Business Ethics and Responsibility Report: Ladbrokes Analysis

This report examines the ethical challenges faced by Ladbrokes, particularly in response to government regulations concerning Fixed Odds Betting Terminals (FOBT). The report analyzes the ethical issues stemming from these regulations, including job losses and the shift to online platforms, and assesses Ladbrokes' role in society. It identifies key stakeholders like employees, customers, and the government, evaluating how they are affected by the company's actions. Examples of good and bad ethical practices within Ladbrokes are provided, alongside recommendations for ethical management and community engagement. The report also discusses two ethical theories and reflects on the qualities of an ethical leader and manager, considering their impact on organizational culture. The case study explores the implications of ethical decision-making in a business environment facing regulatory changes and societal impacts.

Business Ethics and
Responsibility
Management

Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
A) Report.........................................................................................................................................3
Ethical issue or issues..................................................................................................................4
Role of business in society..........................................................................................................4
Stakeholders for the business.......................................................................................................5
Examples of good and bad ethics................................................................................................6
Recommendations........................................................................................................................6
REFERENCES................................................................................................................................6
B) Discussion on two ethical theories.............................................................................................7
REFERENCES................................................................................................................................8
PART 2............................................................................................................................................9
Reflective essay of Ethical Leader..............................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
Business ethics refers to various set of values that facilitate the business to adopt various
policies and practices so that various controversial subjects can be avoided. This ensures that
businesses have better image that enable them to accomplish their organisational goals and
objectives. Ethics within the business has various advantages for the business as with this they
can ensure that the behaviour of the employees and other channel partners is ethical with which
they can ensure better image of the organisation (Etzioni and Etzioni, 2017). Various issues that
are to be taken into consideration includes corporate governance, insiders trading, discrimination,
environmental impact, fiduciary responsibilities etc. so that right and wrong in the activities can
be ensured. The unethical practices of the organisation has adverse impact on the overall
productivity and profitability of the organisation. In this report the case of Ladbrokes: The online
way to save your job is taken into consideration as the intervention of the government in
Gambling affected the business by maximising the limit of the betting. Fixed Odds Betting
Terminals are installed in the betting shops within UK in the year 2001 but with the intervention
it got affected and faced huge losses. For managing this the beguines tends to move online and
due to this they started laying off their employees. To manage this a report is written to the
senior manager of Ladbrokes in context of their actions from the ethical perspectives. Apart from
this the ethical theories are considered along with a reflection is written from the context of
ethical leader and ethical manager to establish high ethical standards.
PART 1
A) Report
The ethics within the system enables the organisation to manage the behaviour of the
employees within the organisation and the impact of its operation on the society. The activity of
gambling is considered to be part of fun but at times leads to destruction due to which Ladbrokes
had faced various issues such as the FOBT machines are not allowed in their premises for
gambling. This has adversely affected the profitability of the business as they have to shut down
various of their shops and need to move to online platform for their operations. Due to this
change the problem that Ladbrokes is facing is related with the decision in context of which 1000
shops to choose out of various 3500 shops that has to be closed down (Kaplan, 2017). Another
issue that they have been facing is related with the employees as they have to decide which

employees they have to retain or which they have to laid off. Before taking any such decision the
managers have to determine the influence of the approach that they have decided for solving the
problem of gamblers and restricting of the organisation.
Ethical issue or issues
Ladbrokes is a company that has been offering various services related to the sports and
gaming through different shops but the intervention of the government and legislation against
FOBT. The ethical issues which was related with this was the individual engage into the activity
with large amount such as £100 through that machine due to which their liabilities increases.
This also increase pressure on them in context of their ability to manage their finances which
increase burden. Apart from this the decision to lay off the employees through testing and
interviewing the employees to test their abilities for managing the customers through online
platform. The ban on the use of machine leads to loss of business for Ladbrokes but this does not
implies that they have to lay off their employees. The staff can enable them in managing the
customer through various online platform as the customers are not yet ready to switch to the
online platform for gambling as they find it not reliable (Ladbrokes accused of conflict of
interest over problem gamblers, 2019).
Role of business in society
The activities that are undertaken by the organisation are considered ethical as they have
been taking into consideration the interest of the individuals interested within their business. But
the ban on the use of FOBT has adversely affected the practices of the organisation due to which
they have planned to lay off their employees which is unethical as they have the capability to
cater the customers on online accounts because they were the one who has been serving them in
the busy shops of the Ladbrokes. They have to take into consideration various aspects related to
the issues so that they can ensure that impact of the such legislation is not much on the
organisation capability and efficiency.
Ethical perspective of the issue: The ethical perspective of this issues from the point of
view of the employees is that they have to suffer due to this prompt action of the Ladbrokes as
they will loss their job. The company must provide the time top the employees so that they can
identify another job which can enable them in satisfying their livelihood. In addition to this they
have been considering the capability of the candidate to target the customers for them on online

account which can be considered better approach as with this the sustainability of the suitable
employees can be ensured by them.
Alternative ways to think about the business role in society: The role of the business of gambling
within the society is related with the opportunity for the people for making money. With the help
of this the managers within the organisation need to ensure that they have better alternative
options for the people such as online accounts and launching of various games which are based
upon the concept of gambling. This will ensure that the Ladbrokes does not have to lay off their
employees and they will have the source from where they can manage the incomes which is
affected due to launch of the legislation (Ladbrokes staff told to sign gamblers to online accounts
to avoid redundancy, 2019).
Influence on the image of the company: This will affect the image of the company as they
may loss their customer but if they effectively launch alternative options for their shops then they
can ensure that impact on the image of the company is not adverse.
Stakeholders for the business
The stakeholders of the business includes those who have interest within the business of
the company. They have to take actions as per the need and expectations of the business so that
they can ensure their profitability, growth and survival. The unethical practices of the company
can affect their interest due to which they can loss their market share and for this they must
consider the impact on various stakeholders such as:
 Employees: The employees within Ladbrokes will be laid off as they have been facing
various issues due to implementation of the legislation by the government. But the
management of the company need to understand that they have to take into consideration
the abilities of their employees so that they can make sure that better online account
management is ensured.
 Customers: The customers are the sources for the company that enables them to earn the
revenue and to them better services are to be provided by the customers. For offering
services to the customers through online accounts of the gamblers Ladbrokes have to
convince them to operate through online account and even through various games but it
can be done by the talented employees that have understanding of the matter.
 Government: The government take into consideration various legislations and
regulations for the better society and Ladbrokes must comply with them so that they can

meet up with the expectations. The government supports the company but if the impact of
the business on the organisation is not efficient then they impose various restriction on
them and this influence the increase in the duties and taxes on the business which
ultimately affect their profitability (Fixed-odds betting terminals: 'It's a silent addiction
but at its worst it takes lives, 2019).
 Shareholders: In the betting shop the 60%-70% of the shop’s profits are from FBOT
with the help of which the shareholders get their profits. The shops earn at least £4,000-
5,000 on a Saturday with around half of that from FOBTs. On one bank holiday weekend
the earnings are in excess of £20,000 just from the machines due to which the
shareholders were in greater benefits. Banning of such machines and various restrictions
affected the profitability of both organisation as well as shareholders.
Examples of good and bad ethics
Both the ethics and the morality can be treated as good and bad or right and wrong. This
can be defined by the actions that have been taken by the organisation. Ladbrokes has decided to
shut all their shops as the government has ban to use FOBT machines with the shops. This is
good ethics as they taken into consideration the regulation which is imposed by the government
on them. But the after impact of this is related with the layoff of the employees which is bad
ethics as due to this they can be affected in context of the ability to manage the customers
through online accounts.
Recommendations
The recommendations that are made to the Ladbrokes includes that they must engage
themselves with the community along with this they must make their employees part of union for
the betting shop. This can be treated as alternative option with which the losses of the job can be
ensured. In addition to this the government must play crucial role and they can offer support the
organisation in providing opportunity for the job as with this the risk for earning the survival can
be managed. For this the managers of Ladbrokes must approach to the government so that they
can ensure that the consequences of the changes within the law do not affect the employees of
the organisation. Apart from this various recommendations which must be taken into
consideration includes the followings:
 The external stakeholders must be made part of the decision making of the company
along with the employees so that the decisions are taken considering mutual interest.

 Various policies related to the ban of gambling activities must be considered and online
activities must be organised with ethics with corporate governance as well as various
CSR policies.
REFERENCES
Books and Journals
Kaplan, A., 2017. European management and European business schools: Insights from the
history of business schools. In Management Research (pp. 211-225). Routledge.
Etzioni, A. and Etzioni, O., 2017. Incorporating ethics into artificial intelligence. The Journal of
Ethics, 21(4), pp.403-418.
Online
Ladbrokes staff told to sign gamblers to online accounts to avoid redundancy, 2019. [online]
Available through:<https://www.theguardian.com/business/2019/feb/05/ladbrokes-staff-
told-to-sign-gamblers-to-online-accounts-to-avoid-redundancy>
Ladbrokes accused of conflict of interest over problem gamblers, 2019. [online] Available
through:<https://www.theguardian.com/business/2019/feb/08/ladbrokes-fobt-problem-
gamblers>
Fixed-odds betting terminals: 'It's a silent addiction but at its worst it takes lives, 2019. [online]
Available through:<https://www.theguardian.com/uk-news/2018/jan/22/fobt-threat-its-
a-silent-addiction-but-at-its-worst-it-takes-lives>
B) Discussion on two ethical theories
Ethical theories are crucial for the organisation as with the help of this they can manage the
challenges that are faced by them as per the situation prevailing within. Various ethical codes
enables the organisation in minimising the adverse impact of the operations on the society as
well as on the other stakeholders such as government, employees, customers etc. With the help
of various ethical theories the unethical practices with the organisation can be minimised as they
regulate the actions due to which all the frauds, illegal activities, scandals etc. can be disclosed
(Fletcher, 2017). Further the implication of the ethical codes and the practices enables the
business to comply with the legal requirement so that the implications of the government on the
business can be reduced. Ladbrokes must use various ethical codes are they will provide them
the assistance for regulating their actions and dealing with the laying off decision of the
employees efficiently for the business of gambling. Some of the theories that will be taken into
consideration by them includes:
Utilitarianism: The theory of Utilitarianism was proposed by John Stuart. This theory
proposed that happiness of the others can be determined by undertaking morally better and
correct actions as with this the consideration of the interest of all will be managed. But the

people become unhappy in case the actions which are undertaken are not as per the moral beliefs.
The decision as per the theory are based upon the fact that the decisions which are taken are
completely dependent upon the fact that consequences of such decisions has impact on the
employees within the organisation as well as their operations. This make the theory known as
consequentialism theory. The purpose of the theory is to accomplish the goals and objectives by
doing good for all and taking into consideration the impact of all the stakeholders so that the
interest of all can be managed. This theory can be classified into two types Act Utilitarianism
and Rule Utilitarianism. The Act Utilitarianism is the theory with the help of which it can be
ensured that benefits are provided to each and every one associated irrespective of the beliefs and
the various societal constraints (Kagan, 2018). While the Rule Utilitarianism is the theory which
enables to understand the benefits of others by ensuring just and equitable means for all.
The Utilitarian theory can be adopted by Ladbrokes as with the help of this theory they can
ensure that they can make both their employees and customers happy by managing their interest
within the business of gambling. This can be done by them by ensuring that the employees are
not laid off and they are allowed to manage the customers who visit to their shops which has
closed down through the online accounts. Here, Rule Utilitarianism theory is suitable as with the
help of this they can ensure that the expectation of both the employees and gamblers are taken
into consideration.
The benefits of the theory to the Ladbrokes is that they can satisfy the level of expectations
of the customers and employees by developing various games so that they can continue with the
business and the opportunity to earn better (Magelssen, Pedersen and Førde, 2016). This theory
is the perfect solution to the differentiated need of the organisation as well as that of the other
stakeholders.
Rawls idea of social justice: The theory of justice is considered to be a political
philosophy with the help of which the author aims to provide an alternative to the utilitarian
approach. The main focus of the theory is on the justice so that they can ensure that interest of
each and every party associated with the business can be considered. The principles which are to
be taken into consideration by the businesses includes liberty and equality within the basic
structure of the business as with the help of this they can ensure that all are treated equally and
fairly. The two main principles which are to be taken into consideration includes each and every
person within the organisation has equal right to the most extensive total system in which all the

basic liberties are offered to their employees (Miller and Eggleston, 2020). Another principle
related with the theory is social and economic inequalities so that they can be arranged in such a
manner that greatest benefit of the least advantaged and consistently can be ensured along with
offices, position within the organisation.
This theory can be adopted by the Ladbrokes as with this they can ensure greatest equal
liberty principle which enables them to understand the difference principle and equal opportunity
principle. With the help of this it can be ensured that the impact of the unethical concern which is
faced by Ladbrokes can be managed. They can ensure that the interest of the employees is
considered and they are laid off rather all the employees are allowed to take part in the modified
action of reduced shops of betting (Ahmad and Gao, 2018).
REFERENCES
Books and Journals
Fletcher, C., 2017. An Ethical Life: A Practical Guide to Ethical Reasoning by Richard
Kyte. Journal of the Society of Christian Ethics, 37(2), pp.191-192.
Kagan, S., 2018. Normative ethics. Routledge.
Magelssen, M., Pedersen, R. and Førde, R., 2016. Four roles of ethical theory in clinical ethics
consultation. The American Journal of Bioethics, 16(9), pp.26-33.
Miller, D.E. and Eggleston, B., 2020. Moral Theory and Climate Change: Ethical Perspectives
on a Warming Planet. Routledge.
PART 2
Reflective essay of Ethical Leader
Ethical leadership can be considered as leadership in which the ethical belief in context of
respect and dignity is taken into consideration. All the actions and activities are monitored by the
ethical leader with their ethical beliefs and values so that the overall performance can be
managed. The leaders can influence their team members to follow the same path and consider the
dignity, trust and honesty towards others working within the same organisation (Shapiro and
Stefkovich, 2016). This will enable them in improving the overall culture of the organisation as
with this understanding among all the team members can be ensured with common beliefs and
values. Further this will enable them in developing better understanding among team members in
such a manner that better integrity can be build. It will enable in developing trustworthiness
within the members and employees due to which they can ensure that roles and responsibilities

are shared with each other on mutual grounds which contributes to the success of the
accomplishment of the organisational goals and objectives (Greenwood and Freeman, 2018).
Leaders have the capability to influence their employees by making them understand the
benefits of considering and incorporating ethics within their behaviour and activities. This will
enable them to bring consistency in the ethical practices and to improve the morale of the
employees. The ability of complying ethics in the practices the efforts of the employees can be
integrated which can facilitate them in resolving various issues that are faced by the company. In
addition to this employee relations will also improve that can enable them to satisfy the
expectations of the customer (Ali Chughtai, 2016).
As a leader I adopted various strategy for managing various actions of the team members
so that performance of the entire team can be managed. This enable me in managing various
conflict that can arise among the team members easily as they all have common belief and values
due to which the behaviour can also be managed. Further the involvement of all the team
members can be ensured that will enable me in developing better understanding so that they can
effectively communicate with each other in such a manner that achieved effectively on time.
With this respect for each other can be ensured within the team and integrity in the work can be
managed. At the time of taking decisions I take into consideration various ethical attributes as
this enables me to motivate others and in managing the behaviour of all so that better
performance can be considered. Apart from this, while allocating roles and responsibilities of the
people I considered skills and abilities of the employees for that I can ensure that all the targets
are achieved with efficiency and the employees has been treated equally and fairly.
On the basis of this discussion it can be identified that ethical leadership has better influence and
impact with which they can ensure ethical behaviour (Xu, Loi and Ngo, 2016). A leader ensures
that each and every employee is motivated and ethics are completed within the organisation as
well as in the activities of the employees so that their performance can be managed and
integrated effectively.
CONCLUSION
It is concluded from the above report that a leader within the organisation facilitates better
performance by managing the behaviour and work of the employees. Implementation of the
business ethics in the activities of the business objectives can easily be accomplished this overall
performance of the organisation can be improved. This implies that they have better profitability

as well as market share. The organisations can use ethical theories such as Utilitarian approach
and Idea of Social Justice so that interest of each and every party associated with the organisation
can be taken into consideration.
REFERENCES
Books & Journals
Greenwood, M. and Freeman, R.E., 2018. Deepening ethical analysis in business ethics.
Journal of Business Ethics .147(1). pp.1-4.
Xu, A.J., Loi, R. and Ngo, H.Y., 2016. Ethical leadership behavior and employee justice
perceptions: The mediating role of trust in organization. Journal of Business
Ethics, 134(3), pp.493-504.
Ahmad, I. and Gao, Y., 2018. Ethical leadership and work engagement. Management Decision.
Shapiro, J.P. and Stefkovich, J.A., 2016. Ethical leadership and decision making in education:
Applying theoretical perspectives to complex dilemmas. Routledge.
Ali Chughtai, A., 2016. Can ethical leaders enhance their followers’ creativity?.
Leadership .12(2). pp.230-249.

1