Business Ethics and Responsible Management Report: EA Games Analysis

This report examines the ethical issues surrounding EA Games' FIFA franchise, specifically focusing on loot boxes and their impact on stakeholders. The analysis delves into the nature of the ethical issues, including the 'freemium' model and the lack of transparency in loot box content, and the role of business in society. It identifies key stakeholders like employees, government, customers, and investors, and discusses how ethical choices have benefited other businesses. The report provides advice and recommendations for EA Games, emphasizing ethical codes and transparent communication. Furthermore, it applies ethical theories, including Utilitarianism and ethical egoism, to the case study, evaluating the ethical implications of EA Games' practices. The report also explores the qualities of ethical leadership and the creation of an ethical organization, concluding with a summary of the findings and recommendations.

Business Ethics and
Responsible Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
a) Writing the Report..................................................................................................................3
Nature of ethical issue and role of business in society...........................................................3
Identification of key stakeholders and influence on them along with examples of the way
ethical choices have benefited other businesses.....................................................................5
Advice and recommendations for company emerging from analysis....................................6
b) Applying two ethical theories to the case study.....................................................................6
PART 2............................................................................................................................................7
The qualities recognised for ethical leadership and the creation of an ethical organisation.......7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business ethics is defined as the application of suitable business practices and policies
with regards to some controversial subjects. Following business ethics helps an organisation in
maintaining harmonious relation with society and other institutions. Honesty, loyalty, integrity,
fairness, respect for others, law abiding etc. are some ethical principles that requires to be follow
by all the organisations in order to run business ethically and successfully (Boatright, 2013).
This report is based on the case study of EA Games: Fifa, Loot boxes and whales. It is a online
gaming business that provides free access to online games to people and direct them towards
purchases of it. The report intents to determine the value of business ethics within firm. This
report consist of two parts. The first part covers the nature of ethical issue presented in case study
and the role play by business in society. Apart from this, the analysis of issue, determination of
key stakeholders and the influence on them along with the examples of other businesses are
included. Moreover, recommendations are given for the company based on the analysis of issues
and ethical theories are applied to the case study. Second part of the report covers the qualities of
ethical leadership and qualities require for development of ethical organisation. At last, a brief
conclusion based on entire report is provided in project.
PART 1
a) Writing the Report
Nature of ethical issue and role of business in society
In this report, the selected case study for analysis is EA Games: Fifa, Loot boxes and
whales. This project intents to determine the ethical issues as well as the hidden dimensions that
influence the activities of business entity adversely which creates negative image of firm in the
eyes of customers regarding the products and services offered by it. The gaming business is
complex in nature (Burchell, Kennedy and Murray, 2015). The ‘freemium’ on-line games are
develop on such a model that allow access to games to players for free, but then direct them
towards purchase of game to enhance their gaming experience and accruing revenue through
advertising. In society, the image of gaming business is negative as it sometimes make the
people addicted towards it due to which they forget their social life.

Loot boxes is one among the online games aspect which was highlighted recently. In this,
in game purchasers are there, where customers doesn't have any knowledge regarding the content
of box. This nature of game was argued by people of society as it is a kind of gambling. This
game is designed in such a way that buyer gets addicted to it and loose large amount of money.
Due to access of such kind of online games, people are left with empty bank account. This
adversely impacts the online gaming market and decline its image in society (Coldwell, Joosub
and Papageorgiou, 2012). Online game increase the aggressive behaviour of people, cause
emotional outbursts as well as declines inhibitions, which encourage the anti social behaviour of
people. The role of online gaming business in society is to provide people with such games that
are valuable to them. Instead of thinking about the own benefit, firm requires to think about the
society too. So, it is very necessary for the organisations operate in online gaming industry to be
socially responsible for over addictive utilization of their products in order to avoid intervention
of government. Firms requires to identify the issues and adopt appropriate measures to overcome
them.
In the provided case study, the two issues identified includes provide players with
‘freemium’ games that allow them access of game for free and direct them indirectly towards
game purchases and accruing revenue from advertising. The another issue includes providing
players with vague information where purchasers doesn't have any knowledge regarding the box
content. In both these identified issue, the ethical dimensions included are mentioned below:
In first issue, people indirectly directs towards purchasing games for free and firm
increases their revenue through advertising. This ‘freemium’ games increases the demand of
people to join the game and they are getting addicted towards it due to which they face financial
loss. In this case, the ethical dimension arise when firm provide players with the option to
purchase the game to play its further stages. This activity of firm is unethical in nature as it
doesn't provide any information initially to players, till their interest will not develop in the game
(Dyllick, 2015). Each organisation has the duty to provide customers with all the informations
regarding game. But, the unethical conduct of EA Games creates misunderstanding in the minds
of people as the information is not presented clearly to them, which ultimately resulted in
negative market image of online games.
Regarding the second issue, people doesn't have any knowledge about the content of box.
While playing games, they are getting the option to purchase it and improve their gaming

experience along with some unwanted benefits. The ethical dimension related to this issue is the
addiction of people towards them and the greed of getting something extra on purchase. This
resulted in loss of money and they become the victim of unethical activities of firm. So, the
unethical issues presented in the case study involves insider purchase by taking ‘freemium’ as a
base and providing people with the greedy option to excite their buying behaviour (Forray and
Leigh, 2012).
Identification of key stakeholders and influence on them along with examples of the way
ethical choices have benefited other businesses
In online gaming firm, the key stakeholders includes employees, government, customers
and investors. All these stakeholders have their own interest in operations and functions of
business. In the functioning of business, the stakeholders with high interest includes players and
employees which are impacted highly by the online gaming business. The players of game are
impacted due to their increased addiction towards game and false representation of informational
by gaming firm which leads the people towards financial loss. Besides this, the employees
working in gaming firm get impacted due to impose of fines by government due to unethical
operations of business and various legislations formulated by government that limits the work of
firm in market (Fougère, Solitander and Young, 2014). There are some examples of the
organisations that shows the way their ethical choices have benefited to them. The examples of
different organisations are mentioned below:
HBG Gaming is one of the organisation that operates in gaming industry implements
behavioural code and the code of ethics within firm to translate the values into behavioural
standards and principles which are require to abide by all the members associated with firm.
These codes of ethics are require to follow by employees along with all the external personnels
like suppliers and consultants. If anyone violates the codes, this leads to termination of any kind
of contractual relationship. Execution of codes of ethics enable organisation to administer safe
and healthy work environment to employees and respect individual dignity which improves its
image in society (CODE OF ETHICS, 2013).
The another example Tata group that involve in practices which are socially responsible.
The firm adhere ethical values which provides equal benefits to each individual whether it
includes employees or the people of society. The different socially responsible practices of

society includes vidyadhanam for education, aarogya for health, seva for volnteering etc. (TATA
CSR, 2019).
Advice and recommendations for company emerging from analysis
As per the above analysis, it is recommended to company that it should emphasize more
on adopting such approaches that will benefit the individuals within organisation as well as
society. Organisation should implement some code of ethics that helps in ensuring ethical
working within firm. Apart from this, strict actions should be taken against the people who
violate the code of ethics. It is also advised to company that it involve employees in the process
of decision making and listen to their views so that good practices can be followed within
business entity (Haski-Leventhal, Pournader and McKinnon, 2017). Moreover, it should
communicate all the information clearly and transparently regarding the game to players, so that
they will not misguided and be the victim of any misconduct. All this will help in becoming
more socially responsible and improving the image of company in society.
b) Applying two ethical theories to the case study
There are some ethical theories which are applied by organisations in order to ensure
ethical behaviour and working within firm. In context of the provided case study of EA Games,
the two ethical theories that can be applied includes Utilitarianism theory and ethical egoism.
Detailed description and application of these theories in context of case study are mentioned
below:
The Utilitarianism Theory:
Utilitarianism is defined as the ethical theory that places the focus of all the right and
wrong on the consequences of selecting one policy or action over another. There is a principle on
which this theory is based, i.e., the actions are wrong in proportion as they tend to develop
reverse of happiness and right as they have the ability to promote happiness. Utilitarianism has
been stated as a doctrine that the thing to do which is morally right is whatever produces the
biggest good for greatest number (Hibbert and Cunliffe, 2015). The main characteristics of this
theory includes Universalism according to which morality is universal, i.e., the similar standards
are applicable to all situations and people. The another characteristic of this theory is
Consequentialism which holds that what matters, virtuously speaking, are the results of actions.
Welfarism is the another characteristics of Utilitarianism that holds that good results are those

which maximise the welfare of people. Aggregation which says that its conception of particular
good allow them to sum up into sole measure of entire good. And the last characteristic of
Utilitarianism theory is Maximization according to which whatever is great, it is good to have as
much of that as possible (Hilliard, 2013).
So, the theory best defines as ethical philosophy according to which morality of actions is
solely proportional to the way their consequences effectively maximise utility, i.e., the welfare of
each individual, from perspective of those individuals. According to this theory, the outcome of
action is ethical, it it benefit maximum people. But, in case of EA Games, the unethical actions
of company impacts negatively on the people and the benefits are driven only by the
organisation. This shows that the actions performed by company are unethical in nature.
Ethical Egoism Theory:
Ethical egoism is defined as the normative ethical view that moral agency ought to act in
such a manner that benefits them or in their self-interest. No individual has the obligation to
advance anyone else's interest. As per the strong version of this theory, to promote an
individual's own good, is always moral and not to promote it, is never moral. In weak version,
although, to promote an individual's own good is always moral, it is not needfully never moral to
not (Laasch and Conaway, 2014). This means, there may be situations in which personal interest
avoidance might be a moral action. In context of EA Games, the model adopted by firm is ethical
as they get benefits from it and promote the business of online gaming company to large level.
So, it is necessary for the management of an organisation to ensure that the actions that
they are taken is morally good and delivers maximum benefits to large number of people.
PART 2
The qualities recognised for ethical leadership and the creation of an ethical organisation
An ethical leader is a leader who shows respect towards all the team members by
listening to them effectively, valuing their contributions and being generous when taken into
consideration opposing view points. They foster a sense of team spirit and community within the
firm. They think about long term results and take decisions by carefully considering the benefits
and drawbacks of it (Luetge and Jauernig, 2014). Leaders are distinct from managers as leaders
perform their roles towards development of effective culture within firm and developing
supportive behaviour among the team members. On the other hand, manages mainly emphasize

on integrating the functions of different departments with objectives of firm to accomplish
similar competence level. Apart from this, leaders emphasize on attaining organisational goals
along with individual goals, whereas, manager only emphasize towards accomplishment of firm's
goals (Ogunyemi, 2013).
Ethics as defined as those codes of conduct or moral principles that directs the behaviour
of a person or conduction of an act. This concept is about acceptance of such an act that is
morally correct and benefits maximum number of people. In an organisation, ethics plays a
crucial role in developing such a culture in which similar moral principles and values are
followed by people that helps in performing operations ethically. Following ethics enable an
individual to differentiate between what is right or wrong based on their values and moral
principles. Execution of ethical practices within an organisation provides it various benefits
including elimination of discrimination from workplace, development of positive work culture,
uniform workforce creation etc. Existence of all these aspects within an organisation provides it
with an opportunity to gain competitive edge over rivals in market (Quarshie, Salmi and
Leuschner, 2016).
So, for creation of an ethical organisation, it is very crucial for leader or manager to
conduct ethical practices within firm by implementing some codes of conduct and ethical
principles. It is necessary to ensure that all the individual follow specified ethics and policies
so that business activities and functioning can be run ethically. Concerning about own views and
opinions to run the operations of business leads to development of an unethical organisation.
This hinders the capabilities of employees to utilize their creativity and knowledge in performing
their roles and resultant to development of an unethical culture within firm where no values are
exist.
Ethical leadership, in simple words, means taking action according to the personal belief
and moral values in a day-to-day business life. Simply put, it means doing the right thing.
However, being ethical is not as easy as it seems to be. Every person doesn’t hold the same
moral values and personal beliefs. What might seem unethical to me might not be wrong for
someone else (Setó-Pamies and Papaoikonomou, 2016). Different people have different moral
values and opinions based on the cultural background, upbringing and many other factors. Thus,
for a leader to practice ethical leadership, it is extremely important that he has the right set of
personal values and beliefs. Demonstrating integrity and being self-aware are two of the most

important qualities of an ethical leader. He needs to be sensitive to the differing views of the
employees and handle any conflicts that may arise. Being courageous is also a quality that an
ethical leader is expected to possess. During the course of day-to-day business life, a leader is
required to take many decisions, some of which may not be very pleasing for everyone in the
organisation but exhibiting courage in those situations is very important. For creating an ethical
culture in the organisation, a leader must define the core values of the organisation.
Communicating these organisational values to every employee of the organisation is as important
as defining them (Wankel and Stachowicz-Stanusch, 2012).
Every person in the organisation should be aware of what’s ethically wrong considering
the values that the organisation holds. For some people, ethical behaviour might mean complying
to all the rules and regulations laid by the organisation but it is quite possible that even after
following all the rules and regulations, a person could make loads of money by adopting methods
that are in conflict with the organisational values. Thus, it becomes imperative for the leader to
make sure that the people in the organisation understand the difference between ethics and rules.
A leader needs to communicate well the importance of ethical behaviour time to time and keep
reinforcing the message behind it. It shouldn’t be a ‘one and done situation’. It is often said that
if you want someone to behave in a certain way, the best method is to exhibit the same
behaviour. An ethical leader should lead by example and display the same qualities and adopt the
exact same behaviour that he expects out of the employees in the organisation (Weiss, 2014).
CONCLUSION
As per the above mentioned report, it has been concluded that ethics are the principles
and moral values that guides the behaviour of a person. It is very necessary for an individual or
an organisation to follow ethics in order to get growth and success. Following of ethics and
principles in an organisation helps in ensuring ethical working within it. This supports in gaining
competitive edge in market and improving image of company in society. For every firm, it is
very necessary to be socially responsible and conduct practices in such a manner that benefits
maximum number of people. The online gaming organisations sometimes not provide gamers
with complete information due to which they loose lot of money. The unethical practices
conducted by gaming organisations by providing people with free games and other options keep
the gamers in dark and as a result, they become victim of it.

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Online

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