Business Ethics and Responsible Management

This report discusses the ethical dimensions of the case study on EA Games: Fifa, Loot boxes and whales. It explores the impact on the company's public image, stakeholders, and alternative ways to think about a business' role in society. The report also examines two ethical theories and provides recommendations for the company.

Business Ethics and
Responsible Management

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
a........................................................................................................................................................1
Ethical Issues in case study..........................................................................................................1
Why should the company be looking at this issue from an ethical perspective of ethics?..........1
How might this issue influence the public image of the company?............................................2
What alternatives ways are there to think about a business’ role in society?..............................2
Who/what are the stakeholders impacted in the scenario you are reporting on and how are they
impacted on?................................................................................................................................2
Are there examples of business that act responsibly and ones that do not?................................3
where is there research that shows good choices benefit companies and bad choices have a
negative impact?..........................................................................................................................3
Some recommendations for what the company should do..........................................................3
b. ......................................................................................................................................................4
Two ethical theories.....................................................................................................................4
PART 2............................................................................................................................................6
Reflection on ethical leader.........................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
The term business ethics is said to execution of appropriate policies, practices and
programmes in context to arguably contentious subjects. It is category of applied ethics which
examines ethical principles or morals which have large chances to arise within contemporary
business environment (Camilleri, 2017). Similarly, responsible management can be described as
deliberate management of an establishment that impacts towards society. It is relevant with
designing processes together with scheduling durations of activity for meeting social addition to
environmental minimum standards. The report is prepared on a case study that is “EA Games:
Fifa, Loot boxes and whales”.
The report is bifurcated on two parts, Part 1 is related to case study in which middle
manager have devised a report for senior managers about ethical dimensions of issues from case,
number of factors, though of organisation about role of business within society and the ways
ethical choices impacts other companies. At same time, two ethical theories are demonstrates and
applied on the case. In contrary, Part 2 includes discusses what makes an ethical leader along
with the ways an ethical leader manage the business and others in high ethical standard.
PART 1
a.
Ethical Issues in case study
Loot boxes, gambling and addiction: It is defined as a tool in video games that is
related to the real time money, which is rewarded to the players for some winning actions.
Gambling act 2005 has stated that gambling does not relate with loot boxes. In context of EA
company, parents are feared about their children to play and spend more money with youngsters
as they are unaware of the difference between loot boxes and gambling. Loot boxes are purely
reward gaining activities through game but gambling is a type of betting which can be against
ethics. So company itself stated that loot boxes does not comes under gambling, it is considered
nearly as kinder egg. There are various rewards involved in loot boxes for example fixed and
variable interval rewards, fixed and variable ratio rewards.
Why should the company be looking at this issue from an ethical perspective of ethics?
Loot boxes can be considered against ethics because it is somehow relating to other ethics
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like addiction to children and gambling as well. So company should look this issue as from
ethical point of view in it's business because parents are more concerned about their kids and will
never want their child to get addicted with these loot boxes, as these results in consuming time
more in games and less in studies and outdoor games (Cicmil, Gough and Hills,2017). So this
can decrease the productivity of the firm in selling their video games. Until parents are not
satisfied with the game their child is playing.
How might this issue influence the public image of the company?
These ethics can directly or indirectly can affect the reputation of the firm. Because these
ethics cannot be hidden for a long time, one or the other day people may surely come to know
about their knowns behaviour who are playing video games. This can easily affect the image of
the firm negatively due to these ethics of loot boxes and addiction. If behaviour of the user of
video games changes like spending more time on game, reward addiction and many more, then
people can demand to shut the company for the negative influence on their child due to these
video games (Dierksmeier, 2019). So this can spoil the image and as well as can ultimately lead
to shutting down of the company.
What alternatives ways are there to think about a business’ role in society?
Business comes up with various innovations and opportunities for the society to get
employment and creative ideas for execution. It helps in the growth of economy in the world.
Local environment also gets affected positively due to business world. Day spending for any
employee is safe in the business environment. Most important is that the business meets the
needs and wants of the society. Increment of social trends are due to the business only (Endenich
and Trapp, 2020). It mainly inspires and encourages the upcoming generation with it's tactics and
innovations. So these are the major roles of business that affects the society in a positive way.
Who/what are the stakeholders impacted in the scenario you are reporting on and how are they
impacted on?
Stakeholders of EA games defended this issue by saying in front the media that loot
boxes are just same as kinder eggs and not considered as gambling. They believe that boxes are
enjoyable, fun and ethical too. They further stated that without paying for these virtual goodies,
it'll not be a fun and gamers can stop playing and purchasing the video game because according
to them that if a person can buy kinder eggs with such an costly amount then why don't virtual
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goodies. So they simply compared their loot boxes from other items and dis-relate it by gambling
which is really an unethical practise (Evana, Metalia and Mirfazli, 2019).
Are there examples of business that act responsibly and ones that do not?
There are business like Lipton brand of Unilever make usage of carbon footprints and is
one of the major plastic polluter. They should reduce this but instead giving false statements
about their future reduction of these raw materials. Firm is leading brand but at the same time it
is in danger because of it's unethical doings (Hayes and Jackson, 2020). On the other hand, EA
games has taken their unethical situations responsibly by proving in front of the media that their
they are considered as ethical by explaining the difference between gambling and loot boxes. So
they acted wisely to save their business from being spoil in a market.
where is there research that shows good choices benefit companies and bad choices have a
negative impact?
Good choices benefits company as it resulted in more profit generation, it leads to lower
stress for the managers and the employees, reputation cannot get affected sue to unethical issues
and this positive attitude strengthens leadership skills. Bad choices drawbacks company as it
gains unusual risks, return on investment is difficult to prove in their financial statements,
employee morale goes down and it leads to demanding and expensive regulations (Islam, 2020).
So these were the difference between good choices made by the firm and bad choices made by
the firm and consequences they can suffer positively or negatively.
Some recommendations for what the company should do.
EA game company has already justified in front of the media that their practices are
unethical but it has not affected the company yet. People still are against loot boxes and
addiction of their child, moreover people didn't get the difference between loot boxes and
gambling. So this can affect the firm negatively by it's brand image and reputation. So Company
should lower these practices in order to be gentle in eyes of the people. It should modify it's
technology by restricting the low age group children or limiting the time period of playing the
video game or lowering the prices of their goodies. These recommendations can benefit the
company by satisfying both the parties parents as well as children and this is completely ethical.
Company can get a good appreciation by taking these measures and would be able to maintain
it's brand image.
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b.
Two ethical theories
Ethical theories are formal statements which states what an individual or organisation
ought to do while facing any ethical dilemma (Jang and Lee, 2017). These are systematic efforts
or contribution to understand moral concepts as well as justify moral principles. Study of ethical
theories is key for establishing a powerful foundation for dynamic and challenging circumstance
or guide decisions. There are various ethical theories that regulates unethical practices including
frauds, illegal activities, scandals, gambling and so on.
With the help the ethical theories, managers of business recognises being socially
responsible despite of being encourages individually through generating revenues. These bring
important opportunities to entities as they guide to attract customers towards offerings of
company that leads to boosting sales (Magrizos, 2020). It also direct to make employees prefer to
stay with business and enhance productivity. In context to case study, ethical theories can be
applied for showing the ways the theories leads to view towards ethics of the case. Higher
authorities of EA Games can apply some ethical theories to avoid, restrict or deal with certain
unethical situation, for example, issue of loot boxes. The two ethical theories are demonstrated
below in context to case study:
Utilitarian theory: It was provided by John Stuart Mill and Jeremy Bentham. The theory
determines right from wrong through emphasising on results. In another words Utilitarian theory
is a morality theory that advocates actions or practices that fosters pleasure along with happiness
which results in unhappiness and harm. The greatest good for maximum number or people is a
maxim of theory of utilitarian. It is based on action which is right if it promotes happiness or
wrong if it have possibilities for producing sadness (Mena and Rintamäki, 2020). The objective
of utilitarian theory is common good because of which a central objective is devised for
maximising benefits or happiness to others through minimising sufferings of associated
individuals. The theory is implied for making a decision that is related to what will benefit major
people. In context to case study, when managers applied thinking of Utilitarian theory in idea of
selling loot boxes then they are required to consider locus of right or wrong solely on
consequences of the cation over others practices. At same time, application of the theory also
requires focus towards interest of target audiences and take them into account to build happiness
or pleasure. Application of the theory can benefit managers of EA Games to emphasis on the
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concept that actions are correct of they provides advantages to major population. For example,
Loot boxes makes people happier when they wins any gift. Also, it is believed that this kind of
boxes are quite ethical along with fun. Moreover, it is a secular system that concentrates more on
humanity and seeks towards making highest possible good. Main focus of the ethical theory is
towards forward movement and all modern governing structures that are characterised as
democratic principle applies the philosophy. However, there are various limitations concerned
with the utilitarian theory. It only emphasis on happiness in the manner to determine ethics or
morality, but do not consider other elements which are not related to happiness. It also creates
unrealistic perspectives for society and depends on people that makes consistent decisions only.
Kant theory: It is also known as deontological ethical theory which is defined by
Immanuel Kant. The theory is related to the notion that it is impossible to think of anything
across the world or beyond which is seen as good without limitation except a good will. It
suggest that the idea of people must be treated with respect addition to dignity. According to the
theory, morality of an action should rely on whether the action itself is correct or incorrect under
a series of regulation despite of consequences (Misra and Goel, 2020). The Kant philosophy
states that rights of an individual are seen with respect through establishing better relations with
all the stakeholders. In aspect of the case study, while applying Kant theory or philosophy,
attributes that are focussed includes all the positive attributes and some acts which are virtuously
obligatory regardless of consequences for welfare of people. Managers of EA Games can apply
Kant theory for ensuring that they respect all the people and their rights in the organisation. With
this, the managers will be able to build and manage their relations with all gamers, other
companies and interested parties in loot boxes with dignity. By implying deontological of kant
theory, administrators of EA Games will be able to create a foundation that for conduct of
humans. Moreover, the ethics devises higher levels related to personal responsibilities and moral
absolutes. The theory focuses towards value of all the associated people and provide certainty to
stay connected with actions. In contrary, kant theory have high chances to create a paradox in
which maximum welfare of society is prohibited. It becomes useful as supernatural excuses and
involves matter of subjective views.
Among the both demonstrated ethical theories, application of utilitarian theory is
preferred for case study of EA Games as it utilitarian is the philosophy that says that actions or
practices are corrects if they benefits majority of population. In context to use of loot boxes,
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there are wide number of people that feel happy when they collect certain gifts just like what
people collect from Kinder Eggs. When people expects some gifts from boxes and when they
wins them it makes them more happier. The theory puts happiness as fundamental reason for
felicity to exist (Nie, Lämsä and Pučėtaitė, 2018). It teaches managers of company that harming
others for person advantages is wrong. Moreover, gamers are making money through various
products of EA Games that are making them feeling happy from the actions of entity. So,
application of utilitarian theory in case of EA Games means all the actions considerer are correct
only when results of decision improves whatever classified is good over what is seen as bad.
Furthermore, if an action do not maximise happiness of population then it is an incorrect choice.
PART 2
Reflection on ethical leader
Ethical leader is the person who is directed through respect for ethical values addition to
beliefs for rights and dignity of followers or subordinates. It is concerned with concepts that
includes trust, consideration, fairness, honesty and charisma. Ethical leaders have knowledge
about the ways to perform right things. Ethical leadership is kind of leadership wherein people
demonstrate conduct related to common good which is acceptable together with appropriate in
all aspects of life (Robertson, Voegtlin and Maak, 2017). Qualities that makes me an ethical
leader are my commitment, justice, encouraging initiative, leadership and no tolerance for
unethical practices or ethical violations. As an ethical manage, I would manage business of EA
Games through focusing and encouraging team building, value driving decision making, respect
for others and treating all people of company in equal manner. Moreover, I would manage others
by demonstrating and encouraging normatively suitable or ethical conduct with the help of
personal actions together with interpersonal relations.
Leaders that have influencing skills makes subordinates and superiors understand the
advantages of following the path of ethics to encourage them for regulating positive attitudes
towards actions. In an organisation, there is direct relation among ethical managers and ethical
leaders. Ethical managers treats all the subordinates in fair manner and sets workings without
discriminating among employees of organisation (Ryan, 2020). At same time, ethical leaders
also sees or allocate workings to employees with fairness and equality. It improves productivity,
motivation, morale and satisfaction of manpower at workplace for being consistent to ethical
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practices. Moreover, it not only foster business effectiveness but also manages relations with
stakeholders in internal or external stakeholders.
Being a leader, my ethical responsibilities includes demonstrating good values from my
words and actions, not overlooking towards wrong doing and performing in the manner that
benefits the company as whole. Moreover, showing integrity, respect and performing what is
right are core of mine to perform as ethical leader (Stonkutė, Vveinhardt and Sroka, 2018).
Personal ethics is a philosophy which determines the beliefs of a person for morality, right and
wrong. There are various situations which brings out unethical organisations as well as practices.
Results or surveys conducted by me shows that exposure towards in team members who do not
behave properly and conduct certain actions that are unethical in nature leads to make unethical
organisations. Moreover, people of unethical companies focus more on damaging reputations,
increasing regulatory cost, do not contributing towards developing society, harming morale of
stakeholders and so on.
To bring out best ethical environment, I devised and executed various strategies for the
purpose of managing my own actions in the manner that not only foster my leadership rather
influence attitude of whole team to perform ethically. The first is compliance technique that
includes tactics related to ingratiation which enhance self and flatter target personal appeals. The
other is related to commitment or consistency for changing dealing of mainstream (Ugoani,
2019). These assisted me to manage conflicts which occurred between teams without impacting
on their views. I encouraged more participation of all members to share their thoughts or ideas
about loot boxes and conducted practices that encouraged effective communication at workplace.
I also allotted workings on the basis of skills, competence, interest, experience and specialisation
of each person so that they understand and have knowledge for their roles to be executed
ethically. This encouraged all to work with set of ethical codes and gain wider opportunities to
improve their overall efficiency and performances. As a ethical leader, I analysed that my actions
have impacted widely on performing ethical practices by developing trustworthiness at
workplace.
CONCLUSION
According to the discussion, it is concluded that ethical business guides to improve
productivity together with overall employee morale. Organisational ethics encourages conduct
for manpower and comprises interpersonal relations and relationship with extrinsic situations.
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Ethics is seen as diagnostic tool that sets moral standards together with norms of behaviour.
There are various ethical dilemmas faced are loot boxes, gambling and many more. Key
stakeholders involved are customers, government and shareholders. For managing ethical
dilemmas, certain ethical theories includes Kant theory and Utilitarian theory. An ethical leader
is the one who makes efforts for managing attitudes of manpower about what is morally right or
wrong while performing for organisation.
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REFERENCES
Books and Journals:
Camilleri, M. A., 2017. Corporate Sustainability, Social Responsibility and Environmental
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Dierksmeier, C., 2019. From Jensen to Jensen: Mechanistic Management Education or
Humanistic Management Learning?. Journal of Business Ethics, pp.1-15.
Endenich, C. and Trapp, R., 2020. Ethical implications of management accounting and control:
A systematic review of the contributions from the Journal of Business Ethics. Journal of
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Statements: The Testing of Fraud Pentagon Theory on the Manufacturing Sector in
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Hayes, P. and Jackson, D., 2020. Care ethics and the responsible management of power and
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Magrizos, S., 2020. Teaching business ethics in a digital world. Journal of Global
Responsibility.
Mena, S. and Rintamäki, J., 2020. Managing the past responsibly: a collective memory
perspective on responsibility, sustainability and ethics. In Research Handbook of
Responsible Management. Edward Elgar Publishing.
Misra, R. and Goel, P., 2020. Examining effectiveness of teaching business ethics: An
experimental assessment. Journal of Education for Business, pp.1-8.
Nie, D., Lämsä, A. M. and Pučėtaitė, R., 2018. Effects of responsible human resource
management practices on female employees’ turnover intentions. Business Ethics: A
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Robertson, D. C., Voegtlin, C. and Maak, T., 2017. Business ethics: The promise of
neuroscience. Journal of Business Ethics. 144(4). pp.679-697.
Ryan, M. R., 2020. Business Ethics as a Form of Practical Reasoning: What Philosophers Can
Learn from Patagonia. Humanistic Management Journal, pp.1-14.
Stonkutė, E., Vveinhardt, J. and Sroka, W., 2018. Training the CSR sensitive mind-set: The
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Sustainability. 10(3). p.754.
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