This study material explores the concept of business ethics and responsibility. It discusses ethical issues, the role of business in society, stakeholders impacted, and provides recommendations. The material also includes a discussion on two ethical theories.
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Business Ethics and Responsibility Management
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Table of Contents INTRODUCTION...........................................................................................................................3 PART 1............................................................................................................................................3 A) Report.........................................................................................................................................3 Ethical issues involved in having loot boxes as part of business model................................3 Role of business within the society:.......................................................................................4 Stakeholders impacted due to the issues and how..................................................................5 Example of good and bad ethics.............................................................................................5 Recommendations..................................................................................................................6 REFERENCES................................................................................................................................6 B) Discussion on two ethical theories..............................................................................................6 REFERENCES................................................................................................................................8 PART 2............................................................................................................................................9 Reflective essay of ethical Leader..........................................................................................9 CONCLUSION..............................................................................................................................10
INTRODUCTION Business ethics are the set of rules which the company must follow so that they can efficiently accomplish their goals and objectives in the specific time period. It offers various advantages to the company as with this they can efficiently improve the operations of the company as well contribute to the better organisational image. With the help of this the organisation ensures the impact of their business activities on the environment by considering the rightandwrongintheiractivities.Theunethicalpracticesadverselyaffecttheoverall performance of the organisation which also had direct influence on the profitability of the company. In this report the case of EA Games: FIFA, Loot boxes and Whales is taken into consideration which is an American gaming company. The report is divided into two parts, the first part is based upon a case study on which a report is prepared by the middle managers to the senior manager in context of the issues of business ethics which are faced by the company along with its impact on the stakeholders. While in the other part various ethical theories are discussed. In the next half of the report various factors related to the ethical terms in context of a leader is discussed. PART 1 A) Report The system of ethics guides the behaviour of the people, values and the decision making of the company as with the help they can ensure that performance of the company is better and in favour of the society. It ensures the profitability of the company both for the long term as well as for the short term because this makes the company responsible for their actions and operations (Etzioni and Etzioni, 2017). Business ethics offers various advantages to the company such as positive image of the company, fair market practices, satisfied stakeholders and many more. Ethical issues involved in having loot boxes as part of business model The company EA Games is an American company which is engaged in developing and distributing games throughout the world. The case of EA Games is related to the loot boxes that
view of their unethical practices and this can lead to better and improved image as well performances of the business operations(Hutchings, 2018). Stakeholders impacted due to the issues and how Stakeholders are crucial for the organisation as with the help of their satisfaction level the company can ensure growth and their survival. Due to unethical practices and issues the interest of the stakeholders from the company reduces and this has impact on the companies as well as it leads to reduction of the sales thus the profitability of the company. The impact of this issue on various stakeholders of the EA Games is given below: ď‚·Customers:For any company customers are most important stakeholders as they make purchasesfromwhichthecompanygeneratetheirrevenueandduetothistheir satisfaction level is crucial. The game are designed by the EA Games for fun but due to adverse impact of this features of loot boxes the customer base of the company significantly lowered down as this affected the level of trust. ď‚·Shareholders:The investors invest within the organisation with the aim of earnings on the basis of the performance of the company. The unethical practices of the company lead to losses in terms of sales and also the faith of the investors due to which they withdraw their investments. This reduces the reduction in the share prices which increases financial loss to the investors(Tavani, 2016). ď‚·Government:Various governmental bodies regulate the operations of the company with the aim of protecting the interest of the consumers. The government supports the companies because they contribute to the economy and also to the income of the government in terms of taxes. But the unethical issues faced by the company leads to various challenges for the government as they have to take necessary actions against the company so that they can reduce the chances of the greater loss to the society by taking harsh actions against the company. This affects the economy as well as the revenue of the government. Example of good and bad ethics Ethics are adopted by the companies with the aim of supporting the operations in an ethical manner. But the outcomes of the ethics so adopted define them as good or bad ethics. For example, The National Health Care organisation treats their patients efficiently and in a systematic manner with various ethical codes(Wettstein, 2015). This is an example of good
and thus on the stakeholders which can be the government, employees, customers, investors etc. The ethical theories regulates various unethical practices with which the frauds, scandals, illegal activities can be managed. Incorporation of various ethical codes enables the companies to comply with various regulations and laws so imposed by the government due to which their intervention can be reduced. The ethical theories that can be adopted by the EA Games are give that can assist them in avoiding or dealing with various unethical issues such as issue of loot boxes. Some of the ethical theories are given below: Utilitarianism:The theory of Utilitarianism was given by John Stuart, according to him the ethical action or morally correct actions are those which give happiness to other while they make people unhappy then they are termed as morally wrong(Kagan, 2018).This theory is based upon the idea that ethical decisions are dependent upon the consequences of the decisions so taken by the organisations due to which it is also known as consequentialism theory. The aim of the theory is common good and due to which a central gaol is established to maximise the benefits and happiness to other by minimising the suffering of the people associated. The Utilitarianism theory has two types Act Utilitarianism and Rule Utilitarianism, in which prior one aims to benefits others irrespective of their personal feeling and societal constraints while the later one focuses upon the benefits of other but in just and equitable , fair means. This theory can be adopted by EA Games and at the time of developing the games they must consider such features with which both the parents and the children can be made happy and satisfied. For this they can restrict the number of hours a person can play games as with they can prevent the situation of being addictive for the game(Fletcher, 2017). With the help of Rule Utilitarianism, they can consider various features such as the interest of the parents regarding the use of money as due to the feature of loot boxes their bank accounts got emptied. This will enable them to manage their features and just and fair manner as required and expected by the parents. The benefits of this theory are that with this the good to a large number of people can be ensured by the company by compromising with the value to an individual. With this the EA Games can ensures that benefits of the company and the game develop comes after and du to this the preference to the customers interest must be given. With this they can lead to solution to many by oppressing the needs of an individual.
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Deontology:This theory of ethics suggests that the people which are related to the decision making process in relation to ethics then they comply with all of their obligations and duties. It implies that the rights of the humans must be considered and treated with dignity with the help of which the companies can establish better relations with their customers(Magelssen, Pedersen and Førde, 2016). The attributes which are taken into consideration within the theory are all positive attributes but it has some flaws which are that there does not exist any logical basis for deciding the duties and obligations of an individual. Due to this many times conflicts can arise among the people in regard to the duties. EA Games can apply this theory within their organisation as with they can ensure that they respect each and every people which are accosted with them as with they can respect the dignity of their rights and interest. This will enable them to manage the relations with their stakeholders (Ahmad and Gao, 2018). Deontology theory will encourage the company to get over the feature such as loot boxes so that the interest of the parents as well as children can be kept within the company. The pros ofDeontology theory is that it can be applied to the company efficiently as with this they can deal with actual problem by considering their interest and rights. It will make the company responsible to respect the dignity of the associated people(Miller and Eggleston, 2020). But it becomes complicated when the duties of the people have to be identified to manage the things as there is no significant basis on the basis of which the duties can be identified. For EA Games incorporating this theory will be beneficial as with this they can maintain their relations and consider the expectations of the customers with which they can manage the interest of both the parents and children by eliminating the feature of loot boxes. REFERENCES Books & Journals Magelssen, M., Pedersen, R. and Førde, R., 2016. Four roles of ethical theory in clinical ethics consultation.The American Journal of Bioethics,16(9), pp.26-33. Miller, D.E. and Eggleston, B., 2020.Moral Theory and Climate Change: Ethical Perspectives on a Warming Planet. Routledge. Fletcher, C., 2017. An Ethical Life: A Practical Guide to Ethical Reasoning by Richard Kyte.Journal of the Society of Christian Ethics,37(2), pp.191-192. Kagan, S., 2018.Normative ethics. Routledge.
PART 2 Reflective essay of ethical Leader Ethical leadership is defined as a eldership which considers ethical beliefs and values at the time of managing the people associated to the business with dignity and respect. An ethical leader monitors and controls the actions of the people with the help of their ethical values and beliefs. With they can make their team members follow the same path that can take the entire organisation to consider honesty, trust and dignity towards the people who are associated with the company. It improves the culture of the organisation and enables them to adopt ethical practices that contribute to the overall performance of the company(Greenwood and Freeman, 2018). Better integrity can be developed among the employees with the help of building understanding and trustworthiness among the employees of the organisation and this will make them capable of dealing with their roles and responsibilities. Thus it will make the organisation to achieve their goals and objectives efficiently. Leaders with their influencing ability can make their employees understand the benefits of adopting the path of ethics with facilitate them to regulate their behaviour. This improves the efficiently and improves their morale to be consistent towards ethical practices. By developing understanding among people they aims to integrate their efforts as with the help of this they can resolves the issues which are faced by the company in a much better way(Shapiro and Stefkovich, 2016). With this not only the organisational efficiency can be improved but their ability to manage relations with others and ability to satisfy their customers also enhances. Being a leader I adopted various strategies so that I could manage my actions and with which I can influence the behaviour of my entire team. With this I could manage theconflicts that arises among the team members without affecting the belief and side of any member as this will morally be not good. More and more involvement of team members implies that they will develop better understanding and to ensure this I use to conduct various such activities so that effective communication can be made possible among them and an understanding among each can be developed. This will make sure that they all work together with integrity and respect for each other. Whenever I had to take decisions I consider ethical attributes which motivates other to adopt the same with the aim of considering ethical behaviour in their performance. While
allocating various roles and responsibilities for executing various tasks I use to consider the abilities, skills, knowledge and understanding of ethical codes so that all the target can efficiently be achieved. It motivates other to get through such ethical code of conduct so that they can be given more opportunities as others and this improves their overall performance(Ali Chughtai, 2016). On the basis of above discussion it can be analysed that ethical eldership has greater impact on enduring the ethical behaviour of the employees within an organisation. A leader is the one who can ensure the compliance of ethics as they motivates and influences their employees to consider such factors while undertaking their roles(Xu, Loi and Ngo, 2016). They can efficiently encourage the people by integrating them and their performances with the aim of developing trustworthiness among all. This will make them take effective decisions and can ensure that each and every team member work on the same path. CONCLUSION It is concluded from the above report that it is important for all the organisations to consider the business ethics as part of their business activities as with this they can achieve their business objectives efficiently. With this the image of the company can improved among the customers and this improves their profitability as well as market share. But if an organisation fails to manage such ethical practices then their stakeholders gets affected to a greater extent. To manage such issues the companies are recommended to use various ethical theories so that such issues can be resolved. In addition to this ethical leadership also contributes in managing the behaviour of the employees and to encourage them to follow ethics while executing their job.
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REFERENCES Books & Journals Ahmad, I. and Gao, Y., 2018. Ethical leadership and work engagement.Management Decision. AliChughtai,A.,2016.Canethicalleadersenhancetheirfollowers’creativity?. Leadership .12(2). pp.230-249. Greenwood, M. and Freeman, R.E., 2018. Deepening ethical analysis in business ethics. Journal of Business Ethics .147(1). pp.1-4. Shapiro, J.P. and Stefkovich, J.A., 2016.Ethical leadership and decision making in education: Applying theoretical perspectives to complex dilemmas. Routledge. Xu, A.J., Loi, R. and Ngo, H.Y., 2016. Ethical leadership behavior and employee justice perceptions:Themediatingroleoftrustinorganization.JournalofBusiness Ethics,134(3), pp.493-504.