Online gambling and social responsibility Essay

The Gaming Industry does not escape as any other industry in acting responsibly and being sensible to the society in which it operates. Since the early 50s and 60s when the gaming industry was targeted and tagged as one controlled by criminals, and as cited earlier in this paper, the industry has been regulated constantly to prevent customers to be the target and profit and limit the expansion of the gambling criminal activities. But with the constant regulatory eye of the government, how can’t the gaming industry act as any other where the main purpose of business activity is the creation of profits? In an attempt to portray the main and traditional intention of a business, Cavico explains that a corporation main purpose in our society is the profitable production and distribution of goods and services (Cavico, 2009). In fact, that is how corporations invest money in a business opportunity to create profits, and gradually based on the market and business condition, look for an expansion of their operations in the search for more opportunities and profits. The online gaming industry, domestic or international, has this intent as their main purpose of existence. Exploring the social responsible side of corporations, John Bussey in a Wall Street Journal article, introduces a justification why companies would benefit from adopting the social responsible side, by mentioning Starbucks’s CEO, Howard Schultz in promoting corporate social responsibility in companies. Also, the article also compares Mr. Schultz’s viewpoint with Milton Friedman’s position. Mr. Friedman said that â€Å"there is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game. † However, Mr. Schultz’s corporate social responsible movement states in contrast that â€Å"companies that hold on to the old-school, singular view of limiting their responsibilities to making a profit will not only discover it is a shallow goal, but an unsustainable one,† and added that â€Å"values increasingly drive consumer and employee loyalties. Money and talent will follow those companies whose values are compatible. â€Å"(Bussey, 2011). With this context in mind, Milton Friedman, in a New York Times article, explains eloquently the role of government and elected representatives are the ones providing all rules, regulations and environment necessary for a responsible and welfare of the society, and concludes that by political principle, this is the main domain of government and not corporations (Friedman, 1970). Thus, how can the Online Gaming industry take advantage of the gambling status quo and be socially responsible, improve acceptance of society, and in return expands their business activities online? The gaming industry has been limited to ground operations based primarily on the fact that they have already impacted vulnerable customers in our society. Several aspects such as financial instability, emotional and psychological impact, and addiction to both gambling and internet use, are the negative factors to consider in the public forum and discussion for internet gambling acceptance in our society (Griffits, 2002). Many medical studies revealed how customers are socially, psychologically and economically impacted by the persistent side effects of online gaming and what how the medical community defines this type of addiction risk as pathological gambling (Harvard Health, 2004). Pathological gambling as disorder presents in addicts preoccupation of past, present and future, need to increase wagers, repeated unsuccessful efforts to stop or cut back, escape from every day problems, restlessness, committing illegal acts to finance gambling, lying, losing or jeopardizing careers or family relationships, and/or requesting gifts or loans to pay gambling debts (Harvard Health, 2004). With this context, gambling customers are exposed to either initiate these behaviors, continue with their present trends, or making them worse in the future without adequate education and/or professional counseling. To make matters worse, the technology diversification found on intelligent mobile devices such as intelligent phones and tablets, besides computers at home, are an open channel for many individuals to internet gambling (Griffits, 2002). With the recent trend of extensively social networks use, the elevated impact of texting or posting comments anytime and anywhere, and the serious accidents seen in recent years, lawmakers will see very difficult to work with both sides: either advocating the main purpose of online gambling on the merely entertainment business grounds, and thereforerelaxing their current   limitations and prohibition, or to promote the prohibition of the such business operation medium. Still in this background, the recent mobile technology diversification and the potential increase of compulsive behaviors mentioned above, will make matter worse to build a positive case for this industry. In response to create awareness among operators, regulators and the public of the potential problem that internet gambling represents, the National Council on Problem Gaming, an organization founded in 1972 as a non-partisan, non-profit organization that is neutral on legalized gambling, advocates for programs and services to assist problem gamblers and their families, published in April 2012 an Internet Responsible Gaming Standards. The document available at ncpgambling. org shows a summary of recommendations to nationally advocate programs and services to help problem gamblers and their families (National Council 2012). The NCPG is one of the many initiatives found domestically to provide support to Internet gambling addicts and promote awareness. Other organizations such as the Gamblers Anonymous (gamblersanonymous. org) and National Center for Responsible Gaming (ncrg. org) are among non-profit organizations dedicated to assist, advocate and promote responsible gaming practices and the development of effective prevention and treatment strategies for gambling disorders among all legislators, regulators, researchers, treatment professionals, industry representatives and informed citizens. On the consumer side, and according to the American Gaming Association (AGA) website, while current U. S. laws prevent the use of betting on online sites which are mostly based overseas, American consumers feel that both technology and times have changed, and the internet gambling option is something that should be passed by congress. Presently, consumers are exposed to either prosecution by federal authorities, or to the mercy of overseas gaming companies out of the jurisdiction of U. S.authorities, making this more difficult and risky (AGA 2012). Viewing the aspect of social responsibility from a different angle, other industries found beneficial exploring and integrating the corporate social responsibility (CSR) aspect to the point that is now incorporated as part of the daily business activities. The interest and move for being a CSR company follows, as Cavico states, that a corporation cannot sustain economic viability in an even, unstable and deteriorating society. In some examples portrayed by Cavico, Google efforts to combat poverty, Starbucks assisting growers in developing countries, and Microsoft supporting the fight to obesity among employees, are some examples of the efforts companies employed to be more appealing to the cause of social responsibility (Cavico 2009). Being attractive has two other focuses. Number one, gain better public image with society and consumers, and number two, improve attraction to investors who are looking for environmentally responsible companies. For example, Starbucks customers are more sympathetic to consume coffee knowing that it comes from a fair certified grower. At the same time, Starbucks improves and changes the marketing strategy, makes themselves more appealing to socially minded investors (Cavico, 2009). Within the same context used by other companies, currently gambling corporations follow the same concept of the CSR entity with the assistance of the American Gaming Association (AGA, americangaming. org). Each company that is listed under the AGA website lists their own efforts to be more socially responsible providing programs at employee levels, support the National Council for Responsible Gambling and promote responsible gambling through websites. However, each one follows in this respect the same rhetoric of cooperating or supporting an organization, but there are no references to case studies, or links explaining the success in other areas such as schools or universities, or expanding the actual work of being a CSR company that cares about their customers and society, failing to make a stronger case in search of acceptance and informing the society. In contrast, Google provides in their corporate page detailed information for each assisting program the company is involved domestically and internationally. The authors believe that here is where the industry can make a major case and effort to improve their future expansion into the online arena. It is certain that corporations in general are under the scrutiny of two entities. First, society in general who looks for these organizations to be corporate socially responsible, and recognized as major driver providing work opportunities in several areas of the country. Also, divulging that part of their current CSR efforts are producing results by means of improvement in areas of concern such as education, income and health. Second, the company, by promoting their CSR efforts and results, will become more attractive to conscious investors who are looking for CSR companies with excellent CSR results investing their profits in those communities where they operate. Finally, the authors believe that the internet gambling industry has a good opportunity to remove old labels as threats to society by lessening the potential impact in society with addiction and other illegal activities related, and to build and expand their CSR plans to move into the direction other companies enjoy with the public opinion. This industry has the capacity and capability to deliver a strong case that online gaming is another entertainment activity, and that it will act socially responsible, not only giving back to their communities, but also operating in thorough and healthy regulatory environment. Most importantly, the industry can take advantage that the 21st century American society is more open to accept the industry if it displays results back in the search of a case for their future domestic online service. References Cavico, Frank J. , and Bahaudin G. Mujtaba.Business Ethics: The Moral Foundation of Effective Leadership, Management, and Entrepreneurship. New York, NY: Pearson Custom Publishing, 2009. 12, 162-169 Friedman, Milton (1970). The Social Responsibility of Business is to Increase its Profits. New York Times. Retrieved from ttp://www. colorado. edu/studentgroups/libertarians/issues/friedman-soc-resp-business. html. Accessed on 2 September 2012. Bussey, John (October 2011). Are Companies Responsible for Creating Jobs? Wall Street Journal (Online), pp. n/a-n/a. Retrieved from http://online. wsj. com/article/SB10001424052970204505304577001930473006096.html? mod=WSJ_business_LeftSecondHighlights. Accessed on 2 September 2012. Griffits, Mark D. and Parke, Jonathan (2002) The Social Impact of Internet Gambling. Nothingham Trent University, Department of Political Science. Retrieved from http://www. eou. edu/~jdense/griffithsparke. pdf. Accessed on 06 August 2012. Harvard Health Publications, Harvard Mental Health (March 2004). Problem Gambling. Retrieved from http://www. health. harvard. edu/newsweek/Problem_gambling. htm. Accessed on 24 August 2012. National Council on Responsible Gambling (2012). Public Education and Outreach. Retrieved from.