Analysis of Ethical Issues and Stakeholder Impact in EA Games (Report)

This report analyzes the ethical issues faced by EA Games, particularly concerning loot boxes in games like FIFA and Candy Crush. It explores the importance of business ethics, corporate social responsibility, and the impact on stakeholders, including employees, managers, and customers. The report discusses good initiatives taken by other organizations like Starbucks and Indigo.ca. It also examines ethical theories such as deontology and utilitarianism, providing recommendations for EA Games to address these ethical concerns, potentially by changing policies and following ethical theories. The report highlights the potential for loot boxes to be considered a form of gambling and the negative impact on the company's public image and the trust of gamers.

REPORT ABOUT A CASE
STUDY
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Table of Contents
Introduction .................................................................................................................................3
Why ethics is important for a company.......................................................................................3
Key stakeholder and their impact................................................................................................4
Good initiatives taken by various Organization..........................................................................5
Ethical theories ............................................................................................................................6
Deontology...................................................................................................................................6
Ethical leaders Qualities and what makes them to take ethical actions.......................................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10
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Introduction
Video games loots must be regulated as gambling and also children can barred from them. This
is advised by the house of commons (Miller and Blackler, 2017.). Loot boxes provided a
randomized selection of items who can bale to buy or earn them. It includes an element of
enables as player are unaware about what hey will get at the end. Present report lay emphasis on
the EA games such as footabll ,whales ,cady crush and many more.
Why ethics is important for a company
Ethical beliefs and moral guides the values, decisions as well as behavior and also the decision-
making of a business organization as well as individuals in the firm known as Business ethics.
Here the management of the firm sets the tone as how the firm runs on a day to day basis.
Leader guides them while making any type of decision as what is beneficial and what is not
beneficial to them not only from their view but also form the organization point of view (Moon
and Nolan, 2019) . Ethical behaviors assists the long-lasting positive effects for a firm as well as
also includes the capacity to attract highly talented employees. Also, running the business with
full of ethics creates a strong bond between the individuals as well as management team.
It is affecting overall public image of EA games. Few of their games stepped too far in terms of
loot boxes. As most of the government of various countries are focusing on whether loot boxes
are a form of gambling or not and because of which their public image is getting affected as
because of this ethical issue company has recently been into various controversial issues (Brock,
2019.) . They are continuously arguing about this issue many times, and they have been
continuously defending this loot box issue. People are new seeing this loot box issue in a
negative manner which is not only affecting their public image but is also affecting popularity of
their top-rated games such as FIFA. They have recently got a negative reaction from gamers for
most of their games who thinks that these loot boxes are a kind of gambling. They think these
loot boxes are a kind of way through which EA games is making easy money due to which their
image and trust of gamers within them is getting affected (Martin, 2015.) . They are in a position
where they need to clear this ethical issue either by removing loot boxes from their games or by
proving that these loot boxes are not a way of gambling and is not an ethical issue.
Role of Business in society
Corporate social responsibility that helps the companies within a self-regulation manner that it
assists a firm can be social responsible also known as corporate citizenship (Baden, 2015.) . It is
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generally understood the way through which company accomplish a balance of
environmental,economic as well as social imperatives. Here triple bottom line approach can be
used for addressing the shareholder as well as stakeholders (Yip, Han and Sng, 2016.) . Its goals
to enhance the long term profit its for online as well as offline business by allowing more
efficient as well as attract positive attention to the staff members.
Prevent financial crisis- it can solve both nationally as well as intentionally. Lower legal
expenses,low regulators on the business and performing all activities in an ethical way.
Also by treating the employees fairly as well as a valuable part of the firm such as by going
them jobs as well as encouraging moral standards as well as high professionals (Klein and
Castillo, 2017.).
and by maintaining equality among employees such as equal pay to the men and women both
and also there is no discrimination on the basis of colour, skin,language and many
more ,eliminating discrimination
Key stakeholder and their impact.
Management of the firm is highly influenced though the opinions as well as perspectives of the
external as well as internal. A stakeholder within a group,community and an organization
influenced the operations.
Internal stakeholders- They are the persons who are financially or directly involve within the
operation process as it involves employees, managers and owners. As each of these groups is
potentially rewarded to the organization (Yip, Han and Sng, 2016.) .
Employees- They are considered as the primary interest stakeholders as they have financial as
well as time investments within the firm and also plays a major role in the tactics, strategy as
well as operations . The employees of here are impacted in the negative way as they thought that
thy do hard work and firm follows the unethical behaviors which is not good for them as they
sentenced to jail as well. If there is any unethical practice followed by company then it highly
impact on their image. This is because they are doing that thing which is illegal for society. So,
this impact on society in negative way (Martin, 2015.) . Furthermore, in society both men and
women are considered as equal. Hence, both are having equal right to contribute towards society.
A business plays significant role in society. This is because they provide products and services to
fulfil people needs. Also, they contribute towards society through various things such as CSR,
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etc. However, business has a set purpose that allows them to exists in society (Leentjens and
Horstkötter, 2017.) .
Business consists of both internal and external stakeholders. The internal are managers,
employees, etc. and external are government, customers, etc. The stakeholders are closely
engaged with business. Thus, any affect on business operation highly impact on stakeholder as
well. Due to this public image is also been impacted. When any unethical practices are followed
by business the stakeholders are responsible for it.
External stakeholder –The primary aim of providing goods as well as services is to full fill the
needs with the company ,but here the customers are very well aware that they have been
cheating as well as gambling so it also impacted on them in negative manner (Chalghoumi,
Cobigo and Jutai, 2017,) .
Managers- They also impacted in a negative manner as they are unaware about the unethical
things as if the employees impacted in negative manner,they also impacted within the negative
manner . They are also responsible for the decision made by the company so whatever the public
mage of company in terms of the loot games they affected within a negative manner.
Suppliers – Suppliers as well as other strategic alliances are not dependent as the one's success
effects on the other (Resnik, Elliott and Miller, 2015.) .
Good initiatives taken by various Organization
Starbucks- This company begins in 1997 as a literary campaign within Canada as well as United
states and now it has been becomes globally famous from the various sourcing services. They
provide the coffee trees regarding the supply level to give a provide a million coffee tress o the
Farmer within a partnership within the sustainable coffee change .Here the stores, the firm also
hire 10,000 refuges all over world from 75 countries and also within the next five years such as
plus 25,000 veterans through 2026
Indigo.ca- They Fundraise the programs that can matters to their community by publishing
against for athletics ,education as well as neighborhood. They offerings a percentage back on the
buying made with the specific codes regarding checkout as well as supports simply able to enter
the ID from the choice of campaign that receives 16% to the 20% .
Recommendation
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It should be recommended that they can make the policy as well as follows the laws such as
equal pays and no discrimination to the employees .
It should be recommended that should follow the ethical theories
Ethical theories
Ethical theory are considered to be used for the individual that helps to make the decision-
making guidances. It lay emphasis aspects regarding an ethical dilemma as well as leads to them
most ethical correct solutions as per the guidelines within the ethical theory itself (Yip, Han and
Sng, 2016) .
Deontology
Deontology is an ethical theory that uses to differentiate right from wrong. It is simple to
apply. It needed that people follow the rules and regulation and do their duty. Unlike the
outcomes follows. It can judges action through their results. Deontologist does not need the cost
and benefits regarding of a situation . As this avoids the subjective as well as uncertainty due
to only follow set rules (Roberts, 2015.) . It contains many various positive attributes but at the
same time it contain flaws. One of the flaw is that there is no logical basis or rationale basis for
deciding the duties of an individual basis. Despite its various strength,deontology can also
produce outcomes that many people. For example there is Game developer who develops about
the various games ,he came to know that loot boxes game is empty someone's pocket by
motivate them to follow the task an win prizes such as in candy crush after a certain level there is
buying options came for its gifts items that are required in a game ,so as a game developer he
needs to do against it and destroy the software but it is against the professional code of ethics to
break into any software systems without taking any permission and it consider as cheating. As
per the view of deontology.(Moon and Nolan, 2019.) it advises not violate this kind of rule. So
following rules deontology easy to apply ,but at the same it also ,means that disregarding the
possible consequences of their actions when determining what is wrong or what is right.
Utilitarianism
This is one of the best known as well as most influential moral theories. The core ideas is
that whatever actions takes place whether they are right or not totally depends on their effects .
It is a moral theory that supports actions to promote the overall pleasures and happiness as well
as rejects that causes unhappiness or harm. It aims is for the betterment of the society on terms
of social ,political ,economical decisions (Brock, 2019.) . This theory based on the one's ability
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to forecast the outcomes regarding an action. There are two types of the utilitarian rule
utilitarianism and act utilitarianism. According to the act utilitarianism it states that an individual
act is morally right only if the produces the best possible outcomes within a particular situation.
Act Utilitarianism lay emphasis on the actions of the individuals while rule utilitarianism focuses
on the effects of various type of actions for example stealing or killing (Martin, 2015.) .
According to this an individual performs the acts that able to benefit most of the
people ,regardless their societal constraints or personal happiness. Also, Rule utilitarianism takes
into an account that is associated with fairness. It also adds benefits regarding the rule
utilitarianism are also values for the justice as well also involves beneficences within the same
time. They reject systems or moral codes that have various taboos or commands that are
depends on traditions, Customs ,and also order given to the supernatural beings or leaders . As
per the Utilitarians they think that makes a mortality be justifiable or mortality be true is its
contribution that is positive contribution regarding human as well as non-human beings. Both the
rule utilitarianism and act Utilitarianism have also disadvantage as individuals uses their
experiences that comes with their ages , instead of certain his and her predictions that will be
accurate (Artal, R. and Rubenfeld, S., 2017).
For example Due to the loot boxes games there is a random selection of items to the individuals
who can buy them .It should not be regulated a if their become the excessive eared games but if
the game considers to the purchase items again and again then it comes to the gambling (Yip,
Han and Sng, 2016.) .As per the developers of candy crush they are not considers the existing
gambling as WON Items are not come under Monterrey value but there are certain evidences
that proves that loot box winning games can be exchanged regarding money as well as also
utilize game developers makes money profit from the problem gamblers. A survey through the
Gambling commission found that there are 11 -16 had paid for the loot boxes (Brock, 2019.) .
Ethical leaders Qualities and what makes them to take ethical actions
Ethics consider the desirable as well as appropriate values and also the morals as per the
individuals or the society . It serves the guidelines for evaluating that what is wrong or right.
Ethics are considered as a vital to the leadership. An effective leadership as well as ethical
leaders have following characteristics. Being as a leader I will assure to have ethical environment
in my organization and to play an influential role for the followers (Yip, Han and Sng, 2016.) . I
will work on the following grounds' foe developing ethical environment within the organization.
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Justice :- As a leader I will treat all of my followers equally. There would not be any type of any
personal bias, whereas, some followers have to be treated differently, but I would treat
differentials fairly and morally (Miller and Blackler, 2017.).
Concept of community :- I will work on the concept of community as leader always considers
his purpose as well as followers. In short as a leader I always believe in team work and that I can
implement by building a strong community. I will consider purposes of both the team and mine
while achieving the objectives. I will always work harder for achieving community goals.
Honesty:- As a team member I will be always honest and loyal to my organization, and
followers. Honesty is very much important to be as influencing team leader. I will never
misrepresent any of the fact and as an honest leader I think I would always be respected by my
followers. Honest and true leader always represents true facts and figures and never tries to
misrepresent (Yip, Han and Sng, 2016.) .
Communication :- I am a good communicator,as successful ethical leader posses a good
communication skills. I will have open communication with all members of my team as many of
the team members have their concerns and questions too. A good relation between leader and
followers on trust, integrity , fairness within the communication (Moon and Nolan, 2019.) .
Being the example :- As a leader I believe that always actions speaks louder than the words. So,
I will set an example for my followers for achieving ream goals efficiently. The reason behind
this is that people follow the person who usually respects and follows others.
Dignity as well as respectfulness- An ethical leader, I can not use his followers to accomplish its
goals,as he or she must respect others. Also, respect the feeling ,decisions as well as values. Also
a leader they have to listen properly and also being liberal while listing to other viewpoints .and
treating them in a fair manner and also authenticate values as well as beliefs (Baden, 2015.) .
Justice- An ethical leader i must treat all his followers in a equal manner. There must be no
personal bias also some of the followers treated very differently ,as the ground for different tre
As a leader must be server other as per the ethical leaders ,they must place his followers intrtd
ahead of their won interest a leader must be acted within a fruitful or his followers
For example – In my company managers makes the important decisions of their own and also
don't listen the problems faced by the employees ,whenever employees go to them reading their
complained they screamed at them. This spoils the environment of the office as employees felt
that there are not more valued. For this unethical behaviour was noticed by and I complaint the
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higher management level, but they are also not listens to me . In fact, they said to me do your
work this is our task please do not interfere (Moon and Nolan, 2019.) . I was very shocked to
listen this type of statement from my seniors, so I complaint about this unethical behaviour to
trade union . They listen to me and gives a notice to my company for the conducting of a
meeting. Thus, at last meeting was conducted and sort out the whole issues ,now they can take
care of the employees and also listen to them,no they also provide the rewarded to the employees
both the Monetary and non Monetary funds to them and this also to makes them loyal towards
the company. This can favour of both the company and employees as it increases productivity
and efficiencies (Roberts, 2015.) .
CONCLUSION
From the above report it had been concluded that Deontology is an ethical theory that
uses to differentiate right from wrong. It contains many various positive attributes but at the
same time it contain flaws. One of the flaw is that there is no logical basis or rationale basis for
deciding the duties of an individual basis. As per the whatever actions takes place whether they
are right or not totally depends on their effects . People are new seeing this loot box issue in a
negative manner and also concludes about the Starbucks and Indigo about their good initiatives.
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Granulocyte Transfusion. Annals of Clinical & Laboratory Science, 47(4), pp.501-507.
Leentjens, A.F.G. and Horstkötter, D., 2017. Ethical issues relating to deep brain stimulation for
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Martin, K.E., 2015. Ethical issues in the big data industry. MIS Quarterly Executive, 14, p.2.
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Moon, B.L. and Nolan, E.G., 2019. Ethical issues in art therapy. Charles C Thomas Publisher.
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Roberts, L.D., 2015. Ethical issues in conducting qualitative research in online communities.
Qualitative Research in Psychology, 12(3), pp.314-325.
Yip, C., Han, N.L.R. and Sng, B.L., 2016. Legal and ethical issues in research. Indian
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