Business Ethics and Management: EA Games Case Study Report

This report provides a comprehensive analysis of business ethics, using EA Games as a case study. It begins with an introduction to business ethics and management, followed by a detailed report addressing ethical issues related to loot boxes, the role of business in society, and the identification of key stakeholders such as shareholders, employees, distributors, suppliers, and customers. The report explores examples of both good and bad ethics within the context of EA Games' operations. Furthermore, it delves into two ethical leadership theories: deontology and virtue theory, outlining their applications, advantages, and disadvantages. The report concludes with recommendations for ethical leadership and the implementation of ethical practices within the company, aiming to improve its image and rebuild trust with consumers. This report offers valuable insights into ethical decision-making in the business environment and provides a practical application of ethical theories.

BUSINESS ETHICS AND
BUSINESS MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................3
Part 1 A Report................................................................................................................................3
Part 1- B Two Theories....................................................................................................................7
Part 2................................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business ethics is a form of applied ethics or professional ethics, that examines ethical principles
and moral or ethical problems that can arise in a business environment. It applies to all aspects of
business conduct and is relevant to the conduct of individuals and entire organizations.
Business and Management are the disciplines devoted to organizing, analyzing, and planning
various types of business operations. These degree programs teach the fundamental skills that are
required to efficiently run or manage a business. This report covers three tasks which highlights
the issues that are related to ethics and its behavior. Role that the business plays in the society,
stakeholders of the company. examples of ethics that are good and bad. Theories for ethical
leadership with their advantages and disadvantages and their application for the company. This
report also includes recommendations for the ethical leadership and ethical issues
implementation.(Swanson and Frederick, 2016).
Part 1 A Report
Ethical issues-
The middle level of manager of EA games were concerned about the complaints they
were receiving for the contest of loot boxes they started. They were sensing that it would lead to
affect the image of the company in the market. On the other hand, aren’t are looking into money
sealing by putting up thisstrategy.Parent have turning out the believes ascompanies not ethical
for dealing up at biggerscale an operating the business indifferent counties.. They claim that for
the access of payment they need to take some strict measures so that kids cannot crack the code
and payment won’t be successful without the presence of the guardian.On the other hand
company believes that no unfair measures were taken by them as it was solely for the purpose of
entertainment (Quarshie, Salmi and Leuschner, 2016).
Role of business in society-
Role of business in the society is to manufacture and distribute the goods and services so
that they can satisfy the need and their demand. These activities undertaken by EA Games will
be a part of Corporate Social Responsibility. Milton Friedman argued that managers benefit
their organization the most when they act for benefit of the shareholders. Ed Freeman and other

stakeholder scholars argue back that to ensure long term sustainability, managers not only need
to satisfy shareholder demands but they need to consider the impact of their actions on multiple
stakeholder groups. As per the case Contribution in these activities will take out a lot of money
but it will help them to sustain their market for a long period of time. Consumers appreciate the
work of the company if they work with them fairly so that they can trust them (Ogbari and et.al.,
2016). It is necessary that no unfair trade or unethical practices are made by the company so that
they can sustain in the market for long. There are many areas in which EA has fulfilled their
roles and responsibilities of the society such as educating the children of next generation. Other
than this they have developed a curriculum for the development of students so that they can
enroll themselves in and get the experience of course that is on digital education. For the middle
and elementary students of school they have contributed in the site that is code.org through
which they take 800 classes by the employees of EA over the world. The company has partnered
up with the Girls Who Code in order to fill the gap of gender in the aspect of technology and that
is why they have kept it non profit. They even hosts a program so that they can motivate and
inspire many people. Other than the aspect of education and development they are looking for
enabling and giving access to more players who have disabilities so that they get distracted and
live their life to fullest. Other than this there are many areas in which EA contributes for the
betterment of society and work with the ethical trade practices so that they have trust of people.
Five Stakeholders-
Shareholders-
Due to the negative image of the company after the crisis of loot box many shareholders
of the company were scared about the prices of the share of the company in the market and this
is why some of them withdrew their share from the company. Also those who were going to
invest in the company changed their mind. This aspect created difficulties for the company to
raise funds from market (De Los Reyes Jr, Kim and Weaver, 2017).
Employees-
After the negative hatred and criticism in the market employees of EA games were not
getting respect like they used to get before this situation. It is because people even held them
responsible to be a part of the company who works on unfair basis and not ethically. This kind of

took their interest from the work because in any meetings or seminars they were not able to work
up with confidence even when it was not their fault.
Distributors-
Distributors of EA cut half of their stock from the company because demand of the
games produced by them was getting low as parents were not allowing their children to play the
game even if they wanted to and this resulted on the sales of the company. They are the ones
who distribute their games to small retailers and this will affect the revenue of the company.
Suppliers-
Many of the suppliers are influenced by the issues raised by the public over ethical
factors which has affected the relation between the suppliers and the company and they are
putting obstacles in between the dealings of the company which is affecting the decision making
and maintaining the operations on a big scale (Sison, Ferrero and Guitián, 2018).
Customers-
Many of the customers of the company are adult and most of them are feeling that they
have been betrayed and the other potential customers are switching to other companies as their
trust on the company has been completely off. It is necessary that decisions and strategies are
taken to lure them back so that they can gain them back and gain their position in the market.
The consumers, customers, clients and other external entities who can benefit from the offers,
deals or projects of the business.There are primary stakeholders who are the most impacted by
the results of the business operations, a program or an activity
Examples of good and bad ethics-
Good ethics-
Professionalism/ Standards-
These ethics state that companies such as EA and Ubisoft will work strictly on the basis
of their determined code of conduct and that must be fair. It is necessary that the standards set of
these companies are high specially for EA as their image in the market is not good in the eyes of

target audience. This way they will be able to maintain the relationship within the company and
outside the market that is with their competitors.
Uphold Trust-
It is necessary that the company works with those factors which complies the factor of
fair trade practices so that customers are able to trust over the brand. Issues which are related to
loot boxes are considered as gambling by many people and they are concerned about it as there
money is at risk which is why every aspect needs to be clearly mentioned by the company.
Bad Ethics-
Buying out other company-
There is a bad habit of companies such as EA and Ubisoft as they buy out the stake of
other companies in the market so that they are not allowed to serve just for their benefit. It is an
ethical behavior by the company as they are not allowing them to reach their level so that they
have to compete with more brands (Ciulla, 2020).
Lies-
To this date many of the people still believe that the strategy of loot boxes used by EA
and other companies are not for the purpose of entertainment. (Bowie, 2017).
Recommendations-
The image of EA Games is considered as the worst in the market and there are many
reasons to that which does not complies with the gamers but still because of their games such as
FIFA and Need for Speed they are in the business and getting repeated sales.
It is important that they change their procedures and admit their mistakes in the work. They need
to stop buying other companies to shut their business and stay ahead in the competition. It is
necessary that they state the proper guidelines to the gamers so that the strategy of loot boxes is
not considered as technique of gambling.
Many children are using the credit card to pay for their games and the other services offered in it
which needs to be change by the company. It is necessary that EA makes sure that parents are

getting OTP or other type of security for the payment gateway so that the funds collected are not
being misused by the children.
Other than these the factor of age limit before the page of terms and conditions needs to be strict.
These types of monitoring will help the company to assure people that this tactic is just for the
purpose of entertainment not for the purpose of taking or stealing money by wrong
misconceptions which takes the trust from the user.
Part 1- B Two Theories
Description of the theories-
These theories help to assess the principle of morale and the standards that are defined in
a well manner which is right and wrong. This helps to assess the character of humans on which
rights. Rules, fairness and obligation and benefits to the society have been made. Ethics is
concerned with the taking out the rights that is possessed by the individual and responsibilities of
them. This leads to a life that is good and helps to assess the factors which are good and bad.
There are many philosophies and theories which undertakes the role of ethics in the environment
of business and the nature of dealing.
Apply the theories-
Deontology Theory-
This theory is concerned with focusing on the actions that leads to consequences and
believes when they are faced with the choices of life. In order to apply this theory EA games has
to make sure that they need to consider the factor of morality as a responsibility so that they can
fulfill their duty.For instance, if EA games stole money from rich by loot boxes. they have usage
for the people who are disabled. this have helped in out giving access to playing then people who
are believer of this theory will not be considered wrong.It is because it is considered as a moral
responsibility of the company. Many times people are not sure about the steps taken by others
met with this theory or not (Rodríguez-López and Souto, 2020).
Virtue Theory-

This form of theory appears to be very different from others as it assesses the character of
individual not the actions that are necessary for it. It is the reputation of the company which is
targeted and the purpose behind it. For example if EA had a good image in the market with good
record for a long period of time and they committed any unfair trade practice then they will be
judged on the basis of their past and their traits and skills that are related to interpersonal aspects.
Critique-
Deontology Theory-
Pros
 This theory helps to reach the company achieve high level of responsibility that is
personal. It helps to assess the harmonic effect of every action or decision taken.
 This theory gives value to everyone no matter whether they are important or not.
 These ethics are believed to be providing certainty and it is because they undertake and
deals with the actions involved. These ethics also helps to cover the situation from other
direction (Kačerauskas, 2019).
Cons-
 These ethics are used as supernatural excuses. For instance things that are in the name of
god are often misused because of the false belief of people which forces them to commit
wrong steps.
 These ethics always state that everything committed by an company was right because of
the moral obligations and the false pretenses behind it.
Virtue Theory-
Pros-
 This theory helps company such as EA to motivate them so that they can practice on the
basis of ethical behavior.
 It assesses the path where the reasoning of moral is essential.

 This theory has a positive point that it does not rely on others it keeps on working on
itself so that the business can present them in a better way (Ermasova, Wagner and
Nguyen, 2017).
Cons-
 This theory of ethics does not help to get the answers in a definitive manner which means
they change with time.
 It does not help to guide the company what to pursue in the dilemmas that are moral.
 It is not helpful in the condition of finding out the motive ((Rendtorff, 2017).
Recommendations-
In order to improve and overcome the issues that are related to ethical factors it is
necessary that they change the culture of the company and change the methods through which
managers of the company perceives things and makes decision. It is necessary that they apply
these theories of ethics in order to bring change and work on the basis of morale in their culture.
These ethics will either help them to work with fair practices or help them to know where they
are taking a step that can harm the customers in the market. These steps are very important for
the company if they want to change their reputation in the market and being in the same position
for years it will be a difficult task for them (Sison,Beabout and Ferrero, 2017).
Part 2
Reflective Essay
In order to make changes it is necessary that company follows the protocol and
components of ethical leadership. This way they will work in a way that will be fair to everyone
in the company and wherever they deal in.
Gibbs reflective cycle
Gibbs is another common model of reflection that is used within the health professions. Gibbs is
clear and precise allowing for description, analysis and evaluation of the experience helping the
reflective practitioner to make sense of experiences and examine their practice.

Description
There are different elements to it such as in order to perform this type of leadership it is
necessary that the leader of the company sets the path and lead it in a way so that everyone can
be inspired. It is the way they act that will be judged instead of what they believe or say in front
of everyone.
Feeling
It is important for the leaders to be honest and perform their role in an unselfish manner so that
they can expect the same from the employees and it reflects upon the performance of the
company. I believe that people will follow the leaders if they show integrity in their work and
give equal respect to everyone irrespective of their designation in the company.
Evaluation
For the companies who works on these methods they can easily maintain it but for those
companies who works as the opposite of these measures I feel that it will be different as even if
one individual works with fair and ethical practices it will be different for the whole system to
cope up with that and many of the corrupt organizations does not care about anyone till they are
getting business in the market.
Analysis
I feel that strict measures need to be taken who works with the unfair trade practices and
unethically in the market so that people does not have to suffer.I myself work as an ethical
manager and I believe that it is time that these measures are stopped and the company works on
high ethical standards so that they can survive and sustain the market for long and most
importantly work with respect in the market
Conclusion
It is necessary that integrity of the company is maintained specially of those companies whose
culture is unethical. If they ignore this belief then they will be facing risk of liability that will be
personal or corporate as the legal environment needs to be complied with, as per my knowledge
it is necessary to be in link with this factor so that they are allowed to serve and maintain their

operations in the country. As a manager I feel that companies need to stop taking these measures
leniently and work with rules that are under the guidelines of law
Action plan
. The strategies that is required for the approach of integrity for the management of ethics
involves a concern which makes it necessary to behave in an ethical manner. These strategies
may differ but these are the ones which protects the company from any kind of damage which is
against the morale of the activities. I believe that in the time of intense competition in the market
management of the company needs to set new goals, make changes in the structure and keep
incentives for the employees who reach the goals by using ethical methods so that they can begin
their path of working ethically through that.
Reflective commentary on resit submission
Concrete Experience
This work is based on comments that I received from tutor on my previous work. Comment
given by tutor made me realise that there are several mistakes and weaknesses in my work and
because of this quality of work has been very low. I realise that word that has been previously
completed by me was vague and I focused on academic aspect of work rather than effectively
applying essay in context of selected Organisation was not there in previous work completed by
me (GÜNEŞ, 2017). Comments of tutor also help me in realising that regarding role of
businesses in society I focused on only CSR where is there are several other roles of business in
society. Letter concerned with part 2 that included reflection comments off tutor helped me
realise that reflection written by me was also vague and generic. And academic support was also
missing in reflection.
Reflective Observation
On the basis of comments that tutor give me I realised and observed that I should have had broad
focus on different aspects of topics covered in essay. I also realised that analysis and application
of selected Organisation was very limited in my previous work and it should have been
effectively applied. Analysis of work was also limited and this affected overall quality of essay
completed by me. Related to part 1B realise and observe that my understanding of different

theories also limited and I require to you understand this theories in detail. Through the
comments and work completed by me I also realise that in order to ensure effectiveness of essay
it is important to consider academic aspect along with application of academic theories on
selected organisations.
Abstract conceptualization
Reflection give me several ideas about how can I improve work that has several limitations in it.
I realise that I need to focus on academic as well as practical aspect of topic covered in essay. I
also realised that effectiveness of essay is significantly based on how much knowledge we have
regarding theories and concept of topic we are including in essay. This is because I had Limited
knowledge of theories of ethics with affected quality of essay. I also realised that before
submission of any work or essay is important to consider and review work in order to identify
small and generic mistakes.
Active experimentation
On the basis of observation I learn that there are several elements that I need to improve in my
previous work that I have done in this work. This involve for the analysis and application and
detailed understanding of theories (Morris, 2019). I will also consider these comments of tutor
for future assignments to ensure that I complete assignments with high quality and do not repeat
same mistakes in future assignments. Commit of neuter mainly based on general skills for
writing essay and this is why this comment are application four every type of essay. This means
that every essay required detailed understanding of topic and it is also important to review essay
before submission in order to avoid small mistake in essay.
CONCLUSION
From the above studies it has been concluded that on the basis of mindset of people the strategy
of loot boxes is clearly introduced so that they can steal the money of consumers. They are easily
influenced by it because of the addiction they gain to the game and the rapidly it is increasing
rapidly it is affecting the image of the brand. This clearly shows that the company does not
manage their operations with ethics and this will invite the measures which are taken under the
legal protection for the consumers. It is important that they apply the theory of ethical leadership

so that they can make changes in their structure. Also this will help the business to work on the
basis of demand of customer and introduce strategies as per their needs.

REFERENCES
Books and Journal
Bowie, N.E., 2017. Business ethics: A Kantian perspective. Cambridge University Press.
Ciulla, J.B., 2020. Business ethics as moral imagination. In The Search for Ethics in Leadership,
Business, and Beyond (pp. 121-129). Springer, Cham.
De Los Reyes Jr, G., Kim, T.W. and Weaver, G.R., 2017. Teaching ethics in business schools: A
conversation on disciplinary differences, academic provincialism, and the case for
integrated pedagogy. Academy of Management Learning & Education, 16(2), pp.314-
336.
Ermasova, N., Wagner, S. and Nguyen, L.D., 2017. The impact of education, diversity,
professional development and age on personal business ethics of business students in
Russia. Journal of Management Development.
GÜNEŞ, M.H., 2017. An experimental study about the application of Kolb's learning cycle on
biology lesson. Kastamonu Education Journal. 25(5).
Kačerauskas, T., 2019. Ethics in business and communication: common ground or
incommensurable?.
Morris, T.H., 2019. Experiential learning–a systematic review and revision of Kolb’s
model. Interactive Learning Environments. pp.1-14.
Ogbari, M.E., and et.al., 2016. Entrepreneurship and business ethics: Implications on corporate
performance. International Journal of Economics and Financial Issues, 6(3S), pp.50-58.
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.
Rendtorff, J.D., 2017. Cosmopolitan business ethics: Towards a global ethos of management.
Routledge.
Rodríguez-López, Á. and Souto, J.E., 2020. Empowering entrepreneurial capacity: training,
innovation and business ethics. Eurasian Business Review, 10(1), pp.23-43.
Sison, A.J.G., Beabout, G.R. and Ferrero, I. eds., 2017. Handbook of virtue ethics in business
and management. New York: Springer.
Sison, A.J.G., Ferrero, I. and Guitián, G. eds., 2018. Business ethics: A virtue ethics and common
good approach. Routledge.

Swanson, D.L. and Frederick, W.C., 2016. Denial and leadership in business ethics
education. Business ethics: New challenges for business schools and corporate leaders,
pp.222-240.