Business Ethics and Responsible Management: A Detailed Report

This report delves into the realm of business ethics, specifically focusing on the ethical dilemmas faced by EA Games, particularly concerning loot boxes and their impact on consumers and stakeholders. It examines the role of business in society, the diverse stakeholders involved (shareholders, employees, distributors, suppliers, and customers), and provides examples of both good and bad ethical practices. The report then explores two ethical theories, deontology and utilitarianism, and their application to the case. Furthermore, it offers recommendations for EA Games to improve its ethical standing, including enhancing transparency, strengthening payment security, and fostering ethical decision-making. The report concludes with a reflective essay on ethical leadership and the importance of corporate social responsibility.

BUSINESS ETHICS AND
RESPONSIBLE 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 focuses on measures such as 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 and reflective essay for the ethical leadership and ethical
issues and ways to overcome it (Cullen, 2020).
Part 1 A Report
Ethical Issues
There were so many complaints from the side of public which is for the contest of loot
boxes as people feel that they are getting scammed and it is a way of stealing the money of
consumers. This aspect is also reflecting the negative image of the business. This is because
many of the children were stealing the money of their parents through their cards secretly which
is parents had to take action against EA Games. This led them to think that most of the people
who plays FIFA or any other game are mostly teens who are dependent on the income of their
parents and the parents believe that it is not ethical of the company to have any parental lock or
strict measures for payment. Company has a different approach on the basis of it and that every
practice or action taken by them is done fairly with the purpose of providing more entertainment
to clients (Fougère, Solitander and Maheshwari, 2020).
Role of business in society-
Every business has one role and that is to serve up to the needs and wants of people and
earn substantial amount of profits. Not only gamers but every sector has to deal with their
customers on the basis of that. Other than this in order to improve their affected image in the

market EA Games has taken initiatives to contribute in the sector of corporate social
responsibility. This helps them to leave a mark in the area of social and developing factors with
which they will be able to improve their image and trust of consumers. The expectations from
company for working under these measures are not only made by customers but employees also
feel that there must be a presence made by the company. It is important that the company keep in
mind that in order to comply with these factors they would have to invest huge amount of
business in the market. If they work and put their efforts then it leaves a mark in the minds of
consumers which helps the company to build their trust in the market. More they work with
ethics more they will be able to increase the trust of the employees (Pirson, 2020). It has been
observed that many areas have received support from the company so that they can work and
achieve development. Examples of these areas are developing the facilities of school so that
children can get better education and make their future bright. Other than this they have
improved the ways and methods through which students can get more options for their career
and diversify their portfolio. They are also working on making the instruments available so that
they can get digital education. Employees of EA has taken an initiative and that is to take around
800 classes across the world. They are taking the command for girls so that they can get equal
respect and opportunities which is why they have tied up with Girls Who Code. All of these
activities are done under a different organization which has kept as non profit. They have hired
people so that they can manage a event which is specially to give hope to the underprivileged
people and motivate them so that they can boost their morale. The one of the most important and
good deed they have signed up is to look after gamers who faces the issue of being disable and
with this their purpose is to make them feel distracted so that they can focus on other things and
spend their time with entertainment. In order to create trust in the market EA games has been
working with forces that conducts and maintain their issues in an ethical manner (Laasch and
Gherardi, 2019).
Five Stakeholders-
Shareholders-
After the issue of loot boxes the company has received a lot of hatred from the parents of
the children. This is why many of the shareholders have changed their mind to invest in the
stocks of the money. Also those who were with the company are selling their shares as they are

not feeling convenient because the price of shares in the market has been decreasing. Because of
these issues of loot boxes they have been assessing that there is risk involved in investing the
company which is making it difficult for the business to look out for sources of funds (Haski-
Leventhal, Pournader and McKinnon, 2017).
Employees-
Employees of the EA Games no longer wants to be a part of the company and many of
them are looking for another job so that they can work for the company who has respect in the
market and work with pride. They lost their respect because many people blamed them that they
were the ones who were working unethically in the company. This affected their confidence
which affected their skills of decision making.
Distributors-
Distributors of the company are suffering from losses as now no parents are permitting
their kids to buy the games of the EA which has affected the sales of the company and that is the
reason why stock maintained by distributors is very low. This has made even the sales of
retailers which is why no one is keeping the stock of their games.
Suppliers-
Many of the suppliers who works ethically even wants that their company works ethically
and this has made the level of relation affected between both the parties. Suppliers are making it
difficult for the company to exist in the market by not making them the required materials
available so that they can deliver the final product to their customers.
Customers-
Many of the customers of the company are teenagers who require permission of their
parents to buy the game and they do not allow them because they feel that they do not serve
ethically in the market. They are taking this decision because now they don’t trust the company
anymore (Borges and et.al., 2017).
Examples of good and bad ethics-

Ethics that are good-
Standards/ Professionalism-
There are companies that work on the basis of their derived code of conduct such as EA
Games and Ubisoft. They maintain high standards as they represents their business and maintains
its operations on a large scale. EA games has to make sure that work is done under the protocols
as they are already suffering from lot of negative image in the market. For that they need to make
relation which stands inside the company and outside the market which will be with their
competitors.
Trust-
In order to maintain the operations on a big scale it is necessary that they built trust in the
minds of people. But the schemes and aspect of loot boxes is taking the trust of consumers from
the company as they have already lost a lot of their money which they believe is not even worth
it (Moosmayer and et.al., 2019).
Bad Ethics-
Buying out other company-
If there are good habits it is possible that there are some bad habits of the business. This
is same in the case of EA and Ubisoft as in order to keep their share in market what they do is
buy out shares of those companies who have the potential to beat them. This is not considered as
a behavior that is ethical by the company as they do not give them a chance to establish their
market even when they can just so that they can reduce their competition (Storey, Killian and
O'Regan, 2017).
Lies-
Many companies consider the method of lying so that they can influence the mind of
target audience easily and achieve their goals. This is what has happened in the case of loot
boxes as they still believe that this was a scam by company in order to take out money from
them. If they maintain their operations in an ethical manner then customers will not leave a doubt
on the company.

Recommendations-
Since the EA Games commenced their operations they have not been successful in order
to establish their name instead the image of the company has always been negative which is why
people do not trusts them. It is because of the buzz that their games have made and now they are
turned into franchises because of their success such as FIFA and Need for Speed which is among
the chartbusters and many people still buy it. If they want to improve their image in the market
and sustain their future then it is important that it is necessary that they make sure that all the
work that is done in the company and strategies implemented are done ethically so that they can
build trust in the market. Also the decision making needs to be changed they need to increase
their competition and stop buying the share of start ups. It is believed that strong competition
ensures effective business for the company. If they want to build trust in the market then they
have to make changes in the form of providing guidelines at the time of sale so and make sure
that they are making it to the guardians of the children so that strategies such as loot boxes are
considered as a serious and legit measure and through this company can increase more of the
methods such as these. It is necessary that they provide more security to the page of payment so
that no children can break the protocol of credit card and make the payment. The security can be
increased to any form such as facial recognition, or fingerprint scanner so that there is no chance
that their kids can avail these offers. This way they will be able to portray this strategy just for
entertainment purpose and not made for scamming and stealing the money of people.
Part 1- B Two Theories
Description of the theories-
These theories make sure that the standards and principles are analyzed so that they can
work in a well manner and assess the factors which are right and wrong. With this they will be
able to make sure that their character is determined and they can check how it matches up to the
level of rules made by the society. There are many theories which puts focus on the ethics and its
role in the environment so that they can deal with the nature (Nonet, Kassel and Meijs, 2016).
Apply the theories-
Deontology Theory-

This theory puts its focus on measures that calls for consequences and make sure that
they had to be faced with the choices that are made by people in their life. For applying this EA
Games has assessed that they will be responsible for the aspect of morality through which they
can fulfill their duty. For example if the loot boxes are a scam to steal the money of people then
the company needs to steal from rich and use it for those who are in need and underprivileged.
This way even if they are scamming people it won’t be considered as wrong. This is because
they are fulfilling the responsibility and complying with management. People are still not sure
that they have to take steps with these or not (Kolb, Fröhlich and Schmidpeter, 2017).
Virtue Theory-
This form of theory works on a different approach and it states that it works on the basis
of characteristics of individuals but not the actions that are ready for it. It is the reputation of the
business which is evaluated and the purpose they serve is assessed. For example if EA had been
able to earn goodwill in the environment of business and sustain it for long and even after that
they make one unethical mistake then people will make their judgment on the past behavior.
Critique
Deontology Theory-
Pros
 Value is given to every matter which is in working in the company so that they can assess
the importance of it.
 The company tends to take responsibility of personal issues when this theory is applied
(Parkes, Buono and Howaidy, 2017).
Cons-
 The board of ethics states that every decision or step taken by the company is right
because they have to keep up with moral obligations.
Virtue Theory-
Pros-

 It is mandatory to have reasoning of moral with its path.
 It does not rely on other and work on its own (Laasch, 2018).
Cons
 Not helpful where the company has to look for the motive.
 Company won’t have any kind of support when they have to find the purpose of moral.
Recommendations-
In order to apply these factors they need to make sure that they work on the basis of the
protocol which is in an ethical manner. Also it requires major changes need to be made in the
culture of the company. If they want to work fairly then it is sure that by applying these theories
in their culture they will be able to do so. This way they will never hurt the feelings of the
customers. It is slightly difficult for EA as they have to put a lot of efforts in order to change
their image because no one in the market believes that they will work fairly and ethically.
Part 2
Reflective Essay
If EA Games wants to make sure that they want to make changes and improve their
goodwill into the market then they need to comply with the aspects of ethical leadership. They
will begin to evaluate the needs and wants of people and provide their services on the basis of
that so that there are no complaints and errors in work. If they want to comply with the basis of
ethical leadership then it is necessary that they plan on the basis of that so that they can work
effectively and be a role model to the employees. They will be judged on the basis of their
behavior instead of things they say in their speech. In order to be ethical they need to work by
cooperative with everyone and thinking of others first and most importantly be honest with
others. This is done so that employees also works in the same manner and make the whole
organization ethical. This happens when leaders are able to inspire the employees and then they
can make it learn that how to treat everyone with respect so that everyone works on the basis of
it and not on the basis of designation they have in the company. For those business that started
their operations with this leadership it will be easy for them to make any changes or carry out the

same. But for those who have to change their structure completely in order to work with this
form of leadership it will be difficult for them. According to me it makes a difference to work
ethically and fairly in the market even if there are a small group of employees who works with
this approach they will be able to retain lot of customers for the business which will help them to
maintain their image and achieve growth. If the company is totally corrupted and work with only
one vision that is to look after the monetary aspects then they won’t care about the sentiments of
other people. On the basis of studies I have done and on the basis of my understanding it is
necessary if they need to make changes strictly so that any unethical practice can be removed.
Even my post in the company is ethical manager and that is why I suggest that if they want to
sustain their future and serve in the market then it is necessary to comply with the statements
made above. For those companies such as EA Games who works unethically they have to keep
in mind that it is important that they maintain the level of integrity. If they do not put focus on
these issues then chances are that they may have to face the risk of increasing liability which
may take place in the legal aspects of the business environment.
CONCLUSION
From the above studies it has been assessed that it is important for EA Games to work with
ethical practices in the market so that they can have respect like other companies in the market as
the future is uncertain it is really necessary that the company takes these aspects seriously. Other
than this it is necessary that they focus on to the matter of loot boxes so that they can keep the
parents calm and not take actions against the company as all the stakeholders of the company are
not satisfied with this measure and they are scared of it which is why it is also creating
difficulties for the company to raise funds from the sources they used to. This is affecting the
sales of the business and making their future uncertain which is why they need to make changes
in their culture and work ethically.

REFERENCES
Books and Journal
Laasch, O., 2018. Just old wine in new bottles? Conceptual shifts in the emerging field of
responsible management. Centre for Responsible Management Education Working
Papers, 4(1).
Nonet, G., Kassel, K. and Meijs, L., 2016. Understanding responsible management: Emerging
themes and variations from European business school programs. Journal of Business
Ethics, 139(4), pp.717-736.
Pirson, M., 2020. A humanistic narrative for responsible management learning: An ontological
perspective. Journal of Business Ethics, pp.1-19.
Moosmayer, D.C., and et.al., 2019. Leaving the road to Abilene: A pragmatic approach to
addressing the normative paradox of responsible management education. Journal of
Business Ethics, 157(4), pp.913-932.

Parkes, C., Buono, A.F. and Howaidy, G., 2017. The principles for responsible management
education (PRME). the first decade–what has been achieved? The next decade–responsible
management education’s challenge for the sustainable development goals (SDGs). The
international journal of management education, 15(2), pp.61-65.
Haski-Leventhal, D., Pournader, M. and McKinnon, A., 2017. The role of gender and age in
business students’ values, CSR attitudes, and responsible management education: Learnings
from the PRME international survey. Journal of Business Ethics, 146(1), pp.219-239.
Cullen, J.G., 2020. Varieties of responsible management learning: A review, typology and
research agenda. Journal of Business Ethics, 162(4), pp.759-773.
Kolb, M., Fröhlich, L. and Schmidpeter, R., 2017. Implementing sustainability as the new
normal: Responsible management education–From a private business school's
perspective. The International Journal of Management Education, 15(2), pp.280-292.
Storey, M., Killian, S. and O'Regan, P., 2017. Responsible management education: Mapping the
field in the context of the SDGs. The International Journal of Management
Education, 15(2), pp.93-103.
Borges, J.C., and et.al., 2017. Hidden curriculum in student organizations: Learning, practice,
socialization and responsible management in a business school. The International Journal of
Management Education, 15(2), pp.153-161.
Laasch, O. and Gherardi, S., 2019. Delineating and reconnecting responsible management,
learning, and education (RMLE): A research agenda through a social practices lens.
In Academy of Management Annual Meeting.
Fougère, M., Solitander, N. and Maheshwari, S., 2020. Achieving responsible management
learning through enriched reciprocal learning: Service-learning projects and the role of
boundary spanners. Journal of Business Ethics, 162(4), pp.795-812.