Case Study: Business Ethics and Responsible Management at Ladbrokes

This case study examines Ladbrokes' approach to ethical issues related to problem gambling and workforce restructuring. It discusses the company's shift to online operations, the ethical implications of workforce reductions, and the role of business in society. The analysis incorporates Rawls' idea of social justice and utilitarianism to evaluate the ethical dimensions of Ladbrokes' decisions and the impact of government regulations. The case study also highlights the importance of stakeholder engagement and ethical business practices in the gambling industry. The document is available on Desklib, a platform offering a wide range of study tools and solved assignments for students.

Business Ethics and Responsible
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Companies approach to problem gamblers and restructuring its workforce...............................3
The nature of ethical issues and the role of business in society..................................................4
Role in the business in society.....................................................................................................4
Key stakeholders and their impact on business...........................................................................5
Recommendations........................................................................................................................5
B. TWO ethical theories..............................................................................................................6
PART 2............................................................................................................................................9
Reflection.....................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business ethics play significant role in the organisation that is with the help of effective
business policies and practices they carry the business operations and functions in effective
manner (Moosmayer and et.al., 2019). The business operations carried in ethical manner helps in
building brand image at marketplace. Business ethics ensures that by carrying operations in
ethical manner the focus of the company is to develop basic level of trust between consumers
and different form of market participants within business. Furthermore, it also helps in dealing
with ethical dilemmas or controversial issues that are faced by the company in the changing
business environment. This report is based on Ladbrokes: The online way to save your job case
study.
PART 1
Companies approach to problem gamblers and restructuring its workforce.
Ladbrokes is facing problem in carrying its business operations and activities due to rules
and regulations imposed by the government (Hibbert and Cunliffe, 2015). The company is
operating in marketplace through its physical stores and have to shift to online challenges. This
has created problem as they have to build the new structure which is run and operated online.
The company have to restructure its employees as operation method is very different in carrying
activities through online ways. To resolve the gambling problem company has used simple and
gaming approach to attract more customers. The focus is to develop effective online gambling
structure where motive is to help customers gamble safely and responsible and providing support
to those customers who are need. The company has launched safer gambling strategy that is
changing for a better and to develop several pillars to help understand and prevent problem
gambling behaviour. As in online business company doesn't required large number of work force
hence come to decision to reduce its workforce and this lead to unemployment. They have
reduced its workforce by analysing their performance in the business and remove employees
who are providing less productivity to the business. Moreover for online business the employees
must have knowledge and information about computer operations and use of artificial
intelligence in carrying business operations in effective manner. Hence have removed employees
who didn't have knowledge about how to operate computers.
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The nature of ethical issues and the role of business in society
Ethical issues has major impact on the business and its operations as it effect its profitability. The
fundamental issues in business focus on integrity and trust, the major issues are diversity,
empathetic decision that is consistent with the organizational core values (Pirson, 2020). The
organisation should not exploit its workforce and take effective measures that is should not
involve in practices like adulteration, promoting misleading advertisements, etc. In context of
Ladbrokes they are involved in black marketing due to which they are facing problem in market
place. Ladbrokes nature of ethics are as follow
 Code of conduct: They are carrying business by following code of conduct where they
know what is correct and what is not correct and contributes for the social welfare.
 Based on moral and social value- The company is following moral and social values in
carrying its business operations where they are focusing on self control, consumer
protection and welfare, carry work by considering society, etc.
 Gives protection to social groups- Ladbrokes is performing in marketplace by giving
protection to different social groups such as its customers, employees, stakeholders and
government.
Role in the business in society
The role of Ladbrokes in society is related to public debate where according to their opinion they
are playing important role in society as they are contributing to economy by generating
employment and is able to understand the industry (Dierksmeier, 2011). Ladbrokes is a critical
around the global brand and they continue reflects not simply on us, yet on the region all in all. It
is fundamental for de-mystify betting and gaming inside the public field by being clear about
how they work. This helps with bringing Ladbrokes things ardently into the standard unwinding
market. At a local level, questions have been raised over the effect betting associations can have
on close by networks. The company viably take part in that talk about and acknowledge that
through their enlistment and getting ready plans, their assistance for close by causes and their
work in engaging bad behaviour, the company contribute to social thought and support
neighbourhood. At an overall level, strategic policies are logically being inspected, with
ceaseless good and biological crises hitting the media. Ladbrokes have reliably endeavoured to
begin to stand out inside their territory on agreeable commitment and describing standards for
the business and will continue doing all things considered. The betting and gaming industry is a
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critical ally of the UK economy. Ladbrokes alone contributes an enormous number of pounds
each year in evaluations and obligations.
Key stakeholders and their impact on business
Ladbrokes has large number of stakeholders, employees, customers and investors. The all have
impact on the business and pay significant role in the business (Laasch and Conaway, 2014). The
company engage its stakeholders in decisions which are taken at group level or locally through
regions and businesses. The company engage its investors by maintaining open and fair business
relationship where they involve them in annual report and accounts. The communities are
considered by providing them space to leisure time, focusing on reducing crime and unlawful
behaviour and most importantly by paying taxes and supporting the economy. The responsibility
of company towards its potential customers is to provide them best prices and beneficial product
portfolio. They are working hard in order to provide excellent customer services and most
importantly safety of financial transactions. Employees are important for company hence for
them Ladbrokes is working hard to provide good and secure jobs. Moreover, the focus is on
providing competitive pay and benefits and to minimise their financial liabilities. Hence it is
important to for company to carry its operations and activities in ethical manner as doing
business in unethical manner may lead into consequences which have to be barrier by
stakeholders (Boda and Zsolnai, 2016). As if restrictions are improved by government then with
company lose it has impact on the stakeholders as they also have to bear the lose. In addition to
the other stakeholders those who get affected with the case are customers, suppliers and
government.
B. TWO ethical theories
Rawls idea of social justice
Rawls idea of social justice states that liberty principle is considered to be most extensive and
basic requirement and therefore everyone should have equal access to claim adequate scheme
associated with basic rights and liberties (Zhang and et.al., 2015). This theory is an extension of
utilitarianism. This theory was given by John Rawls in 1971 and states that every single person
have an inviolability based on justice that cannot be overridden even by the welfare of society
itself. This theory states that liberty is considered to be one of the most important aspect and
nothing can overshadow the same. When it comes to Ladbrokes, the government didn’t have any
right associated with implementing the restrictions as in accordance to this theory liberty is
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considered to be utmost important in any case scenario what so ever and nothing can overpower
their right to have liberty (Weiss, 2014). Rawls idea of social justice revolves around prioritising
liberty and focuses on the fact that something as important as social justice is not capable enough
to stop anyone from exercising their free will and right to be liberal. In addition to that, they
consequences of this legislation cannot be considered a social justice either. Approximately
3,500 shops were closed down and numerous individuals lost their jobs due to this factor. This
theory is an accumulation of two factors:
Each person is to have an equal right to the most extensive total system of equal basic liberties
compatible with a similar system of liberty for all.
Social and economic inequalities are to be arranged so that they are both:
(a) to the greatest benefit of the least advantaged, consistent with the just savings principle, and
(b) attached to offices and positions open to all under conditions of fair equality of opportunity.
On the basis of aforementioned dynamics associated with Rawls idea of social justice, the
context of Ladbrokes does not establish any justification to the scenario. Many people were
stripped off their liberty and in addition to that, many people lost their jobs and therefore were
forced to sleep with empty stomachs at night (Tavanti, 2012). The equality of opportunity was
also taken as the organization was able to recover from the loss in few months whereas the shops
that were shut down remains closed to this day and thousands of people were forced to switch
their profession and do some other work. Furthermore, Rawls idea of social justice revolves
around the greatest benefit of the least advantaged, consistent with the just savings principle and
this situation was not fulfilled in this scenario. This theory also focuses on offices and positions
open to all under conditions of fair equality of opportunity which was not fulfilled in this case
either. The actions undertaken by the government and the organization’s response to the same
were not in accordance to Rawls idea of social justice. None of the requirements of this theory
can be justified on the basis of aforementioned theory. In organizational context, the government
didn’t have any right associated with implementing the restrictions as in accordance to this
theory liberty is considered to be utmost important in any case scenario what so ever and nothing
can overpower their right to have liberty.
Utilitarianism
This theory can be defined as the process of differentiating between sense of right and
wrong in association with possible outcomes (Hauser, 2020). The principle of utilitarianism can
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be traced to the writings of Jeremy Bentham, who lived in England during the eighteenth and
nineteenth centuries. Bentham, a legal reformer, sought an objective basis that would provide a
publicly acceptable norm for determining what kinds of laws England should enact. He believed
that the most promising way of reaching such an agreement was to choose that policy that would
bring about the greatest net benefits to society once the harms had been taken into account. His
motto, a familiar one now, was "the greatest good for the greatest number." This forms the
association with consequentialism. The main approach of this theory is that only that choice will
be considered as the most ethical one which can initiate greatest good results for greatest part of
the population. This becomes the obvious reason for incorporating this approach into business, as
through it, cost and benefits can be aligned to the scale of maximum benefits. The main
limitation of this theory lies in the fact that future is uncertain and this means forecasted results
can also deviate (Crane and et.al., 2019).
This approach has the major issue in case of accounting for values, such as justice and
individual rights. This means that meaning of these values may differ for different individuals,
irrespective of their association with the same case problem. This situation can be well
understood in case of present case scenario of “Ladbrokes: The online way to save your job”. In
this situation, the main point was that offline gambling was shut down and therefore, many
shopkeepers have to close their shops down. This means that many lost their employment as
well.
Application of Utilitarian approach to present case scenario:
Through this, the main approach that come in front is that sense of right and wrong are
different for two main parties associated with the case (Quarshie, Salmi and Leuschner, 2016). In
the present scenario, different family’s members of individuals engaged in gambling have to face
issues, such as, financial instability, therefore, slowing down the circle of gambling is, in a way,
good for this segment.
On the other hand, shopkeepers who has to shut down their shops due to this reasons and
employees who lost their jobs. In present case study, employees are forced to fight for their jobs
by attempting a test. In this test, they are judged by their quality of convincing customers to set
up new gambling accounts on online platform (Mea and Sims, 2019). Now in analysis section, it
is necessary to state here that this segment was in trouble due to the case. According to the given
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theory of ethical management, this process is not at all beneficial for this segment and decision
stands unethical.
Therefore, after complete evaluation and the process of establishing relationship between
this theory of ethics, it is to be inferred that the decision is contradictory, in relation with parties
associated.
From the point of view of larger section of society, who are family members of
individuals engaged in gambling, this decision can be set ethical.
Ethical leadership is basically an authority hypothesis, which utilizes the above moral
ideas as a manual for overseeing subordinates, as ethics manages the standards of 'right' conduct
and administration with affecting others to accomplish objectives, moral initiative is impacting
individuals through ethics.
In this the first approach is Utilitarianism Theory, which sees the pioneer boosting the
welfare assistance of the subordinates. This theory mainly emphasise that subordinates feel
happy, satisfied and good. Concern is on the legitimate closures of the activity, not really on how
you arrive. The methodology is firmly connected with John Stuart Mill and the cost benefit
analysis.
While the second theory emphasises on the Libertarianism Theory, the leader is to secure
the opportunity of the people as the fundamental concern. Assuming an activity or choice would
control the subordinate's opportunity, the leader would not continue with the strategy. The worry
is on the goal of people. The methodology follows Aristotle's concept of value ethics or
eudaimonism.
PART 2
Reflection
I am glad, to work as Ethical leader. As I have adopted and implemented the professional ethics
which must be followed at work-related place or organisation. According to me ethics are the set
of rules which guides an organisation to work professional without hampering the interest of the
others. Every organisation follow some ethics which differ from conditions and mission of the
organisation. As a leader in a organisation I have observed that there are various things which are
taken into consideration as a leader to work professionally and ethically. Such as it is the duty of
a leader to manage the internal and external affairs of the organisation, treatment should be
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reasonable and equal and no one must be discriminated at work-place. It is not necessary for the
leader only to maintain and follow the ethics but it becomes the duty of the employees also to
follow the ethics in the organisation. There are various negative effects of not following the
professional ethics such as there may not be any discipline at work-place, no one will follow the
rules and regulations mandatory to be followed by the employees of the organisation. According
to me as a leader of organisation I have observed that there were sufficient laws which deals with
society's collective sense and wrong is embodied in the laws that guide to perform business
activities. There are sufficient laws which are required for ethical requirement for operating
business. The company has a flexible system for the rules that may get changed according to
need and demand of the employees and employer which is a positive aspect of the business
enterprise. As changing norms according to the conditions and requirement makes the
environment easy and healthy. But there are various loop holes in aspect of the organisation as
people are discriminated on the basis of various factors. Employees which were already working
are given more preference. As they do not need any training and guidance on the basis of which
new workers are not treated properly which is against the ethics which must be followed by the
employers as well as leader. I have observed one another problem also that company was not
aware towards the social responsibilities which are followed by the companies now a days which
is an unethical behaviour towards society and environment. There are various rules applied by
the company towards welfare of the society and environment. According to me there are various
things which a leader must follow to work ethically in a organisation. Such as it ensures that
employees must not suffers any problem and if there is any problem to any worker there must be
freedom to speak about the problem and against any person. By providing flexibility does not
mean that everyone got freedom to break the rules and regulations which can hamper the image
and profitability of the business enterprise. As a leader I will ensures about every possibilities
which can increase the level of ethics. In the position of leader my focus will be establishing
strong relationship with the workforce so that they will effectively cooperate in carrying the
business activities in right manner. Moreover, I will focus on the involvement of stakeholders in
the decisions of the company so that they would able to put their opinions on the matter and able
to suggest something beneficial which help in enhancing the brand image of the company.
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CONCLUSION
From the report it has been concluded that Ethics are the structure square of our general
public and along these lines ought to be the structure square of our companies. It isn't crucial for
allowed avarice to cloud judgment. It tends to be reasoned that it is the high time business morals
ought to be drilled everywhere on the globe in the advantage of the regular society as depicted in
the paper. It isn't just in the courtesy of the mass yet in addition has benefits for the corporate.
Recommendations
Ladbrokes is able to effectively carry its business operations in ethical manner in marketplace,
here are few suggestions for the business which are beneficial for the growth and development of
the company.
 Determine ethical standards- The company is operating at global level hence involved
with large number of workforce so they should strictly formulate and implement the
ethical standards.
 Ensure leaders exhibit proper behaviour- The top management must be polite and
respectful with the lower level workforce and they should not consider them taken for
granted. This will help in established strong and effective relationship with workforce
and help in carrying business operations with effective coordination.
 Promote community involvement- The management of company take steps to involve the
communities in the business activities and decisions making. Therefore, by taking
measures for promoting ethics at workplace the company would able to develop better
culture and effectively able to improve the brand reputation of the company.
 Praise positive behaviour- The company must take steps to praise its workforce to
consider and follow the best practices in carrying its operations. This practice will help
company in gaining long term benefit in business.
 Build a strong and diverse personal network- The most helpful asset that leaders have when
confronted with a ethics difficulty in the organization. This gives a casual sounding board
and can feature choices and decisions that the pioneer might not have considered. To
conquered this, they need another center passionate knowledge competency, sympathy,
which permits them to figure out how to understand others and really comprehend what
makes a difference to them and what they care about.
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Thus, with the help of emphasising upon the above mentioned recommendation senior
management of company can change their behaviour in effective manner. As these
recommendations will significantly help in helping a positive culture in which positive behaviour
will be embraced.
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REFERENCES
Books & Journals
Moosmayer, D.C., and et.al., 2019. Leaving the road to Abilene: A pragmatic approach to
addressing the normative paradox of responsible management education. Journal of
Business Ethics. 157(4). pp.913-932.
Hibbert, P. and Cunliffe, A., 2015. Responsible management: Engaging moral reflexive practice
through threshold concepts. Journal of business ethics. 127(1). pp.177-188.
Pirson, M., 2020. A humanistic narrative for responsible management learning: An ontological
perspective. Journal of business ethics, pp.1-19.
Dierksmeier, C., 2011. The freedom–responsibility nexus in management philosophy and
business ethics. Journal of Business Ethics. 101(2). pp.263-283.
Laasch, O. and Conaway, R., 2014. Principles of responsible management: Glocal sustainability,
responsibility, and ethics. Nelson Education.
Zhang, M.M. and et.al., 2015. Towards a research agenda on the sustainable and socially
responsible management of agency workers through a flexicurity model of HRM. Journal
of Business Ethics. 127(3). pp.513-523.
Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
Tavanti, M., 2012. Responsible management education in practice: The principles and processes
for educating socially responsible and world engaged leaders. In Handbook of research
on teaching ethics in business and management education (pp. 546-563). IGI Global.
Hauser, C., 2020. From preaching to behavioral change: Fostering ethics and compliance
learning in the workplace. Journal of business ethics. 162(4). pp.835-855.
Crane, A., and et.al., 2019. Business ethics: Managing corporate citizenship and sustainability in
the age of globalization. Oxford University Press, USA.
Quarshie, A.M., Salmi, A. and Leuschner, R., 2016. Sustainability and corporate social
responsibility in supply chains: The state of research in supply chain management and
business ethics journals. Journal of Purchasing and Supply Management. 22(2). pp.82-
97.
Mea, W.J. and Sims, R.R., 2019. Human dignity-centered business ethics: A conceptual
framework for business leaders. Journal of Business Ethics. 160(1). pp.53-69.
Boda, Z. and Zsolnai, L., 2016. The failure of business ethics. Society and Business Review.
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