TABLE OF CONTENTS Part 1................................................................................................................................................1 History of organization..............................................................................................................1 Ethical issues...............................................................................................................................1 Role of business in society.........................................................................................................1 Five stakeholders.........................................................................................................................2 Example of good and bad ethics.................................................................................................3 Recommendations.......................................................................................................................3 REFERENCES................................................................................................................................4
Part 1 History of organization EA Games was founded in the year 1991, as a electronic art sports network. It was founded in the UK. EA sports used to publish variety of different games such asFIFA Football, Madden NFL, Fight Night, NBA Live, NCAA Football, Cricket. Ethical issues EA Games is one of the largest company in the world in the gaming domain. It is known for developing world class games. FIFA and cricket as well as NFS are some of the top games of the EA which are very popular among the people. From past few years debate is going on the “Loot box” feature that is seen in the EA and other company’s games. In the Belgium loot box are banned. Under this feature children’s who are game addicted make purchase of the loot box to obtain specific features to make game more interesting(King and Delfabbro, 2019).During purchase they even do not know whether feature they intend to obtain will be in loot box or not. They spend money and if not get required feature again spend money to get intended feature. Ultimately what happened is that gamer spend thousand of dollar on game and become game addicted. In US and other nations of the world examples are seen where children take ATM card and withdraw money or make online transactions from debit card and parents even do not aware about such kind of things. Ultimately, due to this reason parents come to know about real situation when large amount gets debited from their account. This is one of the ethical issue because under these children become addicted to game and spend their valuable time and parent’s money on game which in no way can be considered good. From company side it can be said that these firms are making effort to make children game addicted which greatly affect their life. This is one of the major ethical issue associated with the loot box feature of games. Top officer of EA sports is not agreeing with such kind of things and they state that loot box feature is like a Kinder egg and it is quite ethical as they are providing this feature to make game more enjoyable for the gamers(Brady and Prentice, 2019).Gamers are even not happy with such kind of feature and many journalists, intellectuals believe that such kind of fe4ature are making children’s gambler. 1
Role of business in society EA sports and ethical issue identified above are negatively affecting society because addiction of anything in no way can be considered good for the firm. Loot feature is motivating children to become addicted and gamble to get intended feature. In small age children are learning spending of money or extravagance which prove costly in adulthood. Those children’s who are doing such kind of things after being reaching in adult stage become addicted of many other things and to complete their appetite spend large amount even they earn less (Summerley, , 2020). To complete hunger they even take debt which ultimately ruin their life. Such kind of children failed to give any contribution to nation growth and do not prove any valuable asset for the society. EA sport loot box feature is making children’s unethical and due to this reason, it can be said that EA sports and ethical issue identified to great extent are playing crucial role in cutting strong roots of society by taking small kids in wrong direction. Five stakeholdersGovernment:It is one of the main stakeholders in this ethical issue. Government try to make effective use of its HR so that country growth can be accelerated at rapid pace. If in any nation large population will be addicted then it will not be able to channelize its energy towards nation growth. This is the reason due to the which Belgium Government take steps to handle situation and banned loot box. They also used to take some sort of revenue from the same. As survey showed that 30 percent of customer used to gamble responsibly in UK(Stakeholder data,2019).Society:Society greatly affected because if young generation will go in the wrong direction then in that case entire society observe mass destruction of moral values, discipline and self-responsibility etc. Addicted individual’s give top priority to their passion not their responsibility. Such kind of behaviour of adults negatively affect society.There are 46 % of the consumer who used to gamble in UK, once in 4 weeks (Stakeholder data, 2019)Parents and children:Ethicalissue greatly affect parents and children because loot box feature make them gambler and to great extent promote materialism among them. Thus, one instead of focusing on education pay attention to its addiction and ruin its life. Hence, parents and children are one of the main stakeholders in the ethical issue. 17 percent of the person who used to bet are less than age of 30. 2
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IT Development:They are another interested party in the development of the game. As game which will be developed by the organization will provide the services to the consumer to bet online with the help of the internet. So it is very important for the organization to have good IT backhand team in the organizationThere are 55 % of the consumer who have gambled with the help of online platform. (Stakeholder data, 2019). Owners:They are another intersted party in the manufactirong of the game in the nation. As If situation that currently exists remain in future and become more severe then in that case Government can take strict action against. EA sports owner may have to see decline in the business profit(Andriof and et.al., 2017). Example of good and bad ethics As part of bad ethical practices Tesco can be considered as good example on which number of cases are running currently in the court in respect to chicken welfare controversy, dishonest corporate policy, faking price cuts and health and safety etc. In Ward VS Tesco Ltd case is filed against retailer for injury that caused to the customer. Tesco VS Nattrass case is about misleading by the store managers of Tesco (Smith., 2019). Hence, it can be said that Tesco is not working ethically. Accenture is one of the most ethical company as it has its own code of practices which are strictly followed in the business. Accenture follow all laws in all nations of the world where it operates. Recommendations It is recommended that EA sports must identify features of the games which are not good for children’s and must eliminate those features. Instead to this it must identify other sources of income so that loss that cause due to elimination of loot box feature can be covered in easy way 3
REFERENCES Books and Journals Brady,A.andPrentice,G.,2019.AreLootBoxesAddictive?AnalyzingParticipant’s PhysiologicalArousalWhileOpeningaLootBox.GamesandCulture. p.1555412019895359. King, D.L. and Delfabbro, P.H., 2019. Video game monetization (eg,‘loot boxes’): a blueprint for practical social responsibility measures.International Journal of Mental Health and Addiction.17(1). pp.166-179. Larche, C.J and et.al.,2019. Rare Loot Box Rewards Trigger Larger Arousal and Reward Responses, and Greater Urge to Open More Loot Boxes.Journal of gambling studies. pp.1- 23. Andriof,Jandet.al.,2017.Unfoldingstakeholderthinking:theory,responsibilityand engagement. Routledge. Jones, T. M., Wicks, A. C. and Freeman, R. E., 2017. Stakeholder theory: The state of the art. The Blackwell guide to business ethics, pp.17-37. Online Gaming loot boxes what happened when Belgium banned them?2019. [Online]. Available through:<https://www.bbc.com/news/newsbeat-49674333>. Smith.,J.,2019.[Online].Theworld’smostethicalcompanies.Availablethrough:< https://www.forbes.com/sites/jacquelynsmith/2013/03/06/the-worlds-most-ethical- companies-in-2013/#7095ba005e93>. Stakeholderdata.2019[ONLINE]Availablethrough <https://www.gamblingcommission.gov.uk/PDF/survey-data/Gambling-participation-in- 2018-behaviour-awareness-and-attitudes.pdf>. 4