A Detailed Ethical and CSR Analysis of Crown Casino's Operations

This report provides a comprehensive analysis of the ethical and corporate social responsibility (CSR) failures of Crown Casino, based on news reports detailing allegations of money laundering, organized crime links, and unethical business practices. The report examines the casino's actions thr...Read More

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Summary of the article -
As per the news published by abc.net , the Crown Casino has been facing some of the inquiries
related to politics hitting sharp on the hare price and the probes. The article has been written by
Nassim Khadem highlighting the current allegation over the casino regarding the organised
crimes. The article highlighted the messy web of allegations, the governmental inquiries and the
denials. The sting investigation by Nine’s The Sydney Morning Herald, there has been more than
10 thousand of leaked internal Crown documents that alleged that the casino was actually not
doing its due diligence for ensuring that there lies no sort of links among the organised crimes
and the junket operators (ABC News 2019). The business reporter in his article furthermore
alleged that the casino turned to a blind eye towards the crime of money laundering by exploiting
the weakness of the visa system of Australia. The Crown Casino has been alleged that the junket
operators lured the gambling whales from mainland china where the actions of gambling is
banned.
Though the casino denied all of the allegation presenting a comprehensive anti-laundering and
counter terrorism financing program, the government has taken this thing very seriously. On the
context of the significant investigating powers, as per the statements by Attorney-General
Christian Porter, there lies sufficient concerns that has been raised to warrant furthermore
investigations (Annas 2015). The entire chain of Crown has been operating in Victoria and perth
with some of their further casino in the pipeline for Sydney. The article explains the integrity
investigations that is being carried out by the commission of Australia for the integrity of law
enforcement. The case has taken a different level regarding the involvement of the politicians
and the ministers and the article explains how the governmental commission initiates towards a

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multiagency investigation and also the federal anti corruption agency that needs to be
established.
It has not been the first time that the casino has grabbed the limelight. This is one of the latest
round of the serious allegations against the Crown Casino. The range of the allegations against
the casino includes tampering of the poker machines, removal of the betting options from the
poker machine as the scheme of the blanking buttons and hiding of buttons on a number of
gaming machines so that only maximum and minimum options can be available. As per the
suspects of the whistle-blowers, these were some of the strategies that has been used by the
Casino to increase the punter losses by forcing them towards making them higher bets and try
their lucks (Hicks and Graycar 2019). The article furthermore highlighted the fact how the range
of the allegations tabled the blind eye towards drug use and the family violence. Also allegations
have been received on punters soiling themselves while betting while the casino provided them
with some of the clean and clear clothes for making them continue the gambling. The crown
casino has furthermore been suspected and put allegations on the ground towards instructing
their staff members towards the use of several of their ID cards while processing transactions
that are over $10,000 for avoiding their report to AUSTRAC.
Throughout the article, the business reporter highlighted the allegations and the reports of
suspection that has been put forward to the government regarding the crime and the illegal
practise of money laundering in Crown Casino. The wide burst of the crime that has been
practising within the casino in the news and the platform of social media has affected the market
shares of the Casino. As per the reports there has been 7.7per cent drop in the share prices
(Constantinescu et al. 2018). There could furthermore be a number of mechanisms that will be
used for the investigation of Crown Casino and some of the other casinos in Australia. The

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article concludes with the notion of the probable upcoming measures that the government and the
investigating department of crime are planning to implement over the Crown Casino in the
broader aim for disrupting and deter the criminal groups by the coaction of the intelligence and
the evidences regarding the financed motivated crime.
The following theoretical perspectives have been chosen for the analysis and the explanation of
the article. These are the theory of Kant, the utilitarianism, the environmental ethics, the virtue
ethics and the context of justice.
The theory of Kant can be described as the vivid example of the deontological moral theory
which explains the wrongness and the rightness of the actions that is not dependable over the
consequences but over the fulfilling of the duty (Rolston 2012). According to the theory of Kant,
there has been a supreme principle of morality that is referred as the categorical imperative.
The utilitarianism theory describes that the actions are particularly right within the proportion
since they tend towards the promotion of happiness and the actions are wrong when they tend to
the production of the reverse of happiness.
Environmental ethics projects the maintenance and the provision of the moral grounds for the
social policies that is aimed for the protection of the environment of earth and remedying of the
degradation of the environment.
Virtue ethics on the other hand emphasizes over the role of the virtue and the character in the
moral philosophy for bringing out the good consequences.
The context of justice lies on the righteousness, the moral rightness and the equitableness or the
quality of being right and justified.

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Relating to the ethical theory
Corporate social responsibility or CSR has become one of the most significant aspects of any
business. Four CSR types are present in any business that includes environmental sustainability
initiatives, direct philanthropic giving, ethical business practices and economic responsibility
(Segon and Booth 2015). The company in question has failed in maintaining its CSR in terms of
ethical business practice and economic responsibility.
As understood from the summary of the news article, it talks about the alleged
involvement of Crown Casino in money laundering and organized crime. From the Kantian
ethics perspective, the actions of the Crown are unethical because it has been engaged in
activities that are against the government and the society in the larger context. According to the
ethical theory presented by Kant, the actions of the individual are more important than the
consequences even if the consequences yield larger happiness. In case of Crown Casino, the
action of exploiting the weaknesses in the system to assist Chinese gamblers in earning illicit
money through gambling is unethical from the Kantian perspective (Watson 2018). The reason is
that the actions of the junket operators and company were immoral as it involved theft and
cheating although in a subtle way. Crown in its defense stated that the junket operators were
independent operators who invited the Chinese high rollers without the knowledge of the casino.
However, from the utilitarian ethical perspective, the effects of an action or actions define the
morality of the action. The case of Crown Casino from this perspective reveals that the actions of
the junket operators and the Crown Casino were ethical because it aimed at the larger happiness.
Here, the actions of the Casino could be seen has proving beneficial for the junket operators, the
employees of the Casino as well as for the Chinese gamblers.

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As mentioned in the previous section, the company has failed to maintain its CSR in terms of
ethical business practices and economic responsibility. While ethical business practice involves
individual actions, economic responsibility concerns the entire community or society as per the
ethical theories. In terms of environmental ethics, it could be stated that the company has not
been involved in type of unethical behavior because it did not disturb the environment in any
way. When looked from the perspective of virtue ethics, which lays emphasis on the character or
virtue of the doer, the actions of the Crown Casino are unethical (Mill 2016). This because as per
the news article, the Casino has been involved in numerous cases in the past where it has been
found indulged in unethical practices. it was alleged with rigging the poker machines in 2018 by
forcing its staff to do away with the betting options from the poker machines. Furthermore, in the
year 2017, it was found that certain buttons on its gaming machines were hidden with only
minimum and maximum buttons available. This was done to earn more profit by making the
punters bet the maximum. These incidences reveal that the Crown Casino does not possess a
good character, which is a mandatory requirement for virtue ethics.

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References
ABC News. (2019). The case against Crown: What is the casino empire accused of doing?.
[online] Available at: https://www.abc.net.au/news/2019-08-02/crown-casino-saga-explained/
11375114 [Accessed 7 Aug. 2019].
Annas, J., 2015. Applying virtue to ethics. Journal of Applied Philosophy, 32(1), pp.1-14.
Constantinescu, M.I.H.A.E.L.A. and Kaptein, M.U.E.L., 2018. Virtue Ethics and CSR: the two
sides of Sustainable Organizational Performance. Wermayer, W., Looser, S. & Del Baldo, M.
Intrinsic CSR in Competitive Companies: The Categorical Imperative of Doing Well (1-17).
London: Palgrave.
Hicks, D.C. and Graycar, A., 2019. Money laundering. Cambridge University Press.
Mill, J.S., 2016. Utilitarianism. In Seven masterpieces of philosophy (pp. 337-383). Routledge.
Rolston, H., 2012. Environmental ethics. Temple University Press.
Segon, M. and Booth, C., 2015. Virtue: The missing ethics element in emotional
intelligence. Journal of Business Ethics, 128(4), pp.789-802.
Watson, N., 2018. The poker machine case: Guy v Crown Melbourne limited (No. 2)[2018] FCA
36. Precedent (Sydney, NSW), (146), p.33.