Business culture which is practiced within a

Business ethics and moral values are central
to any organization which determines the organization vision and values. Investors
will be interested in the organization which will follow ethics and moral
values. “Business ethics
can also be defined as a culture which is practiced within a business which
enables a business to make decisions and actions which are according to the
principles of an organization”. Business ethics are important as they define
the morals and behaviors of an organization (Nieuwenhuizen and Oosthuizen
T.F.J. (ed) 2014:93).


In this discussion, I am evaluating about a
company on how it violated business ethics and morals. Micro-Games America Entertainment Inc. (MGA
Entertainment) is an American manufacturer of children’s toys and
entertainment products founded in 1979.


In June 2016, Isaac Larian CEO of MGA
Entertainment Inc. watched viral videos of kids unboxing toys on YouTube. After
watching toy videos Larian challenged his team to come up with an idea. Five
months later MGA released L.O.L surprise a small plastic sphere concealing a miniature
doll and its accessories. Toy which made up 50 bundle tiny items which kids can

unwrap has landed at the top of many 2017 best toy lists.

This toy sold at both Toys “R” Us and Amazon. Larian took a decision to shift
away from running spots during kids’ TV and cable programming and instead he
wanted MGA products into the hands of kid influencers on YouTube. Board members
was unhappy with this decision and they were under feeling that Larian is
wasting money and time by this kind of decisions. But decision that took by Larian
to have MGA’s marketing go 90 percent digital which created hits for Bratz and Lalaloopsy
dolls. Larian thinking about continuing shift of toy-age from traditional kid’s
TV programming to social media, where kids can view and share with friends
about the videos about the toys they want and according to Larian since 2012
kid influencers on YouTube have increasingly captivated their peers by posting
videos of themselves unboxing, reviewing and playing with toys.


According to Neilsen reports 53 percentage of
kids who fall under age group from 6-11

watched Disney Channel in 2017 cable season than in 2008,
and 54 percent fewer watched Nickelodeon. Meanwhile 32 percent of kids said
they prefer watching videos on a non-TV device in 2016.  There was a time when companies used to put
product on TV so that kids watch these videos and companies can make money out
of it. Based on these analysis Larian decided not to waste any money with TV
anymore rather he wants to go with digital influencers viral marketing. That
shift has provided a bonanza for YouTube reviewers among them a family known as
kidToyTesters. This group is of five siblings have made videos featuring toys including
Mattel Inc., Habro Inc. and MGA. This group also produced sponsored videos for
17 brands including Nitendo, Spin Master and wicked Cool toys.


This article states that company is not
following ethics and morals. Stakeholders of this company didn’t follow any
vendor conduct Principles (Cachon. G and Terwiesch) and they violated
utilitarian rule (Mauresan A and Borza A) which is very important for any
company which want to produce the greatest goods to customers. These days’ kids
are very attractive to YouTube channels to see rhymes and cartoon stuff, by
looking into the analytics data KidToyTester came to idea to create videos of
toy and release on YouTube so that children will share videos with parents to
buy these toys. This thinking from KidToyTester group was obstructionist
approach. Lee (founder of KidToyTester) believe that company will make 70%
percent of their annual revenue over the holiday season as companies promote
their toys.



wants to create videos of toys and release on YouTube. As there are dealing
mainly with age group of 6-11 children gets more attracted to toys and they
want to buy it whatever they see on YouTube. Company violated to teach ethics
ombudsperson to their employees. Customers are affected by these kinds of
decisions that company make.  MGA
Entertainment Inc. wants to sell their products to children by showing unboxing
videos of toys in YouTube by violating ethics and moral right rules.


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