Business Ethics and Responsible Management: EA Games Report

This report delves into the business ethics surrounding EA Games, specifically examining the controversial practice of loot boxes within their games. The report begins by outlining the ethical issues arising from loot boxes, including their potential to encourage gambling behavior and addiction, particularly among young players. It then explores the role of business ethics in society and identifies key stakeholders, such as gamers, developers, and the government, and analyzes both ethical and unethical business practices through examples like Starbucks and Tesco. Furthermore, the report provides recommendations for EA Games to improve its ethical standing. The second part of the report then analyzes the case study through the lens of two ethical theories: Utilitarianism and Deontology, discussing their application, benefits, and limitations. The report concludes with a reflective essay component.

Business Ethics and
Responsible Management
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Contents
INTRODUCTION...........................................................................................................................4
PART 1 (Report)..............................................................................................................................4
1. Ethical issues............................................................................................................................4
2. Role of business ethics within society.....................................................................................5
3. Stakeholders.............................................................................................................................5
4. Good as well as bad ethics.......................................................................................................6
5. Recommendations....................................................................................................................6
REFERENCES................................................................................................................................8
PART 1-B (Theories).......................................................................................................................9
1. Description of Ethical Theories...............................................................................................9
2. Application of Ethical Theories...............................................................................................9
3. Critical Analysis of Ethical Theories.....................................................................................10
4. Recommendations..................................................................................................................11
REFERENCES..............................................................................................................................12
PART 2 (Reflective Essay)............................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
.......................................................................................................................................................14
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INTRODUCTION
Business ethics refers to the type of applied and professional ethics, which examines each
and every ethical principles as well as moral which as a result can develop some problems within
the business surroundings. In addition to this, it has also been said that business ethics is an
essential factor which needs to be applicable in every business aspects (Ferrell and et. al., 2019).
The current report includes a case study of EA Games: Fifa, Loot boxes and whales which is the
base of current project. In this report, there are mainly two sections where in part one, discussion
about role of business ethics within society and good as well as bad ethics, along with
significance of business ethics are going to be discussed. Whereas, in relation to part second, two
subsections are there in which two ethical theories are going to be explained and on the other
hand, section two includes reflective essay.
PART 1 (Report)
1. Ethical issues
Technological progression as well as combination of latest technological invention like
augmented reality and virtual reality leads to have huge market growth within gaming sector
from past few years. It has been analysed that most of the latest games are developed by a
business entity Electronic Arts (EA) which is settled on freemium-model. According to this, any
of a user can easily get free access towards the game. Apart from this, there are various things for
which users need to purchase the games which as a result help the company in order to generate
revenue. In the current duration, a game has been launched with the concept of loot boxes which
is gaining huge criticism as it includes unethical practice which motivates a player in order to
form in-game purchases which as a result is not justifiable in most of the cases. As per the
opinion of Vice President of Electronic Arts, the whole idea of loot boxes is quite effective as
well as ethical (EA Games: Loot boxes aren’t gambling, they’re just like a Kinder Egg, 2019). it
has also been identified that the concept of Loot boxes provoke the behaviour of addiction within
children and gambling attitude of individuals towards playing all the games which as a result
help business entities in order to generate more profit margin.
In addition to this, it is said that large number of players spend lots of money in order
purchase loot boxes who usually says that they are not happy with their existence and they are
forced due to their addiction to purchase them. This as a result shows unethical issues on
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different grounds. First of all they business entity is developing such games on a regular basis
which generate addiction among youngsters whereas second unethical behaviour encourages
addiction of gambling among youth. These are the unethical behaviour of EA which as a result
reduces the positive image of business entity at the competitive marketplace.
2. Role of business ethics within society
Each and every company needs to follow every business ethics policies and procedure in
an effective manner which assist in promoting ethical and social goods within the society in an
effective manner (Sroka and Szántó, 2018). The top management team of EA, needs to
reconsider the approaches used by them in advance so that they will be able to generate more and
more revenues and maintain their position at the competitive marketplace. According to the
present business model, it has been identified that a negative influence is developed on the value
system as well as on the whole society. It needs to be understood by the higher authorities of the
company that the factors of loot boxes along with in-game purchases highly provokes the
addiction of gambling within a person which mainly gain success at the market. Because of the
ineffective and unethical business practices managers of EA, players need to reduce their usage
which includes negative results like poor mental health, depression, lack of eye sight and
anxiety, social isolation and many more. All these factors leads towards unethical practices
which affect the society in a negative manner.
3. Stakeholders
Gamers:
as per the given case study, it is said that the gamers are one of the most effective
stakeholder which have the capability to highly affect all business practices of EA. It has been
said that developing all the game in an addictive as well as encouraging manner leads towards
serious mental issues on the gamers. Furthermore, addictive gaming creates negative impact on
the mental health, depression, anxiety as well as loss of sleep among children (Harris and et. al.,
2019).
Developers:
Another most effective stakeholder are the developers as they create addictive gaming
models which highly influences the overall business functionality in an effective manner. They
develop games for their personal and professional benefits which as a result highly influences the
values as well as beliefs of individual and the whole society.
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Government:
Habit-forming gaming as well as loot boxes match the harmful effects which as a result
highly influences gambling addiction and leads towards some sort of serious challenges within
the society. Government is the biggest stakeholder in this context where they can formulate
strategies in order to reduce the usage of such gaming and improves the overall society in an
effective manner.
4. Good as well as bad ethics
One of the most effective example of ethical business entity is Starbucks where
considering all the business ethics help in maintaining sustainable performance. This is the
organisation which remain committed towards their ethics and develop positive relationship with
their customers by providing high quality services to them by practising all the ethical strategies.
With the help of effective ethical practices, Starbucks gain positive goodwill and response from
their customers (The world’s most ethical companies, 2017).
on the other hand, if talking about unethical practices, TESCO is the organisation which
faces allegations in 2016, with their suppliers which as a result affect their image at the
marketplace in a negative manner. In addition to this, TESCO stay unethical in order to delay the
process of payment with their suppliers and the objective behind this is to enhance the financial
position of the company (TESCO knowingly delayed payments to suppliers, 2016). After this,
top management team of the business entity accept their mistakes and decided to compensate
their suppliers. Therefore, unethical business strategies highly affects the overall image as well
as reputation of an organisation in an adverse way.
5. Recommendations
Some of the most effective recommendations which are given to the higher authorities of
EA are going to be mentioned below which help in improving the ethical position of a business
entity:
 The higher authorities of the business entity needs to divert their strategies towards other
modes which help them in maintaining their ethical position at the marketplace along
with the generation of more profit margin.
 Apart from this, it is the most essential activity of higher authorities of a business entity
to develop effective code of conduct as well as ethical standards which aid them in order
to perform all the functions in an ethical manner.
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REFERENCES
Books and Journals
Ferrell, O.C., and et. al., 2019. Business ethics, corporate social responsibility, and brand
attitudes: An exploratory study. Journal of Business Research, 95, pp.491-501.
Sroka, W. and Szántó, R., 2018. Corporate social responsibility and business ethics in
controversial sectors: Analysis of research results. Journal of Entrepreneurship,
Management and Innovation, 14(3), pp.111-126.
Harris, A.L., and et. al., 2019. Incorporating ethics and social responsibility in IS education.
Journal of Information Systems Education, 22(3), p.1.
Online
EA Games: Loot boxes aren’t gambling, they’re just like a Kinder Egg. 2019. [Online].
Available thru<https://www.bbc.com/news/newsbeat-48701962>
TESCO knowingly delayed payments to suppliers. 2016. [Online]. Available
thru<https://www.bbc.com/news/business-35408064>
The world’s most ethical companies. 2017. [Online]. Available
thru<https://www.forbes.com/sites/jeffkauflin/2017/03/14/the-worlds-most-ethical-
companies-2017/#739251fb7bc3>
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PART 1-B (Theories)
1. Description of Ethical Theories
Theory of Utilitarianism:
Utilitarianism theory of ethics is one of the most effective theory of normative ethics
which have the main aim of discovering of all the morally right as well as wrong choices which
is based on the result which are in sort of consequentialism. This theory is based on ethical
behaviour as well as decision-making process which assist all the activities that produces
outcome in the happiness and is against of all those actions which develops sorrow (Dawson,
2018). As per this theory, if an act conducted by a person create positive results for large number
of persons within the society is considered as morally right activity. Therefore such activities are
considered as justifiable acts.
Theory of Deontology:
In comparison with consequential explanation of business ethics, it has been said that as
per the theory of deontology, all the actions intrinsically right as well as wrong are based on
ample number of elements apart from the result of these actions. It has been analysed that all the
actions are identified as good and bad as per the number of norms as well as regulations. For
instance, in reference to the business organisation, any action which comes under scope of
obligation and duty of a manager is usually considered as morally good apart from its outcome
and impact on the welfare of society.
2. Application of Ethical Theories
In relation to the present case study which is based on EA Games, it has been said that the
theory of utilitarianism might effectively be implemented in order to examine the individual
within the society who can provide positive results from actions. It is said that the thought
process of loot boxes help in generating revenue for business entity which as a result assist in
order to maximise the investment of shareholders investment (Bull and Ridley-Duff, 2019).
Apart from this, it has also been said that the users face ample number of problems like social
distractions, addiction, mental health issues, emotional loss and many more. Along with this,
government of the nation also faces huge number of challenges related to the gaming addiction.
Therefore, implementation of the theory of utilitarianism help in gaining ethical benefits within
the business entity.
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On the basis of deontology theory, it is said that the duties as well as obligation needs to be
identified apart from the results. As per the given case study, higher authorities of EA Games
have this moral duty & obligation which help in protecting stakeholders interest along with this
contribute for the development of the society. Herein, it has been identified that conflicting
nature of the actions of the business needs to identify all the ethical issues by top management
team of EA Games (Berns and et. al., 2020).
3. Critical Analysis of Ethical Theories
Theory of Utilitarianism:
Benefits:
This is the theory which aims in order to foster positive development within the society
as well as it is one of the easiest theory which can be implemented in an effective manner. This is
the theory which is widely accepted by the companies. This is one of the most effective theory
used by business entities for the growth of business organisation. Furthermore, this is the theory
which mainly emphasis on the adoption of democratic approach for the decision-making process.
Limitations:
Utilitarianism is the theory which often develop unrealistic view for the whole society . It
has been identified that unpredictability as well as uncertainty of the future is considered as one
of the weakness of the theory which emphasises in order to advocate actions which return
positive results within near future.
Theory of Deontology:
Benefits:
This the theory which develops very strong fundamental for the human attitude and
conduct positive results with the help of practising duties as per the series of different rules
without any sort of anticipation of the positive outcomes. It has also been said that it help in
emphasising on the value along with the importance of an individual person (Weber and
Wasieleski, 2018). It has also been identified that it assist in order to enhance individualized
responsibility of a person among the society which help in engaging a person.
Limitations:
All the actions categorized under this theory is that the result developed in by this is
created by ignoring maximum welfare of whole society in different situations. This approach is
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subjective in nature and is classified their actions in morally good and bad results without their
presence of important code of conduct.
4. Recommendations
 The top management team of EA Games need to consider the influence of their decision
making as well as choices associated with the improvement of habit-forming gaming
enterprise models which consist of negative effect on the mental health of children,
enhancement of emotional conflicts, isolation from family, loss of money, challenges by
government and many more (James, 2019). Therefore, company need to eliminate
concept of the loot boxes games which leads towards generation of revenue according to
utilitarianism theory.
 On the other hand, in reference to the resolution of all the issues related to unethical
practices, application of deontology theory assist management team of EA Games will
consider all their moral duties as per the rules of ethical code of conduct. Therefore,
business entity need to develop strong work ethics practices which assist in taking every
decisions related to the company. At the time of this, development of all the work ethic
policies and standards help the society in an effective manner.
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REFERENCES
Books and Journals
Dawson, D., 2018. Organisational virtue, moral attentiveness, and the perceived role of ethics
and social responsibility in business: The case of UK HR practitioners. Journal of
Business Ethics, 148(4), pp.765-781.
Bull, M. and Ridley-Duff, R., 2019. Towards an appreciation of ethics in social enterprise
business models. Journal of Business Ethics, 159(3), pp.619-634.
Berns, J.P., and et. al., 2020. Dynamics of lending-based prosocial crowdfunding: Using a social
responsibility lens. Journal of Business Ethics, 161(1), pp.169-185.
Weber, J. and Wasieleski, D.M. eds., 2018. Corporate social responsibility. Emerald Group
Publishing.
James, W., 2019. Business Ethics.
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PART 2 (Reflective Essay)
Ethical leadership is defined as exhibiting morals and value in a management position or
its a way to lead the organisation with ethics or value. Ethical leaders are those leaders who
involves ethics in his decision-making process he uphold the the belief of the organisation. There
are some various qualities to be found in ethical leaders as they are always fair & impartial in
conducting practises. They maintain a healthy and positive environment to promote ethical
business conduct (Seele, 2018). An ethical leaders is the one who sets an example for others and
motivates other to follow his path. Every person has his own value or belief but an ethical leader
always make the the organisation's belief and value his priority. Unethical leader uses unethical
ways to make his employees work , uses certain forces to achieve targets and never gives the
credit to his employees. Unethical leader always sets a bad example and demotivate his team
member, and takes all the credits in front of the world. On the other hand ethical leader is the one
who gives all his effort to achieve his organisation target with his team member and support his
member to the maximum extent.
In my opinion an ethical leader is a boon for any organisation , unethical leader is bain on
the other side. It takes a constant effort and endeavours to be a ethical leader. By providing
ethical training and development positivity and awareness can be spread to raise the ethical
standard. To encourage ethical values strict policy of not bearing unethical behaviour should be
implemented and rewards should be given who sets a strong ethical conduct. Reward should be
given to encourage others to follow the path of ethic and punishment also to be served for
unethical behaviours (Toledano, 2020). with the assistance of providing effective ethical training
sessions to the staff members help them in order to gain opportunities in near future within
business organisation. This is one of the most crucial as well as step for the overall development
of systematic and strong work ethic among the workplace. One of the essential instrument for
preservation as well as promotion of all the ethical business practices is strict plan of action of
zero tolerance towards the unethical behaviour.
In addition to this, on the basis of overall personal experience gained by me it has been
observed that it is necessary to show strong commitment towards business ethics at workplace so
that the whole results for the organisation is favourable. It has also been observed by me that
because of lack of knowledge and awareness about ethics and its implementation within business
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might create negative impact on the overall growth of business entity. I believe that one of the
most effective measure in order to enhance ethical consideration within the business entity is that
it must allow team members and subordinates that they mus report towards the unethical
activities arise at the workplace without any sort of fear so that there must be development of
effective ethical strategies at workplace (Vazquez, 2018).
On the other hand, it has also been concluded that there must be effective ethical leadership
style at the business which assist in developing goodwill as well as reputation of the entity at the
competitive marketplace. I can also conclude that saving of ethics as well as promotion of
honesty & compliance at the organisation needs initiation and effective communication of all the
organisational ethics policies and standard with their employee so they can work in a systematic
manner.
CONCLUSION
According to the above stated report, it has been identified that every organisation need to
adopt ethical policies and regulations in an effective manner so that all the functions need to be
performed in systematic manner as well as in ethical way. Along with this, it has also been
concluded that there is an effective implementation of all the ethical theories at workplace in an
effective manner so that they can perform all the work in an effective manner. There are mainly
two types of ethical theories which needs to be adopted by higher authorities of the company in a
appropriate manner so that they can develop positive outcome and create strong goodwill at
competitive marketplace. Furthermore, it has been identified that these are the models which
assist a business entity so that they can conduct all their functions in an ethical manner which
develop favourable results for the business entity.
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REFERENCES
Books and Journals
Seele, P., 2018. What makes a business ethicist? A reflection on the transition from applied
philosophy to critical thinking. Journal of Business Ethics, 150(3), pp.647-656.
Toledano, N., 2020. Promoting ethical reflection in the teaching of social entrepreneurship: A
proposal using religious parables. Journal of Business Ethics, 164(1), pp.115-132.
Vazquez, P., 2018. Family business ethics: At the crossroads of business ethics and family
business. Journal of Business Ethics, 150(3), pp.691-709.
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