Business Ethics and Responsible Management

BUSINESS ETHICS
AND RESPONSIBLE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
a) Explore factors that are included in perspective of ethics for an issue...................................1
b) Ethical theories.......................................................................................................................3
PART 2............................................................................................................................................5
Characteristics of ethical leader..................................................................................................5
CONSLUSION................................................................................................................................6

INTRODUCTION
Business ethics is conduct of organisation in form of practices and policies that helps in
examining principles ethically that are present in business environment. It is applied to whole
conduct of companies including employees and deals in technical, legal, etc. Responsible
management is described as maintaining balance interest of individuals, environment and
companies for benefits in present and future (Song and et. al., 2015). In this report a case in
presented on Ladbrokes about Fixed Odds Betting Terminals (FOBT) and related issue of
business ethics will be discussed. This report will include factors including perspective of ethics
including on the issue and its impact on image of company. Ethical theories will be discussed so
that ethics of case study can be demonstrated. At last, this will discuss characteristics of ethical
leader so that they can manage high ethical standard in organisation.
PART 1
a) Explore factors that are included in perspective of ethics for an issue
Ladbrokes Coral is Betting and gambling company situated in London and owned by
GVC holdings. In this case Fixed Odds Betting Terminals (FOBT) that were super slot machines
of company allows customers to bet £100 in every 20 seconds. This strategies has lead to loss of
money and even families because of the addiction. Then due to many such cases government
stepped in and limited the number of bets to £2. but this lead to financial loss for company which
resultant in closing of many shops and around 50,000 job losses. For this company's senior
managers is conducting test and interview along with data of past performance. Ladbrokes Coral
is now planning to take the business model online and will consider employee score on how
many online accounts of customers they can open. After this personnel will be ranked and
inefficient workers have to lose their jobs. There are different type of perspective by which
Ladbrokes Coral can look into the issue, are as follows:
Ethical perspective of families: From the point of view of families, gamblers are loosing
their money and even staking their families members. There is one of major issue as their
financial stability will be affected and future will be in fear of unknown (Luo, 2018). Financial
stability is one of the strength of individual that they secure for members in family so that they
can fight in case of unexpected events and incidents. These are the individuals who are present in
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society and thus impact image of company as well. This is most unethical from the perspective
of family and company should be held responsible for their actions and business model. They are
stakeholders too in case of company issue and it is clear discussion that it have complete
negative impact on families (Schaltegger and Burritt, 2018).
Ethical perspective of Employees: Due to action of government, Ladbrokes Coral is
facing financial issues and thus wants to close their 1000 shops, resultant many employees will
be losing their jobs. This will create financial and survival issues for them and thus gonna affect
the society as whole. There is need that company changes its business model into ethical strategy
so that same situations does not occur in future. These are stakeholders for company who works
so that Ladbrokes Coral can make profits on ground level but because of closing of shops many
has to lose their jobs and thus results in financial instability for living. This will hinder the image
in public as in future if company will need more employees than due to its image of illegal
dismissal will affect recruitment process (Leung and Gray, 2016).
Ethical perspective of Government: Interference from state is one of major control that
monitor legal and ethical business model that benefits the society. In the case of Ladbrokes
Coral's Fixed Odds Betting Terminals (FOBT) government find out that it was clearly unethical
and affecting society in negative way. They also play role of major stakeholder as interference of
state can lead to changes in organisation and in its policies as well. Government has power to
shut down company on the basis of rules (SA, 2015). In this government has stake to stop such
activity in Ladbrokes Coral on the basis of ethical policies. It is important that businesses
indulge in those operations which are ethical and have positive impact on the whole society as
well.
Ethical perspective of Society: This is one of major factor which have great impact on
the image of company in industry. According to society gambling is a taboo and unethical, any
company involves in these operations are considered illegal as well. So perspective of society is
one of the major factor while looking in the issue of gambling b y company itself. Society serves
as major influencer stakeholder in context of business because due to their protest government is
pressurised to take legal actions for companies (Tetrevova and Patak, 2019). Same in case of
Ladbrokes Coral, when families were getting affected state intervened and change the business
model which lead to loss for business. This issue therefore will be treated as one of the most
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