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Business Ethics and its Importance in Organization | EA Games

University: University of Roehampton London

  • Unit No: 4
  • Level: Undergraduate/College
  • Pages: 14 / Words 3524
  • Paper Type: Assignment
  • Course Code: MGT 301
  • Downloads: 358
Question :

This assessment will cover following questions :

  • Evaluate the ethical issue with the use of relevant sources.
  • Discuss how the company and ethical issue identified affected the society.
  • Analyse five stakeholders in the chosen case and study with the proper discussion how they have been affected by the given ethical issues.
  • Evaluate two companies with the good or bad ethical practices. Use of relevant material ¬†which is needed.
Answer :

INTRODUCTION

Business ethics can be defined as the set rules and regulations which are needed to be followed by business organisation in order to accomplish the target which organisation wants to accomplish within the given time period. It is important to understand that any of the business organisation is not allowed to take those business decision which creates problem for the business organisation. Performance of company can be easily declined if unethical decisions are being taken by the organisation. In context of the file, the chosen case study is EA Games: FIFA, Loot boxes and Whales. It is one of the American based company which is involved in the gaming world. In part A, there will be detail description about the business ethics and its importance and whereas what are the main ethical issues which are being faced by the company. Also, impact on the stakeholders will be explained. In part B, ethical theories will be explained in context of chosen case study. Finally, in second part, there will be the explanation that what are the ethical terms which is needed  by the leader in reflective formate.

PART 1

Importance of business ethics within the organisation

It can be easily said that business ethics plays the crucial role in any of the business organisation as it gives the fair idea to organisation that how company can accomplish their goals in a systematic manner (Hemberg, Syrén and Hemberg, 2018). If any of the business organisation follows the business ethics then then it will become an easy task to take any of the fair decision through which goals can be accomplished easily as per the requirement of a company. In addition, it can easily improve the level of trust for stakeholders towards the company.

Issues of business ethics in the organization given in case study.

The case study which has been given in the file is related with the EA Games which is one of the multinational company which distribute the games worldwide. This games are very popular among the children as they are able to play those games by the choice of their team. Here, company also offers number of loot boxes which has been creating the problem for parents as there are number of game players who uses the cards of their parents in unethical manner due to which parents have to suffer in future period of time. By looking at the situation  the UK department is explaining that they must examine each and every factor to find whether all of the work which has been conducted by the company is ethical or not. On the other hand of side, Vice president of a company is explaining that they are not conducting any of the unethical activity and it is necessary to understand by the users that loot boxes are just for the purpose of fun and providing gifts to gamers (Homann, 2016). 

Role of Business within the society

In any of the business organisation, it is necessary to that company must conduct each and every work in as systematic manner. If in any of  the situation company fails to do so then it might create legal problem for the business organisation. So, by looking at this requirement, it is necessary for business organisation to understand that they must satisfy their customers needs which will directly help the company to accomplish their goals within the specific time period. The second duty which is needed to be understood by the company is that they must conduct those work which can help to improve the level of society. It becomes crucial for  the company to work as per the ethical codes because that will help them to take positive decision for the company. In context of the given case study, the decision which are being taken by EA Games are not in favour of company because it has been creating lots of problem for the users because directly or indirectly, the money of parents are being used in wrong direction (Kaplan, 2017). The wrong concepts are also being generated in among the children because they do not have the knowledge that whether they should give focus on work or whether their target should be related with personal benefits.

While talking about the company, they are needed to make clear about the games which they develop because it is necessary to understand that they must not conduct any of the activity which create problem for the society. Secondly, they must justify among the gamers that loot boxes and whales will not allow anyone to earn the money as it will just incur the expenses as it is just for the purpose of fun. In addition, loot boxes and whales is one of the critical case which means it is necessary to for company to prepare the clause which will explain about its benefit and disbenefits for public at large. If all of this  can be done  by the company then they can easily ensure that company is not conducting any of the unethical terms which can create issues for the public as it will raise the situation where it will be the choice of customers that whether they want to avail the services or not.

Effect of business activities on Stakeholders

Whenever any of the organisation conduct unethical activities then it usually create lots of problem and in this situation the person who suffers the most is stakeholders. It is said that stakeholder are the most crucial member of the company who helps organisation to attain the goals which are preplanned by the company (Wettstein, 2015). Below, there is the explanation about the stakeholders who have been effected the most just because of the activities which are conducted by the company.

  • Customers: In any of the organisation, customers plays the most significant role for attaining the goals and it is necessary to understand that whenever any of this activities are conducted then it create lots of problem. Customers will be affected the most as they will be in the situation where faith on company will not remain same.
  • Shareholders: Whenever any of the negative news arises in the market then it has a direct effect on shareholder because they doesn't fell safe to invest in that respective company. 
  • Employees: It is said that employees are the most important part of the company who gives their best to accomplish the target within the specific time period. If in any of the situation company fails to perform as per the requirement then in that situation employees feel demotivate as their work  is not being appreciated by the customers (Wymer and Rundle-Thiele, 2017).
  • Government: Whenever any of the company perform the business activity at a greater platform them then government also shows their interest towards the company. But it is necessary for company that they must conduct the ethical conduct. In above given case, government be also affected because the will have to commence those laws which can help to resolve the problem and it is one of the serious nature of problem.

Example of good and bad ethics

There are number of organisation which performs number of activities on regular basis and it is necessary to understand that non of the organisation is allowed to conduct those work while falls under the category of bad ethics.  The best example at the moment which can be taken as good follower of ethical code is National Health Care as they follows the codes in a systematic manner. They provide the best treatment to their patient who visits the hospital. On the other of side, EA Games can be picked which is one of the organisation who conducted bad ethics due to which number of people have to suffer on regular basis (Vitell, 2015).

Recommendation

In this respective topic, it is necessary to understand for company that they must not conduct any of those activities which create issues for the public because it will have a direct impact on the result. Here, company should think that how they can clear to public about loot box and whales because company have different concept behind its introduction whereas customers are understanding it in a different manner. Also it is necessary that ethical codes must be followed because that has a direct impact on the outcomes of a company.

REFERENCES 

  • Wymer, W. and Rundle-Thiele, S.R., 2017. Inclusion of ethics, social responsibility, and sustainability in business school curricula: a benchmark study. International Review on Public and Nonprofit Marketing, 14(1), pp.19-34.
  • Wettstein, F., 2015. Normativity, ethics, and the UN guiding principles on business and human rights: A critical assessment. Journal of Human Rights, 14(2), pp.162-182.
  • Vitell, S.J., 2015. A case for consumer social responsibility (CnSR): Including a selected review of consumer ethics/social responsibility research. Journal of Business Ethics, 130(4), pp.767-774.
  • Kaplan, A., 2017. European management and European business schools: Insights from the history of business schools. In Management Research (pp. 211-225). Routledge.
  • Homann, K., 2016. Globalisation from a business ethics point of view. In Globalisation and business ethics (pp. 15-22). Routledge.
  • Hemberg, J., Syrén, J. and Hemberg, H., 2018. Ethical Leadership in a New Light: As Described by Leaders in Public Healthcare. International Journal for Human Caring, 22(4), pp.179-188.
  • PART B

Discussion on Two Ethical Theories

Business ethics is the study of appropriate policies and practices that should be used in the business so that ethical code of conduct is ensured in the company. This means that the business activities do not cause any negative impact on the stakeholders that are associated with the company such as suppliers, customers, government, environment and overall society. It also help in preventing the stakeholders from frauds, scandals, corruption, discrimination and other illegal and unethical activities (Levy, 2016). Ethical code of conduct in the business helps in building a strong brand image of the company which also helps it in influencing its customers to make purchases from the company. It also reduces government intervention in the functions and operations of the business. The ethical theories that can be applied by EA Games so as to solve the problems that are being faced by the company due to unethical code of conduct are discussed below :

Utilitarianism : This theory was proposed by John Stuart which says that an action is morally correct if it brings happiness to people and the actions are morally wrong if they bring unhappiness to people. The idea of this theory is that ethical decisions are made based on the consequences of the actions therefore it is also known as consequentialism theory. This theory can be used by company so as to choose between various options so that greatest good can be made possible for greatest number of people. This helps in building good relations with the general public who are affected by the actions and activities of the business. The sales of the company products and services can also increase with the application of this theory as maximum good is done to people by the company (Wenar, 2017).

EA Games can apply this theory by making its online games in such a way that provides happiness to both the game playing children and their parents. This can be done by regulating the hours that can be played per day by the children so that they do not become addictive for them. This will help in creating happiness to the parents of children and also the children can spend their leftover time in other curricular which will help in their overall development. Also the company should also manage 'loot boxes' so that the bank accounts of parents are not emptied by children in the hope of getting something worthwhile in return which will help in making the parents happy.

The pros of this theory is that it focus on society happiness, helps in making good decisions, it is easy to implement. However, the cons of this theory is that only happiness is the basis of evaluating ethical nature of an action, it creates an unrealistic perspective for society and is unpredictable as the happiness of people at present can convert into their sadness under certain circumstances. So it is recommended that EA Games can along with considering the happiness of people should also consider other factors so that the its actions can be said to be ethical (Pennock, 2015).

Deontology :  This theory was given by Immanuel Kant who said that human beings must be treated with dignity and respect because they have their own rights. In other words it the duty of company to respect the rights of people so that they can be treated accordingly. This helps the company in choosing the option which will help in building good relations with public by respecting the dignity of people. Thus the actions that respects the dignity of people are considered to be ethical (James, 2017).

EA Games can apply this theory so that actions and activities of the business can be said to be ethical if they respect the dignity of parents of game playing children. This can be done by eliminating the 'loot boxes' from their games so that it does not charge money from parents by influencing children wrongfully to make investments in their game in return for something worthwhile. Even if the company continue to use 'loot boxes' then it should provide children with something valuable in return so that the parents are not looted by the company.

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The pros of using this theory is that it is practical to apply, it creates responsibility for company to respect dignity of people. However, the cons of using this theory is that the company has to always do the right thing no matter what even if the costs of company increases, also conflicts might arise among the employees and managers in selecting the best principle involved in decision-making. It is recommended that EA Games should use this theory in a way that can help in maintaining the dignity of game-playing parents by managing the 'loot boxes' so that the children do not spend their hard earned money irrationally (Buchanan, 2017).

REFERENCES 

  • Levy, J.T., 2016. There is no such thing as ideal theory. Social Philosophy and Policy .33(1-2). pp.312-333.
  • Wenar, L., 2017. Why Rawls is not a cosmopolitan egalitarian. In Rawls and Law (pp. 499-517). Routledge.
  • Pennock, J.R., 2015. Democratic political theory. Princeton University Press.
  • James, A., 2017. Constructing justice for existing practice: Rawls and the status quo. In John Rawls (pp. 69-104). Routledge.
  • Buchanan, A., 2017. A critical introduction to Rawls’ theory of justice. In Distributive Justice (pp. 175-211). Routledge. 

PART 2

Reflective Essay of Ethical Leader

An ethical leader is the person who follows ethical values and beliefs so as to monitor and control the activities of team members so that the unethical actions that may harm the dignity and rights of others can be avoided. This helps in generating honesty, trust, consideration among team members so that the decisions that are taken in the company can help in providing benefits to the company as well as the society. This helps in raising an organisation's culture and value of employees so that ethical behaviour is executed which will help in increasing the efficiency of organisation and also increase the performance of the company. A high level of integrity can be promoted among the team members along with building trustworthiness of employees which will help the company in achieving company's goals and objectives effectively. As a manager it is thus important that the roles and responsibilities are performed in an ethical manner which improves the efficiency of the company (Greenwood and Freeman, 2018).

Leaders can maintain integrity and compliance among team members in an organisation by giving value to the organisational rules and regulations and strictly following them so that an impression can be made that it is very important for the efficiency of their performance to integrate with other employees and also by complying with the company rules. Along with this it is important that the managers respect the dignity of all the employees and respect their view points so that they can feel as a part of the team. This will help in encouraging them and will also boost their confidence which will increase the efficiency with which they perform their work. Effective communication is another way by which the actions of all employees can be integrated and their compliance with company rules can be increased (d’Adda, and Et. Al, 2017). 

My experience as a leader helped me become more ethical in my actions so that I could integrate the team members and sole their conflicts efficaciously without hurting the sentiments and dignity of any of the employees. This helped in increasing the confidence of team members in my capabilities and also it boosted their trust in my decisions which helped us in achieving the targets of our team within time and within the budget that was allocated to us. I made decisions by following the ethical decision-making framework which helped me in making good decisions that could benefit both the company and team members. Before coming to conclusion I used to evaluate the consequence of my actions so that appropriate decisions could be made which did not create any stress and tensions among team members. Also I allocated tasks and responsibilities among the team members by evaluating their performance so that the deserving employees could be given the tasks based ow their talents, skills, knowledge and the ability to think critically. This helped in formation of effective teams so that the team members were always encouraged to give their best in the tasks allotted to them. Also my ethical behaviour helped in treating all the employees fairly without discriminating among them based on religion, culture, sex etc. This also increased the confidence of workers and enhanced their work effectiveness.

From the above it can be concluded that ethical leadership is important in order to increase the compliance of ethical actions in the organisation by team members. Also integrity among team members can be increased by encouraging ethical leadership as the employees can be motivated to perform well which can be possible by integrating their actions so that target of teams can be achieved (Ali Chughtai, 2016). Ethics plays an important role in building good relations among team members and also building their trust in the company and their leaders. This helps in efficient decision-making in any situation so that the performance of the team members can be increased.

CONCLUSION

From the above file, it can be concluded that ethical practices plays the crucial role for business organisation and it is necessary to understand that it must be followed. If in any of the situation company fails to perform the ethical code then it has a direct impact stakeholders who plays the crucial role in the company. Ethical theories are the most essential for business organisation because it helps to take some of the important decision within the business organisation.

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REFERENCES

  • Greenwood, M. and Freeman, R.E., 2018. Deepening ethical analysis in business ethics. Journal of Business Ethics .147(1). pp.1-4.
  • d’Adda, G., and Et. Al, 2017. Do leaders affect ethical conduct?. Journal of the European Economic Association .15(6). pp.1177-1213.
  • Ali Chughtai, A., 2016. Can ethical leaders enhance their followers’ creativity?. Leadership .12(2). pp.230-249.
  • Ahn, J., Lee, S. and Yun, S., 2018. Leaders’ core self-evaluation, ethical leadership, and employees’ job performance: The moderating role of employees’ exchange ideology. Journal of Business Ethics .148(2). pp.457-470.

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