Ethical Issues & Responsible Management: Detailed Report & Analysis

This report delves into business ethics and responsible management, focusing on ethical issues within a business environment. It examines the case of EA Games and their loot box strategy, analyzing its impact on various stakeholders, including shareholders, employees, distributors, suppliers, and customers. The report discusses the role of business in society, highlighting both good and bad ethical practices, such as maintaining high standards and trust versus engaging in anti-competitive behavior and deception. It also explores ethical theories like deontology, assessing their advantages and disadvantages in the context of business decision-making. Recommendations are provided for EA Games to improve their ethical conduct and build stronger relationships with stakeholders, emphasizing the importance of ethical code of conduct and corporate social responsibility. Desklib provides access to this and many other solved assignments to help students study.

BUSINESS ETHICS AND
RESPONSIBLE MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................3
PART 1 A Report............................................................................................................................3
Part 1-B Two Theories.....................................................................................................................7
Part 2................................................................................................................................................8
CONCLUSION................................................................................................................................9
REFLECTION ON RESIT..............................................................................................................9
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. 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 (Ogunyemi, 2016).
PART 1 A Report
Ethical Issues
The strategy of Loot boxes were meant to be promotional which involved buying and in
return they would get autograph of the football players or match tickets to see the live match. But
people started to feel that they were getting scammed out of this scheme and this was created so
that they could make a fool out of them. The reason behind that is kids are influential and they
were taking the cards of their parents and without telling them they were using to get a gift. This
is why many parents accused EA of this as a stealing their money scheme. Most of the gamers
who played FIFA are teens and they have no source of income which is why they keep on taking
the money of their parents. This is why parents accused of the company to not being working
with ethical and fair measures. This is what forced them to raise their voice against the
management of the company. Parents want that company must have a lock for children so that
they cannot pay money without their authorization. On the other hand EA games has defined
their methods that it is just introduced for the purpose of fun and entertainment (Wasieleski and
Weber, 2019).
Five Stakeholders-
Shareholders-
The shareholders of the company have turned anti against them because they have been
getting a lot of complaints in the market for their strategy of loot boxes. This has increased the
difficulties for the company as now it is not easy for them to get funds from the market as
shareholders have sell their shares and other investors do not want to put their money into the
company (Sroka and Szántó, 2018). Loot boxes is a way of increasing profitability and because

of this many times shareholders do not focus upon its ethical issues and because of which their
decision making is impacted.
Employees-
Due to this reason employees of the company is not satisfied with the company and
outside of the company they are getting shammed. This is why they are looking for alternatives
of their jobs so that they do not have to go through this measure. They had to take the blame of
the things which they were not even responsible for that is now they want to work with that
company who follow ethical culture. Due to these scenario employees has lost their power of
decision making as their confidence has shaken up (Ferrell and et.al., 2019). EA games loot
boxes impact decision managing power of employees they fail to understand whether inclusion
of loot boxes is ethical as well as profitable or not.
Distributors-
Even the distributors of the company are not satisfied as because of this issue because the
sale of the games has been reduced. The reason behind that is parents are not buying the games
of EA for their kids because they feel that games offered by them are not safe for them. This is
why demand of the games made by them is low and distributors are maintaining either low
inventory or no stock of the games.
Suppliers-
Many of the suppliers are in the market that follows ethical code of conduct and the
issues that the company is facing is because of not working with ethics which is affecting the
relationship of suppliers. For that company is facing difficulties to make their products available
into the market. Suppliers do not focus upon factor that loot boxes should not be used by children
as it can influence then in a negative manner.
Customers-
The target audience of the company is basically teens who don’t have that much power
that they can buy the games on their own. But even they are not able to get positive response
from the target audience as they are strictly not allowed to buy the games. This is affecting the
business of the company (ZAREZANKOVA-POTEVSKA and POTEVSKA-KOLEVSKA,
2017). EA games loot boxes have drastic impact upon customers because they need to spend real
world money for in game purchases. it is a kind of ethical issue that can take underage children
towards gambling because there is only a thin line between loot boxes and gambling.

Role of business in society
Role of business is to form up their strategies so that they can offer people the things
which as per the trend of the market. This will help the business to retain their share in the
market and increase their earnings from it. This approach not only works in the gaming industry
but in all sectors businesses operate with it. Business plays a vital role in society. It helps in
influencing perspective and thinking of people in different ways. The image of EA in the market
is not good because of the practices they enable in order to increase their sale which is why they
are focusing on areas through which they can make changes such as contributing in the area of
corporate social responsibility. This will help them to build the trust with their potential
customers. if the company engage themselves in these activities then not only the customers even
the employees will remain loyal to them. In order to do that it is necessary that EA games
contribute for the betterment of society for which they have to invest a lot of money and other
than that they need to strategize their plan so that funds are invested into the right area so that
they can leave an impact in the eyes of the customer. Lott boxes introduction games by
companies like EA games can directly influence people in society in negative manner. It can
result in creation of gambling problem among children. Not only this, it can influence children
by developing a perception that any kind of unlimited benefits can be achieved by simply paying
an additional price due to which ethical standards of children can be impacted. EA games can
focus upon Corporate social responsibility for identifying ways in which they can operate and
manage their work in an ethical manner. CSR will also help EA games in identifying ways in
which they can bring changes within their business in order to increase positive impact of
business on society.
Shareholders of an organization like EA gamers only focus upon increasing profitability and
sales of their games and for this they focus upon involving loot boxes within their games. It has
been observed that shareholders of EA games focus majorly upon introducing different types of
loot boxes within games for unlimited benefits. Whereas it has been observed that stakeholders
like customers do not prefer buying EA games especially parents so that it does not have
negative influence upon children.
Examples of good and bad ethics-
Good ethics-
Standards/Professionalism-

There are companies that works on approach with high standards and that is why they do
not change their thought process even if its wrong to carry it out. The business is maintained by
them on a large scale. EA Games has to analyze the market before making a strategy as they are
already getting a lot of hatred from them. Other than this they have to maintain the relation and
respect the people involved the internal as well as external environment of the business (Pearson,
2017).
Trust-
In order to keep continuing their position it is necessary for any business to establish trust
in the market. EA did not have trust but because of the games they offered it was maintaining
their operations but now after the scheme of loot boxes they have not been getting acceptance
from the market which is incurring losses for the company (Tormo‐Carbó and et.al., 2019).
Bad ethics-
Buying other company-
Every company has a good side and a bad side which they do not realize because of their
high standards. This is relevant to the cases of EA and Ubisoft as they do things for their own
benefit and they do not realize what they are doing. Any company that tries to come up with
potential in the market EA or Ubisoft buy their shares so that their share is not reduced. This is
clearly not a sign of ethical behavior because they didn’t give them a chance to survive in the
market. Their focus is only on sustaining the forces of market.
Lies-
Many companies believe in lying to their prospective customers because they feel that
with this they can easily turn the audience to their side. The strategy of loot boxes sounds similar
to this as many people believed that it was a fraud by the company. If it was introduced in a
ethical manner then they won’t be facing these issues and customers of the company would still
have trust over them (Dierksmeier, 2019).
Recommendations-
Since the EA Games started their operations they have not been successful in making the
name of their company with good image and contacts with others. This is why any practice
enabled by them was not trusted. People prefer the games they make because of the quality and
content visuals they offer. Apart from this in the aspect of establishing their games they have
been successful some of them are FIFA or Need for Speed which comes on the top of their list as

they are the most wanted games offered by them. There are many areas in where the company
has gone wrong and it is necessary to change them in order to improve it. It is necessary that
management of the company implies ethical code of conduct in their culture. This way they will
be able to improvise their methods and strategies so that they are trusted in the market and can
make relationship with others and work for the benefit of others. It is important that they give a
chance to other companies into the market so that they can see what they are up to as this will
help them to introduce better offerings. In any case if they are not able to beat them then there is
always a better option of tying up so that they can come up with new games with new methods
together. They can use this method to improve their image in the market. They need to learn
from this mistake as they need to make changes in displaying their style of strategies and
schemes they introduce so that they can be positioned differently from the loot boxes. It is
necessary that company clears all the terms and conditions of the scheme at the time of
introduction so that at any case their reputation may not be affected.
Part 1-B Two Theories
Description of the theories-
This theory helps to assess the standards and protocols so that there are no errors in the
work and they can understand the difference between right and wrong. With this they will be
sure of assessing the qualities and characteristics so that they can assess the level of requirements
that are needed so that they can serve under the measures set by society. There are different
theories which put focus on ethics and its role in the environment so that they can cope up with
the aspects of nature (David, Mayes and Coppola, 2020).
Apply the theories-
Deontology Theory-
The focus of this theory is to assess the consequences that are made by people and their
choices. In order to apply this EA Games needs to be comply with the duties and moral
obligations so that they can work as per the expectancy. For instance if the strategy of loot boxes
are introduced and they are meant to be serve as a fraud for stealing the money then their must be
a rule that this strategy will be used only on rich people and distribute that money for the
betterment of society. The purpose of this strategy is to do the right thing the wrong way because

they feel they are helping others by fulfilling their responsibilities. This is why people are still
not aware that they have to take these steps or not.
Utilitarianism theory
It is one of the most commonly known ethical theory. This theory says that morality is to
make life better by increasing number of good things and reducing number of bad things.
Utilitarian think that morality is justifiable and true is its positive contribution to human beings.
This theory can be directly linked to ethical issue which is created because of loot boxes in
games. Most of the EA games consist of loot boxes in it. It is kind of a negative influence upon
children. Morally it is completely wrong to include loot boxes into games because it only
influences people especially children and many times can develop a path within children and
take them towards path of gambling. As per this theory it is important to focus upon reducing
inclusion of loot boxes in most of the EA games especially gales that are being played by
children and adolescents.
Critique-
Deontology Theory-
Pros-
 In order to take out the importance of it value is given to every topic.
 Responsibility is taken of those issues which are personal by the company when they are
looking to imply this theory in their culture.
Cons-
 It states every decision is right which is approved by the ethical board so that they can
serve with moral obligations.
Utilitarianism theory
Pros-
 It helps in focusing upon happiness as a society.
 It is an easy theory that can be used to understand difference between right and wrong.
Cons-
 It creates an unrealistic perspective for society (Bowie, 2017).
Recommendations-

It is not easy to carry these terminologies which are if they want to take effective use of it
they need to work with rules and regulations of the company. It will take time as lot of things and
processes will require change in the company. This will help them to make changes in the culture
and the customers will not mind it in any case.
Part 2
Reflective Essay
Ethical leaders are known to be fair, committed and honest in development of team sprit
within employees. Ethical leaders focus upon taking decisions based upon values. When a leader
focuses upon taking decision ethically, lead by example, encourage initiatives to enhance ethical
standards within organization. Not tolerating ethical violations within companies makes an
ethical leader. There are various kinds of ethical theories that can be used by ethical leaders to
carry out their roles and responsibilities in an ethical manner. Ethical managers are managers
who go beyond obeying policies and law. They focus upon being honest and fair so that work
within organization is completed in an ethical manner. It is one of the most important role and
responsibility of an ethical manager to focus upon managing high ethical standards within an
organization and make sure that ethical practices within organization is being maintained. They
focus upon working as a model for employees so that employees can understand what behaving
in an ethical way. It is important for ethical managers to focus upon implementing all ethical
standards and implement these standard in decision making as well because it can directly impact
moral of employees. I think as an ethical manager before forming employees to follow ethical
standards. I will myself focus upon bringing changes within my working style, behavior. I will
treat all the employees equally and will take decision only on the basis of analysis of what is
correct.
CONCLUSION
From the above studies it has been concluded that it is necessary that EA Games make
changes in their culture and follow their goals and vision with more ethical approach. This way
they will be able to earn more respect in the market from other key players. The most important
thing in this time for the company is to come up with solution for loot boxes as it is that factor
which is affecting their trust and relationship and reducing the sale of the business. They need to

come up with offers and remedies for their stakeholders and make efforts so that they are ready
to engage in the activities of business with the company.
REFLECTION ON RESIT
This resit has helped me to review my work once again. It has helped me in
understanding areas improvement was required to be brought. Feedback provided helped in in
gaining more clarity about the task and ways in which it was required to be addressed. Each
feedback point provided by tutor helped in understanding loopholes within my work. Feedback
provided by tutor helped me in understanding that main requirement of Part 1 ”A” was to
identify ways in which different stakeholders of EA games get impacted due to Loot boxes
ethical issue of EA games. Ways in which EA games can focus upon Corporate social
responsibility in order to enhance their role in society positively. Whereas initially I has simply
identified stakeholders of EA games and good and bad ethics. Focusing upon feedback points I
have tried to identify ways in which this loot box ethical issue has impacted various stakeholders
of EA games. I have also tried to focus upon identifying role of business in society and ways in
which EA games can focus upon their corporate social responsibility for reducing negative
impact of loot cases on society and enhance positive impact of business on society. For Part 1
“B” feedback of tutor helped me in identifying that simply identifying and explaining ethical
theories was not sufficient. So for addressing this feedback point I had tried to identify an
academic ethical theory and tried to explain this loot box ethical issues in a proper manner.
This resit also helped me in understanding what were the main mistakes that I had done
in Part 2. Main thing that was required to be written in Part was identifying what are the factors
that make ethical leaders and how as ethical manager I can make sure high ethical standards in
organization. But instead of addressing Part 2 and writing a reflection as an ethical manager, I
had simply written a reflective essay because of which requirements of Part were not fulfilled.
So, in order to fulfill main requirements, I had tried to focus upon identifying factors that make
an ethical leader. I have also tried to identify ways in which ethical managers can ensure that
ethical standards within organization are high. This resit has helped in identifying some of the
main improvement areas upon which I need to focus upon that are: I need to focus upon reading
brief in a very clear manner so that before starting an assignment or a project in future I can
identify main requirements of every task and understand what are the factors upon which I need

to focus upon. In future for future projects I will focus upon enhancing my reading and research
skills. Enhancement of reading skills will help me in understanding ways in which an assignment
or project is required to be completed, what are main requirements of the project. I will also try
to enhance my research skills so that I can understand and evaluate sources from where I can get
data for addressing the task in an appropriate manner.

REFERENCES
Books and Journal
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Ethics. Humanistic Management Journal, pp.1-16.
Dierksmeier, C., 2019. From Jensen to Jensen: Mechanistic Management Education or
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Ferrell, O.C., and et.al., 2019. Business ethics, corporate social responsibility, and brand
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Mena, S. and Rintamäki, J., 2020. Managing the past responsibly: a collective memory
perspective on responsibility, sustainability and ethics. In Research Handbook of
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Ogunyemi, K., 2016. Teaching Ethics Across the Management Curriculum, Volume III:
Contributing to a Global Paradigm Shift. Business Expert Press.
Pearson, R., 2017. Business ethics as communication ethics: Public relations practice and the
idea of dialogue. In Public relations theory (pp. 111-131). Routledge.
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Management and Innovation, 14(3), pp.111-126.
Tormo‐Carbó, G., and et.al., 2019. “Don't try to teach me, I got nothing to learn”: Management
students' perceptions of business ethics teaching. Business Ethics: A European
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Wasieleski, D.M. and Weber, J. eds., 2019. Business Ethics. Emerald Group Publishing.
ZAREZANKOVA-POTEVSKA, M.A.R.I.J.A. and POTEVSKA-KOLEVSKA, V.E.S.N.A.,
2017. ENHANCING BUSINESS ETHICS THROUGH SOCIAL
RESPONSIBILITY. Economic Development/Ekonomiski Razvoj, 19.