Business Ethics and Responsible Management

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This document discusses the importance of business ethics within an organization, the issues of business ethics in a case study, the role of business in society, and the impact of business activities on stakeholders. It also includes a discussion on two ethical theories and a reflective essay on ethical leadership.
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Business Ethics and
Responsible
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Importance of business ethics within the organisation...............................................................3
Issues of business ethics in the organization given in case study...............................................3
Role of Business within the society............................................................................................4
Effect of business activities on Stakeholders..............................................................................5
Example of good and bad ethics.................................................................................................6
Recommendation.........................................................................................................................6
PART B............................................................................................................................................6
Discussion on two ethical theories..............................................................................................6
REFLECTIVE ESSAY OF ETHICAL LEADER...........................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business ethics refers to the concept that can develop prominent rules and regulations
which are required and should be followed by business organisation in terms of achieving their
significant goals and objectives within the stipulated period of time. Moreover, it is significant to
understand that most of the business organisations are not permitted to take effective business
decisions as it leads to create issues within the business. Along with this, the overall performance
of company can be prominently declined if unethical factors are considered by company (Nonet,
Kassel and Meijs, 2016). In regard of this, selected case study is on EA Games: FIFA, Loot
boxes, Whales. Respective company is the American based and prominently involved in the
gaming sector. Besides this, the report is divided in two parts as part A consider detailed
description regarding the business ethics and effective significance undertaking the main ethical
issues which are faced by company. Moreover, part B undertake suitable ethical theories which
are described for the selected case study. Lastly, effective explanation is described for the ethical
terms that are required by the leader in reflective form.
PART A
Importance of business ethics within the organisation
Business ethics plays an important role for any business organisation as it tends to offer
fair suggestions and opinions regarding the achievement of goals and objectives of company in
effective way. For this, it is important for company to follow effective business ethics in terms of
making their task quite easy and also tends to take fair and easy decisions in terms of achieving
effective goals and objectives undertaking the needs and requirements of company (Haski-
Leventhal, Pournader and McKinnon, 2017). Besides this, it is also quite easy to enhance the
suitable level of faith for the stakeholders towards the organisation.
Issues of business ethics in the organization given in case study
By considering the case study which is the EA Games as it is the most famous
multinational company that leads to make effective contribution towards the gaming zone at the
worldwide level. Moreover, this game is pretty much popular among people as they are capable
enough to play those games by undertaking the effective choice of their team. Furthermore,
organisation also tends to provide various loot boxes that leads to create significant issues for
their parents as there are number of game players who tends to use effective cards for their
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parents within the unethical way and because of this, parents tens to suffer within the future time
period. Along with this, by looking at the effective situation of UK and its concerning
departments tends to explain that they need to analyse each and every factor in terms of finding
effective working which is organised by company in ethical way. Besides this, the vice president
of company tends to explain that they should not conduct any sort of unethical activity which is
quite important to understand by the users for their loot boxes which is just the effective purpose
of gaming and offering gifts to people.
Role of Business within the society
In most of the business organisation, it is important that they need to organise their
working system in effective way. For this, if any sort of situation occur in company then they
tends to fail to do things because it might can create suitable legal issues for the company.
Therefore, by undertaking the prominent needs, it is essential for company to understand that
they need to satisfy the requirements of their customers that prominently helpful to attain
effective objectives and goals within the stipulated period of time. Along with this, the effective
duty which is required to understand by the company need to be organised for the effective
working that leads to enhance the level of society (Kolb, Fröhlich and Schmidpeter, 2017).
Moreover, it also leads to become complex for the company to work according to the ethical
codes as it is helpful in terms of taking positive business decision for the sake of company. In
relation with considering case study, the effective business decision is taken by EA Games is not
in favour of company as it tends to create lot of issues for the individual in both direct and
indirect manner, the funds of parents are also tends to used within the wrong direction.
Moreover, the wrong concept depicts the suitable generation among the children as they does
not have effective knowledge and also tends to provide effective focus in terms of working by
targeting which is concerned with the suitable personal benefits.
Along with this, undertaking the factors of company, they also required to make suitable
clarity regarding the games which they need to develop as it is essential to understand that they
should not organise any sort of activity that leads to develop issue for the whole community.
Besides this, they also need to justify things among the gamers that loot boxes and Whales does
not permit anyone to earn money that leads to incur suitable expenses because it is just for
entertainment and fun. Additionally, loot boxes and whales is one of the critical case which is
important for company in terms of developing and preparing the suitable clause that leads to
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explain regarding the benefits and drawbacks at the public image considering the large level
(Storey, Killian and O'Regan, 2017). Along with this, it also can be done by the company as they
can prominently need to make sure that an organisation does not need to conduct and consider
unethical factors that leads to create problems for the public because it will tends to increase the
overall situation in which they tends to select their customers and also identify that they want to
avail services or not.
Effect of business activities on Stakeholders
When any company tends to organise unethical activity then it tends to create various
issues and in that situation the specific individual tends to suffer prominently for their
stakeholders. As stakeholders are the most critical individuals of an organisation and also helpful
for company in terms of achieving the objectives of company which is pre-planned by an
organisation. Therefore, the suitable explanation regarding the stakeholders tends to impact the
activities which are organised by an organisation and it is mentioned as: Customers: In most of the organisation, customers plays an important role which is
essential in terms of achieving effective goals and objectives. It is also important to
understand prominent activities that are organised and also leads to create many problems
(Van der Byl, Slawinski and Hahn, 2020). For this, customers also tends to impact hugely
as they are in the situation in which trust on the organisation will not remain same. Shareholders: It depict that when any of the negative news occur in market then it tends
to prominently impact shareholders as they does not feel pretty much safe in terms of
investing within the considered company. Government: It depict that any of the company tends to perform suitable business
activity considering their great performance and platform and after that government tends
to depict effective interest towards an organisation (Hauser, 2020). Moreover, it is also
essential for company that they need to organise things in ethical manner. By undertaking
the above situation, government also tends to impacted as they does not need to
undertake those laws by which they can help others in terms of resolving issues and it is
one of the major serious issue.
Employees: It is identified that employees are the essential part of company and also
tends to offer best things in terms of achieving target within the stipulated period of time.
For this, the prominent situation of an organisation tends to fail in terms of performing
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according to the needs and effective requirements and after that employees tends to feel
demotivated in regarding their working which is not much appreciated by the customers.
Example of good and bad ethics
There are several organisations who tends to perform various activities on the continuous
basis and it is essential to consider that no organisation can organise suitable and appropriate
ethics that relies under the prominent category for bad ethics (Crane and et. al., 2019). For this,
the prominent example is considered as the good follower for the ethical code which is National
Health care and also tends to follow the prominent codes within the systematic way. They also
tends to offer the best treatment for the patients who effectively visit hospital. On the other hand,
EA Games can be picked as one of the best organisation who tends to organise bad ethics as
because of this various number of individuals tends to suffer on the prominent basis.
Recommendation
By considering the above discussion, it is identified that to understand company is
essential as they does not consider those activities that leads to create problems for various
people as it tends to put direct impact on the results. Therefore, company need to think that they
should be prominently clear to the individuals regarding the loot box and whales as company
tends to have several concepts behind its introduction meanwhile, customers tends to understand
things in effective way. Therefore, it is also essential that suitable ethical codes need to be
followed as that it has direct impact on the prominent result of company.
PART B
Discussion on two ethical theories
Business ethics is the significant study considering the suitable practices and norms that
tends to used in business considering the ethical code of conduct which is ensured by the
company. It depicts that the business activities tends to does not put any sort of negative impact
on stakeholders which are concerned with the organisation including customers, government,
suppliers, environment and many more (Quarshie, Salmi and Leuschner, 2016). It is also useful
in terms of preventing the stakeholders from the corruptions, discrimination, frauds and many
more which is useful in developing effective brand reputation of company and also helpful to
influence their customers in terms of having suitable purchase from the company. It also leads to
eliminate the government intervention considering the functioning and business operations. In
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regard of this, prominent ethical theories are considered by the EA Games and also tends to solve
prominent issues that can be faced by company because of unethical code that are mentioned as:
Utilitarianism: This theory depict the prominent actions that are suitably corrected in
terms of bringing effective happiness to individuals and the actions which are wrong if they
tends to bring sorrow to individuals. For this, the idea of this theory is for the ethical decisions
that are made on the grounds of prominent consequences and considering the actions which are
also termed as consequentialism theory (Rhodes, 2016). Therefore, this theory is useful for
company in terms of selecting prominent actions considering effective options which are
effective and good that are made for the huge number of people. Therefore, it is useful in terms
of developing effective relations with the individuals who tends to impact prominent actions of
business. For this, the effective sales of an organisation leads to undertake products and services
that leads to increase effective application of theory in terms of improving the efficiency of
individuals in company.
For this, EA Games tends to apply suitable theory in terms of developing online games
that offer happiness to children and parents as well. Therefore, it can be done by considering the
suitable hours that can be played per day by the children and also does not become more
addictive for them. It also leads to create suitable happiness in terms of spending remaining time
for the effective growth and development (Aßländer, Gössling and Seele, 2016). Besides this,
company also tends to manage “Loot boxes” so that prominent bank accounts are not empty with
the hope of something in return which is helpful in terms of making parents happy.
This theory is beneficial in terms of focusing on the happiness of society which is useful
in making good decisions. Meanwhile, drawback is on the grounds of analysing ethical nature
and leads to create unrealistic viewpoint for the society in terms of converting into sadness under
few circumstances. Therefore, it is recommended to EA Games that they tends to consider the
happiness of individuals in terms of taking effective actions in ethical way.
Deontology: This theory depict that humans need to threat with proper respect and
dignity and also have suitable rights. For this, company also has rights in terms of treated with
equal manner. It is useful for company in terms of choosing the option to develop healthy
relations with suitable dignity of individuals. Therefore, the prominent actions are for the people
that are undertaken with suitable ethics.
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In regard of this, EA Games need to opt this theory regarding the suitable activities
considering the dignity of parents to play prominent games with children. Moreover, this can be
done by reducing the Loot boxes from game as it does not tends to charge money from parents
by impacting children in terms of having effective investment and also get something in return
(Boda and Zsolnai, 2016). Moreover, company also tends to continue with the use of Loot boxes
by offering something valuable in return so that parents does not looted by an organisation.
The prominent benefit of it is to create suitable responsibility considering the respect
dignity of individuals. Meanwhile, the con is to use this theory in terms of having right things at
any cost to enhance and develop effective conflicts among the employees and managers to select
best principles for decision making. Therefore, it is recommended to EA Games that they tends
to use this theory in terms of maintaining the prominent dignity for playing games to manage the
loot boxes and children does not spend money irrationally.
REFLECTIVE ESSAY OF ETHICAL LEADER
A leader is an individual who tends to consider prominent ethical values and various
beliefs in terms of effectively monitoring and controlling suitable activities of team members as
by this, unethical actions are very harmful considering the dignity and rights of others that can be
neglected. It is useful in terms having suitable trust, honesty and effective consideration within
the team members in terms of having effective decisions which is taken for company and useful
in offering suitable benefits to company and society as well. It is also useful in increasing the
value and culture of company so that suitable ethical behaviour is implemented which is useful
in terms of enhancing the effectiveness of company and also leads to increase the performance of
company (Jamnik, 2017). Along with this, the higher level of integrity tends to promoted among
the team members in terms of developing suitable trust of employees which is useful for
company in terms of achieving the goals and objectives of company prominently. Besides this, as
a manager it is essential that suitable roles and responsibilities are performed effectively
considering ethical way that leads to improve the efficiency of company.
Besides this, leaders also tends to maintain suitable compliances and integrity among the
team members in terms of offering effective values to the rules and regulations of company that
leads to effectively follow suitable impression which is important for prominent efficiency
regarding the overall performance that leads to integrate with other employees and also tends to
comply with the regulations of an organisation. Besides this, it is also essential that managers
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need to respect the suitable dignity of their employees and also undertake prominent views by
which they can feel as the part of team. It is also useful in terms of motivating and also tends to
increase their confidence to enhance the efficiency regarding the suitable performance and
working effectively. Therefore, effective communication is the other way that leads to undertake
prominent actions of workforce which is integrated regarding the compliance with organisation
undertaking the rules which can be improved.
Away with this, considering the overall experience of a leader is useful for me in terms of
becoming more ethical considering my actions as by this, I can prominently integrate the staff
members and individuals considering the conflicts without hurting their emotions and self-
esteem of employees. It is also useful in terms of enhancing the prominent confidence level of
team members considering my capabilities and also tends to boost their trust undertaking the
decision which is useful in terms of accomplishing the suitable targets of team members within
the stipulated period of time considering the budget which was allocated to us (Ferrell and et. al.,
2019). For this, I made the decision by considering the ethical decision making which is useful
for me in taking effective decisions which is beneficial for company and team members as well.
Before, coming to any sort of conclusion I need to evaluate the significant consequences of my
activities in regard of suitable decisions that could be made that does not develop any sort of
tension and stress among team members. Besides this, I need to allocate prominent task and
suitable responsibilities within the team members in terms of evaluating the overall performance
of team as it depicts that employees deserve task as per their own skills, knowledge, talent and
prominent ability. It is also useful in terms of having suitable formation of effective team as by
this team members tends to motivate in terms of giving their best within the allocated task (Mea
and Sims, 2019). Besides this, ethical behaviour is also useful in treating their employees in fair
manner without any sort of discrimination based on the caste, culture, sex, religion and many
more. Therefore, it leads to increase the prominent confidence of workers and improve their
working efficiency.
Therefore, it is concluded that effective ethical leadership is essential in terms of
increasing the prominent compliances for effective actions considering the team members.
Moreover, the prominent integrity within the team members leads to increase with the help of
prominent motivation for ethical leadership as employees tends to motivate in terms of
performing effectively and it is pretty much possible by integrating suitable actions by which
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target of group can be accomplished. Along with this, ethics plays an important role in terms of
developing healthy relations among staff members and also leads to develop trust in company
considering their leaders as well (Sroka and Szántó, 2018). Therefore, it is useful in taking
efficient decision making in any sort of situation considering the performance of group members
that can be improved.
CONCLUSION
By considering the above discussion, it is identified that ethical practices plays an
important role and also essential to understand it that it should be followed in company. For this,
if any of the situation occur in which company fail to perform then ethical codes put direct
impact on the stakeholders for the company. Moreover, ethical theories are important for
company as it helps in taking some essential decisions for the sake of business organisation.
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REFERENCES
Books and Journals
Aßländer, M.S., Gössling, T. and Seele, P., 2016. Business ethics in a European perspective: A
case for unity in diversity?. Journal of business ethics, 139(4), pp.633-637.
Boda, Z. and Zsolnai, L., 2016. The failure of business ethics. Society and Business Review.
Crane, A and et. al., 2019. Business ethics: Managing corporate citizenship and sustainability in
the age of globalization. Oxford University Press, USA.
Ferrell, O.C and et. al., 2019. Business ethics, corporate social responsibility, and brand
attitudes: An exploratory study. Journal of Business Research, 95, pp.491-501.
Haski-Leventhal, D., Pournader, M. and McKinnon, A., 2017. The role of gender and age in
business students’ values, CSR attitudes, and responsible management education:
Learnings from the PRME international survey. Journal of Business Ethics, 146(1),
pp.219-239.
Hauser, C., 2020. From preaching to behavioral change: Fostering ethics and compliance
learning in the workplace. Journal of business ethics, 162(4), pp.835-855.
Jamnik, A., 2017. The challenges of business ethics: The basic principles of business ethics-
ethical codex in business. Review of Innovation and Competitiveness: A Journal of
Economic and Social Research, 3(3), pp.85-100.
Kolb, M., Fröhlich, L. and Schmidpeter, R., 2017. Implementing sustainability as the new
normal: Responsible management education–From a private business school's
perspective. The International Journal of Management Education, 15(2), pp.280-292.
Mea, W.J. and Sims, R.R., 2019. Human dignity-centered business ethics: A conceptual
framework for business leaders. Journal of Business Ethics, 160(1), pp.53-69.
Nonet, G., Kassel, K. and Meijs, L., 2016. Understanding responsible management: Emerging
themes and variations from European business school programs. Journal of Business
Ethics, 139(4), pp.717-736.
Quarshie, A.M., Salmi, A. and Leuschner, R., 2016. Sustainability and corporate social
responsibility in supply chains: The state of research in supply chain management and
business ethics journals. Journal of Purchasing and Supply Management, 22(2), pp.82-
97.
Rhodes, C., 2016. Democratic business ethics: Volkswagen’s emissions scandal and the
disruption of corporate sovereignty. Organization Studies, 37(10), pp.1501-1518.
Sroka, W. and Szántó, R., 2018. Corporate social responsibility and business ethics in
controversial sectors: Analysis of research results. Journal of Entrepreneurship,
Management and Innovation, 14(3), pp.111-126.
Storey, M., Killian, S. and O'Regan, P., 2017. Responsible management education: Mapping the
field in the context of the SDGs. The International Journal of Management
Education, 15(2), pp.93-103.
Van der Byl, C., Slawinski, N. and Hahn, T., 2020. Responsible management of sustainability
tensions: A paradoxical approach to grand challenges. In Research Handbook of
Responsible Management. Edward Elgar Publishing.
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