Business Ethics and Responsible Management

This document discusses the importance of business ethics within the organization, the consequences of business ethics in the given case study, the role of business within society, and the effect of business activities on stakeholders. It also includes a discussion on two ethical theories - Utilitarianism and Deontology.

Business Ethics and
Responsible
Management

Table of Contents
INTRODUCTION................................................................................................................................3
PART 1..................................................................................................................................................3
PART A.................................................................................................................................................3
Importance of business ethics within the organisation....................................................................3
Consequences of business ethics in the organization given in case study.......................................3
Role of Business within the society.................................................................................................4
Effect of business activities on Stakeholders...................................................................................4
Example of good and bad ethics......................................................................................................5
Recommendation.............................................................................................................................5
REFERENCES.....................................................................................................................................5
Books & journal:..............................................................................................................................5
PART B.................................................................................................................................................6
Discussion on two ethical theories...................................................................................................6
REFERENCES.....................................................................................................................................8
Books & Journal:.............................................................................................................................8
PART 2..................................................................................................................................................8
Reflective essay of ethical Leader...................................................................................................8
REFERENCES...................................................................................................................................11
Books & Journal:...........................................................................................................................11

INTRODUCTION
In business field, ethics and management are essential to be focused. Business ethics is
defined as study of ethical principles, & moral of a particular subject (Graf, 2019). These ethics are
being applied at all aspects of business environment. Main aim of this report is to understand
importance of business ethics & management. EA games, largest video gaming company
headquartered in U.S. It has many competitors such as Niantic, Ubisoft, Activision etc. The given
case study is about FIFA, Loot Boxes & Whales. This report comprises of Part A in which there is
brief overview about concepts of business ethics & in Part B, the it includes ethical theories.
Further, ethical terms that are needed by leader.
PART 1
PART A
Importance of business ethics within the organisation
Business ethics refers to principles or morale that are applied to business environment.
Standards & principles are necessary to be focused so that activities, functions & operations are
carried out in proper way. It is essential to apply these ethics in business so that objectives are
achieved ethically. Moreover, when businesses properly carry out their work then by considering
these ethics goodwill & trust between customers, stakeholders increases at wide level. Also, it is
easy for company to make decisions in better way. This is profitable for business as they are able to
carry out their all operations in most efficient manner (Kjeldsen, 2018).
Consequences of business ethics in the organization given in case study.
According to give case study, it is stated that it is linked with EA games which is to be
considered as important MNC in video gaming industry. Moreover, games of these firms are most
popular from children to adults. Loot boxes are being defined as virtual items that are consumables
such as most of game such as FIFA, Fortnite use this loot box. Furthermore, it is too examined that
correct these loot boxes are banned because they violates ethics culture because it have a bad impact
children minds. There are many others small and medium sized gaming firms that use this service
but it is negatively creating issues between children & parents. In context of UK government
agencies and department, they have stated that it is necessary to examine whether businesses are
carrying out their activities ethically or not. Further, legal department of company has also given
statement that it is crucial to be aware about these gaming features & firm is properly not doing
anything unethically. Main issue which is faced by EA Games is that they have been arguing with
people about loot boxes that, it is ethical as it only provides fun & entertainment.

Role of Business within society
Business sector is wider & broader which have large impact upon society as well as
community. Role of business in society is essential to be examined so that it is easy to make
decisions properly (Terziev, 2019). There are several types of roles which are needed to be
examined such as business provide distribution of service & goods, fulfil needs, demands of
customers at all aspects. With rise of competition, these roles have also become crucial which are
required to be followed properly. For example- EA Games also has many roles in society such as
they need to carry out their work in ethical way so that demands of customers are fulfilled. Further
role is to identify & examine the way which has contribution to society (Laasch, 2019).
In viewpoint of given case study, it has been specified that decisions making which are
being undertaken are not in favour of firm. As, case study shows that money of parents are being
wasted in both directly & indirectly manner because children get violated while playing games &
also lack of knowledge about whether to keep priority in work or personal, entertainment zone.
Effect of business activities on Stakeholders
It is often seen that, whenever business perform any activity or unethical activities issues &
problem does occurs within management. A business activity has large effect on stakeholders.
Stakeholders are those who have interest for some purpose. It is necessary to be aware about these
them as they are part of organisation. In relevance of chosen entity, there are different types of
stakeholders which are discussed below-
 Customers- These are those type of stakeholders who have interest in gaining better quality
products or services. So, whenever business activities are carried out customers are affected
at larger scale (Rauf, 2020).
 Shareholders- They refers to one who have interest in acquisition of maximum ROI. They
are too affected by business activities as for example- if any consequences or issue arise it
directly affects trust of shareholders whether to invest or not.
 Employees- They also being considered as crucial stakeholders as because they have
interest in acquiring of salary, increased wage etc. Activities of business too impact upon
employees because they are one who complete target on time (Liu, 2017).
 Government- These stakeholder states that government interest is to achieve higher taxes
from business for better expansion. Moreover, this has been too examined that whenever
activities related to their work, laws or legislations are implemented government does get
affected.
 Communities- They are other stakeholders who have interest in businesses. It mostly
includes people, group of associations, suppliers etc. Thus, when activities linked with
businesses occur it become difficult for communities to make decisions.

Therefore, above discussed matter shows that stakeholder is crucial part of organisations
which are responsible for achieving goals & objectives. Further, it is essential to be aware about
impacts of businesses activities on stakeholders so that better output is achieved.
Example of good and bad ethics
In enterprises, ethics are being adopted in both negative & positive manner. It is crucial to
aware about these good as well as bad ethics so that it is easy to make decisions most effectively.
For example- Bad ethics are such as animal testing, exploitation of child labour, etc. Another
example is that EA games as they are using Loot Boxes which impacts upon mind & behaviour of
children (Gamble, 2020). Good examples of ethics are National Health Care also known as NHS
who properly works with considering government rules & regulations.
Recommendation
In business ethics play important role & it is duty of firm to properly follow them
appropriately. In context of EA Games they faces many issues & problems regarding their work &
culture of business activities. For example- they have been criticise for bad ethics of using of loot
boxes which are violating terms of society. So, there are various recommendations which are
needed to be followed & are discussed below-
 It is recommended to EA Games that they should properly follow ethics within
communities & society so that goodwill of firm increases at wider range.
 Furthermore, it has been also recommended that market research is to be conducted so that
enterprise become aware about their business activities so that it is easier to carry out
marketing activities effectively.
 It is also recommended to chosen firm that they should update their policies & regulations
so that ethics which are bad or good are determined appropriately.
Thus, explained recommendation states that it is essential for company to focus on these
recommendations so that problem faced by them is easily resolved & objectives are achieved.
Through focusing on this will help in using of appropriate measures as well as correct procedures.
REFERENCES
Books & journal:
Gamble, 2020. Broadening the business model construct: Exploring how family-owned SMEs co-
create value with external stakeholders.Journal of Business Research.
Graf, 2019. Wanting more, getting less: Gaming performance measurement as a form of deviant
workplace behavior.Journal of Business Ethics,157(3), pp.753-773.
Kjeldsen, 2018. Accept it or Don’t Buy the Game!.
Laasch, 2019. Delineating and reconnecting responsible management, learning, and education

(RMLE): A research agenda through a social practices lens. InAcademy of Management
Annual Meeting.
Liu, 2017. Situated stem cell ethics: beyond good and bad.
Rauf, 2020. New moralities for new media? Assessing the role of social media in acts of terror and
providing points of deliberation for business ethics.Journal of Business Ethics, pp.1-23.
Terziev, 2019. The role of business in society.Proceedings of SOCIOINT.
Waddock, 2016. Foundational memes for a new narrative about the role of business in
society.Humanistic Management Journal,1(1), pp.91-105.
Wojewnik-Filipkowska, 2019. Understanding of public–private partnership stakeholders as a
condition of sustainable development.Sustainability,11(4), p.1194.
PART B
Discussion on two ethical theories
With changing period of time, there are various types of business ethics which are essential
to be focused. Through properly focusing on these ethics assists in developing of business activities
are properly carried out with stakeholders such as customers, government, environment etc. It is
essential because it help in reducing of risk, problems at higher level. Following all ethical code of
conducts leads to time consuming process (Gaus, 2018). These ethical theories are crucial to be
considered because they assist firm in making effective decision. Therefore, when proper analysis
is needed to carry out so that these are applied in appropriate context. So, there are various types of
theories which are discussed as follows-
Utilitarianism
According to this theory, it states & depicts about morality and & advocates actions that
directly impact upon happiness or pleasure. This theory also shows that decisions of ethics are
based upon different situations & consequences (Aronson, 2019). Further, it too depicts that it is
crucial to manage and develop good relationship so that happiness is achieved properly. With use of
this theory, it has been seen that it is essential to make decisions so that goods & products are
produced in correct way which fulfil needs & demands of customers. It helps in establishing of
optimistic relations with general public who are affected by actions and activities of business. Also,
sales of entity's products and services can also increase with application of this theory as maximum
benefits are delivered to individual.
In relevance of selected firm, by adapting with this theory they need to update & focus on
their info graphics so that games are developed in most appropriate manner. For example- they can
produce games such as with time limit in which children who play games age below 18 can play the
game within time game time period only.

Pros
 This theory is beneficial for developing of level of happiness such as which is related with
society, community etc. (Harsanyi, 2017).
 Another pro of this theory is that they can implement statistics of happiness of customers &
society through their market research which is beneficial for long term engagement for both
parties.
Cons
 Main limitation of this theory is that the intensity of happiness depends upon different types
of situations, events etc. which are sometimes difficult to achieve. Thus, it is time
consuming process as it requires proper analysis.
 Then, it is suitable for one time because not every individual has same situation of
remaining happy which makes it difficult for firm to use for regular purpose or for longer
period.
Deontology
This is second theory in which it was proposed by Immanuel Kant who depicts that humans
has their own rights, duties, according to which they are to be treated by business sector. According
to this theory, it also reflects that by adapting of Deontology it is easy to examine potential
customers of a particular brand or product (Lucas, 2016). Moreover by applying this theory in to
business and service sector will help EA games in improving their management practices as well as
ethical behaviour towards consumers. Also, it impact upon mind set of both employer and
individual as they become active towards their rights and responsibilities.
This is important to use it on basis of which customer’s viewpoint can be easily examined.
Moreover, it assists in improving better relations with society, community & customers. In context
of selected organisation, manager of enterprise should produce & follow legal way of producing
games which do not violates the respect or culture of people or individual who play games.
Pros
 Main advantage of this theory is that by using of it EA Games are able to engage with their
targeted customers easily when goods & products are produced.
 Further benefit is that it is helpful for examining of rights & duties of human which
increases knowledge related to rights & act.
Cons
 Drawback of Deontology is that it is theoretical process & lacks of practical knowledge
which makes it difficult to apply it at all aspects.
 Moreover, it is not possible to manage all rights & duties of humans as there are many
people who are unaware about their duties (Posner, 2019).

Therefore, above discussed matter shows that it is necessary to focus on these theories on
basis of which it is easy to make decisions regarding business activities. Also, it is essential for
manager to be aware about this evaluation of theories as both these theories help in achieving of
goals within period of time.
REFERENCES
Books & Journal:
Aronson, 2019. Integrating leadership styles and ethical perspectives. Canadian Journal of
Administrative Sciences/Revue Canadian des Sciences de l'Administration,18(4), pp.244-
256.
Gaus, 2018. What is deontology? Part two: Reasons to act. Journal of Value Inquiry,35(2), p.179.
Harsanyi, 2017. Rule utilitarianism and decision theory. Erkenntnis,11(1), pp.25-53.
Lucas, 2016. A method to evaluate equitable accessibility: combining ethical theories and
accessibility-based approaches. Transportation,43(3), pp.473-490.
Osmo, 2016. The role of ethical theories in decision making by social workers. Social Work
Education,25(8), pp.863-876.
Posner, 2019. Utilitarianism, economics, and legal theory. The Journal of Legal Studies,8(1),
pp.103-140.
PART 2
Reflective essay of ethical Leader
A leader refers to person who has ability to get work done and influence of others decision.
In an organisation, a leader has wide range of role which is needed to be properly understood &
carried out. It is necessary to use have ethical leader in who can deliver better output in ethical
manner. In this fast changing world, it is necessary to have deep knowledge of ethics and other
legal activities on basis of which decisions can be undertaken in effective manner. When ethical
leaders are presents, entity is able to enhance their goodwill in minds of employee as well as
customers. At workplace, having appropriate type of work culture and other procedure are required
to be addressed. If these ethical practices are ignored, it is not possible to carry out business
activities in effective manner and problem or issues might arise.
In relevance of EA Games, leader of entity need to become more aware about these
concepts. Ethical leadership management refers to promoting & showing of correct conduct
through personal actions & interpersonal relations (Baskaran, 2018).This concept of ethical
leadership management are crucial to be adopted so that it is easy to maintain everything ethically.
Then, integrity can be maintained in unethical and business environment by keeping and

informing subordinates regarding what and how issues can impact them, session about importance
of ethics, brief knowledge about ethical code of conducts (Engelbrecht, 2017).
According to my own experience, I have examined that it is crucial for leaders to have
appropriate knowledge about these ethics, laws, legislations so that everything is done in correct
way. Thus, maintaining integrity is also essential as it is beneficial for achieving better results.
There are some positive impacts of ethical leader in enterprise such as motivation is carried out
amongst people at workplace in proper way. It directly affects performance & progress level of
employees at wider range. Integrity is essential because without establishing it higher productivity
cannot be achieved in enterprise or at workplace. So it is main role of a leader to integrate and
community with team members in most efficient way.
So, my experience as a leader assist me in becoming responsible towards my work & how to
execute it properly is examined by me in appropriate manner. I face many problems as well as
issues such as time management, accurate information gathering etc. Through analysing of these
problems also help me in improving my critical thinking skills & manage team work in proper
manner. Moreover, I was able to manage trust of my team members through this ethical leadership
it is easy for me to determine my unethical way of working. Further, I assigned multiple tasks to my
team members and evaluated their performance as well as progress. Through this it was easy for
me to convert members into effective team. Also, because of my ethical behaviour & knowledge
about principles, theories helped me and others to engage with work in most efficient way. It leads
to developing own skills, capabilities towards ethical work context. Team members of my team
helped me to manage my ethical ideas & thinking in specific way. This has been also evaluated that
being an effective and ethical leader help in becoming more aware about business environment
practices.
Therefore from the above discussed matter it has been specified that it is important to focus
on the concept of ethical leadership management and role of ethical leader in business. Ethics
depicts the base of an organisation and weather they are properly managing their practices or not. It
is also important for leader to understand the difference between ethical and unethical activities so
that it is easy to make decisions in further processes.

CONCLUSION
After a brief analysis of above report, it has been concluded that business ethics &
management are important to be considered so that objectives are achieved appropriately. Further,
by proper focusing on ethics it is easy to to reduce risks & problems within enterprise. So,
discussions have been made about several topics such as theories, importance of ethics, role of
business in properly. Then, impact on stakeholder, legal terms which are to be used by leaders. In
this fast moving business sector, it is necessary to assures that ethics are properly followed so that
no future problems occur. This has been evaluated that a business cannot survive for longer period
of time. So, ethics reflects goodwill of company according to which society or community uses
product as well as services.
REFERENCES
Books & Journal:
Baskaran, 2018. Exploration and Integration of Ethical Leadership Potential Dimensions and
Differential Employee Voice Behaviour–A Strategic Management Perspective. Business
Management and Strategy,9(1), pp.272-289.
Engelbrecht, 2017. Integrity, ethical leadership, trust and work engagement. Leadership &
Organization Development Journal.
Gazzola, 2018. Ethical Behaviour Integrated in CSR: How to create and maintain the Corporate
Reputation. Economia Aziendale Online-,9(2), pp.175-185.
Shareef, 2019. The influence of ethical leadership on academic employees’ organizational
citizenship behaviour and turnover intention. Management Decision.
Yang, 2017. Ethical leadership and employee task performance: Examining moderated mediation
process. Management Decision.