Ethics in Business: A Case Study of Ladbrokes

Report

INTRODUCTION
Ethics can be describe as a major principles that includes behaviour of person while
conducting any activity. It refers to the set of rules and regulations that should be followed by
company in order to conduct its business activities in effective manner (Bowie, 2017). Business
ethics are the set standards for a company in which they should perform its operations for
maintaining safety and security of customers. This will help in performing business function and
offering services which does not harm to society and its citizens. Chosen company for this report
is Ladbrokes which is dealing in gambling industry. This company was established in 1886 and
its headquarter is located in London, United Kingdom. This report includes the major issues
faced by company as well as role of biz in the society. It consist of good and bad ethics and
different theories is respect of organisational issues.
PART 1
Report based on selected company.
Issues:
There is some major issues faced by Ladbrokes company which has affect its business
process. It is very important for company to analyse as well as evaluate this issues clearly in
order to improve its business activities as well as performances (Trevino, and Nelson, 2016).
This company is dealing in gambling industry and conducting various unethical business
practices. It is affect society as well as citizens. In 2001 betting shops such as Ladbrokes has
introduced Fixed odds betting terminals which is a super slot machines. In this a punters can
either win big or lose big. Earlier bets can be up to £ 100 in every 20 seconds. This was
affecting lives of many people so government has taken as set limit he number of maximum and
set it as £ 2. This has affected the business of Ladbrokes company and it was a huge loss of
betting shops (Sroka, and Lőrinczy, 2015.). Most of the shops has been closed in the gambling
industry. Respective company was also facing same issues as its majorly of shops has been
closed. According to the figure 5000 jobs has been loss and 1000 out of 1500 shops has been
closed (Pearson, 2017). This was a huge loss for Ladbrokes organisation which has direct
impact on its performance and profitability.
Role of biz in society:
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Businesses play a crucial role in society as and it will have huge impact on consumers as
well as other citizen of society. There are different types of business which is providing various
types of products and services to customers. It is very important for these businesses to perform
its organisational activities in ethical manner and its product as well as services should not have
any harm to society. Ladbrokes company have number of negative impact on society as it was
dealing in gambling industry (ChellSpence, Perrini, and Harris, 2016). In this type of business a
punter can earn huge amount but there is equal changes of losing big also. As per the report,
Fixed Odds Betting Terminals is cracking the cocaine of gambling. There are various negative
impact of betting and gambling for society and citizens. People who are participating in
gambling activities are losing their job as well as family members in addiction of gambling.
Five stakeholders:
There are five major stakeholders which are effected by issues. Stakeholders of
Ladbrokes company are employees, customers, owners, government, communities. This issues in
gambling sector has huge impact on all of these stakeholders which could be direct or indirect
affect. Impact of this issue on each and every stakeholders is mention below in detail.
 Employees: Employees of Ladbrokes company have huge negative impact due to
changes in gambling industry. Most of employees has lost their job because of new rules
and regulation developed by government. There were approx 5000 job losses due to
closer of Ladbrokes company shops. Majorly of employees working in gambling industry
is unemployed.
 Customers: Customer who were addicted to the betting and gambling activities they
were majorly affected due to closer of majority of shops. This can be considered as a
huge loss for customers (Davies, 2016). Majority of shops has been closed because of
government rules so customers will not be able to use services of Ladbrokes company.
 Owners: Owner of Ladbrokes company has huge negative impact on it business due to
changes in government legislations (SA, 2015). This company was conducting its
business activities in gambling industry and in this most of the shops has been closed.
Respective company have to face huge financial loss due to government policies. This
company has lost and closed 1000 shops from 3500 shops and 5000 job losses. This have
big negative impact on respective company performance and profitability.
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