sight in EA games these times, so usually company does not
believe them to be anywhere around gambling on array of problematic game mechanics.
Ethical issue impact public image of company-
On contradictory, people who play games with loot boxes give their different point of
view in context of EA games, they are totally disagreed with company statement (King and
Delfabbro, 2019). They think that loot boxes are unethical is cause endorphin rushes, making
purchase feel benefited and want to repeat behaviour, it will lead to an addiction. Big firms target

these endorphin rushes to get consumers hooked which will be unethical when they target young
children. Loot boxes are classed as gambling, it makes negative impact on kids mind. The
statement of Kerry Hopkins are not right about Loot boxes. They are one of the most debated
topic in gaming sector, parents making complain against this, their children spend more time on
loot boxes games instead of study. This issue influences the market image of EA company
negatively, use of loot boxes will be unethical and has been challenged by several in gaming
sector due to predatory business practices associated with loot boxes. In response to loot boxes
and Fifa games in specific, many nations including Netherlands and Belgium have categories
loot boxes as type of illegal gambling, with several other nations including UK and more parts of
US also considering whether to follow suit. It directly impacts market reputation of EA and
decrease its profitability rather than past few years.
Alternative ways were there to think about business role in society-
The role of EA and other business in society is to work ethically and produce products
that satisfy the need of consumers, it does not harm people as well as company image. Ethics
play vital role in current business and its impact on overall growth of organization. It also affects
everything from public perception and brand reputation to workers productivity and profitability.
Develop ethical standards is one of the best way there to think about business role in society,
firm create a code of ethics area in its business handbook that outlines appropriate organizational
conduct. This must eliminate ambiguity and any confusion about organization ethical practices
and hold everyone on same place. By conducting ethical practices, EA can derive big advantages
, they will be able to gain attention of people towards purchasing their games. As it also helps to
gain competitive benefits in gaming industry and build strong position & image in market place.
By complying with ethical practices firm will gain better success and sustain its business for
longer period of time.
Along with this, honesty is another alternative way that firm think about its business role
in community, ethical executives within company must be honest in all their dealings, and they
do not intentionally mislead and deceive others by overstatements, misrepresentations and partial
truths.
Stakeholders impacted in scenarios and how they are impacted on-
Children are the main stakeholders in above scenario who are impacted by loot boxes and
other games provided by EA company in market, that directly affect behaviour of younger and