BUS020X601A: Business Ethics Report on EA Games' Loot Boxes and Fifa

This report provides a comprehensive analysis of the ethical issues surrounding Electronic Arts (EA) Games, specifically focusing on the practices related to Fifa, loot boxes, and their impact on various stakeholders. It explores the nature of the ethical issues, including concerns about potential gambling behaviors, addiction, and financial exploitation, particularly among young players. The report identifies key stakeholders, such as gamers, designers, developers, parents, and researchers, and examines their respective roles and the impact of EA's practices on each group. Two ethical theories, Kantian ethics and egoism, are applied to the case study to evaluate the ethical implications of EA's business model. The report also discusses the qualities of ethical leadership and the creation of an ethical organizational culture within the context of the gaming industry, offering insights into how EA Games could improve its practices to mitigate ethical risks and enhance its reputation. The report concludes with recommendations for EA to address these ethical concerns, emphasizing the importance of transparency, responsible gaming practices, and the consideration of societal impacts.

Business Ethics

Case Choice 1 EA Games: Fifa, Loot boxes and whales
INTRODUCTION
Ethics is related to set of rules as well as principles that an business firm has to follow. In
relation to this, business ethics are code of practices which an organisation has to follows while
conducting their business operations (Crane and et.al., 2019). With the help of business ethics
several standards has been set for company which help in regulating their behaviour. In simple
term, business ethics compromises of all values as well as principles and helps in guiding
behaviour within organisation. This report is based on Electronic Arts Inc. which is an American
video game company whose headquarter is located in Redwood City, California. It was founded
in 1982 by Trip Hawkins and they are serving at worldwide level. This report will be going to
conduct discussion on EA Games: Fifa, Loot Boxes and whales along with nature of ethical issue
and role of business in society. In addition to this, stakeholders will b identified and their impact
on organisation. Apart from these two ethical theories will be applied within case scenario of EA
games. Moreover, qualities recognised for ethical leadership and also for creation of an ethical
organisation.
PART 1
a) Writing the report
This report is based on EA (Electronic Art Inc.) which is video games company and its
headquarters is located at Redwood City, California. Most important is that it is second largest
gaming company in America as well as Europe by its revenue and market size capitalization.
This organisation was founded in 1982 which was 37 years ago by Trip Hawkins and they are
serving at worldwide level.
Electronic art gaming company have some ethical issues with their games I.e., Fifa, Loot
boxes and whales. As Loot Boxes are virtual rewards which players can gain in multitude
manner such as completing in game objectives or by paying in real world currency. Within these
loot boxes a player will receive a handful of random prizes. These prizes, usually cosmetic
features, such as new character outfits, are undetermined until the box is opened, they typically
frame the prizes into categories (common, rare, ultra rare etc.) to give the player an inkling as to
what they might receive (Pearson, 2017). This is what separates loot boxes from simply paying
for specific items; you pay for a chance to obtain a virtual item — with real money. Thus this
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game have some unethical practices within society as its attract people and they started spending
high amount of money on these which is not ethical and result in several other issues also within
particular person daily basis activities. Vice president of EA games company saying that look
boxes are just same as Kinder eggs in defend of it (EA games: Loot boxes aren't gambling,
they're just like a Kinder Egg, 2019). Along with this, in 2018, some computer scientist from
York has been founded wide link within loot boxes and gambling.
As per the view point of Kleinman.Z, 2019 kids have emptied their parent’s bank account
by playing Fifa. Four children have spent approx. £550 within three weeks for buying players
packs to play Fifa football video game online on family’s Nintendo Switch Console. People ae
spending on this because they can bought special players in packs but the content get revealed
only after payment get completed (The kids emptied our bank account playing Fifa, 2019). Such
practices have its negative impact on society as it seen like unethical practices because people
are not getting their favourite players after purchasing packs then they buy it again and again
which result in addiction towards it. Along with this, its content gets revealed after making
payment because of them doesn’t get idea about players.
Thus, these both game have some negative impact on society in several manner as it is
important for company to consider all ethical consideration within their working for ensure that it
will not have negative impact on society (Werhane, 2019). Such as Due to Fifa gaming bank
account of people get empty by purchasing new package as content get renovate after making
payment which is most negative feature of game. Due to this continuous playing games result in
empty bank accounts. EA game company have its wide impact on society as video games result
in increasing aggressive behaviour, causes emotional outbursts as well as decreases inhibition in
numerous individuals. Along with this, video games are time pass for masses of adolescents at
worldwide level. Mostly violent games have wide negative effect on people on a ways because
such practices reflect in their nature also in negative manner. Thus, there wide impact of video
games on society mainly on children’s in negative manner as they get addicted toward these.
Stakeholders can be individual, group or organisations who have wide impact by the outcomes of
project. In simple term it can be said that stakeholders have interest in the success of project as
well as can be within or outside the company which is sponsoring the project. Moreover, they
have positive as well as negative both impact on the project (Dierksmeier and Seele, 2018).
There are numerous stakeholders within video game company as EA games also have such as
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gamers, designers, developers & marketers, Parents, distributors, researchers and many more.
Everyone have their own major role within working of respective game company along with its
advantages as well as disadvantages. Explanation of these are as follows :-
 Gamers – For EA game company gamers are there stakeholders and they have wide
impact within working of respective organisation. Along with this, they have positive as
well as negative both type of impact on Electronic Art if game is not liked by gamers
then it will result in negative impact because they will not going to refer other people to
play it which reduce its sales as well as build negative image in society (Wallace and
Sheldon, 2015). On the other hand, if it has been like by people then it will have positive
effect like gamers will do mouth publicity and refer other people also to play that game.
 Designers and developer – They play most important role in working of game company
as they are the one who design as well as develop entire game which will enjoyed by
people. If developed in more attractive manner then gamers will automatically get attract
towards it and result in raising demand for video games within gaming environment
(Robertson, 2017).
 Researcher – They are the one who conduct market research for company which help
them in identifying current demand of customers within society. As there working will be
more advantageous for EA game company because with the assistance of data analysed
by them respective business firm will design games within that manner which will attract
more and more customers as well as fulfil there demand in effective manner. In simple
term it can be said that, researcher are the one identify current market trends as well as
demand or preferences of customers. But it is necessary to collect accurate data because
wrong information result in negative working of company, dissatisfied customers,
reducing sales and several other negative impact (Medeiros and et.al., 2017).
After going through entire issue related to online games of EA company it has been
identified that they have to stop making currency uses within games after its installation because
such practices are resulting in creating their negative image within society. Along with this, they
have to give guidelines in starting of game with bold letter so that players can read them in
advance and not mistaken in relation to them again. Apart from this, if currency will be utilising
within games then it is necessary to give notification to players after its one uses. If there will be
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no notification and money was deducting on continuous basis it will result in negative impact on
society as well as also on image on company within business environment.
b) Applying two ethical theories
Ethics is related to philosophies that provide assistance in dealing with principles of morality
and also well explained standards that are related with right or wrong. In simple term, it define
human character as well as conduct in terms of obligations, rights, rules, fairness, benefits to
society and several others. In addition to this, ethics include human rights or responsibilities, way
to lead good life, language of wrong & right as well as differences within good and bad
(Reinecke, Arnold and Palazzo, 2016). Simply it means what is correct and what is incorrect for
specific human beings and society.
Kantian ethics – It is related to a deontological ethical theory which was given by
German philosopher Immanuel Kant. According to this theory right or wrong of action taken are
not depended on their consequences but on whether they are getting fulfil duty. Kant believe that
there was supreme principles of morality as well as he referred to it as the categorical imperative.
For example, individual ought to avoid murdering someone, not because may end up in prison,
nor because may feel regret or remorse, but because it is a wrong thing to do per se (in itself).
This even applies to murdering a person who may go on to kill hundreds thereafter. Thus, same
in case of EA games company also have to implement such policies which are ethically in favour
of society and not hurting moral status of anyone. Along with this, they have to ensure that there
practices should have difference within right as well as wrong. Implementation of Kant
principles of morality within working it will be easy for company to conduct their daily basis
practices within right manner as well as not affect society or people who are playing (Strobel,
Tumasjan and Welpe, 2015). Kant based his ethical theory on belief that reason have to be used
for determining how individual ought to act. Kant did not attempt to prescribe particular action
but instruction which reason have to be utilise for determining how to behave. Explanation of
these are as follows :-
 Good will and duty – As per Kant based ethical framework, in combined work ethical
law has been constructed by respective theory by concept of duty. Kant has been began
ethical theory by doing argument that only virtue is unqualified good for good will. No
other virtue has this status because every other virtue can be used to achieve immoral
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ends (the virtue of loyalty is not good if one is loyal to an evil person, for example). The
good will is unique in that it is always good and maintains its moral value even when it
fails to achieve its moral intentions. In relation to EA game company they will be able to
identify their perfect as well as imperfect duties with the assistance of Kant Ethical
theory.
 Categorical imperative – Kant ethical theory primary formulation categorical imperatives
from that he derived four further formulations. Thus, distinction within categorical as
well as hypothetical imperatives as well as it is necessary for EA games company to obey
hypothetical imperatives for satisfying their own desires as well as customers also. These
imperatives are morally binding because they are based on reason, rather than contingent
facts about an agent (Luetge, Armbrüster and Müller, 2016). Unlike hypothetical
imperatives, which bind us insofar as we are part of a group or society which we owe
duties to, we cannot opt out of the categorical imperative because we cannot opt out of
being rational agents. We owe a duty to rationality by virtue of being rational agents;
therefore, rational moral principles apply to all rational agents at all times.
On the other hand, there is some another ethical theory also whose implementation will be
beneficial for EA games company. Egoism is normative theory that one’s self is, or should be,
the motivation and the goal of one’s own action. In simple term it can be said that, egoism an
action is morally right if decision makers freely decide an action for pursuing their short term
desire as well as long term interest. Within this egoism is not selfishness which simply saying
that EA Game Company should not have to be selfish while taking decisions in relation to games
and so on. As they have to consider their customers while making decisions. Respective
theoretical framework has two variants i.e., descriptive or normative. The descriptive or positive
variant conceives egoism as a factual description of human affairs. That is, people are motivated
by their own interests and desires, and they cannot be described otherwise. The normative variant
proposes that people have to be motivated, regardless of what at the moment motivates their
behaviour. Along with this, Altruism is the reverse of egoism. Egoism has to be distinguished
from egotism that simply means a psychological overvaluation of one’s own significance or of
one’s own activities. Thus, for implementation EA Games Company is not much suitable as
there is issue related to ethical suitability of games for society. So for respective game company
Kant Ethical theoretical framework will be more suitable.
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Within both of these theoretical framework there is wide difference as Kant theoretical
framework works on moral duties, right and wrong practices of company which they have
towards customers. On the other hand, Egoism is normative theoretical framework is related to
action which is morally right.
PART 2
The qualities recognised for ethical leadership and the creation of an ethical organisation
Ethical leaders are valuable for an business firm and they are the one who appreciated by the
employees. In simple term it can be said that ethical leaders are those who support interest of
staff members as well as their needs. In addition to this, ethical leadership is exhibiting morals
and values within management position. Thus, ethical leaders demonstrates characteristics, virtue
within their work, morals and also focus on requirement as well as rights of personnels. There
are several characteristics of leaders which make them ethical explanation of these are as follows
:-
 Justice – It is most important characteristics of leader as it is necessary that leader
should be fair with everyone. Most important is that leader must not have any favourites
as well as have to treat everyone equally. Major quality which has been find in ethical
leader is that no staff have to treat as fear based treatment on the basis of gender,
ethnicity, nationality as well as several other factors.
 Respect others – It is also important trait of an ethical leader is to give respect to their
followers. Thus, in simple term it can be said that ethical leader show respect to each and
every member of group by listening their issue attentively, value their contribution in
company, being compassionate and generous while considering opposing views.
 Honesty – It is most simple term which is understandable in easy manner as it is
necessary for an ethical leader to be honest as well as loyal. Thus, honesty is essential for
an ethical leaders because followers follow only those leader leader who are trustable,
honest and dependable. Respective leaders are the one who convey facts transparently
without mattering their unpopularity.
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 Humane - It is basis characteristics of ethical leader is to being humane. As ethical
leaders are those who place importance in being kind as well as act in manner which is
advantageous for company, individual as well as team.
 Focus on team building - Ethical leaders are the one who adopt sebse of community as
well as team spirit in an business firm. In simple term it can be said that when an leader
strive to accomplish goal it is not realted with individual but entire organisation. Thus,
ethical leaders are those who make genuine efforts for accomplishing goals which are
benefical for overall organisation not for themselves only.
 Value driven decision-making - Ethical leaders ensure as well as check decision first
that these will result in welfare of company. After that only those decisions will be
implemented which meet criteria of implementation.
 Encourages initiative – It is important for an ethical leader to encourage initiatives
which has been taken by staff members within organisation. Thus, ethical leader should
have to reward their personal for coming up with innovative ideas as well as also
encouraged for initiatives taken by them for organisation. Employees are praised for
taking the first step rather than waiting for somebody else to do it for them.
Business with strong workplace ethics have several advantages as it add value to the organisation
as well as support an environment in which staff members feel safe and valued. Moreover, in
creating ethical workplace culture manager and leader play important role. There practices are
advantageous for shareholders, organisation as well as people working within company. In
addition to this, business ethics are related to ethical dimensions of productive business firm as
well as commercial activities. Business ethics are applied to production, distribution, marketing,
sales and consumption of goods as well as services. Misconduct through staff members as well
as other organisational members can involve anything within this from conflicts of interest to
violation of business internet policies to falsifying time reports to bribery and illegal political
gifts.
CONCLUSION
From overall discussion of above mention report it has been identified that, Business ethics
play important role within working of an organisation as well as also in building their image
within market area. For maintaining ethical working of corporation manager and leader both play
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important role because they are the one who take care of day to day activities conducting within
organisation. In addition to this, there are several characteristics which make a manager ethical
such as justice, honesty and many more.
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REFRENCES
Books and Journal
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