Business Ethics and Responsible Management

Business Ethics and
Responsible
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
(a). Outlining the ethical issue involved in having loot boxes as part of business model and
exploration of its supportive factors.......................................................................................3
(b). Application of two ethical theories for getting the view on aspect of ethics of the case.8
PART 2............................................................................................................................................9
Reflective Practice on topic of ethical leader.........................................................................9
REFERENCES..............................................................................................................................12

INTRODUCTION
Business ethics refers to the study of appropriate practices and policies of business about
the potentially controversial subjects such as insider trading, corporate governance, corporate
social responsibility, bribery, fiduciary responsibilities and discrimination. Responsible
management refers to the deliberate management of an organisation's impact on society. This
will help an organisation by designing business activities and process in a way that directly meet
certain environmental and social minimum standards (Dierksmeier, 2011). Therefore, business
ethics and responsible management are essential issues for organisations to consider when
making decisions. Responsible management is the concept that companies have responsibility to
environment and the society and emphasis on performing what is the essential for well-being of
entire society. For this report, EA Games is the chosen study that built different types of games
which are Fifa, whales and Loot boxes. This report divided into different parts that includes
information about the ethical issues, role of business in society, stakeholders, development of
effective theories apart from their application and reflective statement. All these are main parts
that will support in completion of this report systematically and effectively.
PART 1
(a). Outlining the ethical issue involved in having loot boxes as part of business model and
exploration of its supportive factors
There is involvement of large number practices within an organization for the purpose of
developing business. It is necessary to determine that these practices are ethical or not and how it
has end impact over society. In this regard, organisational management and government both
needed to focus over analysing business functional practices. Here, the role of government is
intense because they have an obligation to safeguard society from any kind of negative impacts.
This would be the reason many legislations exist that regulated business activities. Now, this
brings an obligation over an organisation that adhere these otherwise have to face the negative
consequences (El Garah and et.al., 2012).
The same is happened in case of EA Games: Loot boxes. Here, an organisation provided
the game free of cost that attracts large number of individuals specially children's. Further, to
earn money they adopted the approach about paid purchase of boxes that will contains something
special and help in improvement of gaming feature. This persuades the behaviour of many

individuals including children's that buy such boxes and improve their gaming skills and get into
the next level. The drawback associated with this option that buyers has no knowledge regarding
the aspects which they will get in future from the purchase of boxes. This brings an issue among
the parents of gamers that it is gambling where nothing is known to their children's and they
spend money on point of getting something better. This makes their behaviour addictive towards
game and stimulates them to purchase box again and gain on the point of getting something
valuable. This help an organisation to make money but on other side having impact over the
parents wealth and behaviour of children's. This was the reason that it comes in media and notice
of government (Hibbert and Cunliffe, 2015). Here, the CEO of an organisation represent MP's
that why the business model is not unethical in nature. Further detailed presentation on ethics is
point is provided below;
This above stated feature of game regarding Loot boxes is unethical in nature because no
information is provided to purchasers that what they will get from the purchase of box. This is
kind of gambling where people invest money on the point of getting something better. The same
is in the game where option of box purchase will help them to get something better but they
actually do not having any knowledge that what they will get in future. The main ethical issue
attached with same is non dissemination of information about aspects that will be getting from
the purchase of box even after the whole game is provided free of cost. This promotes the
gambling behaviour among individuals where they will get addicted to such activities. The
different number ethical factors associated with above defined business model are explored
below;
No information about considerations: No information is provided in the Loot boxes
that what will be getting by purchaser from the purchase of box. So, in case if not getting the one
which they wanted leads the loss of money. This simultaneously motivates them to further
purchase another box so able to get favourable kind of choices (Weiss, 2014).
Free of cost game: In actual game is provided free of cost to individuals so any further
option inside the game about the purchase of skill is not relevant in nature. This is misleading in
nature because once they develop interest and wants to play more, then needed to buy extra skills
because without them unable to play on some specific level. Also, adding of the feature as
attached in the current one about Loot boxes where nothing is provided regarding purchase will
get from the purchase in future is totally unethical in nature.